Top Housing Market Predictions for the New Year

Top Housing Market Predictions for the New Year

(AmericanProsperity.com) – While 2020 left many industries hurting, the housing market enjoyed a huge boost. This year brought record-low mortgage rates, huge growth in home prices, and a fascinating surge of city dwellers heading to more remote areas. With this, experts have made a few predictions about what 2021 could bring.

Freddie Mac and the Mortgage Bankers Association believe home prices will continue to grow around 2% next year. CoreLogic has a more conservative estimate of .2% growth; either way, the market will still be hot. Compare that to the growth between 2019 and 2020, shared by the Federal Housing Finance Agency:

As savings run out and additional jobs are lost, many experts also believe another wave of foreclosures will hit in 2021. But, that’s countered by Fannie Mae’s predicted 17.1% surge in new construction of single-family homes.

Lastly, nearly everyone agrees that mortgage rates will stay incredibly low, hovering between 2% and 3% through 2021.

While no one can truly predict what the new year will bring, most experts agree that 2021 will be a busy year for realtors. Hopefully, the housing market’s health can help bring the rest of the economy out of the coronavirus recession.

~Here’s to Your Prosperity!

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