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    What Does 2021 Have in Store for Home Values?

    2021 Home Price Appreciation Forecasts
    Home Values increased in 2020. What Will Happen in 2021?

    According to the latest CoreLogic Home Price Insights Report, nationwide home values increased by 8.2% over the last twelve months. The dramatic rise was brought about as the inventory of homes for sale reached historic lows at the same time buyer demand was buoyed by record-low mortgage rates.

    2021 Home Price Appreciation Forecasts
    Home Values increased in 2020. What Will Happen in 2021?

    Where will home values go in 2021? 

    Home price appreciation in 2021 will continue to be determined by this imbalance of supply and demand. If supply remains low and demand is high, prices will continue to increase. 

    Housing Supply 

    According to the National Association of Realtors (NAR), the current number of single-family homes for sale is 1,080,000. At the same time last year, that number stood at 1,450,000. We are entering 2021 with approximately 370,000 fewer homes for sale than there were one year ago. 

    However, there is some speculation that the inventory crush will ease somewhat as we move through the new year for two reasons: 

    1. As the health crisis eases, more homeowners will be comfortable putting their houses on the market. 

    2. Some households impacted financially by the pandemic will be forced to sell. 

    Housing Demand 

    Low mortgage rates have driven buyer demand over the last twelve months. According to Freddie Mac, rates stood at 3.72% at the beginning of 2020. Today, we’re starting 2021 with rates one full percentage point lower than that. Low rates create a great opportunity for homebuyers, which is one reason why demand is expected to remain high throughout the new year. 

    Taking into consideration these projections on housing supply and demand, real estate analysts forecast homes will continue to appreciate in 2021, but that appreciation may be at a steadier pace than last year. Here are their forecasts: 


     

    2021 Home Price Appreciation Forecasts
    2021 Home Price Appreciation Forecasts

    Bottom Line

    There’s still a very limited number of homes for sale for the great number of purchasers looking to buy them. Most forecasts project continued appreciation of home values through 2021.

    About Log Pond Realty

    Home is where your story begins. Home is where hopes and dreams are born, memories are made, and lives are lived. We would love the opportunity to assist you in writing your new story.

    We service the Triangle region of North Carolina including Raleigh, Cary, Apex, Holly Springs, Morrisville, Fuquay-Varina, Durham, Chapel Hill, Wake Forest, and Garner.

    Contact us  919.589.3576 | hello@logpondrealty.com

    Source: Keeping Current Matters

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