According to the latest CoreLogic Home price information report in the United States, the value of the houses increased by 8.2% across the country in the last twelve months. The dramatic increase came as the stock of homes for sale reached historic levels, while buyer demand was boosted by record low mortgage rates. AsCoreLogic explained:
"House price growth remained consistently high throughout 2020. Home sales for the year are expected to register above 2019 levels. Meanwhile, the availability of homes for sale has decreased as demand has increased and the coronavirus (COVID-19) outbreaks have continued across the country, which has delayed some sellers from putting their homes on the market.
While the pandemic has left many in positions of financial insecurity, those who have maintained stable employment and income are also encouraged to buy due to the record low mortgage rates available; this is increasing buyer demand, while stock for sale is in short supply."
Where will house values go in 2021?
The appreciation of house prices in 2021 will continue to be determined by this imbalance between supply and demand. If supply remains low and demand high, prices will continue to rise.
This movement has made investors excited about increasing their real estate portfolio by buying more houses in the United States and "guaranteeing" a sharper appreciation in the first few years.
Housing supply
According to the National Association of Realtors in the United States(NAR), the current number of single-family homes for sale is 1,080,000. At the same time last year, the number was 1,450,000.
We are entering 2021 with approximately 370,000 homes for sale less than the than a year ago.
However, there is some speculation that the fall in stock will slow down a little as we move into the new year for two reasons:
1.As the health crisis eases, more homeowners will feel comfortable putting their homes on the market.
2.Some families affected financially by the pandemic will be forced to sell.
Demand for real estate in the United States
Low mortgage rates have boosted buyer demand over the last twelve months. According to Freddie MacThe rates were 3,72% at the beginning of 2020. Today, we are starting 2021 with rates of a full percentage point smaller than than that, or 2.82%. The low rates create a great opportunity for homebuyers, which is why by which demand is expected to remain high throughout 2022.
Taking into account these projections on the supply and demand for housing, real estate analysts predict that housing will continue to appreciate in 2021, but this appreciation may be more stable than last year. Here are their predictions:
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Any doubts?
Now that you know a little more about how the Orlando housing market is expected to behave in 2021. We can help you understand the behavior of the real estate market and consider investing in vacation homes in Orlando. To make the most of all the tips we've brought you and go even deeper, you can talk directly to our relationship agents. They are always happy to talk to you to answer any questions you may have about investing in Florida.
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