How will this impact the housing market in 2021? Thankfully, the Pelican State is not already among the U.S. states with the highest bankruptcy rates. The market crash due to the coronavirus pandemic has spared no one. I promise you it will make you feel better.". However, after a massive 44% month-over-month rebound in U.S. pending home sales in May and another strong 9.6% rebound in September, the U.S. housing market is stronger than ever! But if you can, you may want to wait a few months to see is things will shift from a buyer’s market to a more balanced market. The exact figures, however, are less important than the explanation behind the expected drop. eviction. If you want to start searching for a rental property for sale, do so with Mashvisor and enjoy 15% off if you sign up now! In other words, homes are less affordable now than a year ago. If a COVID-19 vaccine comes out in the back half of 2021, the report suggests that home prices will bounce back in 2022. The housing affordability index determines the affordability of the housing market by comparing the median household income to the median house price. This adds to the millions of households seeing their income drop. Rising mortgage delinquency rates in Florida are raising fears that the coronavirus pandemic will lead to a foreclosure crisis as bad if not worse than the one that followed the 2008 housing … Double dip recession - The possibility of a double dip recession is still in play for 2021. Even though the US housing market likely won’t be the cause of the next recession, a downturn in the economy would still have an impact on the real estate market. Corelogic’s forecast predicts home prices nationally will have fallen 6.6 percent year-over-year by May 2021. foreclosure process would shoot up more than 100-percent, from the current In addition, you should always keep in mind that national real estate trends can vary quite a bit from one city and state to the next. Inventory is expected to make a slow but steady comeback, which will give buyers some relief. According to Realtor.com, the pace of home sales relative to inventory reached a new record high in February, as sellers gained leverage and buyers benefited from lower mortgage rates. The coronavirus pandemic has cast a shadow over the nation's eight-year housing market boom, and the predictions are eye opening. Stay up to date with the latest tips for Traditional & Airbnb Investments, Housing Market Predictions 2021: Experts’ Forecast Post COVID-19, The Future of Real Estate Investing After the Pandemic, Pending Home Sales Reach Lowest Level Since 2011, How to Easily Find Affordable Houses for Sale for Real Estate Investment. In this article, we break down these predictions for real estate investors to understand what to expect through the end of 2020 and into 2021. We also expect this to be the case seeing that some markets are still great locations for investing in real estate and buying rental property. However, some analysts say that the real estate market will be a key driver in economic recovery toward the end of the year. Some have forecast big price falls next year. For those who feel they are at The lockdown caused unemployment to increase as many people lost their jobs. Experts at Zillow forecast home sales to bottom out in Q2 2020 before they slowly recover to baseline levels by the end of 2021. Khirallah says the first piece of advice is to be proactive. Real estate’s clobbering runs wide and deep. Here are my housing predictions for 2021. After the COVID-19 pandemic came into being, US housing market predictions 2020 went from optimistic to pessimistic as the lockdown intended to slow the spread of the coronavirus has stalled the real estate market. Eman is a Content Writer at Mashvisor. 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