As we are now entering the middle of 2021, a big question that is coming up is where the real estate market is headed for the rest of 2021? We know that we can’t exactly predict the future, but we can take a look at what some top industry experts are saying as we start the second half of the year.
Danielle Hale – Chief Economist of Realtor.com
“…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. These fast moving conditions can be challenging, especially for first-time home buyers. With more than 1 in 4 recent first-time homebuyers reporting that they fell in love with a home only to lose it in a competitive bidding situation, working with an agent on ways to make your offer stand out is a good strategy.”
National Association of Realtors (NAR)
“…Supply will remain tight given the huge gap between a desired 6 months of inventory of homes on the market compared to the current 2.1 months. But the supply outlook is improving. Housing starts rose to 1.7 million in March and housing permits are averaging at 1.8 million in the first quarter of 2021. 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.”
“…there is a potential headwind that could slow housing market activity; higher mortgage interest rates could dampen demand and cool off the single-family housing market. 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.”
We are seeing a growing level of optimism for the second half of 2021. If you are interested in how these trends are changing your local market, please don’t hesitate to reach out to one of our local real estate professionals.