What will 2021 be like for buyers? Real estate activity has been going on at an unusual pace. The decline in second-quarter GDP reflected the response to COVID-19, as “stay-at-home” orders issued in March and April were partially lifted in some areas of the country in May and June, and government pandemic assistance payments were distributed to households and businesses. https://www.nar.realtor/newsroom/metro-home-prices-rise-in-96-of-metro-areas-in-first-quarter-of-2020, Factors affecting the 2020 housing market FHA does not require lump sum repayment at the end of the forbearance. With supply at record lows and buyer competition showing continued strength, sellers have newfound leverage, enabling the fastest listing price growth recorded in more than two years. Big metropolitan statistical areas are having the highest foreclosure rates. The sales growth amounted to an annual rate of 6.54 million – up 9.4% from the prior month and nearly 21% from one year ago. Double-digit annual growth in both list and sale prices show an extreme lack of inventory and incredible demand — A sign of a hot seller's real estate market. The flow of buyers and sellers remained abnormally high in the fall season. https://www.washingtonpost.com/business/2020/04/16/unemployment-claims-coronavirus/, Filed Under: Housing Market Tagged With: Housing Market, interest rates, Investment Property, Real Estate Investing. However, industry experts are seeing more positive conditions in many suburban markets. First of all the mortgage forbearance must end. Homes Details: From Boca Raton, to Miami to Tampa, as in all US housing markets, the forecast is a full return by summer of 2021.Luxury Homes in South Florida According to Mansion Global, South Florida’s luxury real estate market is hot. With rates at or near historic lows, refinancing could help you save by reducing your monthly payments and reducing the total amount of interest that you pay over the life of the loan. The statewide median price for condo-townhouses rose 159% to $221,000. The improved selling prospects in November (in terms of increase in new listings) are a good sign and will need to remain on that path to bring more homes into the market. The housing supply will need to carry consistent momentum forward to balance the relentless growth in demand. The acquisition combines two of real estate’s most powerful media outlets. The median home value in Ocala is $142,400 on Zillow. The standard deviation of median 1-bedroom prices in the top 100 cities has decreased by 19% from a year ago. But recent research and housing forecasts suggest that the Miami (and broader South Florida) real estate market could see a price crash through 2020 and into 2021. A sustained rebound in newly listed homes for sale remains elusive and highly localized but this week’s improvement is encouraging. https://www.curbed.com/2018/12/17/18144657/construction-homebuilding-housing-costs-renovation-labor, Where Is the Housing Market Headed In 2020 The only exception would be the “affordable” homes that are in short supply. Their data shows that year-over-year rent increases have slowed every month in the U.S. since the pandemic began, dropping from growth of 3.8% in February to just 0.7% in August. If the pandemic worsens further in the coming months, the sales are forecasted to take a hit as sellers might again de-list their properties and buyers would also stay away. ... in South Florida … Homes are selling faster while buyers pay summer prices. The metros which saw the biggest gains in newly listed homes include San Jose (30.6% year-over-year), New York (28.2%), and San Francisco (25.9%). That's up from 65.3% of Americans owning their residences in the first quarter of the year and 64.1% in the second quarter of last year. The typical home spent 53 days on the market this October, which is 13 days fewer than last year and one day less than last month. TREC: Information about brokerage services, Consumer protection notice California DRE #1522444 Years of slow home-building activity coupled with the ongoing financial crisis point to the fact that the number of homes for sale would still fall well short of demand in the coming months. The 1-bedroom median and 2-bedroom median were down 15.0% and 17.1% from last year, respectively. This combination of high demand and low supply has driven prices higher in the suburbs. Due to this persistent shortage of housing, some experts predict that the median home price for the country as a whole could easily rise by 10% cumulatively over the next two years. The Federal Housing Finance Agency (FHFA) announced on May 13 that Fannie Mae and Freddie Mac (the Enterprises) are making available a new payment deferral option. The 30-year fixed-rate averaged 3.57% in the first quarter of 2020, down from 4.62% one year ago. https://www.enterprisebank.com/insights/construction-industry-suppliers-pace-covid19-impact Experts think that the economic cost we’ve paid to try to contain the virus will weigh down the economy into 2021. The home price forecast has been adjusted to higher for 2021. This is the first time homes in October sold more quickly than in September since Realtor.com began tracking this data in 2016. More commercial properties will go belly-up during the first half of 2021 before commercial real estate begins to stabilize in the second half of the year, experts say. As inventory and foot traffic decline through the winter season, we’ll get a clear indication of this ratio. However, there is some indication the decreases have slowed down as compared to the previous month. In the 50 largest U.S. metros, the typical home spent 45 days on the market, and homes spent 10 days less on the market, on average, compared to last October. This was equal to roughly 200,000 homes being taken off the market. 16% feel that as not many homes are available you can sell your home fast. is October 22. What else does 2021 hold? "In our latest forecast, national home price growth will slow to 0.6% in July 2021 … Excluding food and energy prices, the PCE price index increased by 3.5 percent, in contrast to a decrease of 0.8 percent. Oakland 1 and 2-bedroom medians decreased by 19.2% and 12.3%, respectively. The NAHB/Wells Fargo Housing Market Index (HMI) index is designed to measure sentiment the relative level of current and future single-family home sales. Notable job gains also occurred in retail trade, education and health services, other services, manufacturing, and professional and business services. https://www.investopedia.com/terms/a/affordability-index.asp https://www.statista.com/statistics/226144/us-existing-home-sales/ Buyers have been looking for signs of a slowdown in the housing market that has been red hot since its post-pandemic recovery but the prices continue to skyrocket. The good thing, at least for buyers and investors alike, is that house prices have nearly flattened and are poised to remain stable in the latter half of this year. Each of the four major regions witnessed month-over-month and year-over-year growth, with the Northeast seeing the highest climb in both categories. As a more extreme measure, a household is said to be severely cost-burdened when it pays at least 50 percent of its income toward housing expenses. However, as demand for home buying remains super strong, we're still likely to end the year with more homes sold overall in 2020 than in 2019. With 10 years having now passed since the Great Recession, the U.S. has been on the longest period of continued economic expansion on record. Studio prices are down year-over-year — and down 6 percent from where they were over the summer Larger rentals, from one-bedroom to three-bedroom units, are more expensive than they were a year ago by 3 to 7 percent. The added competition for these homes due to the moratorium on foreclosures could drive up the prices in the distressed housing market. The median listing price in the hottest zip codes was $335,000, up 1.8 percent year-over-year. A higher ratio indicates relatively more affordability. RESIDENTIAL VACANCIES AND HOMEOWNERSHIP RATES IN 2020 (Third Quarter). Record-low mortgage rates are likely to remain in place for the rest of the year, and all the Fed’s policymakers foresee no rate hike through 2022. Home value growth hasn’t ended yet — Zillow expects seasonally adjusted home values to rise by 2.9 percent between September and the end of 2020, and rise a total of 7 percent during the 12 months ending September 2021. Lower mortgage costs and median income rises are the two important factors that make housing relatively more affordable. According to third-quarter 2020 research released by the Mortgage Bankers Association's Research Institute for Housing America, over 6 million households did not make their rent or mortgage payments and 26 million individuals missed their student loan payment in September 2020. Further improvement in the housing supply could be limited going into the winter season as the peak cycle subsides. And they are forced to compete for new housing stock since Boomers and Generation Xers tend to hold onto their homes. The economic fallout of the coronavirus is probably going to make housing less affordable, not more so. San Jose, CA: 1-bedroom median decreased 4.9% to $2120 from the month prior and the 2-bedroom median decreased 3.2% to $2680. Ocala FL Real Estate Market Forecast 2019, 2020 & 2021. That will push rental growth down to -1.5% year-over-year over the next couple of quarters. 12 million people are due to lose their benefits at the end of December unless some programs are extended. Realtor.com's latest housing market forecast for 2021 shows that the housing boom will continue but the seasonal trends will normalize. The housing affordability index determines the affordability of the housing market by comparing the median household income to the median home price. Owner-occupied housing units made up 60.6 percent of total housing units, while renter-occupied units made up 29.3 percent of the inventory in the third quarter of 2020. Despite five consecutive months of improvement, there are still more than 3.4 million delinquent mortgages, nearly twice as many as there were entering the year, according to Black Knight. The most recovered markets for home-buying interest include Boston, San Francisco, Sacramento, Washington D.C, and Philadelphia; with a housing demand growth index between 138 and 145. This is why housing market predictions always include an increase in sales between March and September. Among larger metropolitan areas, homes saw the greatest decline in time spent on the market compared to last year in Hartford (-23 days); Virginia Beach (-22 days); and San Diego (-20 days). 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