What's Happening in the Real Estate Market in 2021?

Dated: February 5 2021

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What to expect in the Real Estate Market in 2021? Are we going to see a crash❓❓❓
I know it’s hard to tell with everything we have going on. ?
I get it! I’ve seen so many different markets over the last 25 years and this has been one of the most unprecedented and unfamiliar markets since I started. ? ?
If you look at the Housing Market Recovery Index, you see a V market, which was just as predicted back in March when the pandemic started.
The market has recovered and is even looking better than when the pandemic started. ?
Back in March we were at 106.5 and now we are at 112.8. ??
Yes, there was a definite dip in the housing market when the pandemic first started but now as you can see here, the market dipped and then took a strong and steady rise. ?
Now we are stronger than back in March. ?
The Housing Recovery Index measures 4️ things:
1. Demand of homes - meaning are buyers wanting to buy.
2. Supply or Inventory, the number of homes on the market.
3. Pricing - are home prices going up or down?
4. Time on Market.
✔️ Inventory and interest rates are, in my opinion some of the strongest indicators of why we are seeing such an increase in housing activity.
✔️ There is lack of supply and high demand because interest rates are at an all-time low.
Also, if you look at the number of active forbearances, and just to remind you a forbearance is deferment of mortgage payments. The number of active forbearances has been declining almost each month. ⬇️
If we also look at when homeowners exited their forbearance plan, you’ll see that 54.6% are paid in full, 30.7% are working out repayment plans and 14.7% are still in trouble. ?
The things to be concerned about is that 14.7% may very well turn into a short sale or foreclosure, so that is something to be made aware of. ?
The market is still hot and buyers are active. ?
Look out for more information about the housing market and how it may affect you. ?
We’re always here to help. Reach out anytime even if you’ve got questions ?
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Lisa Taylor

Originally from Leeds, England, Lisa Taylor decided to make Florida her home. She has lived and worked here for almost 30 years, most of those being in Palm Beach County. She lives in Wellington with ....

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