This month’s video series is all about what to expect in the real estate market in 2021. Are we going to see another crash?
Here’s what you can expect in the real estate market in 2021 and what’s happening now. I know it’s hard to tell with everything we have going on. We get it. We’ve seen so many different markets over the last several years and this one has been one of the more unprecedented, unfamiliar markets we’ve seen.
If you look at the housing market recovery index, here’s a graphic from realtor.com. You see a V market which was predicted back in March when the pandemic started. The market has recovered and it is looking even better than when the pandemic started. That’s right. Back in March, we were at 106.5 and now we’re 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 it took a strong and steady rise. As you can see, we are stronger now than we were back in March.
This analysis measures four things:
- Demand of homes, meaning are buyers wanting to buy?
- It measures the supply or inventory, the number of homes on market.
- It analyzes pricing. Are homes going up or down?
- Time on market.
There’s a lack of supply and high demand because interest rates are at all-time lows. Also, if you look at the active forbearances, and just to remind you, an active forbearance is a deferment of a mortgage payment. The number of active forbearances has been declining almost every month. Also, if we look at when homeowners exited their forbearance plan, you’ll see that 54.6% are paid in full, and 30.7% are working out repayment plans, and 14.7% are still in trouble. The thing to watch is that 14.7% may very well turn into a short sale or a foreclosure. So that is something to be aware of. The market is still hot. Buyers are still active.
Look out for more information about the housing market and how it may affect you. Remember, at A&J Realty Partners at Key Realty, we are always here to help. Reach out anytime even if you have just a few questions. We’d be more than happy to help you. Stay safe everyone!
We're April and Jean, we help first-time sellers in the Northeast Grand Rapids area. Our number one focus is you! We are here to guide you through the process of selling your first home and buying your next. That way you can buy and sell with confidence.
2905 Wilson Avenue SW
Grandville, MI 49418
schedule your free consultation