Hi, This is Joe Angley, REALTOR with R1 Florida Real Estate. Welcome back to my series of blogs about buying a home in a “seller’s market”In today’s buyer tip of the week, we
Home Prices are Surging Again This Year: What Does it Mean For You?
Dated: April 1 2021
U.S. Home prices are surging again in 2021. Check out my video for my analysis of how to take advantage of this very unusual housing market!
Full Text of the Blog Post
US Home Pricers Expected to Surge Again in 2021: what does this mean for you?
In a report released this week, the investment banking firm Goldman Sachs, projected that US home prices will rise an additional 6.87% this year, up from their previous forecast of 4.8%.
Goldman reports that that the lack of inventory (in some markets it’s down 50% or more), is driving up home prices, even in the face of slightly increased mortgage rates.
Housing prices soared in 2020 as the supply of homes plunged to record lows in early 2020 owing to the Covid-19 pandemic, but inventory has continued to fall in the first quarter of 2021.
Here in the Orlando market, we now have less than 3500 homes for sale in the entire MLS which represents just about 1 month of inventory. That means that it will only take one month to sell off the entire available inventory of homes in the greater Orlando area. That is truly amazing!
Check out this graph to see the Orlando inventory stats for the last three years. You can see the marked drop in inventory since 2020.
Even though mortgage rates jumped slightly this past month, (the average mortgage rate in Orlando was 2.88% in February 2021 up from 2.7% in January 2021) yet, these rates are still far below pre-pandemic mortgage rates.
As you can see in this graphic, interest rates have been on a downward trend since November 2018, but have recently leveled off and are on an uptick. If you plan on getting a mortgage loan to purchase a home, it is still very affordable to borrow money.
Home inventory is at historic lows, interest rates are at historic lows, and home appreciation has been equally amazing. In Florida, the average home increased in value by about $15,000 in 2020.
As noted in my headline, appreciation is estimated to be about 7% for 2021, so your home value will likely continue to increase at a fast rate. However, Goldman predicts that home appreciation will begin to drop in 2022. They’ve reduced their projected 2022 appreciation from 4.6% to 3.9%.
All this being said, demand for housing remains strong, as the pandemic has incentivized people to dedicate more spending to housing, either selling and upgrading their homes or entering the market as new buyers a little earlier than they had planned.
So what does this mean for buyers and sellers?
Well, if you have been thinking of selling your home, this remains an excellent opportunity to cash out and reap the benefit of your home’s equity.
I’m currently offering a complimentary “Home Equity Analysis” to show you the possible equity you may have in your existing home and it’s estimated market value.
For now, expect your home’s value to continue to appreciate, but if a move is on the horizon, try to get your home on the market this year to maximize your gains.
Now, a lot of seller’s hesitate to list their homes for fear that they will not be able to buy a property of their choosing. They fear they will be stuck living in a hotel or worse, with relatives.
In response to these concerns, my team and I have several techniques to help you out, such as using reverse seller contingencies on contracts, extending pre and post occupancy periods, as well as some innovative purchasing options.
At the Joe Angley Team we offer several free services to help sellers evaluate their home’s market position. These include our Home Equity Assessment, our Soft Home Inspection Report, as well as a variety of seller guides. They are all free, just ask!
For Buyers, my main advice is to be prepared!
Get your financing in order with verified cash or a pre-approval letter from your lender. Have cash on hand for a healthy deposit and down payment, and look to sweeten your offer with a fast close, limited inspection period and/or reduced contingencies (if that makes sense for the particular home you are seeking to purchase).
At the Joe Angley Team we offer several free services to help buyers through the steps involved in purchasing a home, including our complimentary Home Buyer Guide and our no-obligation Home buyer consultation.
To get help either buying or selling a home, I am offering a complimentary, no obligation, 15-min online, real estate consultation.
We can discuss your next best steps, see which of our free services may suit your situation, and if it looks like we can help you, we can arrange a time to discuss your options further.
Your next step is to schedule your free 15 minute consultation by going to www.orl15.com.
My team of seasoned professionals and I look forward to helping you and your family with all your real estate needs. Whether you are buying, selling, renting, or investing, we will take great care of you! Thanks for watching and stay safe!
Thank you for visiting my site! I am originally from Boston, MA, and I moved to Central Florida in 1987. I have been selling real estate in Central Florida since 2012. I operate a team of highly ex....
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U.S. Home prices are surging again in 2021. Check out my video for my analysis of how to take advantage of this very unusual housing market!Full Text of the Blog PostUS Home Pricers Expected