Will the housing market crash? I keep getting asked if we feel that the housing market will crash. And that’s a valid question especially after what we saw happen in 2008. So let’s take a look at what the experts are saying.
Hi, I’m Jennifer Prestwich, the Prestwich Group at Madison & Co. Properties. And I’ve been a residential realtor in Adams and Broomfield Counties, Colorado, since 2008.
So let’s look at how the real estate market did in 2020. According to the National Association of Realtors, the housing market was up 5.6% from 2019 which has been the most since before the great recession.
Here’s what the experts are forecasting for 2021. When you look at all seven opinions, we see an average of a 5% increase from NAR to Fannie Mae and Freddie Mac. CoreLogic says that home prices increased 9.2%. in 2020. Low interest rates have driven prices up because more buyers can purchase.
The experts also are projecting interest rates to remain low in 2021. Their predictions average from 2.92% to 3.17% which obviously will be favorable for the housing market. It should 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 the lowest inventory levels ever with only 1.9 months of the inventory Nationwide. Many people are not putting their homes on the market, which is why inventory levels are so low.
So what are the top three reasons why homeowners did not put their home on the market? Well, 31% said it was due to financial uncertainty, 24% said it was because of the virus. And 34% said that life is just flat out too uncertain right now.
Hopefully as the world opens back up and people feel more at ease, we’ll see more inventory coming to the market. The good news for sellers right now is that you should expect to sell your home for top dollar and with the most favorable terms.
Be sure to reach out to me for all of your real estate questions, big or small. Remember life is too short not to love where you live. And don’t forget if you’re thinking of selling your home here at Adams or Broomfield counties, Colorado, that’s my specialty. I’m Jennifer Prestwich, I’m out here live in the Denburbs life and I wanna help you do it too.