If you’ve been keeping watch of our posts on the market update per area, you might be confused with the different paths each area is doing.
In some places, more listings are sold over a shorter period of time, while in another less listings are sold with longer average days on the market.
Even though no one can exactly know what can happen in the next half of 2021, we can look at the numbers. After all, numbers do not lie.
Let’s also look at what experts have to say regarding the housing economy.
Mortgage will increase, but comparatively low
One thing is sure, mortgage rates will not decrease. There’s a steady rise of mortgage rates over the past months as the economy start to recover from the 2021 crisis. According to Freddie Mac in their latest quarterly forecast, an average of 3.4% mortgage rate will be expected by the end of 2021 and 3.8% by the end of 2022.
Slow home price appreciation
According to all industry leaders, home price will continue to appreciate towards the end of 2021.
Senior Markets Economist at J.P. Morgan Joe Seydl said that the projected rise of the home prices should be taken as signal for buyers to grab the opportunity as soon as possible instead of waiting with the expectation that prices will decrease.
Inventory will be a less challenging
The good news is that more inventory is coming in the market, giving more choices for homebuyers and decrease the fast pace.
Here are some statements from experts in the field:
“We have seen more new listings this year compared with 2020 in 11 of the last 13 weeks. The influx of new sellers over the last couple of months has been especially helpful in slowing price gains.” (George Ratiu, Senior Economist at realtor.com)
“As an indicator of the economic impact of housing, there are now 652,000 single-family homes under construction. This is 28% higher than a year ago.” (Robert Dietz, Chief Economist at the National Association of Home Builders)
With the expected rise of mortgage rates, price appreciation and the number of expected inventory in the next half of the year, your chances in the housing market look promising.
The only thing left to do is work with the team that is after your own interests. The Rama Mehra Team is here to make great offers, negotiate for your cause and help you find the best deal for you and your loved ones. Contact us today (925) 415-0835!