ReCasa Financial Blog

Many people are wondering how long the real estate market will remain with record low mortgage rates and high home prices. We have no definitive answer, but many real estate professionals have made predictions. While the housing market as a whole may have one outcome, some specific regions can have other results. The housing market in a suburban area may differ slightly from the closest city. As a real estate investor, it is important to keep updated on the housing market in your region. A good source for this information is a local realtor. Make sure to add a trusted realtor to your real estate investing team.

Read more about building a real estate investing team here… https://www.recasafinancial.com/building-your-team-who-the-seasoned-investor-knows

According to Yahoo! Finance, “the number of homes for sale is up 30%” since Spring 2021. This spring’s home sales hit a low before starting to rise. On the other hand, home prices have only risen 18% over the last year.

The mortgage forbearance program is starting to phase out enrolled individuals over the next few months. This mortgage forbearance program allowed borrowers to pause mortgage payments during the pandemic. An estimated 1.6 million borrowers are enrolled in this program, and not all will be able to start repayment. Many homeowners will have to consider selling their properties which may create an increase in real estate inventory. Zillow predicted that 25% of the 1.6 million borrowers will most likely list their homes.  That means possibly 400,000 homes will be added to housing inventory soon.

Read more about the forbearance program here… https://www.forbes.com/advisor/mortgages/what-happens-after-mortgage-forbearance-lifts/

Some people may think that this inventory increase could cause a housing market crash, but housing inventory is still 38% below pre-pandemic levels. However, the inventory spike could cause home prices to decrease.

What do you predict for the housing market during the remaining months of 2021?