Home-price gains in 2021 are on pace to smash last year’s all-time high after record-low mortgage rates fueled bidding wars across the U.S., Fannie Mae said in a forecast on Friday.
Home prices probably will surge 17% this year, beating the record gain of 11% set in 2020 that surpassed the prior peak of 10% seen at the height of the real estate boom that petered out in mid-2006, the largest U.S. mortgage securitizer said.
Prices for homes began spiking last year after the Federal Reserve stepped into the bond markets in March 2020 to purchase Treasuries and mortgage-backed securities to support the economy during the pandemic and prevent the type of credit crunch that crashed the U.S. financial system in 2008.
Housing activity in the Puget Sound region remained "very active" last month even as more inventory hit the market, according to a new report from the Northwest Multiple Listing Services (NWMLS).
While a slight cool-down in the market was detected in the late summer with less homes going under contract, the activity has bounced back with the report showing that brokers added a total of 11,373 new listings for single-family homes and condominiums in September.
However, inventory remains historically low in the competitive market with prices only projected to increase in the next year. NWMLS brokers reported a total of 7,757 active listings in September, slightly up from August's high of 7,425 active listings but down 14.8% compared to the same time
Signed contracts to buy existing homes increased 8.1% month to month in August, according to the National Association of Realtors.
Buyers encountered higher inventory and slightly more favorable prices.
Analysts were expecting a 1% monthly rise. Signings were still down 8.3% compared with August 2020.
Signed contracts to buy existing homes increased 8.1% month to month in August, according to the National Association of Realtors, as buyers encountered higher inventory and slightly more favorable prices.
Analysts were expecting a 1% monthly rise. Signings were still down 8.3% compared with August 2020.
August’s increase followed two months of declines, according to the NAR.
