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The American Dream: there are few people in this nation that don’t know this long-standing tradition. For several decades, those from this country and even others have been longing to achieve the American dream. To buy a home and start a life in one of the greatest nations on the planet, where the streets were thought to be paved with gold, is quite the feat.
Now, people are still working hard every day in order to be able to purchase their one piece of America. The housing market doesn’t always make that easy, though, as it is incredibly unpredictable. Throughout the country, even throughout one single state, the prices and rate of the market shift dramatically from day to day. This year is no different. Hang on to your hats, because it’s going to be a crazy ride.
So far, it seems that prices for U.S. homes are steadily rising, but the inventory on the market is declining at an even faster rate. People are grabbing at straws to get their chance to buy a house. The borrowing methods utilized by home buyers in 2021 is also changing, depending on the background of the buyer.
Economists are forecasting even more growth over the next 12 months. Check out the text below and stay up to date on the housing market.
Existing-home sales increased near the end of 2020 from the year before, according to the National Association of Realtors (NAR). From October to November 2020, there was an decrease in existing home sales of 2.5%, but a year-over-year increase of 25.8%.
Tight inventory continues to be a problem, with first-time homebuyers most affected. While the supply of new single homes increased 13.89% from last month, it dropped 26.79% from the same time last year.
Housing inventory is currently at a 2.3-month supply, down 22% from the same time last year. That’s much lower than the 5- to 6-months’ supply for a balanced market.
New listings decreased by 3% in 2020 from 2019, but they are expected to rise by more than 5% in 2021.
The private mortgage insurance industry financed approximately 283,000 first-time homebuyers over the third quarter in 2020, a record.
The median price for a typical US home is $263,300 as of January 2021, up 7.5% from January 2020.
According to RedFin, the rate of homeownership rate will hit 70% by the end of 2021 for the first time in over 15 years.
The current 30-year fixed-rate mortgage rate dropped to 2.67% by January 2021 and is expected to remain around the 3% mark until the end of the year.
Real estate research firm Zillow predicts that home prices will increase 10.3% over the next 12 months, after having increased 7.5% over 2020.
According to a survey by the National Association of Realtors (NAR), there will be approximately 1.5 million housing starts in 2021.
If you have questions about mortgages or are ready to apply for one, we’re ready to help. Sammamish Mortgage is a mortgage firm local to Bellevue, Washington, serving all of Washington, Oregon, Idaho, and Colorado. Our experts will walk you through our mortgage programs to see which one is best for you. Contact us today with questions you have about mortgages.