What Is The Future Of Real Estate Market?
With this year now starting to resemble a “normal” year now that vaccinations are available to all and the economy opening up, some are pondering what is in store for the real estate market for the second half of the year. We have been observing the ongoing pattern of slim inventory for quite some time now which is having its effects on the number of sales. For the month of April the total number of existing home sales had dipped from the month before due to this shortage yet were up by 20% over that of last year per the National Association of Realtors. While this is where we are now, what is slated to come for the remainder of the year? Here is some insight from key players in the industry.
Realtor.com
“. . . homes continue to sell quickly in what’s normally the fastest-moving time of the year. This is in contrast with 2020 when homes sold slower in the spring and fastest in September and October. While we expect fall to be competitive, this year’s seasonal pattern is likely to be more normal, with homes selling fastest from roughly now until mid-summer.”
Freddie Mac
“We forecast that mortgage rates will continue to rise through the end of next year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.”
National Association of Realtors (NAR)
“Sellers who have been hesitant to list homes as part of their personal health safety precautions may be more encouraged to list and show their homes with a population mostly vaccinated by the mid-year.”
Danielle Hale, Chief Economist, Realtor.com
“Surveys showed that seller confidence continued to rise in April. Extra confidence plus our recent survey finding that more homeowners than normal are planning to list their homes for sale in the next 12 months suggest that while we may not see an end to the sellers’ market, we might see the intensity of the competition diminish as buyers have more options to choose from.”
In the end the forecast looks optimistic. If you have any questions about what is happening in your neighborhood, please feel free to reach out.