According to the latest CoreLogic Home Price Insights Report, nationwide home values increased by 8.2% over the last twelve months. The dramatic rise was brought about as the inventory of homes for sale reached historic lows at the same time buyer demand was buoyed by record-low mortgage rates. As CoreLogic explained:

 

“Home price growth remained consistently elevated throughout 2020. Home sales for the year are expected to register above 2019 levels. Meanwhile, the availability of for-sale homes has dwindled as demand increased and coronavirus (COVID-19) outbreaks continued across the country, which delayed some sellers from putting their homes on the market.

 

While the pandemic left many in positions of financial insecurity, those who maintained employment and income stability are also incentivized to buy given the record-low mortgage rates available; this is increasing buyer demand while for-sale inventory is in short supply.”

 

Where will home values go in 2021?

Home price appreciation in 2021 will continue to be determined by the imbalance of supply and demand. If supply remains low and demand is high, prices will continue to increase.

 

Housing Supply

According to the National Association of Realtors (NAR), the current number of single-family homes nationwide for sale is 1,080,000. At the same time last year, that number stood at 1,450,000. We are entering 2021 with approximately 370,000 fewer homes for sale than there were one year ago.

 

The current number of homes for sale in the Dallas Fort Worth area is 3800 single-family homes.

What Does 2021 Have in Store for Home Values? | MyKCM

There is the possibility inventory will ease as we move through the new year for two reasons:

 

1. As the virus eases and vaccine becomes available, more homeowners will be comfortable putting their houses on the market.

 

2. Some households impacted financially by the pandemic will be forced to sell.

 

Housing Demand

Low mortgage rates have driven buyer demand over the last twelve months. According to Freddie Mac, rates stood at 3.72% at the beginning of 2020. Today, we’re starting 2021 with rates one full percentage point lower than that. Low rates create a great opportunity for homebuyers, which is one reason why demand is expected to remain high throughout the new year.

 

Bottom Line

There’s still a very limited number of homes for sale in the Dallas Fort worth area, homes for sale in Frisco Texas, Prosper Texas homes for sale, Aubrey homes for sale may still remain low. “Supply and demand” mandates that home values in the country will continue to appreciate. Frisco homes for sale, Prosper homes for sale, Celina homes for sale, Little Elm home for sale Call Us Brian & Melinda Stitzinger Realtors® Real Estate Agents