With the first half of 2021 behind us, we’ve seen the strong housing market that started in 2020 continue to beat the odds. But will these trends continue for the rest of the year? Although anything can happen, we have our own predictions that are informed by our industry knowledge and experience as real estate agents in San Diego. Here’s what we think we might see in the second half of 2021.
Mortgage Rates That Increase, but Not Too Much
Since the end of 2020, mortgage rates have been slowly increasing. We estimate that this trend will continue but that interest rates will still remain relatively low in terms of historical rates. Freddie Mac estimates that the average 30-year fixed mortgage rate will be 3.4% by the end of the year and 3.8% by the end of next year. While this is still an increase, it’s by no means as big of an increase as we’ve seen in years past.
Home Prices Continue to Rise but at a Slower Rate
Rising home appreciation has led us to a market that significantly favors sellers. In San Diego, we’ve seen house prices rise 16.1% from April 2020 to April 2021. We estimate that appreciation will continue for the second half of 2021 though likely not at such a significant rate. Because of this, if you’re a buyer that’s been trying to wait out the market for house prices to drop, you shouldn’t wait any longer to get in touch with the best realtors in San Diego.
Inventory Remains Low but Looks Optimistic
Lastly, one factor in the housing market to look at is inventory, which has been consistently declining in recent years. In 2020, we started to see some gains in San Diego with an 18% increase in new constructions compared to 2019. We think that inventory will remain low in the second half of 2021, but continue the trend of growing slightly.
Get Expert Help with Your Real Estate Transaction from the Best Realtors in San Diego
Based on each of these things, there is data to support feeling good about the housing market for the second half of 2021. If you’re looking to buy or sell, get in touch with real estate agents in San Diego from the Horton Realty Team. We will be happy to help you expertly navigate the market in a way that’s best for your needs.