What to expect in the RE Market in 2021 and what’s happening now?
I know it’s hard to tell with everything we have going on. I get it, I’ve seen so many different markets over the last 25 years and after this unprecedented and unfamiliar market, I’ve seen it all.
Let’s start by looking at the most recent data From July 2021. On year-over-year home price appreciation, FHFA is showing that home prices have appreciated by 19.2 percent.
CoreLogic is showing year-over-year appreciation at 18 percent. And the S&P Case Shiller index is showing 19.7 percent. Crazy right! But what does this mean going forward?
Ivy Zelman says, “Closings are set to decline roughly 10 percent year over year in the second half of 2021 and home price appreciation is on the cusp of flipping to a decelerating trend.” This does not mean that your home will decrease in value, it means that it will appreciate at a slower rate.
If you are looking to buy, now is the time to get a large amount of appreciation in your new home right off the bat! Now, According to Ali Wolfe, interest rates seem to be the biggest factor in today’s market. Ali says, ” It’s a real possibility next year and could bring prices down. Further, other economic, financial and confidence challenges could also result in a drop or flattening of home prices, but a drop or flattening in home prices is a far cry from the crash we saw during the great recession.”
The economy is recovering, just not as quickly as you would hope. The 30-year fixed just jumped above 3 percent as recorded by Freddie Mac. It’s crazy that we’re talking about a rising interest rate environment with those numbers. And that jumped up as they’re starting to see indications of the tapering in buying mortgages.
The market is still hot and buyers are active. Look out for more information about the housing market and how it may affect you. Reach out anytime even if you’ve just got questions. Our goal is helping grow wealth while protecting your real estate investment for over 25 years.