What will happen to 2021 home prices?
The third 2021 US Real Estate Market prediction from CoreLogic’s Chief Economist is that home prices will continue to go up but not as quickly as what we’ve seen recently. Hi, I’m Lynea Carver with the Carver Home Team and John L Scott Real Estate. My team and I have been involved in over 200 real estate transactions and I trust Corelogic because they base their predictions on data and analytics, not the media.
According to the CoreLogic Home Price Index, home prices went up close to 7% in 2020. They expect to see continued appreciation in the first half of 2021 but feel it may slow down just a bit in the second half of the year, averaging around 3.4% cumulative growth in our national index.
In areas or communities where the unemployment rate is lower it is projected to have less appreciation. These are areas where employment factors rely heavily on travel, hospitality, entertainment and eating out, like Las Vegas or Orlando.
It's important to understand 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. A forbearance is when a mortgage servicer or lender allows a borrower to temporarily pay their mortgage at a lower payment or pause paying their mortgage altogether. It does not erase the amount owed on a mortgage. It will have to be paid back later.
There are various ways to pay back those payments and continue to make payments on the home, with the ultimate goal being at the end of the term income has been restored and business is as usual. However, there is a risk of more distressed sales at the end of their term, which brings up the possibility of more foreclosures.
I hope this was helpful. Stay tuned for all 4 of the Real Estate predictions for 2021, I’m Lynea Carver with the Carver Home Team. Reach out to us at any time with any questions. We’re here to help. And remember, whether you’re buying a home or selling a home, it all starts with a dream. Let’s dream together!