Earlier this year, industry experts shared their forecasts for home price appreciation. They all believed it would slow to about half of the double-digit increase that we saw at the peak of the pandemic last year and thought that the housing inventory would rise.
They also presumed that there would be fewer bidding wars than in years past, which have driven up the overall price of homes.
Unfortunately, this has yet to happen, and homebuyers are experiencing quite the opposite. The National Association of Realtors (NAR) says that there are currently 410,000 fewer single-family homes available for sale than there were last year. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, the National Association of Realtors, and Zelman & Associates have all increased their numbers after reviewing data from the first quarter. Below we have listed their original forecasts followed by their newly updated projections for home price appreciation:
Some experts have a larger projection than others, but they didn’t reach the above 10% appreciation levels of 2020. The average projected appreciation made a large jump from 5.3% to 7.7% in just one quarter.
As we are closing in on the halfway point of 2021, the experts don’t expect home price appreciation levels to slow down like they thought it would at the beginning of 2021. Which means, if you plan on buying a home soon, connect with our team today and we can help find home financing for you.