Will 2021 Bring Another Housing Boom in Toronto and Vancouver?…
US Housing Market Sales & Price Forecast
The US Housing Market Forecast Report is the single most comprehensive view available on residential real estate in the US. You’ll find all the data, videos, charts, expert opinions and predictions vital to your decision to buy or sell a home this year.
You’ll find data and resources from NAR, Zillow, BEA, Mansion Global, CBO, Knoema, Freddie Mac, and other authoritative sources below in this extensive review of the US housing market and the new home construction market.
The links below take you directly to sections of interest. Please do share it with others who might be considering buying or selling this year.
This post is a live, updated resource for your ongoing reference so please do bookmark this now, and return for news and new data as it’s published. This is a huge information resource, but well worth the download time, as the decision whether to buy a home in 2021, is fraught with uncertainty. You must educate yourself.
January Real Estate Stats!
Check the January 2021 housing market stats now. For Major US city housing markets see: Denver, Dallas, Houston, San Antonio, Austin, Salt Lake City, Seattle, Boston, New York, Chicago, San Antonio, Austin, Colorado Springs, Salt Lake City, San Francisco, San Diego, Sacramento, and Los Angeles.
See the California housing market, Florida housing market, New York real estate report, and Illinois housing market report. For the Canadian housing market, visit the Toronto, Vancouver, Montreal, Calgary, Kelowna, and Mississauga reports.
Hopefully, this resource will save you time in understanding and keeping up to date on the housing market.
Housing Market Report Sections:
- Projections for Growth
- Sales Summary 2020
- Optimism for 2021
- Should You Buy a House This Year?
- Key Factors Driving the Market
- Will the Recovery Add Fuel?
- Predicting the Housing Market
- Who Are US Realtors
- Home Sales in January 2020
- Residential Real Estate Forecast & Predictions
- New Home Construction
- Housing Affordability
- Mortgage rates
- Mortgage Forbearance, Delinquency and Foreclosure Report
- The US Economy
- Realtor Housing Recovery Index
- Which Housing Markets Will Do Best in 2021?
- Will the Housing Boom Continue?
Projections for Growth
2020 was a record but strange year for sales and prices where the US market gained $2.5 trillion in value and grew $274 billion from new housing construction. It is now valued at $36.2 trillion.
Zillow forecasts that 2021 will be even better. And NAR too has a rosy forecast which can read below.
Optimism for 2021
A recent Reuter’s poll of nearly 40 housing analysts forecast the U.S. Case-Shiller house price index will rise 5.7% in 2021 and a further 4.6% in 2022, the highest forecast ever from the analysts.
The survey showed that as a group, they’re divided about the 2021 economy and housing sales.
44% believe there will be a pullback while 56% believe it’s all systems go. They believe the economic recovery and homebuyer’s desire for more living space will drive the housing market this summer.
“The U.S. housing market will continue to expand this year, perhaps at a little slower rate than recently as some of the pent up demand has been exhausted, but overall it should be a fairly good year,” said Sal Guatieri, a senior economist at BMO Capital Markets. — from Reuters report on poll of housing experts.
“Two factors here: exceedingly easy monetary policy and changes in tastes and preferences away from crowded cities in favor of areas with lower population density. This will likely continue for all of 2021,” said Troy Ludtka, U.S. economist at Natixis. — from Reuters report on poll of housing experts.
Affordability is a huge issue since people don’t buy homes if they can’t afford the mortgage, downpayment, and price of the home. But let’s assume there are affordable homes in the cities you’re hoping to live in.
Should You Buy a House This Year?
The big question a lot of homebuyers are asking right now is whether this is a wise time to buy a home? Should you wait until the Covid 19 variant threat is finally stopped? The housing market has such high dynamic tension right now, that it could possibly snap in either direction.
Is a Housing Market Crash Even Thinkable?
Anyone considering buying a home right now has to be aware of events that could lead to a housing market crash.
Covid 19 variants spreading amidst a lack of caution in Americans, open skies travel, stimulus delays, end of mortgage/rent moratoriums, bankruptcies, and a stock market perched at the top of the mountain gives everyone pause for thought.
There are tens of thousands of young people wanting to buy homes they really can’t afford. Significant numbers of homeowners are already in forbearance, so banks will be less likely to hold off foreclosure should a jump in unemployment happen.
The run-up in home prices in the luxury, high-priced levels has been steep. This sector would crash first should Biden’s economic policies not work. Previous recessions were highlighted by steep oil prices. If the US stock market were to crash, the housing market may go with it.
Few people see crashes coming, yet with prices so high amidst a weak economy dependent on Fed stimulus, while the trade deficit grows, you’ll hear many warnings online.
The uncertainty of Covid 19 variants is causing anxiety, however the trend seems to easing. The summer sun is not far away. Globally too, the infection rate is falling and vaccinations continue. This should ease restrictions on house hunting and of course, and seeing people return to work.
Good News: Covid 19 Receding due to Vaccinations and Returning Sunny Weather
Each month, home prices grow amidst shrinking supply (except January) and many experts and buyers alike are asking how high this will go before prices either level off or collapse? Growing construction and a lower number of pandemic-related buyers are bound to take some of the steam out of home prices during the 2nd half, however the impact of new construction really won’t be felt until 2022.
Although Covid vaccinations are happening, it’s unlikely to stem the tide of buyers seeking single detached houses for some time yet. Low mortgage rates and growing millennial demand will maintain prices. The delay of the economic recovery further extends the delay of home construction yet makes Fed stimulus more likely. The danger to the markets is the end of the moratorium on mortgage payments and rent payments. Those debts keep mounting and represent future bankruptcies.
Much of the swell in demand in the last 12 months was from a select group of buyers, not from the unfortunate unemployed the media focus on. And as international buyers return to the bidding wars in 2021, are prices likely to climb 10% or even 15% more.
Let’s look at more statistics and influences on what is driving the buying decision. Because if the reasons people are buying are really strong, then sales and prices will rise even if the economy sags. And didn’t it do that in 2020?
28 Key Factors Driving the Home Buy/Sell Decision this Spring
- strong economic recovery expected in 2nd half
- fear of missing out amidst record low housing supply
- millennials and even Gen Z’s forming new families and need a house
- homeowners have nowhere to go thus can’t sell
- home buyers want homes in more suburban and rural areas
- Americans who moved back to parents or with relatives will want their own place to live this year
- work from home expected to continue
- government will spend more stimulus money because they want to ensure the employment, stock market and housing markets don’t stagnate
- Fed promised to keep interest rates down
- supply of homes making it unlikely many will be able to buy
- new home construction, material and land prices rising faster
- foreclosures may free up some homes for sale
- migration: work from home still driving buyers out of the cities for more room for a home office, backyard, space to relax
- migration: businesses moving out of high tax states to lower-tax states
- inflation plus money supply plus need for housing could inflate house prices severely
- buyers holding high-value stock portfolio’s could sell to buy a home
- buyers see a house as a potential rental income property
- many sellers want to get out of the city they live in for something new after a horrible pandemic period
- real estate is a preferred asset when cash, savings, and stocks can only go down in value
- cities and regions will still not allow housing development (NIMBYs) thus more demand for the limited available stock of homes
- homes are a safe haven (those renting saw how insecure their week to week lifestyles are where they could be left with nothing later in life, and wondering whether social security will even over their bills)
- speculation (real estate investors including the new crowdfunding buyer who can take more risk don’t see a big downside to real estate and are willing to pump money in for houses or rental properties)
- as employment grows there will be more demand for homes in 2021, 2022 and for 5 years ahead
- states such as Texas, Florida, Arizona drawing new residents (climate, jobs, business growth, low taxes)
- Los Angeles, San Francisco, New York losing residents (cost of living, taxes, failing economies)
- global economic growth will hit 4% in 2021 (world bank report)
- 225,000–500,000 homeowners could face foreclosure this year
- homelessness in the major cities will become a negative factor driving people out of the cities and shunning buyers
Will the Recovering Economy Add Fuel to the Price Fire?
If home prices soared during a major recession wouldn’t further gains logically follow when the economy does a 180 turn? And these economic swings guarantee that the one side of a shift will equal the opposite side. We have volatility and speculation as a new normal making the house buying decision a difficult one.
Houses for sale this year will be significantly higher, and that’s because it takes time for markets to cool. With no big negative influences in sight (other than oil and energy shortages) there might not be anything to cause sudden drops.
And a K-shaped recovery doesn’t necessarily mean the lower wage earners won’t have the financial act together by 2022. There will be a lot of pain, but the odds of it affecting the single-detached home market is low.
Overall, economic growth is expected to be strong in the 2nd half, after vaccinations have been given to more than half of vulnerable Americans. Covid 19 could disappear, only kept alive by a few vaccine refusers who are so sparsely located that the disease isn’t transmitted much.
As businesses reopen, fed by a couple of trillion dollars, and as international trade and tourism resumes, Americans and foreign visitors will be spending again. This economic resurgence won’t happen in a hurry, which helps to bring confidence to conservative investors and help to allay inflation.
The CBO expected economic growth, employment consumer spending to grow strongly in Q4 2020, but it didn’t due to continued shutdowns from the Corona Virus threat.
So latent demand will be further extended into 2nd half of 2020. Of course, we’ll still see record demand from homebuyers in this coming spring buying season. That will hit its peak in June and July as usual.
Of course, over the next year, new home construction will provide more supply and mitigate higher price pressures. And multifamily construction should begin rising in 2021.
Predicting the Housing Market
Even the top housing market experts can’t predict because the variables are unknowns. It’s going to come down to home buyers doing their homework about the housing market in their city or state and weighing the risk of buying in 2021.
The fact so many are hesitant due to the economic insecurity, might be the saving grace in easing a bubble condition. Because if buyers are certain, they will be bidding up high. The sales and price velocity are very high.
Some housing market and economic experts are talking about housing market boom while others are warning about a potential crash this year. In this article, we take a closer look at housing statistics, opinions, and the trends or velocity of the market, as we move deeper into 2021 and the spring housing market.
There are some strong demographic trends supporting brisk home construction, home sales, and mortgage buying. Add the pandemic work-from-home-migration trend and you have strong reasons to buy a house. There are renters who would do anything to move out of their tiny apartments to a bigger place with a walkable neighborhood.
And this is all taking place in an ultra-low mortgage rate period, with some homebuyers holding a lot of cash savings for a downpayment.
There are questions about the economy. However, and the role inflation might play in pushing up home prices ridiculously high, as if they aren’t high enough now. More stock market and economic experts are chatting about inflation and it would it might do to the US economy in the 2nd half of 2021.
Some experts are warning of a stock market crash coming due to overvaluations, overbought stocks, and a general dislocation of the economy. And that outlook warns of potential mortgage failures in a market where many are falling behind on mortgage payments due to the pandemic shutdown.
As mortgagees face the end of protective moratoriums that shield them, and even if President Biden tries to protect them, we could see a large volume of bankruptcies and foreclosures.
What Happened in the Housing Market in 2020?
Median Home Price:
$315,000 sold price for single detached homes
Average Mortgage Rates
Down to 2.73%, for 30 year fixed rate from Freddie Mac
Total Homes Sold
842,000 existing homes sold in 2020
Total Housing Inventory
Declined by 23% in 2020 to 1.9 months supply which is a record low
Days on Market
DOM declined by 10 days to 76 days on average
Who Are US Realtors?
Just a quick diversion here to look at the professionals you may be hiring to sell your home or assist in buying a house.
REALTOR® Demographics 2021
65% percent of REALTORS® are licensed as sales agents, 22% hold broker licenses, while 15% have broker associate licenses.
64% of all REALTORS® are female , 55 years of age, who attended college and own a home.
Average experience of US REALTORS® is 9 years and have been with their current firm for only 4 years. They normally work about 36 hours per week, and earned a median gross income of $49,700 in 2019, up $8700 from 2018.
Realtors averaged about 12 transactions (sides) in 2019. Most Realtors are independent contractors.
Real Estate Marketing
Realtors are increasingly turning to online real estate marketing strategies to market client’s homes and build demand. From bidding wars to reaching homeowners willing to sell via predictive analytics tools, the modern real estate is very different from their forebears.
Here’s some facts you need to know about Realtors® in the US:
- Realtors® communicate with clients via email (93%), while 92% use SMS text messaging, and 37% use instant messaging (Facebook).
- 11% of REALTORS® under 49 years of age owned a real estate blog, and 76% of female REALTORS® and 73% of male REALTORS® use social media for communications and real estate marketing purposes.
- Agents believe their most valuable technology tools are: local MLS websites/apps (64%), lockbox/smart key devices (39%), and social media platforms (28%).
- The top 3 tech tools they believe bring them the best quality of home buyer and seller leads ares: social media (47%), MLS sites (32%), brokerage’s website (29%) and listing aggregator sites (29%).
- 48% of real estate brokerages and companies believe that keeping pace with new technology as the most formidable challenge they face in 2021 and 2022. Of course, finding seller leads is easily the toughest challenge and then closing a sale with them.
On the other home buyers they serve tend to about 47 years of age, are 31% first time buyers who are typically 33 years old. They have a median household income of $106,700 and typically buy a home built in 1993 with 3 bedrooms and 2 bathrooms.
Homebuyers typically finance 88% of the home price and buy or sell using a Realtor, whom they would recommend to others.
Homebuyers found their home via:
⦁ Internet: 52%
⦁ Real estate agent: 29%
⦁ Yard sign/open house sign: 6%
⦁ Friend, relative, or neighbor: 5%
⦁ Home builder or their agent: 6%
⦁ Directly from sellers: 2%
⦁ Newspaper ad: 1%
The typical home seller in 2017 was 56 years of age, had a median household income of $107,100, and had lived in their home for a decade. 89% of sellers used a real estate agent to sell their home and they typically received 99% of the listing price, after the home sat on the market for 21 days.
Recent sellers typically sold their homes for 99% of the listing price, and 38% reported reducing the asking price at least once.
The typical home sold was on the market for 3 weeks. 41% of sellers found a real estate agent through a referral by friends or family, and 26% used the agent they previously worked with to buy or sell a home.
Most homebuyers shop for homes online however, and public interest in in-person open houses is43% lower than a year earlier. Realtors will be doing more real estate marketing online.
January Housing Maket Report
A quick look in the rear view mirror showed home prices rose slightly in a tough month economically.
Single Detached Home Sales
Existing-home sales grew .6% in January to a seasonally-adjusted annual rate of 6.69 million, which is up 23.7% from January of 2020.
The median existing-home sales price rose to $303,900, up 14.1% from one year ago, while housing inventory fell to a record low of 1.04 million units, down by 25.7% year-over-year. That was the steepest decline in history and is a key statistic coloring this spring’s housing market.
Single Family Home Sales
Single-family home sales only rose .2% a seasonally-adjusted annual rate of 5.93 million in January, a rise of 100,000. Those sales are stil 23.0% higher than 12 months ago. Median price of an existing single-family home sold in January fell from 314,300 in December to $308,300, in January. This is still up 14.8% from January 2020.
Existing condominium and co-op sales rose 4.1% from December to 760,000 units sold in January. This is up 28.8% from one year ago. The median existing condo price fell from $272,200 in December to $269,600 in January, yet is still up 8.6% from one year ago.
First-time buyers contributed for 33% of sales in January, up from 31% in December 2020 and from 32% in January 2020. Last summer NAR reported first-time buyer’s share was 31%. The lower prices might encourage some first-time buyers to prepare to buy this spring, thus brightening the spring housing market forecast.
Regional Home Prices
Existing home sales on the MLS in the Northeast region fell 2.2% in January, from 930,000 in the previous month to a new lower number of 870,000 homes sold. Yet those sales were still up 24.3% from 12 months ago. The median price in the Northeast was $361,400, down from $362,100 in December, yet this is still up 15.8% from January 2020.
Existing-home sales sold on the MLS in the Midwest region fell from 1,590,000 in December to 1,570,000 units in January. That is still up, a 22.7% jump from a year ago. The median price in the Midwest rose to $235,700 from $227,800, in December. And this is a 14.7% increase over January 2020.
Sales of homes on the MLS in the South region grew 3.2%, to 2,940,000 units in January from the 2,860,000 units sold in December. This is a YoY improvement of 25.1% . The median price in the South was $263,300, down from $268,100 during December. This is a 14.6% climb from a year ago.
Existing-home sales in the West region fell 4.4% from December’s total of 1,380,000 units. There were 1,310,000 homes sold in January, which was still a 21.3% increase from a year ago. The median price in the West was $461,800, down from $467,900 in December. However, that price remains 16.1% more than January 2020.
Total Homes Sales January 2021
Average Price of Homes Sold in January
Housing Supply and Listings
Active Listings have fallen 38% from one year ago.
Lawrence Yun and Realtor.com Discuss the Housing Market Outlook
Hottest City Housing Markets United States
|City||Nielson Hotness Rank||NAR Hotness Rank||NAR hotness rank change M/M||NAR Hotness Rank Y/Y||
Median List Price
|Battle Creek, mi||298||154||-18||-79||$156,000|
|La Crosse-Onalaska, wi-mn||293||74||3||16||$272,500|
|Yuba City, ca||291||13||17||2||$445,000|
|The Villages, fl||288||142||14||-136||$315,000|
|Wichita falls, tx||286||66||40||-3||$140,000|
|Elizabethtown-Fort Knox, ky||283||57||-34||100||$210,000|
|Jefferson City, mo||281||54||-36||77||$178,000|
Residential Real Estate Forecast & Predictions
Home Sales Forecast
Realtor.com forecasts home sales will rise 7% in 2021.
Home Price Forecast
Realtor.com forecasts a price rise of 5.7% in 2021.
Home Supply Forecast
“Buyers may finally have a better selection of homes to choose from later in the year, but will face a renewed challenge of affordability as prices stay high and mortgage rates rise,” said Danielle Hale, realtor.com’s chief economist.
New Home Sales
According to a new report in Yahoo Finance, new housing construction fell more than expected in January. There is a surge in future construction permits, yet December’s and January’s construction lull could contribute to higher home prices in 2021. Low mortgage rates, millennial housing demand, and a surging economy will push spring housing home prices up.
New home construction starts decreased 6.0% to a new annual rate of 1.580 million units last month. This drop is much more than economists had forecast (1.658 million units in January). Homebuilding overall fell 2.3% compared to January of 2020.
New Home Construction
An estimated 1,390,300 housing units were started in 2020. Privately-owned housing starts in December rose 5.8% to 1,669,000. This is 5.2 more than December of 2019. Building permits issued in December rose 4.5% in December to 1,709,000. That was 17.3 % higher than December 1,457,000 housing permits issued.
Single Family Home Construction
Single-family homebuilding declined 12.2% to a seasonally adjusted annual rate of 1.162 million units after eight straight months of gains. Single-family building permits jumped 3.8% to a rate of 1.269 million units in January.
Multifamily home construction surged (up 17.1%) to a 418,000 units in January. Building permits for multi-family housing projects soared 27.2% to a pace of 612,000 units.
“Demand conditions remain solid due to demographics, low mortgage rates and the suburban shift to lower cost markets, but we expect to see some cooling in growth rates for residential construction in 2021 due to cost factors, supply chain issues and regulatory risks,” said NAHB Chief Economist Robert Dietz. “Some builders are at capacity and may not be able to expand production due to these headwinds.” from Nahbnow.com February report on homebuilder confidence.
Homebuilder sentiment (HMI index) is up to 90, but the 6 month outlook has it sinking toward 80.
Chicago-based building products company AZEK has seen amazing sales growth in its residential business, which accounted for about 87% of total revenues. The company reported $212.3 million of sales, up from $166 million last year. Azek reported $10 million in earnings for the quarter and its stock price has risen 23% so far this year.
“The focus on the house really gives us a long-term benefit because we really benefit from people investing in their homes said CEO Jesse Singh who is bullish on the long-term outlook (interview with Jim Cramer of Madmoney).
What is hampering housing affordability is competition and rocketing prices, housing development regulations, lack of developable land, lack of builder subsidies, stagnant wages and high unemployment, and rising building materials and labor costs. Government regulation and NIMBYism are overpowering the market’s opportunity to create more housing hence we can expect higher home prices.
Rising inflation and interest rates could be the key factor affecting housing affordability in the next 3 years.
The rate for a 30 year fixed rate mortgage has reach an amazing low of 2.7 to 2.8% of recent according to this chart below courtesy of NerdWallet and Zillow. NAR expects the 30-year fixed rate mortgage to average 3% in 2021 as the economy improves and investors look for higher returns than the 10-year T-note yield. Mortgage applications rose 7% in February.
30 Year Fixed Rate Mortgage Rate
According to the February NAR report, the monthly mortgage payment on a typical existing single-family home rose to $1,040 (1126 in February which is still lower than the average rent price of $1166 per month.
On average, families typically spent 14.8% of their income on mortgage payments based on a median family income of $84,313 in the 4th quarter 2020. That’s down .1% from last year. The family income needed to by a house is now $49,908 (up $1000 from last year).
Mortgage Forbearance, Deliquency and Foreclosure Report
Black Knight reported that almost 3.6 million 90-day defaults occurred in 2020 – the largest number since 2009. 2.1 million homeowners are currently seriously delinquent on their mortgage payments, and with 600,000 forbearance plans expiring in March, it will create 1.5 million more serious delinquencies than at the start of the pandemic. As of last month, there were above 2.7 million homeowners in active forbearance plans. 12% of borrowers are now in forbearance.
The good news is that home foreclosures hit an all-time low in January. ATTOM Data Solutions January 2021 U.S. Foreclosure Market Report showed a total of 9,702 U.S. properties had foreclosure filings — default notices, scheduled auctions or bank repossessions. It is 11% down from a month ago and down 80% from 12 months ago.
The bad news is that this is due to President Biden’s foreclosure moratorium on repossessions of homes on government-backed mortgages. the fear is that when it ends in March, there will be little to prevent foreclosures.
The World Property Journal reports that US lenders repossessed 1,428 U.S. properties in January 2021, which was 28% lower than December 2020. It was also 86% less than last year.
Those states with an annual decrease in REOs in January 2021 included: Illinois (-86%); Florida (-83%); Maryland (-83%); California (-82%); and Texas (-82%).
The US Economy
There are plenty of varying forecasts and predictions for the 2021 US economy. Most outlooks are optimistic after a disastrous 2020.
The Conference Board has this to say about the US economic forecast:
The Conference Board forecasts that US Real GDP growth will rise by 2.0 percent (annualized rate) in 1Q21 and 4.4 percent (year-over-year) in 2021.* Following a lull in the economic recovery in recent months, we expect the pace of the rebound to reaccelerate as new COVID-19 infection rates decline, the vaccination program expands, and the prospects of another large fiscal support program improve. We expect the recovery to continue into next year and forecast growth of 3.1 percent (year-over-year) in 2022.
BEA reported that the U.S. international trade deficit increased in 2020 from $576.9 billion in 2019 to $678.7 billion in 2020 As a percentage of U.S. gross domestic product, the goods and services deficit rose .5% from 2.7% 2019 to 3.2 percent in 2020. The goods deficit increased from $864.3 billion in 2019 to $915.8 billion in 2020. The services surplus decreased from $287.5 billion in 2019 to $237.1 billion in 2020.
BEA reports that Real GDP fell 3.5% in 2020 vs 2019. It had increased 2.2 percent in 2019. Real (GDP) grew 4.0 percent in the fourth quarter of 2020 according to the “advance” estimate released by the Bureau of Economic Analysis. 3rd quarter of 2020 had a rebounding 33.4 growth, in comparison with the Q2 shutdown period.
The Fed believes more harm would result with low inflation rather than higher inflation. The expected inflation rate for 2021 is 2.2%.
Realtor Housing Recovery Index
The realtor recovery index grew strongly beginning in May, but as the reality of the fight with Covid 19 has worn on, confidence in the recovery has waned. Those lofty expectations were perhaps a little rosy but as summer 2021 approaches it will rise again.
For the week ending February 6, 2021, the realtor.com Housing Market Recovery Index reached 101.5 nationwide, down 2.7 points over last week. The New Supply Growth Index declined by 7.9 points from the prior week which means home sellers are pulling back. That means how sellers perceive their own future affects whether they will list.
As the economy lifts, and prices rise, we’ll see many more homes come on the market, which should help to moderate price increases. The housing demand component decreased slightly to 118.7 this past week, down 2.2 points over last week.
The pace of sales held well above the pre-COVID baseline at 110.0, and was .3 points higher than the previous week. 31 of the 50 largest markets had growth in asking prices.
Which Housing Markets Will Do Best in 2021?
NAR believes these 10 housing markets will enjoy the best sales and price growth this year.
Below, Kiplinger reports stats from Attom Data Solutions on cities with the highest price changes in the past year.
|Metro Area||Median Home Price||% Change
|% Change since home price peaked in 2012|
|New Haven, Conn.||$235,150.00||17.10||-13.9|
|San Jose, Calif.||$1,160,000.00||16.20||58.2|
|Lansing-East. Lansing, Mich.||$138,000.00||13.70||1.7|
|Riverside-San Bernardino, CA||$393,000.00||13.40||-3.1|
|Grand Rapids, Mich.||$210,000.00||11.70||50|
|San Diego, Calif.||$620,000.00||11.50||22.3|
|Colorado Springs, Colo.||$345,000.00||11.20||57.7|
All markets, including Los Angeles, San Diego, Denver, New York, Manhattan, Dallas, Boston, Philadelphia, Atlanta, Chicago, Austin, San Antonio, Salt Lake City, Tampa and Miami, have felt the crush of demand and much higher home prices. Florida is booming while California’s housing market is hurting.
Whether it’s a good time to buy a home might depend on who you are and why you’re buying. For renters stuck with high rents and zero equity going forward, anytime is a good time. Overall, the HPSI is rising again a grim economic performance in December. Buyers sentiment is down significantly from just one year ago. As the pandemic eases, we could see the index rise slowly back to previous levels around 90.
Will the Housing Boom Continue?
If the economy recovers, we know demand for homes and condos will improve too. There are strong fundamental drivers of housing demand as noted earlier, and even high bubble-like prices might not deter home buyers in 2021 and 2022.
“Home sales could possibly reach 8 million if we had more inventory,” said Lawrence Yun, chief economist for the Realtors. “Mortgage rates should remain very low throughout 2021, although we may have seen the lowest already.”
Sources, Citations & References and further reading:
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Many Americans will soon be on their own without Fed assistance and facing back rent and overdue mortgages. Cities such as Denver, Dallas, Houston, San Antonio, Austin, Salt Lake City, Las Vegas, Tulsa, Seattle, Boston, New York, New Jersey, Chicago , San Antonio, Austin, Colorado Springs, Salt Lake City, and Los Angeles may see some new home listings out of this distressed homeowner market, but not as much as some forecasters are predicting.
Housing Market Forecast 2021 – copyright Gord Collins
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