High buyer demand and low for-sale inventory have made for a hot housing market. Homes are selling quickly and buyers are having to compete for available listings. But, according to the most recent outlook from Fannie Mae's Economic and Strategic Research Group, the market is expected to cool off at some point this year. When that happens is still a little uncertain, however.
“While housing is still expected to moderate in the new year from its unsustainably high pace in the second half of 2020, the ESR Group did upwardly revise its 2021 sales forecast on new data suggesting that the expected cooling will occur over a longer time frame than previously anticipated,” the group writes.
In some ways, the economy and housing market's behavior this year is dependent on how quickly and effectively the coronavirus vaccine can be distributed. The ESR group expects that its distribution will help boost economic growth and support high levels of interest from home buyers.
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