Real Estate Predictions in 2021, #3

Dated: April 8 2021

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The third real estate market prediction for the U.S. in 2021 from CoreLogic's chief economists is that home prices will continue to go up but not as quickly as what we've seen recently.

Listen, I've been involved in so many real estate transactions and I trust CoreLogic because they base their predictions on data and analytics, not on the news. According to CoreLogic home price index, home prices went up about 7% in 2020. He expects a continued growth in anticipation in the first half, but feels that a slowdown may be just a bit in the second half of the year, averaging around 3.4% cumulative growth in 2021 international index.

However, in areas or communities where the unemployment rate is lower, he feels there could be less appreciation. Areas where employment factors rely heavily on travel, hospitality, entertainment, and eating out like Las Vegas or Orlando, those areas have been hit harder. So he feels we may see a bit of a decline in those areas. The homes may not appreciate as fast.

It is important to understand the Cares Act and forbearance. Mortgage forbearance temporarily pauses mortgage payment to provide relief for individuals struggling financially due to what's happening globally right now. This is a deferment in payments for up to 12 payments or 360 days. There are various ways to pay back those payments and continue to make payments on the home. So hopefully at the end of the term, most individual's income has been restored and it will be business as usual. However, there is the possibility of more distress sales at the end of their term which brings up the possibility of more foreclosures.

I hope this was helpful. Be sure to search my website at laurie.eresuccess.com for all four real estate predictions for 2021. Reach out to me at any time for anything. I'm always here to help. And remember, when you do what you love, people love what you do. Have a great day everyone!

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Laurie Smith

I am a full-time professional Realtor providing outstanding service to the SW Florida community. I facilitate your real estate goals in the luxury, new construction, vacation and mid-range markets. ....

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