The real estate market boomed during the second half of 2020. Buying demand grew, and the supply of salable homes reached record lows. The price of anything is determined by the proportion of demand and supply, so domestic prices exploded last year. Dr. Lynn Fisher, Deputy Director of the Federal Housing Finance Agency (FHFA) Division of Research and Statistics, explains:
“House prices nationwide recorded the largest annual and quarterly growth in the history of the FHFA Home Price Index. Low mortgage rates, complaining demand from homebuyers and limited housing supply have pushed every region of the country to experience faster growth in 2020 compared to a year ago. year in spite of the pandemic. ”
Here is the year-end domestic price index of FHFA and two other prominent price indices:
Last year was a really remarkable time for homeowners as prices were considerably appreciated. Lawrence Yun, Supreme Economist at the National Association of Agents of Agents (POMEGRANATE), reveals:
“A typical homeowner in 2020, just being a homeowner, would have accumulated about $ 24,000 in housing wealth. “
What will happen to home prices this year?
Many experts believe that buying demand will soften slightly when mortgage rates are ready. to strike a little. Some also believe the inventory challenge will be easy more lists come to market this year.
Based on that, most forecasters predict that we will see a strong appreciation in 2021 – but not as strong as last year. Here are seven prominent groups and their projections:
Home price appreciation will be strong this year, but it won’t reach the historic 2020 levels. Let’s get connected if you’d like to know what your home is worth in our local market right now.
Content previously posted in Keep Current Things