“More and more sellers are reducing their list price. Here’s exactly what economists and analysts think will happen to home prices over the next few months

Should you buy a house in 2021?

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Mortgage rates remain close to their all-time low – some 15-year rates are close to 2% and some 30-year rates are below 3%, as you can see here – but many potential buyers worried about the recent rising house prices, are not. I’m not sure if they should dip their toes into the housing market. So we asked economists and financial professionals what they expect from the real estate market by the end of the year.

“Monthly home value growth has slowed from its all-time high this summer, inventories are up for the fourth month in a row and more sellers are lowering their list price. All of this points to less competition for home buyers, but make no mistake, the housing market remains clearly tilted in favor of sellers, ”Zillow Senior Economist Jeff Tucker said. Indeed, Zillow’s latest market report released in October notes a slight slowdown in the selling markets, with monthly home appreciation slowing for the first time since January. The Zillow report also found that the inventory of for-sale listings increased for the fourth month in a row, along with more listings for sale lowering prices, which is beneficial for home buyers. Looking ahead, Zillow economists expect the value of a typical US home to rise 4.7% over the next several months, leading to an 11.7% increase by August. 2022.

“The hectic pace of housing may slow down somewhat, but demand still far exceeds a limited supply of available-for-sale housing,” adds Greg McBride, chief financial analyst at Bankrate. “Waiting for prices to drop seems unlikely to pay off,” says McBride. But he says, proceed with caution: “Waiting until you don’t have to bid on the spot or on sight, forgo inspections, or forgo the unexpected is a prudent choice,” says McBride. .

Jacob Channel, LendingTree’s senior economic analyst, says recent data shows a 2% drop in existing home sales in August, suggesting the chill that occurs when the weather cools has already started. “Of course, that doesn’t mean house prices are going to fall, and I expect that even if they do come down a bit, prices will likely stay relatively high next year,” Channel said.

And for her part, Elizabeth Renter, data analyst at NerdWallet, predicts that in many local markets it will be easier to buy this fall than in recent months. “Lately, home price growth has started to slow down its breakneck speed,” she said, adding that “that doesn’t mean fall buyers will get away with it easily, just that they won’t meet of obstacles as high. More risk-averse and stress-averse buyers will likely continue to postpone their purchase into 2022 or beyond, ”said the tenant. But Zillow economists forecast a total of 5.93 million in sales before the end of the year, a 5.1% increase from the historically strong market of 2020.

Because there are so many personal factors that go into the decision to buy a home that matter more than market conditions, Tucker says, “Those who are willing to buy and have some flexibility should consider doing it quickly, if the right home is available, to lock in the best price. Home prices are always rising rapidly and mortgage rates are remarkably low. If rates start to rise, which could happen as the Fed slows the pace of its mortgage purchases, it would increase the monthly cost of a mortgage. “

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