This month’s video series is What to expect in the Real Estate Market of 2021.
Hi, I’m John Garuti with JG3 Homes brokered by eXp Realty.
Are we going to see a crash???
I know it’s hard to tell, predict and digest with everything we have going on at the moment. There have been so many different markets over the last 20 years and this has to be one of the more unprecedented markets in history.
However, when we look at this graphic provided by the Housing Market Recovery Index (HMRI) we see a V- shaped market. This was predicted in March of 2020 when there was an official declaration of a global pandemic.
In good news, the market has recovered. Back in March of 2020 the HMRI rose to 106.5, bottomed out at 83.1 and has since climbed to 112.8.
Yes there was a definite drop in the housing market with the onset of the pandemic but as you can see, the market dipped but then took a strong and steady rise.
This aggregate market analysis tool measuring FOUR components:
Time on the market
High inventory and low interest rates are in my opinion, two of the strongest indicators of increased activity. A low supply of homes with incredible financing of mortgage rates has created an extremely high demand for the markets of SWFL.
When we look at the number of active forbearance or deferment of mortgage payments, according to Realtor.com there has been a downward trend for the past several months.
Also, if we look at the time frame when homeowners exited their forbearance plan, you’ll see that 54.6% are paid in full, 30.7% are working out repayment plans and 14.7% are in trouble of default. The things to be cognisant about is that the last percentage bracket could very well turn into short sales or foreclosures.
Overall, the real estate market is hot and buyers in this area are incredibly active. Look out for more information about the housing market and how it may affect your plans to buy or sell a home.
John Garuti with JG3Homes brokered by eXp Realty and we’re here to help.