The Housing Market Forecast for the Rest of 2021, According To Realtors
It is no secret that the COVID-19 epidemic has made the real estate market a wild place. You’re probably eager to find out how long it will take to sell or buy a house.
The median home sale price in June 2021 was $386,888. This is an increase of 24.8% over the previous year. The number of homes that were sold increased by 20.6%, while the number available for sale fell by 39.6%.
The pandemic saw record mortgage rates fall and they have been declining since June. The 30-year fixed-rate mortgage at 3.02% was on June 24 and dropped to 2.78% by July 22.
Although an economic recovery was expected, the Delta variant could cause it to come to a halt. The Centers for Disease Control and Prevention reaffirmed their recommendation that people who live in areas with high or substantial transmission be fully vaccinated.
It will be interesting to see if and when additional COVID-19 restrictions will be lifted. However, experts and real estate agents have offered their opinions on how the market will change over the course of the year.
Greg Toschi, CEO at Poplar Homes in California, stated that the real estate market experienced a surge in demand due to a millennial reshuffling. “Millions upon millions of older millennials have started families and are planning to purchase a home between 2022 and 2025,” said Greg Toschi, CEO of Poplar Homes.
He said that many people made the decision to move earlier than they originally planned.
Toschi stated that this surge also occurred during the most popular season for homebuying. As we move into fall, activity slows down and prices drop. He said that many homebuyers are choosing to delay buying because the prices are too high.
He said that inventories are also rising. “But prices won’t fall as much as usual,” he said.
He noted that although the enthusiasm for those who have been searching for a home for some time might be waning, there are still many new buyers.
He said that if the COVID Delta variant causes further lockdowns or quarantines, then the real estate market would likely behave in the same way as the previous lockdown. “I don’t think it will stop buyers who have built up a lot of motivation during quarantine.”
Jason Gelios from Southeast Michigan said that he is starting to see a change in the market.
He said that there is a slight shift in the housing market, where buyer demand has actually fallen. “We are still seeing buyers in my market of Southeast Michigan. However, we don’t see long lines of people waiting for a home to be viewed.”
Gelios, despite the shift, predicted that the real estate boom will not slow down anytime soon.
He said that there will be a slight rise in mortgage rates (probably 3.5% by midfall) and an increase in housing inventory “as we approach 2021’s latter part.” “We don’t expect a complete switch in the housing market before sometime in 2022 when it would be considered favoring purchasers.”
Betsy Ronel is a licensed salesperson in real estate with Compass in Westchester County. She believes the market will soften in the winter months because buyers are discouraged.
She said that the market could slow down depending on the Delta variant and the mask laws. “I believe that we will see a stronger spring market in either direction, but it won’t be the same market again for some time.”
Ronel stated that she believes the market will recover in the near future.
She stated, “It’s an issue of national importance, so there are some stalled things everywhere.”
However, not all cities in the United States have experienced chaotic real estate markets during the pandemic.
Although the U.S. real estate market is generally hot, market conditions in each region vary and will continue to change. To learn about the trends in your region, consult a licensed realty agent in your local area if you are looking to purchase or sell the property.
This post was written by Josh Dotoli! Josh is the owner of Josh Dotoli Group which is a laser-focused real estate team at Compass comprised of industry experts selling Fort Lauderdale’s best neighborhoods. This dynamic group is one of the top-selling real estate teams in South Florida with over $94 million in sales in the past 12 months alone. Click Here for more information.