It’s no secret that the housing market has been hot since the beginning of 2021. There’s high demand and low inventory so sellers are in a great position right now. However, what can we expect for the rest of the year? Should we brace for a crash? Or are we in shape to ride out this momentum all the way to 2022?
Let’s take a look at what to expect for the housing market in the coming months.
A Forecast for the National Housing Market
Nationwide we’re seeing a consistent, strong housing demand throughout the United States. This is compounded by the staggering amount of would-be home buyers lining up to throw their hats in the ring. Most experts agree that this strong demand will continue throughout the year. However, they also predict a slight downtick in actual housing sales due to the current supply constraints and the potential for higher mortgage rates.
To illustrate the current trends, we can take a look at the predicted mortgage origination rates. While the rate was at about 4.5 trillion, this year we’re looking at a figure closer to 4 trillion. It’s predicted that mortgage originations will dip under 3 trillion in 2022. Meanwhile, home prices are predicted to rise 6.6 – 8 percent this year  alone. Experts agree these numbers will drop off slightly in the new year.
So what can we make of all these figures? Well, the booming housing market in tandem with the increase in airline travel and restaurant bookings point to an economy on the rise after over a year of stagnation. Post-pandemic life is on the horizon and once we get there, we’re likely to see a national economy on the mend.
Even with the forecasted boost in the economy, some are still concerned about the housing market. Will we see a crash after all this staggering momentum? After all, there’s a shortage of lumber, steel, and labor. Luckily, many agree that the 2021 housing market is still shaping to hold up well. The renter to first-time homebuyer rate is continuing to rise and, despite the recent increases, mortgage rates are still at a record low.
A Forecast for the Florida Housing Market
Much of what we’re seeing on a national scale is reflected in the current Florida housing market as well. There is a high demand and limited supply. The median price for homes is 22.4% higher than last year  rounding out to $363,000. Mirroring national trends, this figure is expected to continue increasing as the year carries on.
When looking at the 2021 housing market in the Sunshine State, we have to factor in the unique trends distinct to our region. With no state income tax and cheaper inventory than big cities such as New York, Dallas, and Chicago, homebuyers are flocking to claim their own piece of paradise. While this is likely to feed into a healthy overall housing market, national issues such as supply shortages will continue to put pressure on the inventory in Florida.
Get In While the Market is Hot
If you have the means to buy a home right now, what’s stopping you? It is an incredible time to make this investment for you and your family. Prices will continue to rise throughout the year and maybe even into 2022. Not only is a home a great monetary investment, but it also beats out renting for a number of other reasons too!
Please feel free to reach out with any questions you have on our current housing market and what it would look like to embark on your own house hunting journey. I would be more than happy to walk you through the process and help land you your Florida dream home!
2. Fannie Mae
3. Freddie Mac
4. Florida Trends