January 28, 2021 | Market Update

Market News 1-29-2021

Where People Are (And Aren’t) Relocating

Moving within the next year is on the minds of about half of Americans. The majority of potential homebuyers are planning to stay in the state where they currently reside. Generally speaking, states in the south, southwest, or Midwest have the highest retention rates amongst movers. States on the east and west coasts have the highest percentages of buyers seeking to leave. New York has the lowest retention rate at 75%; Texas has the highest rate at 93.57%.1

Target Gen X and Millennials

Generation X and millennials are about to unleash their buying power, and over the next seven years they will shake up the housing market. Projections indicate that the number of American households will increase by up to 12 million by 2028 because of new generations joining homeownership. Millenials’ largest cohort of 28-to-30-year olds is quickly approaching the average homebuying age of 33.2

Housing Predictions for 2021

Last year’s housing market momentum continues to drive strong sales and rising home prices. With interest rates trending upward, expect refinances to taper off in 2021 compared to 2020. New housing stock will become available – builders are ramping up activity in the suburbs and coronavirus-related evictions are bringing additional properties to market.3

Market Recap 2020

Here are some data points of note for the industry that compare December 2020 to a year prior: Permits for new construction are up 17.3%. Permits to build new single-family homes also are up but by more than 30%. Home sales volume has increased 22.2%, while available homes for sale are down 23%.4

Trending Bathroom Colors

Can’t decide what color to paint your bathroom? 2021’s hottest colors are soothing shades of pale blue or moody green for a bold statement. For more versatility, try a warm neutral or chalk white. To infuse the space with more energy, choose earthy yellows to brighten up your day.5

Sources: 1Realtor Magazine, 2Realtor.com, 3Yahoo, 4Mortgage News Daily, 5Better Homes & Gardens