Where Is The Real Estate Market Headed This Year?
With this year beginning to look and feel more like a “normal” year now that vaccinations are available to all and the economy is opening up, many people are wondering what is in store for the real estate market. We have been observing the ongoing pattern of low inventory for a while now which is having its challenging effects on the number of sales. For the month of April existing home sales were down from the month before due to this shortage of supply yet are up by 20% over that of last year per data from the National Association of Realtors. This is where things are now but what is expected to come for the second half of the year? Here is some insight from key figures in the industry.
Realtor.com
“. . . homes continue to sell quickly in what’s normally the fastest-moving time of the year. This is in contrast with 2020 when homes sold slower in the spring and fastest in September and October. While we expect fall to be competitive, this year’s seasonal pattern is likely to be more normal, with homes selling fastest from roughly now until mid-summer.”
Freddie Mac
“We forecast that mortgage rates will continue to rise through the end of next year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.”
National Association of Realtors (NAR)
“Sellers who have been hesitant to list homes as part of their personal health safety precautions may be more encouraged to list and show their homes with a population mostly vaccinated by the mid-year.”
Danielle Hale, Chief Economist, Realtor.com
“Surveys showed that seller confidence continued to rise in April. Extra confidence plus our recent survey finding that more homeowners than normal are planning to list their homes for sale in the next 12 months suggest that while we may not see an end to the sellers’ market, we might see the intensity of the competition diminish as buyers have more options to choose from.”
In sum, the forecast looks promising. If you have any questions about what is happening in your particular neighborhood, please feel free to reach out.