The Housing Market Is ABOUT TO BOTTOM
Published: 2021-07-09
Status:
Available
|
Analyzed
Published: 2021-07-09
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
More home listings in the latter half of 2021 are expected to slow down the pace of home price growth.
"The chief Economist of the National Association of Realtors predicted that more homes will be listed in the latter half of the year which would help slow the pace of home price growth."
Pending
Flattening mortgage demand suggests that housing prices may be nearing a peak and sales are likely to bottom out.
"Economists say that this could very well mean that prices are soon hitting a peak and that sales will soon hit bottom given the flattening and mortgage demand over the past couple of months."
Pending
Lumber prices dropped 40% in June due to Americans prioritizing vacations over home renovations, marking the largest monthly drop on record.
"Lumber prices did end up dropping 40% in June which is the biggest monthly drop on record this they say was partially due to the reopening As Americans are going outside and taking vacations instead of completing home renovation projects and building."
Pending
As supply chains normalize, lumber prices are expected to continue falling, leading to a reduction in overall building costs.
"they also say that as Supply chains begin working properly again lumber prices should continue to fall and all of those increased costs throughout the last year should begin to subside"
Pending
Fannie Mae and Freddie Mac predict housing prices to increase by 8% in 2021 and then slow to 2.9% in 2022.
"The third from all of this, the mortgage giants Fanny May and Freddy Mack forecast that housing prices will rise 8% in 2021 before slowing down to 2.9% in 2022"
Pending
Gillo forecasts a more ambitious 14.9% year-over-year increase in housing prices.
"Gillo is a little bit more ambitious when it comes to this believing that housing prices could rise another 14.9% year-over-year"
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Builders are intentionally slowing down projects to wait for material costs to decrease, avoiding overpaying.
"Builders are purposely slowing down their projects and in order to wait for their materials to decline otherwise they risk putting themselves in a position where they overpay the cost of materials"
Pending
At the current rate, it will take approximately 14 months for the number of houses on the market nationwide to reach normal levels.
"at the current Pace the number of houses on the market Nationwide won't reach normal levels for about 14 months"
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There is concern that the end of mortgage forbearance could lead to tens of thousands of homes being listed on the market simultaneously.
"there certainly is some concern about the end of mortgage forbearance potentially dropping tens of thousands of homes on the market all at the exact same time"
Pending
The most significant risk to housing prices is anticipated to be rising interest rates, projected to occur in approximately 24 months.
"the biggest risk to housing prices is likely going to be rising interest rates which is said to happen in about 24 months"
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Housing prices may continue to rise if demand remains constant, but high building material costs are expected to decrease within the next 12 to 18 months.
"housing prices could very well continue to rise if demand stays exactly the same but artificial factors like high building materials will inevitably start to come down between now and the next 12 to 18 months"
Pending
Analysts predict the housing market will maintain upward momentum but begin to slow as the COVID market conditions end.
"as all of these analysts have predicted the housing market could sustain an upward momentum but it's likely to start slowing down as the co Market comes to an end"
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Rental prices are expected to increase as many individuals priced out of the housing market will likely drive up rental demand.
"rental prices would probably be the next thing to start going up since so many people are sitting on the sidelines just out priced from the housing market rental demand is probably going to continue going up"
Pending