Housing Market Update 2021
The housing market is hot right now and no signs of letting up. Mortgage rates are at all-time lows bringing new buyers to the market that were previously sitting on the sidelines. Also with the crazy 2020 we had people are fleeing big cities and heading to the suburbs. This combo has created a record low housing inventory pushing prices up and up.
New construction is also booming right now. Builders are as busy as ever but it takes time to build new homes as well as jump through all the planning, zoning, and permitting hoops that go with building. The high demand has pushed building prices up more than 30%
Some economists are predicting a wave of foreclosures will be hitting the market soon. Right now there is a foreclosure moratorium on FHA backed homes. When this is lifted (current set for 6/30/21) banks can start foreclosing again on homes. This may bring a wave of foreclosures to the market.
If your area has suffered major job loss recently then you may see this wave of foreclosures coming. I don't think we have seen enough job loss to bring on a wave of foreclosures to our area.
So now if we are going to see a cooling off in the market we either need a bunch of sellers to put their homes on the market at the same time or interest rates to jump making it harder for people to purchase the home that they want. Until then I think we will see continued increases in pricing.