Is there another possible housing market crash brewing up in the United States? Should the regular Joe be worried and be prepared about it? Many are saying that one should be, while others are saying the opposite. Hopefully, that can be cleared out here as we progress. We are optimistic that everything will be for the better the following year.
Is a Housing Crash Possible in 2021? or Is It Just a Load of Nonsense?
According to Mashvisor, they have stated that a 2021 housing crash is most unlikely to happen. They say that the overall consensus is that a market crash has a low to no chance of happening next year. Some predictions have been pointed out and been analyzed, which are broken down below:
- End of Mortgage Forbearance Will Not Start a Crash - many experts believe that a housing market crash would immediately happen once this happened. They also say that once the CARE Act, the origin of mortgage forbearance, expires in 2021, the crash would still happen. However, that isn't true as many factors are preventing this. One such factor is the number of delinquent loans; in 2008, there are over 10 million, while last October, there are only nearly 3 million. And that current number is currently decreasing, along with the rising of employment rates within the country.
- Housing Supply & Demand Imbalances Will Not Start a Crash - another prediction that many are touting that it will be the one to start the housing market crash of next year. However, just like the first prediction, it is not the case overall. Currently. There is a high demand for housing properties in the market. But the supply for it is very low right now, thus increasing the prices of housing properties. And that is normal for this market and will not cause a housing market crash.
Housing Market in 2021: What To Possibly Expect
Although there are no immediate crashes in the housing market in 2021, experts have stated what to expect by then possibly. According to Realtor.com, expect that prices for most housing properties in the market would spike up in 2021. Additionally, mortgage interest rates are expected to rise back up again. First-time buyers better are prepared for next year.
However, the good thing is that those price increase would happen slowly, at a snail's pace almost. This gives the people enough time to prepare themselves (and their wallets) for buying in the housing market next year.
The Market Will Stay Stronger Next Year
Even though there would be an increase in the housing market rates and prices next year, other experts say that it will remain strong anyway. According to Kiplinger, the increase for new housing properties will greatly increase, wherein it is predicted that it will happen strongly in the spring. However, the growth will drop in around the fall season. Additionally, they are expecting the demand to shift from urban cities to suburban and rural areas. This is to avoid dense and packed locations to combat the current global pandemic.
ALSO READ: How to Know If Your Housing Market is Under or Overvalued? & Increasing National Market Sales Came From Millenials
