JHT Market Update
2021 Housing Market Forecast
Here’s a deep dive into what we can expect to see from the 2021 real estate market with JHT group.
‘Historically Low Mortgage Rates’ is a buzz-word we kept hearing throughout all of 2020, and rightly so.
Because of low rates, affordability reached one of the highest levels it has in the last 30 years. Naturally, buyers jumped at the opportunity to secure lower monthly payments and brag about their interest rate for the next 20 years.
The good news is that lower interest rates are likely to stay for the greater part of 2021, but will settle into a sideways pattern and eventually begin to turn higher late-2021.
The dramatic decline in homes available and an increase in buyer activity caused home prices to soar.
Experts predict that we will continue to see home prices rise, just at a slower pace that’s reflective of a more balanced market.
More sellers are expected to list their homes after holding off throughout 2020. With interest rates expected to cool off demand will still be strong as buyers race to secure lower rates while they last.
Foreclosures & Housing Bubble?
Many consumers believe that the rapid acceleration of home prices means we’re heading for another housing bubble in the hopes that home prices will plummet.
However, experts think differently. Next year housing prices will continue rising but at a more steady rate than we have seen. At the same time, homeowners have much stronger equity than they did in the last housing bubble, so there won’t likely be another influx of foreclosures hitting the market.
Experts also anticipate that if there is an increase in foreclosed homes, they will be quickly absorbed by the strong market, and will not lead to price declines.
Want to find out more about the housing market for 2021? Reach out to our team of real estate experts!