What should we expect in the Real Estate Market in 2021 and what’s happening now? It’s so hard to tell with everything we have going on. We’ve seen so many different markets over the last 20 years and this has been one of the more unprecedented and unfamiliar markets.
Looking at the Housing Market Recovery Index, like the one from Realtor.com, you see a V-shaped market, which was predicted back in March 2020 when the pandemic started. Since then, we’ve seen that the market has recovered and is looking even better than it was then. Back in March we were at 106.5 and now we are at 112.8. As you can see, there was a definite dip in the housing market when the pandemic first started. The market dipped and then took a strong and steady rise, and we are continuing to come back in a nice healthy way.
This analysis measures 4 things.
#1: Demand which determines how buyers want to buy.
#2: Inventory, the number of homes on the market.
#3: Pricing: are home prices going up or down?
#4: The Housing Recovery Index measures time on market.
I personally feel that inventory and interest rates are two of the strongest indicators of why we are seeing such of an increase in housing activity. There is lack of supply and high demand BECAUSE interest rates are at all-time lows.
If you look at the number of active forbearances, it has been steadily declining month over month. As a reminder, a forbearance is deferment of mortgage payments. If we look at when homeowners exited their forbearance plan, you’ll see that about 55% are paid in full, nearly 31% are working out repayment plans and less than 15% are still in trouble. The things to be concerned about is that those 15% may very well turn into a short sale or foreclosure, so that is something to be made aware of. The market is still hot, and buyers are active.
Look out for more information about the housing market and how it may affect you. Lynea Carver with Choice Gallery Homes and I'm always here to help. Reach out anytime even if you’ve just got questions. I’d be more than happy to help. (206) 962-0247
And remember, whether you’re buying a home or selling a home, it all starts with dream. Let’s dream together!