Housing Market Gains To Continue Through 2021
The housing market continues to grow stronger. And, according to Fannie Mae's most recent outlook from their Economic and Strategic Research Group, there are a few factors driving the improvement. Among them, low mortgage rates and a strong labor market are near the top of the list. Americans are feeling more financially secure and, combined with favorable rates, they're increasingly convinced that now's a good time to buy a home. Doug Duncan, Fannie Mae's chief economist, says the improvements will likely continue through next year. “Our updated housing market forecast shows greater strength in essentially every part of the housing market extending through the first half of 2021,” Duncan said. “The limiting factor for home sales, as well as the primary driver of home price appreciation, remains the supply shortage. Barring an uptick in the inventory of existing homes put on the market, in the near term we're forecasting relatively flat home sales until higher construction activity can be sustained, which we foresee will be the case later this year.” In other words, the outlook is good and will likely get better as more new homes are built and listed for sale.