Some positive thoughts on the remainder of this year.
Cervone, Deegan + Associates knows that this year is beginning to resemble a “normal” year now that vaccinations are available to all and the economy is opening up. With this many are wondering what is in store for the real estate market for the second half of 2021. We have been seeing the regular pattern of light inventory for a while now which is having its imposed effects on the number of sales as a result. For the month of April the number of existing home sales were down from the month before because of this shortage yet are up by 20% over that of last year per data from the National Association of REALTORS®. This is where things sit now but what is slated to come for the second half of the year? Here is insight from a few key players in the industry.
“homes continue to sell quickly in what’s normally the fastest-moving time of the year. This is in contrast with 2020 when homes sold slower in the spring and fastest in September and October. While we expect fall to be competitive, this year’s seasonal pattern is likely to be more normal, with homes selling fastest from roughly now until mid-summer.”
“We forecast that mortgage rates will continue to rise through the end of next year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.”
National Association of REALTORS® (NAR)
“Sellers who have been hesitant to list homes as part of their personal health safety precautions may be more encouraged to list and show their homes with a population mostly vaccinated by the mid-year.”
Danielle Hale, Chief Economist, Realtor.com
“Surveys showed that seller confidence continued to rise in April. Extra confidence plus our recent survey finding that more homeowners than normal are planning to list their homes for sale in the next 12 months suggest that while we may not see an end to the sellers’ market, we might see the intensity of the competition diminish as buyers have more options to choose from.”
Overall the forecast looks positive. If you have any questions about what is happening in your neighborhood, please feel free to reach out, we are happy to help!