December 07, 2020

Breaking down 2021 housing market forecasts

13 minutes

In today’s HousingWire Daily episode, HW+ Managing Editor Brena Nath joins Magazine Editor Kelsey Ramirez to discuss the most compelling articles reported from the HousingWire newsroom. Brena and Kelsey review HousingWire Magazine’s latest issue, which features several 2021 economic forecasts. The issue, which is part of HW+ Premium Content, also highlights what the HousingWire editorial team believes could happen for each sector of the housing industry in next year’s market.

For some background on the interview, here’s a brief summary of a recent HousingWire article on the 2021 housing market forecast:

Even prior to the pandemic, housing inventory had hit record lows, and the problem has only gotten worse as demand continues to rise. Total home sales are outpacing new listings by a wide margin every month, and real estate tech company Homesnap foresees the shortage continuing in 2021 unless more sellers enter the market.

The divide between supply and demand is striking: compared to last year, total new listings increased .22%, while total sales increased 19.29%. Homesnap said this trend could further drain inventory as 2021 approaches.

Home prices have risen as a result of the mismatch in homebuyer demand and housing inventory. The average list price for properties that sold rose 6.7% from September to October this year, which Homesnap said is significantly higher than the same figure in 2018 and 2019.

As median home prices keep rising, homeowners who originally planned to sell within the next three to five years might list their homes sooner, Homesnap said, freeing up more inventory.

HousingWire Daily examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Victoria Wickham.

HousingWire articles covered in this episode: