inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2021/05/BarrentineGroupLogo_2021-02.png
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2020/07/kwluxurylogo.png
  • Meet Our Team
  • Our Blog
  • Listings Search
    • Featured Listings
  • Seller and Buyer Resources
    • Seller Resources
    • Buyer Resources
  • Testimonials
  • Giving
  • Videos
  • Contact us
Barrentine Group
310.276.6656
info@barrentinegroup.com
Sign In
Sign Up
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2021/05/BarrentineGroupLogo_2021-02.png
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2020/07/kwluxurylogo.png
  • Meet Our Team
  • Our Blog
  • Listings Search
    • Featured Listings
  • Seller and Buyer Resources
    • Seller Resources
    • Buyer Resources
  • Testimonials
  • Giving
  • Videos
  • Contact us
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2021/05/BarrentineGroupLogo_2021-02.png
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2020/07/kwluxurylogo.png
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2021/06/20210630-KCM-Share.jpg

What Do Experts See on the Horizon for the Second Half of the Year?

inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2021/05/RedGroupLogo_Circle-01.png
Barrentine Group,06/30/2021

As we move into the latter half of the year, questions about what’s to come are top of mind for buyers and sellers. Near record-low mortgage rates coupled with rising home price appreciation kicked off a robust housing market in the first half of 2021, but what does the forecast tell us about what’s on the horizon?

Mortgage Rates Will Likely Increase, but Remain Low

Many experts are projecting a rise in interest rates. The latest Quarterly Forecast from Freddie Mac states:

“We forecast that mortgage rates will continue to rise through the end of next year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.”

However, even as mortgage rates rise, the anticipated increase is expected to be modest at most, and still well below historical averages. Rates remaining low is good news for homebuyers who are looking to maximize their purchasing power. The same report from Freddie Mac goes on to say:

“While higher mortgage rates will help slow the pace of home sales and moderate house price growth, we expect overall housing market activity will remain robust. Our forecast has total home sales, the sum of new and existing home sales, at 7.1 million in 2021….”

Home Price Appreciation Will Continue, but Price Growth Will Likely Slow

Joe Seydl, Senior Markets Economist at J.P. Morgan, projects home prices to continue rising as well, indicating buyers interested in purchasing a home should do so sooner rather than later. Waiting for rates or home prices to fall may not be wise:

“Homebuyers—interest rates are still historically low, though they are inching up. Housing prices have spiked during the last six-to-nine months, but we don’t expect them to fall soon, and we believe they are more likely to keep rising. If you are looking to purchase a new home, conditions now may be better than 12 months hence.”

Other experts remain optimistic about home prices, too. The graph below highlights 2021 home price forecasts from multiple industry leaders:
What Do Experts See on the Horizon for the Second Half of the Year? | MyKCM

Inventory Remains a Challenge, but There’s Reason To Be Optimistic

Home prices are rising, but they should moderate as more housing inventory comes to market. George Ratiu, Senior Economist at realtor.com, notes there are signs that we may see the current inventory challenges lessen, slowing the fast-paced home price appreciation and creating more choices for buyers:

“We have seen more new listings this year compared with 2020 in 11 of the last 13 weeks. The influx of new sellers over the last couple of months has been especially helpful in slowing price gains.”

New home starts are also showing signs of improvement, which further bolsters hopes of more options coming to market. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), writes:

“As an indicator of the economic impact of housing, there are now 652,000 single-family homes under construction. This is 28% higher than a year ago.”

Finally, while it may not fundamentally change the market conditions we’re currently experiencing, another reason to be optimistic more homes might come to market: our improving economy. Mark Fleming, Chief Economist at First American, notes:

“A growing economy in the summer months has multiple implications for the housing market. Growing consumer confidence, a stronger labor market, and higher wages bode well for housing demand. While a growing economy and improving public health conditions may also spur hesitant existing owners to list their homes for sale, it’s unlikely to significantly ease the super sellers’ market conditions.”

Bottom Line

As we look at the forecast for prices, interest rates, inventory, and home sales, experts remain optimistic about what’s on the horizon for the second half of 2021. Let’s connect today to discuss how we can navigate the market together in the coming months.

Print Details
Previous post
Next post
What To Expect as Appraisal Gaps Grow
Are We in a Housing Bubble? Experts Say No.

Office

Keller Williams Larchmont | Miracle Mile5150 Wilshire Blvd, Ground FloorLos Angeles, CA 90036
CalDRE License # 01207185
310.276.6656
info@barrentinegroup.com

Helpful resources

  • Home
  • Meet Our Team
  • Client Testimonials
  • Giving

Explore

  • Listings Search
  • Featured Listings
  • Buyer Resources
  • Seller Resources

Consumer Protection & Privacy

  • Accessibility
  • DMCA Compliance
For ADA assistance, please email compliance@placester.com. If you experience difficulty in accessing any part of this website, email us, and we will work with you to provide the information.
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2021/05/RedGroupLogo_2021-02%281%29.png
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2020/07/logo-2.png

© 2022 All rights reserved

Created with Placester

Sign in

Sign in with your email address

Sign In
Forgot your password?
Create an account
You have been successfully logged in
The page will reload automatically.
Go to the homepage
Sorry something went wrong
Login or password are incorrect. Please try again.
Try again

Sign Up

Sign Up
Already a User? Sign In
You have been successfully registered
Please check your email.
Go to the homepage
Sorry something went wrong
Please try again.
Try again

Reset password

Enter your email address

Reset password
Return to Log In
Reset password email has been sent.
Go to the homepage
Sorry something went wrong
Please try again.
Try again

Change password

Change password
Your password has been successfully reseted.
Go to the homepage
Sorry something went wrong
Please try again.
Try again
Send
Succes! Your message was sent!
Thank you for visiting RED Real Estate Group. "Helping you make wise real estate decisions"
Back to homepage
Oops! Error occurred.
Please try again.
Back to form
Already a User? Sign In

Account verification in progress

Please wait...

Account Verified!

You may now log in into your account
Go to the homepage

Verify your email address

In order to log in to your account, you need to confirm your email address. Please check your inbox!
Go to the homepage

Share this listing

Copy Link