Sadhana Vasudeva

If you’re planning to buy or sell a home this year, it’s important to understand how quickly the housing market is moving right now. The average home is on the market for just three short weeks. It’s critical to have everything in line from the start so you’re able to move through this fast-paced market with confidence. DM me to learn what steps to take now to ensure your success.

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. 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, pric...es 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: >>As the health crisis eases, more homeowners will be comfortable putting their houses on the market. >>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. 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.

With so few houses for sale right now, home prices are expected to continue rising. DM me to learn more about how this may mean 2021 is your best year yet to sell your house and make a move.

The housing market recovery coming into the new year has been nothing short of remarkable. Many experts agree the turnaround from the nation’s economic pause is playing out extremely well for real estate, and the current market conditions are truly making this winter an ideal time to make a move. Here’s a dive into some of the biggest wins for homebuyers this season. 1. Mortgage Rates Are Historically Low In 2020, mortgage rates hit all-time lows 16 times. Continued low rates... have set buyers up for significant long-term gains. In fact, realtor.com notes, Given this means homes could cost potentially tens of thousands less over the lifetime of the loan. This is a huge opportunity to capitalize on right now before mortgage rates start to rise. 2. Equity Is Growing According to John Burns Consulting, 58.7% of homes in the U.S. have at least 60% equity, and 42.1% of all homes in this country are mortgage-free, meaning they’re owned free and clear. In addition, CoreLogic notes the average equity homeowners gained since last year is $17,000. That’s a tremendous amount of forced savings for homeowners, and an opportunity to use this increasing equity to make a move into a home that fits your changing needs this season. 3. Home Prices Are Appreciating According to leading experts, home prices are forecasted to continue appreciating. Today, many experts are projecting more moderate home price growth than last year, but still moving in an upward direction through 2021. 4. There Are Not Enough Homes for Sale With today’s low inventory of homes on the market, which is contributing to this home price appreciation, sellers are in the driver’s seat. The competition is high among buyers, so homes are selling quickly. If you’re considering making a move, this may be your moment, especially with today’s low mortgage rates and limited inventory. DM me today to get set up for homebuying success in the new year.

The housing market was a shining star in 2020, fueling the economic turnaround throughout the country. As we look forward to 2021, can we expect real estate to continue showing such promise? Here’s what four experts have to say about the year ahead. Lawrence Yun, Chief Economist, National Association of Realtors (NAR): In 2021, I think rates will be similar or modestly higher, maybe 3%...So, mortgage rates will continue to be historically favorable. Danielle Hale, Chief Eco...nomist, realtor.com: We expect sales to grow 7 percent and prices to rise another 5.7 percent on top of 2020’s already high levels. Robert Dietz, Senior Vice President and Chief Economist, National Association of Home Builders (NAHB): With home builder confidence near record highs, we expect continued gains for single-family construction, albeit at a lower growth rate than in 2019. Some slowing of new home sales growth will occur due to the fact that a growing share of sales has come from homes that have not started construction. Nonetheless, buyer traffic will remain strong given favorable demographics, a shifting geography of housing demand to lower-density markets and historically low interest rates. Mark Fleming, Chief Economist, First American: Mortgage rates are expected to remain low for the foreseeable future and millennials will continue forming households, keeping demand robust, even if income growth moderates. Despite the best intentions of home builders to provide more housing supply, the big short in housing supply will continue into 2021 and likely keep house price appreciation flying high. Whether you’re ready to buy or sell a home in 2021, if you’re planning to take advantage of the market this winter, DM me to learn about the opportunities available in your local market.