Real Estate Sarasota & Manateee Counties | Think Suncoast Real EstateReal Estate Sarasota & Manateee Counties | Think Suncoast Real Estate

Julie Larson, Realtor - 941-284-9826

  • Menu
  • My Account
  • Sellers
    • Find our Your Home’s Value
  • Buyers
    • My Account
    • Advanced Search
    • Search by Address
    • Search by MLS ID
    • Down Payment Help
  • Reviews
  • Blog
  • Resources
    • Home Valuation Request
    • Down Payment Assistance
    • Lease with a Right to Purchase
    • Helpful Real Estate Links
    • Discover Venice FL
  • About
  • Contact

2021 Home Values Forecast

What Does 2021 Have in Store for Home Values?

What Does 2021 Have in Store for Home Values? | MyKCM

According to the latest CoreLogic Home Price Insights Report, nationwide home values increased by 8.2% over 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 CoreLogic explained:

“Home 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.

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.”

Where will home values go in 2021?

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.

Housing Supply

According to the National Association of Realtors (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 approximately 270,000 fewer homes for sale than there were one year ago.

However, there is some speculation that the inventory crush will ease somewhat as we move through the new year for two reasons:

1. As the health crisis eases, more homeowners will be comfortable putting their houses on the market.

2. Some households impacted financially by the pandemic will be forced to sell.

Housing Demand

Low mortgage rates have driven buyer demand over the last twelve months. According to Freddie Mac, rates stood at 3.72% at the beginning of 2020. Today, we’re starting 2021 with rates one full percentage point lower than that. Low rates create a great opportunity for homebuyers, which is one reason why demand is expected to remain high throughout the new year.

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:What Does 2021 Have in Store for Home Values? | MyKCM

Bottom Line

There’s 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 “supply and demand” mandates that home values in the country will continue to appreciate.

facebook Share on Facebook
Twitter Tweet
Follow Follow us
custom Share
custom Share
custom Share
custom Share
custom Share

Posted in: Real Estate

About Julie Larson, Realtor with PalmerHouse Properties

Julie loves the Sarasota's Suncoast area and gets a lot of joy out of matching up home buyers with home sellers and creating a win-win situation for all involved.

ThinkSuncoast.com is your one-stop real estate resource for Sarasota and the surrounding areas.

Your questions and comments are always welcome! Call or text 941-284-9826, email Julie@ThinkSuncoast.com or by using the form on our Contact page!

Post navigation

« Why You Need a Realtor
4 Reasons People are Buying Homes in 2021 »

Contact Julie Larson

 
 
 
 
 
 
 

Julie Larson, Realtor®
941-284-9826
Julie@ThinkSuncoast.com

Julie Anne Larson LLC

Recent Posts

  • Sarasota Homes for Sale $300k-$500k
  • Your Agent is Critical When Building a New Home
  • Owning a Home is a Powerful Financial Decision
  • How Much Down Payment Do I Need to Buy a Home
  • Build Wealth Buy a Home
  • Best Advice Versus Perfect Advice
  • Is Now the Right Time to Sell Your House
  • Record-Low Housing Inventory – What it Means to You

“LIKE” Us on Facebook!

SuperWebTricks Loading...
PalmerHouse Properties
479 S Tamiami Trail
Nokomis, FL 34275
Disclaimer - All listing information is deemed reliable but not guaranteed and should be independently verified through personal inspection by appropriate professionals. Listings displayed on this website may be subject to prior sale or removal from sale; availability of any listing should always be independently verified.

©2020 My Florida Regional MLS. All rights reserved. | Privacy Policy | Sitemap | XML Sitemap

Log in