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Editor@DSNews.com. Journal
SOUTHERN
SURGE LEADS
RECORD HOME
SALES FORECAST
A new analysis by Redfin has found that,
for the calendar year 2021, a record $2.53
trillion worth of home sales will transact in
America—a 17% year-over-year gain and the
largest annual increase in percentage terms
since 2013.
Fueled by record-low rates, strong
demand, and a wave of migration made
possible by remote work, the market comes
into a strong spring season after suffering
some weather-related setbacks to start the
year. ese factors helped March become the
hottest month in housing history, with home
values, price growth, and selling speed all
hitting new heights.
"We expect 2021 to be an even more
active year for the housing market than
2020 because homebuyers have a better
sense of what the future looks like," Redfin
Chief Economist Daryl Fairweather
said. "Employers are providing clarity on
permanent remote-work policies, the economy
is recovering, and mortgage rates remain low.
All of these factors mean that we'll likely see
even more buyers enter the market this year
and in 2022."
According to Fairweather, home prices
could grow more slowly if mortgage rates rise,
resulting in a more balanced housing market,
which could lead to more home sales.
e Southern part of the U.S. is expected
to lead the charge, with $1.09 trillion of home
sales forecast for 2021, followed by the West
with $696.3 billion, the Midwest with $422.6
billion, and the Northeast with $322.8 billion.
Fairweather noted that the South has
consistently held the top spot, but has inched
further ahead in recent years, likely because
it has more vacant land on which to build
and has attracted scores of out-of-town
homebuyers who are in search of affordability
and space.
And proof of a rising market in the South
is evident in markets such as Atlanta, where
Redfin Real Estate Agent Andrew Kolodey
unprecedented bidding wars.
"Offering above a seller's asking price was
never the norm in Atlanta like it was on the
West Coast, but now it is. Today, it's typical for
a buyer to bid $50,000 or $70,000 over the list
price in order to win," Kolodey said. "We've
never experienced this level of competition.
A bidding war here used to mean up to five
offers. Now it means 15 to 20 offers."
