Zillow is now forecasting a 21.9% growth in sales, for a total of 6.82 million homes sold in 2021. This would mark the biggest annual sales growth since 1983. Jeff Tucker, Zillow’s Senior Economist, stated, “Sales are taking place at a rapid clip, as momentum gathering in the market since June is still pushing forward at full force and is expected to continue for the foreseeable future.” Tucker went on to comment on Zillow’s record forecast by pointing out the strength of the housing market, and that, “Low mortgage rates, demographic tailwinds, and an improving economy will continue to prop up market competition.”
In addition to their home sale forecast, Zillow expects home values to surge as well. In fact, they just recently increased their expectation to 10.5%, up from 10.3%, as the measure for how much homes will appreciate through December 2021. The fourth quarter of 2020 supports that projection, with a 3.2% home value increase, marking the strongest three-month appreciation period since 1996. With the always “crazy” Spring housing season only a few months away, all indications are pointing to the housing market to continue to set record after record.
Call your Advisors Mortgage Loan Officer today to discuss the current market in more detail and to learn what you qualify for.
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By: Jon Iacono