The third real estate market prediction for the U.S. in 2021 from CoreLogic’s chief economist is that home prices will continue to go up but not as quickly as what we’ve been seeing recently.
Hi, I’m Jennifer, Prestwich, the Prestwich group at Madison and Company Properties. And I trust CoreLogic because they base their predictions on data and analytics, not the news.
According to CoreLogic’s home price index, home prices went up about 7% in 2020. They expect a continued growth and appreciation for the first half. The field may slow down just a bit in the second half of the year, averaging around 3.4% cumulative growth in 2021.
However, areas where employment factors heavily on travel, hospitality, entertainment, and eating out like Las Vegas or Orlando, those areas have been hit harder and they feel, we may see a bit of a decline in those areas. The homes may just not appreciate as fast.
Now, for the Cares Act and forbearance. Mortgage forbearance temporarily pauses mortgage payments to provide relief for individuals struggling financially due to what’s happening globally right now, This is a deferment of payments for up to 12 payments or 360 days. There are various ways to pay back those payments and continue to make payments on the home.
So hopefully at the end of the term most people’s income will have been restored and they’re back to business as usual. However there is a possibility of a distress sale at the end of their term, which brings up the possibility of foreclosure. I hope this was helpful information.
Be sure to check out my YouTube channel for all four of the real estate predictions for 2021. I’m Jennifer Prestwich, the Prestwich group at Madison and Company Properties. I’m out here, living the Denburbs life and I want to help you do it too.