The short answer is that a severe market downturn appears highly unlikely. There’s too much demand for homes right now, and not enough supply. This imbalance will likely shield the market from price erosion in 2021, as it has done over the past ten months.
While no one can predict future real estate or economic trends with complete certainty, we can say this. At present, it seems highly unlikely that the housing market will experience a major downturn or “crash” in 2021.
The U.S. housing market was on strong and stable footing going into the current pandemic situation. Sure, it slowed to a crawl back in April, as the seriousness of the coronavirus pandemic set in. But there was still a lot of “pent-up demand,” as economists call it. Now, we are seeing that demand unfold in the form of steady home sales nationwide.
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