This is the final in a 3 part series summarizing my home market projections for 2021
- Turning our attention now to sale prices, this year has been impressive so far, and we should see sale prices in 2020 ending up 7.4 percent higher than we saw in 2019. This number is quite remarkable because of what had been forecasted for 2020, a price growth closer to 4 percent than 7 percent.
- There is always a relationship between incomes and home prices…mortgage rates dropping can only allow prices to rise by so much. Because of this we see a more modest 4.1 percent increase in 2021.
- NEW home starts are expected to rise by 8 percent this year, but next year I expect to see home building starts up by almost 17 percent. This is good news for several reasons, the biggest of which is that more new construction will add to supply, and that should take some of the demand and price pressure off the existing market.