Furthermore, the time it takes to offer a home will slow from the late 2020's craze, but quickly sales will remain in numerous parts of the country, which will be especially difficult for newbie buyers discovering the ins and outs of house buying. Sellers will continue to hold the advantage throughout 2021 as the variety of buyers in the market surpasses the number of houses for sale. House prices will not grow as fast as they did in 2020, but constant increases will continue to press house prices to new highs. In addition, sellers can expect their home to offer reasonably quickly in 2021, so having their next home lined up will be essential.
Purchasers in 2020 received a huge boost in price as mortgage rates pressed to new lows throughout the year, however, a lack of stock and strong need drove rates up, erasing the majority of the boost. As mortgage rates are no longer able to combat increasing house rates, price will be checked for purchasers across the board in 2021. Home price increases are expected to slow as affordability gets stretched throughout the year. Buyers will need to act with a sense of urgency if they want to lock in a low rate before house prices increase even more in 2021. A lack of homes for sale has afflicted the U.S.
The problem just magnified in 2020, in large part due to an approximated deficiency of nearly 4 million freshly constructed houses heading into the year, in addition to sellers pulling back due to the pandemic. The variety of homes for sale is anticipated to slowly rebound in 2021, however the road to healing will be long since the market needs to make up for several years of decreases. Additional houses hitting the marketplace will use purchasers some relief in 2021, however it won't be sufficient to tip the scales in favor of purchasers. As stock slowly begins to renew and purchaser demand for houses stays consistent, sellers will continue to remain in the driver's seat.
Now, increasingly more workers are discovering the flexibility to work remotely. This has triggered intense interest in suburban houses, even more exaggerating a trend that had actually been gradually emerging over the last couple of years. The big concern is what need will look like when a coronavirus vaccine is extensively readily available. If companies require workers to go back to the workplace, demand may wane. Alternatively, if business commit long-term to remote work, demand for these houses might see an extra increase in 2021. The deck is stacked with wildcards for 2021. The most impactful will be the United States' ability to control and contain the spread of Covid-19 in addition to distribute a vaccine.
On the other hand, if a vaccine is presented rapidly, it might lead to better than expected sales and a strong increase for home prices and inventory. The Home Affordability Forecast In any case, Covid-19 will have a large effect on the U.S. housing market in 2021. The possibility of a double-dip economic downturn is still in play for 2021. As the country continues in a K-shape recovery, a space is broadening in between those with and without jobs in addition to industries recovering well versus those seeing continued lack of business. In the short-term, this might cause less customer spending which could more broadly impact services and economic growth.
The current concern is the length of time the K-shape can diverge prior to the impact begins to waterfall into the wider economy and other previously less-affected sectors such as housing.