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Will the housing market crash in 2021- Denver Housing Market Update March 2021
Video Transcript Below
Will The Housing Market Crash?
I keep getting asked if I feel that the housing market will crash. I understand it’s a valid question, especially after what we saw happen in 2008. So let’s look at what the experts are saying. Hi, my name is Tristan Colborg with the Denver Real Estate Agent.com and eXp Realty in Denver. So, how did the Real Estate market do in 2020?
According to the National Association of Realtors, the housing market was up 5.6% from 2019, which has been the most since before the great recession. Here is a graph of what the experts are forecasting for in 2021. We see an average of a 5 percent increase if you take the average of all 7, from NAR down to Fannie Mae and Freddie Mac. Corelogic said that home prices increased 9.2 percent in 2020.
Low-Interest Rates
Low-Interest rates drive prices up because more buyers can purchase. The experts also project interest rates to remain low in 2021 as their predictions average from 2.92 percent to 3.17 percent, which will be favorable for the housing market. It should also keep buyers wanting to take action and purchase. However, it may be difficult for buyers to find a home because we have the lowest inventory levels with only 1.9 months of inventory across the country. Many people are not putting their homes on the market, so inventory levels are so low.
Reasons Homeowners Didn’t Put Home On The Market
Top 3 reasons why homeowners did not put their home on the market, 31% financial uncertainty, 24% because of the Virus, 34% said life is too uncertain right now.
So hopefully, as the world opens back up and people feel more at ease, we will see more inventory coming on the market.
The good news is that you’ve got all the control and should expect to sell your home for top, top dollar, and with the most favorable terms. If you’d like more information and are thinking about selling, give me a call at The Denver Real Estate Agent.com. I would be happy to help you through the process and make sure you have an elevated real estate experience. Be sure to check out my YouTube channel, The Denver Real Estate Agent, for more tips when selling. And don’t forget if you’re thinking of selling your home here in Commerce City, Colorado 80022 and Thornton, Colorado, I am your community market leader specialist.
