Will real estate prices continue to grow?

Will real estate prices continue to rise ?

At the beginning of the year, industry predictions were that home price appreciation would slow to about half the double-digit increase we saw last year.

The idea was that the stock would increase from historically low levels and with that the bidding war would end.

This competition for real estate was one of the big factors that helped to increase real estate prices over the last twelve months.

However, this increase in stock has not yet materialized. A National Association of Realtors (NAR) reports which there are currently 410,000 fewer single-family homes available for sale than that there was last year.

This has forced those who made valuation forecasts last January to change those projections. A Mortgage Bankers Association, a Fannie Mae, o Freddie Mac, a National Association of Realtorsand the Zelman & Associates have adjusted their numbers upward after analyzing the first quarter real estate data. Here are his original forecasts and his recently updated projections:

Real Estate Price Forecast 2021

Even with the increases, the updated projections still do not reach the valuation levels above 10% of 2020.

However, a jump in the average projection from 5.3% to 7.7% after only one quarter is substantial. The demand will remain strong, therefore, future appreciation will be determined by how fast the inventory of homes for sale increases.


In early 2021, there was some speculation that we could see price appreciation decrease dramatically this year. Today, experts believe that will not be the case. Home values will remain strong throughout the year.

Are you in doubt?

Now that you understand that the market is very hot and will continue with inventory pressure and this can generate gains for those who invest. We can help you understand the behavior of the real estate market and thus consider investing in vacation homes in orlando. To take advantage of all the tips we have brought to you and go even deeper, you can talk directly to our relationship agents. They are always happy to talk to you with any questions you may have about investing in Florida.

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