Real Estate Market Update January 2021 is a series of updates to help you know what is next for the real estate market in Main Line PA. What to expect in the Real Estate in 2021, Are we going to see a crash???
What to expect in the Real estate Market in 2021 and what’s happening now. I know it’s hard to tell with everything we have going on. I get it, I’ve seen so many different markets over the last 20 years and this has been one of the more unprecedented and unfamiliar markets. If you look at the Housing Market Recovery Index, here’s a graphic from Realtor.com you see a V market, which was just as predicted back in March when the pandemic started. The market has recovered and is even looking better than when the pandemic started. Back in March, we were at 106.5 and now we are at 112.8. Yes there was a definite dip in the housing market when the pandemic first started but now as you can see here, the market dipped and then took a strong and steady rise, and now we are stronger than back in March.
This analysis measures 4 things. One being the Demand for homes- meaning is buyers wanting to buy. Two, it measures the Supply or Inventory, the number of homes on the market. It also analyzes Pricing, are homes prices going up or down, and lastly The Housing Recovery Index measures Time on the Market. Inventory and interest rates are in my opinion some of the strongest indicators of why we are seeing such an increase in housing activity. There is a lack of supply and high demand because interest rates are at all-time lows. Also, if you look at the number of active forbearances, and just to remind you a Forbearance is the deferment of mortgage payments.
The number of Active Forbearances has been declining almost every month. Also, if we look at when homeowners exited their forbearance plan, you’ll see that 54.6% are paid in full, 30.7 are working out repayment plans and 14.7% are still in trouble. The thing to be concerned about is that 14.7% which can very well turn into a short sale or foreclosure, so that is something to be made aware of. The market is still hot and buyers are very active. Look out for more information about the housing market and how it may affect you. Kimmy Rolph sells the Main Line and local areas Reach out anytime even if you’ve just had questions. We’d be more than happy to help. Stay safe everyone!! Kimmy Rolph sells the Main Line and local areas.
