A review of consumer outlook this Fall 2021 after a very volatile year in Real Estate.
Let's take a look at the direction the real estate market may be heading as we enter the beginning of Autumn and near the final quarter of 2021.
According to statistics provided by the National Association of Realtors
46 Percent of homeowners are optimistic about reselling increasing from 37% percent the year prior. We can attribute this to an equally confident outlook on the buy side. Of homebuyers surveyed (2,708) 65% feel as though right now is the ideal time to purchase. Of that same sample group 27% feels as though it is difficult to get a mortgage. Those qualifying are receiving enticingly low mortgage rates. Chief NAR Economist Lawrence Yun speculates this buy side confidence to be partially attributed to “historically low mortgage rates combined with a pent-up demand to buy, so buyers will look to take advantage of these conditions. Also, job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more home sales.” The market is going through never before seen liquidity exemplified by lightning inventory turnover. It is obvious that market prices have been impacted by the reshuffling of day to day life and how privacy has taken precedence over crowded city life. Median house price is up 3.6% Year over year parlaying off the increase from the year prior of 5.3%. The trends of the market are likely to stay similar as the looming delta variant and its uncertainty keep market corrections at bay. This bullish behavior and outlook, Coupled with the concerns of the potential economic consequences of the debt ceiling being raised can have on other investments, make a real asset long term investment in the real estate market even more appealing and safe.
See this video from CNBC of a young realtor purchasing his home in the last year out in Hawaii and what to expect with this pent up demand.