A MARKET UPDATE FROM THE DESK OF TOM HOTTER…
The wild ride we experienced in 2020 has certainly continued through the first half of 2021. The real estate and mortgage lending industries have seen a prolonged set of market challenges and opportunities unique in our lifetimes.
So, what does the future hold in the remainder of 2021…
Here are a few things to stay mindful of while coming out of a global pandemic with vaccination efforts in full swing.
- Fannie Mae, Freddie Mac and the Mortgage Banker’s Association all project mortgage rates to remain low and will likely inch upward as the economy progresses given the risk of inflation on the horizon.
- As predicted six months ago, home prices and sales have continued to rise from the end of 2020 and into 2021. Contributing factors include the sustained lack of inventory, elevated constructions costs and continued influx of population base flowing into Dane County.
- Home prices are predicted to rise throughout 2021, but will taper into 2022 as compared to 2020 and 2021. Freddie Mac goes so far as to say, while pricing may cool, prices are not expected to drop in 2022.
So, what’s the bottom line…
Whether it’s new construction or existing homes, single family homes or condos, it appears as though the wild ride will continue for the foreseeable future!
Best wishes for a safe and healthy Fourth of July holiday along with a prosperous second half of 2021!