We keep getting asked if we feel that the housing market will crash. I understand it’s a valid question especially after what we saw happen in 2008. So let’s look at what the experts are saying.
So, how did the Real Estate market do in 2020? Well, according to National Association of Realtors the housing market was up 5.6% from 2019 which has been the most since before the great recession. Here is a graph of what the experts are forecasting for 2021, (2021 Home Price Forecaster) we see an average of a 5 percent increase if you take the average of all 7, from NAR all the way down to Fannie Mae and Freddie Mac. Corelogic said that home prices increased 9.2 percent in 2020. Low Interest rates drive prices up because more buyers can purchase. The experts also are projecting interest rates to remain low in 2021 and their predictions average from 2.92 percent to 3.17 percent, which obviously will be favorable for the housing market. It should also keep buyers wanting to take action and purchase.
However, it may be difficult for buyers to find a home because across the country we have such super low inventory levels with only 1.9 months of inventory. Many people are not putting their homes on the market which is why inventory levels are so low.
Top 3 reasons why homeowners did not put their home on the market?
31% financial uncertainty, 24% because of the Virus, 34% said life is too uncertain right now. So hopefully as the world opens back up and people feel more at ease, we will see more inventory coming on the market. The good news is that you’ve got all the control and should expect to sell your home for top top dollar and with the most favorable terms for you.
If you’d like more information and are thinking about selling, give me a call, I’d be happy to help!
I’m a Top Producing Realtor® in the OAKLAND / BERKELEY EAST BAY AREA. I’ve been in the East Bay since I came up to do my undergrad at UC Berkeley (a long time ago!), with a short stint at UC Davis while getting my Master’s. I take my duties as a Realtor® and Fiduciary very seriously, I enjoy educating my sellers and buyers along the way. Putting People, Before Profit.