So we're at the end of another year, 2020 has come to a close and we are now looking forward to 2021. But what's going to happen in the real estate market, you might be wondering. Well, today I'm gonna bring you my top three predictions for the real estate market in 2021. Big shout out to all of our past clients and some future clients. Thank you so much for your support and business this past year, it's been a joy working with you and for you. And we really appreciate everyone that we've been able to help and serve. So let's get to the top three predictions that I have for 2021.
So these are predictions, they are not always accurate. I just watched my video from last year and it was interesting. But I do have a couple of things that I think that we should be aware of going into 2021. So my first prediction is really I do think prices are going to continue to go up for single family homes and townhomes. The reason for this is the interest rate is still very low which is encouraging to buyers to go out and actually purchase at such a low, historically low interest rate. And that does help increase the value of homes because with lower interest rates, people can afford more in terms of their loans. Loan limits have also gone up for 2021. So now people can still be in conventional limits and afford more when they're doing that and taking out a loan. In addition to that, I don't actually see the Seattle market slowing down. Bigger companies like Google and Facebook are still leasing and they are still purchasing land. So while we may be having a different working from the office environment, I do believe that companies are still building in Seattle, and that they are still invested in Seattle as a place to be. That in conjunction with the fact that we do not have enough homes for as many people who want to be here always makes the prices go up. And so the demand is definitely stronger than supply currently, and I believe it will be into 2021.
Now, my second prediction for 2021, this might be a little controversial but I'm just gonna say what I personally feel. I do think that the condo market will come back in 2021 and that people will be more willing to purchase condos and that the value of condos will continue to go up. Now, in 2020, we saw the value of condos go down quite a bit. And that was mostly because of the pandemic. I think once a vaccine starts to come out and once people realize they can resume to somewhat normal life, that we will see people more invested in condos and they will be open to living closer to downtown or in neighborhoods where they can access lots of different things that hopefully open back up with the vaccine. So that's my personal opinion. I believe that people will be excited to get back to being social after being home for so long but that is not necessarily an opinion that everyone shares, so I just wanna caveat that for sure.
My third prediction is really mostly around what we've seen going on in COVID already. I believe that single family or standalone homes will still be the most desirable especially homes with dedicated work from home space or home gym space and outdoor space. I don't believe there will be more demand in specific neighborhoods than others. I think that if anything, there could potentially be more demand in neighborhoods closer to downtown as the vaccine starts to come into play and as people feel safer going out in public. Now, I think that's going to happen because I do think that some people have the desire to live closer in and closer to a city. That is not the case with everyone though. So you may see that a lot of people are still going out and actually purchasing outside of the city. But I do think that people are going to continue to buy single family homes at the most rapid rate or at the highest price. And that will probably be what drives the market in 2021.
Now, my last sort of prediction, the extra icing on the cake, a little extra one, the fourth one if we were going to have a fourth one, I do think that the second home market will continue to stay strong through 2021. I think that there was a lot of uptake in the second home market in 2020 because people were looking to get out of the city and be in more remote locations with more space. I think that will continue and I think second homes will be seen as more livable because people may have different work from home schedules and they may be able to have additional time off like maybe working remotely on Friday and Monday and the weekends. So second homes could definitely be a more viable option than they might've been before. So those are my top three predictions about the Seattle real estate market in 2021.
Those are all coming from me personally and not an opinion of anyone else, just me. So if you found this valuable, hopefully you'll follow along. Be sure to subscribe to our YouTube channel and check out all of our other videos for stuff like this as well as updates on the real estate market. And don't forget, you can always reach out to us if you have questions or want to talk more about real estate. You can call, text, direct message or email us any time, and we'd love to help you. Thanks for tuning in, we'll see you again next week.