Newsletter - December 2020
Despite the COVID-19 pandemic and its associated economic challenges, 2020 was a banner year for housing, with price growth and home sales reaching new heights.
Quick action by lawmakers helped people stay in their homes this year, but many of the protections laid out have either expired or are set to expire in 2021. Will it all come crashing down?
Here are 5 housing market predictions for 2021:
Forbearance continues: The number of mortgage loans in forbearance has decreased steadily over the second half of 2020 as homeowners have gone back to work until last month, when it upticked slightly (+.01%). With millions of people still unemployed, some experts predict forbearance plans will continue well into next year.
Mortgage rates stay low: Mortgage rates hit record lows nearly a dozen times in 2020, and are expected to remain low (if not as low) in the new year. The Mortgage Bankers Association, Fannie Mae and Freddie Mac all predict 30-year fixed rates will average 3.03% throughout 2021.
Inventory stays low; prices high: Low inventory sent home prices skyward this year, a trend that is expected to continue in 2021. “We won’t see the double-digit price growth we saw in 2020,” said Realtor.com’s Chief Economist Danielle Hale, “but we do expect prices to rise because we anticipate that inventories will continue to be relatively low.” Realtor.com forecasts the median home sale price will rise by 5%-6% over the next 12 months.
More construction starts: Construction starts are rising (up 14% year over year in October), and are expected to keep rising in 2021 — Fannie Mae projects a 17.1% bump in single-family starts next year. Once that inventory hits the market, which takes an average of seven months, it should offset some homebuyer demand and ease prices.
Investors get a break: This year has been a rough one for property investment, as foreclosure moratoria left investors with limited options. Now that most of the moratoria have expired, there will likely be a wave of foreclosures on borrowers who haven’t caught up with payments. This should bring more affordable properties to market for investors next year.
Whatever 2021 brings, it’s crucial to maintain proper documentation and up-to-date property reports. Let Blue Streak Docs handle your document retrieval and help you protect your portfolio in the new year. If you haven’t worked with us yet, try us out and get your 5th order FREE!
Employee Of The Month
Congratulations to our Employee of the Month, Jackee! Jackee moved into our Client Relation's Manager position a few months ago, and has gone above and beyond in this position from day one! She provides our clients with speedy turnaround to any questions and concerns that they may have on completed orders, and she does so with excellent customer service skills. Jackee's top priority is to ensure that our clients are pleased with the results of their orders, and it shows. She has also put a lot of effort into creating "how-to" writeups for any clients with specific requirements to make sure our staff is providing exactly what is needed. Additionally, she performs audits on orders to make sure the status provided to our clients is handled correctly and that the search requirements have been met. Jackee also spent time in the month of October helping with production, as we hit our highest month ever! Jackee plays a key role every day in keeping our clients happy. Congratulations, Jackee!