Real estate trends are constantly changing. Here’s what you need to know about what’s happening in real estate in june 2021!
1. Houses are selling at a breakneck pace
Due to a lack of inventory and high demand, our country is experiencing one of the most competitive housing markets it has ever seen. Insinuating a genuine sense of urgency. Recent data from real estate brokerage Redfin, shows that the average house is selling in a matter of 18 days, which, when compared to last year’s figures, represents a 17-day decrease.
The rate at which homes are sold is much faster than this, evidently, 58% of listings are under contract in two weeks and 45% are under contract in just one week.
2. CDC and Lawsuits: growing conflicts with Realtors
Upon extending the national eviction ban through at least june 30, property managers and Realtors were not entirely accepting of that. Florida Realtors, one of the country’s largest Realtor trade associations, filed a lawsuit against the CDC in late May.
3. The number of foreclosures and delinquencies is decreasing
From March to April, the number of foreclosure filings decreased by 1% and have now lost 17% of their value this year. In April, only 3,700 foreclosures were started, recording a new low for that month.
4. Affordability of housing is deteriorating
House prices have been steadily rising for some time, and the latest data from the Federal Housing Finance Agency confirms that this trend will continue. Recent FHFA House Price Index has shown prices going up 12.2% over the year. The biggest jump in prices ever recorded was in the Mountain Census division (Arizona, Colorado, Idaho, etc.) where In the last 12 months, prices have risen by over 15%.
5. Housing is a priority for the new administration.
Housing issues have risen to the top of the agenda during the Biden administration. In mid May, the congress passed the SECURE Act, This enables remote notarizations (and thus digital closings) across the country. On the other hand, the administration intends to reduce the tax benefits of 1031 exchanges by limiting the capital gains tax break to purchases of less than $500,000.
Predictions For the Housing Market in 2022
1. Mortgage rates are on the rise
Rising mortgage rates are a key prediction for the US real estate market in the coming year.They’re also expected to rise significantly higher than the all-time low set in the first week of January 2021.
2. Lower buyer demand
Buyer demand will be reduced as mortgage rates rise, resulting in fewer sales.
3. Prices are rising at a slower rate
Given the current market conditions, prices are more likely to continue rising, making it more prudent to purchase a home sooner rather than later.
4. Most cities face an inventory problem
A 50% decrease in inventory is reported in March 2021, and This trend may pose challenges in the coming year as well.
5. Renting rather than Buying
Renting may become a more appealing option for local residents as home values continue to rise.