Fueled especially by the onset of the COVID-19 pandemic, the housing market within the last year has been shaped by low inventory, high home prices, low mortgage rates, and a huge demand in home purchasing. According to CoreLogic, home prices increased by 17.2% from June 2020 to June 2021. While many experts are expecting prices to continue to rise, the increase is not expected to be as drastic as what we’ve seen so far. The CoreLogic forecast indicates that prices will increase just 3.2% from June 2021 to June 2022. While the housing market will likely cool down a bit, it is still expected to remain competitive.
According to CoreLogic, 73% of consumers said that the pandemic and the initial stay-at-home mandate helped them save more money. Combine this with the low mortgage rates we have been seeing and that helps to explain how homeownership has been an attainable goal for many despite the increasing prices. CoreLogic does expect the home price increases to slow, potentially helping more consumers to purchase homes.
The National Association of Realtors reported that inventory rose 3.3% from May to June this year. With inventory looking better than it has previously and mortgage rates staying low, homebuying is likely to continue through the fall. On top of this, millennials are becoming key players in the housing market, and people are beginning to favor purchasing over renting as rental prices increase. All of this in mind, we won’t be surprised if homebuying continues strong through the fall season.
If you’re thinking of buying a home now or in the future, it’s a good idea to take a look at your financial situation and start preparing. Consider working on your credit score to get it in the best shape before purchasing your dream home. Talk to one of our experienced Loan Originators to learn more about how to prepare, ask any questions you may have, and receive guidance on your home financing journey. And when you’re ready to get a mortgage, we are here to provide you with a seamless, stress-free process.
Sources: Forbes, NAR, CoreLogic, Realtor.com
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