This month’s video series is all about what to expect in the real estate market 📈 in 2021. Are we going to see a crash? I know it’s hard to tell with everything we have going on. I get it. I’ve seen so many different markets over the last 10 years and this has been one of the more unprecedented and unfamiliar markets since I’ve started working in real estate.
Hi, I’m Natasha Carrol with Natasha Carrol Realty. If you look at the housing 🏡 market recovery index, here’s a graph from realtor.com. You see a V type of market, which was just as predicted back in March of 2020, when the pandemic actually first started. The market has recovered and it’s even looking better than when the pandemic started. Back in March, we were at one 106.5 and now we’re at 112.8. Yes, there was a dip in the housing market when the pandemic first started, but now as you can see the market dipped and then took a strong and steady rise and we are stronger than we were back in March of 2020.
The analysis measures four things. One being the demand of homes, meaning there are buyers wanting to buy. Number two, it measures the supply of inventory, the number of homes on the market. It also analyzes pricing. Are home prices going up ⬆️ or are they going down ⬇️ ? And lastly the housing recovery index measures the time on market. Inventory and interest rates right now are in my opinion, some of the strongest indicators of why we’re seeing such an increase in housing activity. There is a lack of supply and high demand because interest rates are at an all time low.
Also, if you look at the number of active forbearances and just to remind you a forbearance is a deferment on the mortgage payments. The number of active forbearances have been declining almost each month. If you look at when homeowners exited there forbearance, you’ll see that 54.6% have paid in full and 30.7% are working out payment plans and 14.7% are still in trouble. The thing to be concerned about is that 14.7%. Very well could possibly turn into a short sale or a foreclosure. So that is something that we all need to be made aware of. The market is still hot and buyers are active. Look out for more of our videos on information about the housing market and how it may affect you. I’m Natasha Carrol with Natasha Carrol Realty and we’re always here to help. Reach out to us anytime, even if you just have any questions. Stay safe and have an awesome home buying and selling day.