This Monday with Mathew is the last one of 2020 and a prediction for the coming year 2021. Overall it is looking good for buyers as the market is predicted to start normalizing. Sellers have had the upper hand for a while now due to several factors but that appears to be changing. Mortgage rates are likely to bottom out in the current quarter but only a slight increase is predicted for 2021 and even into 2022. Property value is also set to increase but at a slower rate compared to large gains in 2020. New home sales are expected to increase significantly as long as inventory also increases from the record lows we have seen. Inventory across the country is likely to increase for several reasons including demand for new construction despite high building costs. Another point of inventory increase is the forbearance rate in 2020 which expire in the coming year. Although there will be an increase in foreclosures, it is likely more of a trickle rather than a flood we witnessed back in 2008. Home owners were in a much better place at the begining of 2020 as compared to the irresponsible lending leading up to 2008. Steady value increases since 2012 will likely allow sales, rather than foreclosures, due to the large sums of equity built up. The bottom line is that a housing bubble is not likely forming but price growth will begin to slow and sellers may have a less favorable market. First-time buyers will continue to be a major player in the market and suburban area are the prefered location for many. Please note this is only a prediction and not intended as investment advise.