{"id":1378,"date":"2021-01-11T17:48:13","date_gmt":"2021-01-11T17:48:13","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=1378"},"modified":"2021-01-26T17:08:07","modified_gmt":"2021-01-26T17:08:07","slug":"2021-store-home-values","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/2021-store-home-values\/","title":{"rendered":"What Does 2021 Have in Store for Home Values?"},"content":{"rendered":"
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What Does 2021 Have in Store for Home Values?<\/p><\/div>\n

According to the latest\u00a0CoreLogic\u00a0Home Price Insights Report<\/a><\/em>, nationwide\u00a0home values increased by 8.2%<\/strong>\u00a0over the last twelve months. The dramatic rise was brought about as the inventory of homes for sale reached historic lows at the same time buyer demand was buoyed by record-low mortgage rates. As\u00a0CoreLogic<\/em>\u00a0explained<\/a>:<\/p>\n

\u201cHome price growth remained consistently elevated throughout 2020. Home sales for the year are expected to register above 2019 levels. Meanwhile, the availability of for-sale homes has dwindled as demand increased and coronavirus (COVID-19) outbreaks continued across the country, which delayed some sellers from putting their homes on the market.<\/em><\/p>\n

While the pandemic left many in positions of financial insecurity, those who maintained employment and income stability are also incentivized to buy given the record-low mortgage rates available; this is increasing buyer demand while for-sale inventory is in short supply.\u201d<\/em><\/p><\/blockquote>\n

Where will home values go in 2021?<\/strong><\/h4>\n

Home price appreciation in 2021 will continue to be determined by this imbalance of supply and demand. If supply remains low and demand is high, prices will continue to increase.<\/p>\n

Housing Supply<\/em><\/h5>\n

According to the\u00a0National Association of Realtors<\/em>\u00a0(NAR), the current number of single-family homes for sale is 1,080,000. At the same time last year, that number stood at 1,450,000. We are entering 2021 with\u00a0approximately 270,000 fewer homes for sale<\/strong>\u00a0than there were one year ago.<\/p>\n

However, there is some speculation that the inventory crush will ease somewhat as we move through the new year for two reasons:<\/p>\n

1.<\/strong>\u00a0As the health crisis eases, more homeowners will be comfortable putting their houses on the market.<\/p>\n

2.<\/strong>\u00a0Some households impacted financially by the pandemic will be forced to sell.<\/p>\n

Housing Demand<\/em><\/h5>\n

Low mortgage rates have driven buyer demand over the last twelve months. According to\u00a0Freddie Mac<\/em>, rates stood at\u00a03.72%<\/a>\u00a0at the beginning of 2020. Today, we\u2019re starting 2021 with rates\u00a0one full percentage point<\/strong>\u00a0lower<\/strong>\u00a0than that. Low rates create a great opportunity for homebuyers, which is one reason\u00a0why<\/a>\u00a0demand is expected to remain high throughout the new year.<\/p>\n

Taking into consideration these projections on housing supply and demand, real estate analysts forecast homes will continue to appreciate in 2021, but that appreciation may be at a steadier pace than last year. Here are their forecasts:<\/p>\n

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2021 Home Price Appreciation Forecast<\/p><\/div>\n

Bottom Line<\/strong><\/h3>\n

There\u2019s still a very limited number of homes for sale for the great number of purchasers looking to buy them. As a result, the concept of \u201csupply and demand\u201d mandates that home values in the country will continue to appreciate.<\/p>\n

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