Bankrate shares what they expect to be the five major housing trends in 2021. Based on the predictions of housing experts who spoke at a virtual conference of the National Association of Real Estate Editors, mortgage rates will rise from record lows. The trends suggest home-price gains will slow, and Americans will continue their migration to less dense regions and lower-cost housing markets.

Five Major Housing Trends in 2021

Trend 1: Mortgage rates will edge up in 2021

The National Association of Realtors expects mortgage rates to average 3.1 percent in 2021, up from 2.5 percent in 2020. The Mortgage Bankers Association says rates will average 3.3 percent in 2021.

Trend 2: Home prices will keep rising, but not as quickly

This year, home values have soared due to rock-bottom mortgage rates, limited supply of homes for sale, and strong demand.

Trend 3: Americans are flocking to the ‘burbs

“People are moving from high-cost markets like California. New York, New Jersey, and Illinois,” says Frank Nothaft, chief economist at real estate data firm CoreLogic. They are moving to Texas and Florida.

Many buyers are looking for bigger homes with home offices, home gyms, and spacious yards, with Americans spending more time at home.

“Even people who were very content with their homes before the pandemic, now many think their home is too small.”

Trend 4: Some homeowners will struggle.

Lawrence Yun, the chief economist at the National Association of Realtors, says struggling homeowners will be able to sell their way out of trouble. While some homeowners will default, and the foreclosure numbers will increase, most will sell before foreclosure.

Trend 5: The VA loan market is on fire

VA loans once were an afterthought, making up just 2 percent of overall loan volume. VA loans now are about 10 percent of the mortgage market. Chris Birk, director of education at Veterans United Home Loans, says, ”VA loans have mostly shed the perception that they were “inferior” to other types of mortgages. This was a truly historical year, the biggest year in the history of VA lending.”

VA loan volume nearly doubled from 2019 to 2020. It was the first time the VA has issued more than 1 million loans in a year.

“Younger veterans are driving demand,” Birk says. “VA loans require no down payment and have loose requirements around credit scores, allowing veterans to accelerate their home-buying schedules.”

“They don’t need to spend years saving a down payment. They don’t need to build pristine credit,” Birk says. “They’re able to jump into the housing market well ahead of their civilian counterparts.”

Let Us Add Our Prediction for 2021.

Several of those predictions could turn out to be very wrong.  These experts are ignoring signs of high inflation ahead. If you look at the money supply since COVID hit us, it has been soaring. The government has gone on a spending binge, and the country is borrowing at least two trillion dollars a year. There seems no end to plans to spend the money the FED prints out of thin air. The first indication of coming inflation is in food. Already we see food shortages (in San Antonio recently, ten thousand cars lined up for free food), and food prices are rising. The basics of building and raw materials such as copper, lumber, and oil are going up. How will the FED keep interest rates this low when inflation gets ugly? Other indicators of coming inflation, gold, silver, and Bitcoin. are forecasting higher prices.

2021 may be as neutral as the experts predict. In case they are wrong, however, be prepared for inflation.

Paige Panzarello, the “Cashflow Chick,” Founder of The Tryllion Group, Investor/Entrepreneur having done $150 Million+ in real estate transactions; Specializing in Non-Performing Notes. She has been a regularly featured guest on “The Cashflow Guys” podcast, and you can also find her on many other Real Estate and Entrepreneurial podcasts and in the Wall Street Journal as well.  She also speaks at various Real Estate Investing clubs and conferences across the country. Paige teaches the “Building Wealth with Notes” Workshop that drills down into the details of how to successfully buy Non-Performing Notes, create passive income, and mitigate risk. www.CashflowChick.com/training

Surviving the crash of 2007, Paige knows how “life happens” every day. Her passion is to help people build wealth, secure their financial future, enjoy life, and be ready-not broken! Whether it is improving communities one house at a time, assisting borrowers in staying in their homes, or working with other investors to learn a new way to earn higher investment dollars for their retirement years, Paige potentially dedicates herself and her business to helping people improve their lives in every way.  For more information got to www.CashflowChick.com