Chic vs. Geek: Macroeconomics

/

Real estate economists are reading the tea leaves from the first half of 2021 to predict what the housing market will look like for the rest of the year and into 2022. What are they finding?

Predicting the real estate market.png

CHIC (PEARL)

Based on early returns from 2021, national real estate economists are predicting a surge in supply from new home construction, the winding down of mortgage forbearance due to COVID-19, and a higher level of consumer confidence thanks to widespread vaccinations.

GEEK (KEVIN)

Higher home prices and higher mortgage rates will also create less demand. That means properties will remain on the market longer, leading to less hurried decisions for homebuyers. Meanwhile, rental prices will slowly increase with inflation. (More in Number Talk later this week!)