According to COGNITION Smart Data, Green Builder Media’s suite of market intelligence services, the housing market is expected to continue on its growth trajectory in 2021.
Housing economists project a 4 percent growth rate from 2020 to 2021. This represents an approximate 13 percent increase in single-family home starts in 2021, or 1,075,00 seasonally adjusted starts.
Factors driving the housing market include:
Factors that are limiting housing market growth include:
A recent Green Builder Media survey indicates that builders feel good about their opportunities in 2021, driven primarily by significant backlogs. However, they’re worried about running out of lots, rising land prices, and soaring infrastructure costs, namely water tap fees.
While the brisk pace of sales is expected to continue into the first half of 2021, keep a wary eye open for slowdowns in the second half of the year as the market bumps up against inventory, lot supply, and affordability limits.
Foreclosures may also become an anchor on the housing market: Approximately 11 million households fell behind in payments in 2020 and 2.3 million loans are currently at least 90 days past due, yet, overall foreclosures were down 80 percent in 2020 (from 2019) because of pandemic-related moratoriums. It’s likely that we’ll see a wave of short sales and foreclosures in summer 2021, which will cause housing supply to overwhelm demand, dropping prices and cooling off of real estate markets from coast to coast.
Caption: The housing market remains bullish, with buyers often facing competing bids in hot markets.
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COGNITION Smart Data offers advanced intelligence and insights about market trends and important customer information like behavioral patterns, purchase drivers, buying preferences and sentiment. COGNITION enables clients to make informed business decisions, yielding specific deliverables and tangible results. COGNITION provides a definitive competitive advantage by allowing companies to stay a step ahead of their competitors.
For more information on how you can tap into the power of COGNITION Smart Data, visit www.greenbuildermedia.com/cognition or contact Sara Gutterman at sara.gutterman@greenbuildermedia.com.