The year 2020 might have hit homeowners trying to sell their properties around the U.S. harder than expected, but 2021 might change that. 

The 2021 market will mainly be for sellers, which means buyers will have more options when finding their dream home. 

The downside of the 2021 market for buyers is that interest rates and prices are predicted to increase, according to Realtor.com’s 2021 housing forecast.

“The 2021 housing market will be much more ‘normal’ than the wild swings we saw in 2020. Buyers may finally have a better selection of homes to choose from later in the year, but will face a renewed challenge of affordability as prices stay high and mortgage rates rise," said Danielle Hale, chief economist for Realtor.com.

Mortgage rates could rise to 3.4%.

Home sellers are on the positive side of this real estate spectrum. Coming out of 2020, there is expected to be more potential home buyers and increases in home prices will slowly rise. Sellers might see bigger gains than they would in other market years. 

Home sales are predicted to see a 7% increase, while new construction properties will see a 9% increase over 2020, according to Realtor.com. 

Home buyers and home sellers should be wary of the economy shifting to a double-dip recession.

Some areas around the U.S. have seen big gains. For September, California’s median home price reached $712,430. It marked the fourth-straight month of record highs.

“Housing prices were notably – I am tempted to say ‘very’ – strong in September,”  Craig Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices, told CNBC. “This month’s increase may reflect a catch-up of COVID-depressed demand from earlier this year; it might also presage future strength, as COVID encourages potential buyers to move from urban apartments to suburban homes. The next several months’ reports should help to shed light on this question.”

A house forsale in Northeast Washington, DC A house forsale in Northeast Washington, DC Photo: GETTY IMAGES NORTH AMERICA / Drew Angerer