Experts project an optimistic year for the 2021 housing market! Fannie Mae, Freddie Mac, the Mortgage Bankers Association (MBA), and the National Association of Realtors® (NAR) have put out their projections for what will happen in the new year.
Now, we’ve never been ones to place high importance on these new year projections, since none of us have a crystal ball. More importantly, 2020 has taught us that anything can interrupt the “usual” or projected outlook for any industry at any given time. Still, it’s not bad to check in with the experts every now and then and get their opinion.
The infographic above shows the projection for mortgage rates, which have already reached historic lows in 2020! It’s nice to see the experts expect the rates will remain low in the new year. Low-interest rates do drive a higher buyer demand, usually resulting in lower inventory levels of homes for sale. We are definitely experiencing that here in Southwest Florida, as are many other markets throughout the U.S. We expect that buyer demand to continue in 2021.
This might, in turn, result in an increase in market values as home prices continue to appreciate. While we haven’t seen a major increase in values in our local market, we won’t be surprised if that does come with time. What we have seen are properties turning over much more quickly than usual. There’s been multiple-offer situations and even some properties that are receiving offers over the initial asking price. It’s certainly a competitive market right now, and we expect that to continue into the new year and into our peak season here in SWFL.
No one could have forecasted what happened in 2020. So take the 2021 forecasts for what they are worth. The national and local real estate market has gone through a number of changes in 2020. What we’re currently experiencing now could drastically change six months from now.
If you’d like to chat more about today’s market, reach out! We’re happy to share our experiences, thoughts and suggestions. As always, you can reach us at 239-472-1950 or Team@McCallionRealty.com.