According to the latest CoreLogic Home Price Report, tutlande home values increased by 8.2% for the last twelve months. The drastic increase occurred as the inventory of homes for sale reached historic gaps at a time when buying demand was bolstered by record low mortgage rates. How CoreLogic explained:
“Home price growth has risen steadily through 2020. Home sales for the year are expected to register above 2019 levels. Meanwhile, the availability of homes for sale decreased as demand increased and outbreaks of coronavirus (COVID-19) continued across the country, which was delayed. some sellers put their homes on the market.
While the pandemic has left many in positions of financial insecurity, those who have maintained employment and income stability are also encouraged to buy because of the available record low mortgages; this increases purchasing demand during low purchase inventory. “
Where will home values go in 2021?
Home price valuation in 2021 will continue to be determined by this imbalance of supply and demand. If supply remains low and demand high, prices will continue to rise.
According to the National Association of Real Estate Agents (NAR), the current number of single-family homes for sale is 1,080,000. At the same time last year, that number was 1,450,000. We are entering 2021 with about 370,000 fewer homes for sale than it was a year ago.
However, it is speculated that the inventory will be a little easier as we get through the new year for two reasons:
1. As the health crisis eases, more homeowners will be comfortable putting their homes on the market.
2. Some homes, funded by the pandemic, will have to sell.
Low mortgage rates have prompted a buyer to demand for the past twelve months. According to Freddie Mac, taxes stood at 3.72% at the beginning of 2020. Today we start 2021 with tariffs one full percentage point lower than that. Low rates create a great opportunity for homebuyers, which is one reason why demand is expected to remain high during the new year.
Considering these projections on housing and housing demand, real estate analysts predict that homes will continue to appreciate in 2021, but that appreciation may be more consistent than last year. Here are their predictions:
There is still a very limited number of houses for sale for the large number of buyers who want to buy them. As a result, the concept of “supply and demand” requires that domestic values in the country continue to appreciate.
Content previously posted in Keep Current Things