2020 Was a Surprisingly Strong Year for Housing. Here's Why 2021 Will be Stronger.
By Matthew Speakman on Dec. 17, 2020
We expect 5.7 million existing homes to sell by the end of 2020, up 5.9% from 2019.
In 2021, we expect almost 6.9 million closed existing home sales, the most since 2005 and the biggest one-year gain in sales (21.9%) since the early 1980s.
Home sales and price growth quickly re-accelerated after a brief pause in the spring, and the housing market has become a true silver lining in what has otherwise been a tumultuous year for the economy. We expect this wave of home value and sales growth to continue to grow into 2021, putting next year on pace to be the strongest year for the housing market since 2005. Remarkable Sales Activity Zillow’s expectation is that 5.7 million existing homes will be sold by the end of this year, up 5.9% from 2019. This growth – a testament to enduring and resilient consumer demand for housing – reverses a period of sales stagnation from the past couple years, and is a remarkable achievement on its own given the ongoing difficulties and uncertainties posed by the pandemic. But while 2020 will end up being a strong year for the housing market by most measures, it will pale in comparison to 2021. We are forecasting almost 6.9 million existing homes will be sold in calendar year 2021, the most sales recorded in a single calendar year since 2005 and the largest one-year increase (21.9%) since the early 1980s. Read more