Last year, real estate had one of its best performances ever. However, many involved feared the market would collapse due to the pandemic. Despite their worries, home sales and prices were both up substantially over the year before. After 2020, many now fear the market’s exuberance mirrors that of the last housing boom and, as a result, we’re now headed for another crash.

What topics are on the minds of top real estate professionals for 2021? HomeLight’s Top Agent Insights report identified key trends expected to affect housing the most in the new year.

The driving factor for increased luxury home sales in 2021 is predicted to be the continued demand for single-family homes, remote work, and the need for outdoor space.

Prop 19, gives new property tax breaks to certain homeowners (55 years and up or the severely disabled), increases property taxes for those inheriting properties and even tacks on some extra tax relief for Californians affected by wildfires.

According to a forecast from economists at realtor.com home prices are expected to rise more than 5% in 2021, even as the broader economy faces a longer road to recovery,

While rates are still lower today than they were one year ago, as the economy continues to get stronger and the pandemic is resolved, there’s a good chance interest rates will rise again. Several top institutions in the real estate industry are projecting an increase in mortgage rates over the next four quarters.