Housing Market Predictions 2021 and Beyond.
As we all know, home prices have risen sharply in the last year. In Snohomish County alone, the average homeowner has seen an increase in value of nearly 13.7% over the past 12 months. The sharp rise in home prices has led many to wonder if the housing market is headed for a crash. Likewise, many Buyers are wondering if housing prices will go down in 2021 or 2022.
While no one can predict our future market with 100% accuracy, many analysts have recently predicted that home values will continue to climb throughout 2021 and into 2022 and beyond. They do, however, predict a slower rate of price growth next year.
One such prediction comes from Freddie Mac. Researchers have estimated that in 2020, home values nationwide rose 11.3%. They predict a gain of 6.6% in 2021, and a gain of 4.4% in 2022. So, while the increase in values will be in the single digits instead of the double digits, there is no indication of a crash or a decrease in home prices anytime soon.
You may be wondering why we have seen values rise so sharply during the pandemic. The answer is simple: supply and demand. Interest rates have been at all-time lows for the past year, driving an extraordinary number of buyers into the market. Couple that with the inventory shortage that we have had in our area for years, and you get rapidly rising prices.
As we see the economy recover, and interest rates tick back up to pre-pandemic levels, housing prices will in turn, slow down a bit.
If you are looking to buy or sell a home, or if you have questions about the local housing market, I would be happy to have a conversation with you and help in any way I can. Feel free to reach out anytime at (425) 345-8099 or firstname.lastname@example.org.