Here are the updated housing market trends & predictions for 2020 & 2021. As of now, the housing market remains a hot seller's real estate market, with annual price growth reaching record highs and inventory continuing to fall. After a brief rise in new listings coming onto the market, things are back to the usual downward slide as we head into the winter season.
Buyers have been looking for signs of a slowdown in the housing market that has been red hot since its post-pandemic recovery but the prices continue to skyrocket. We need more new home supply to add to inventory and slow these sharp price increases, The asking prices are soaring in double-digits (nearly 13 percent over last year) with the first week of November marking the 13th consecutive week of double-digit price appreciation.
This trend shows that the housing market is as strong as it was during the housing bubble. Although the demand has softened a bit as compared to previous weeks but is nowhere to close to a level where you can imagine the balance real estate market conditions. Now we need to wait and watch whether the demand would soften up a bit more in November & December and lead to a decrease in the pace of price growth.
We typically see a decline in demand and a big increase in time on the market before the end of November. If this trend remains steady in the weeks ahead, that points to a seasonal slowdown, but if the time on the market shrinks by a greater amount, that’s a signal that 2020's housing market is going to remain hot even during holidays.
As of now record-low mortgage rates and shortage of inventory are keeping the US housing market strong with respect to buyer demand. Both prices and sales have been surging month-over-month breaking new records. Existing home sales also show the tightest housing market on record.
In the article, you'll find data that shows how the US housing market is recovering week after week from the blows of the pandemic. New home sales have also risen during the pandemic and existing home sales are at a 1-year high.
Long-term mortgage rates continued to move lower this week, with a 15-year fixed-rate mortgage falling to a record low for the second consecutive week.
I just locked down a 2.875% interest rate, fixed for the 15-year term of the mortgage. No points. With rates like these, I find myself rethinking the idea that I want to pay off my mortgage.
So far, I’ve never heard the same commotion in the market and the media unlike earlier this year when the US economy earned an embarrassing downgrade.
