(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:
NEW– FHFA releases Q3 2020 House Price Index report:
U.S. House Prices Up 7.8 Percent from Last Year;
Prices Rise 3.1 Percent in Third Quarter https://t.co/d5BBgKa7SM pic.twitter.com/A5YfcPAk6m— FHFA (@FHFA) November 24, 2020
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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