MReport June 2021

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40 | M R EP O RT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST ORIGINATION More Than $2.5T in Home Sales Forecast for 2021 A new forecast finds that home sales this year will be spurred by a combination of record low rates and a wave of migration due to telework situations. A new analysis by Redfin has found that, for the calendar year 2021, a re- cord $2.53 trillion worth of home sales will transact in America—a 17% year-over-year gain and the largest annual increase in percentage terms since 2013. Fueled by record-low rates, strong demand, and a wave of migration made possible by remote work, the market comes into a strong spring season after suffering some weather-related setbacks to start the year. These factors helped March become the hottest month in housing history, with home val- ues, price growth, and selling speed all hitting new heights. "We expect 2021 to be an even more active year for the hous- ing market than 2020 because homebuyers have a better sense of what the future looks like," Redfin Chief Economist Daryl Fairweather said. "Employers are providing clarity on perma- nent remote-work policies, the economy is recovering and mort- gage rates remain low. All of these factors mean that we'll likely see even more buyers enter the mar- ket this year and in 2022." According to Fairweather, home prices could grow more slowly if mortgage rates rise, re- sulting in a more balanced hous- ing market, which could actually lead to more home sales. The Southern part of the United States is expected to lead the charge, with $1.09 trillion of home sales forecast for 2021, fol- lowed by the West with $696.3 billion, the Midwest with $422.6 billion, and the Northeast with $322.8 billion. Fairweather noted that the South has consistently held the top spot, but has inched further ahead in recent years, likely be- cause it has more vacant land on which to build, and has attracted scores of out-of-town homebuyers who are in search of affordability and space. And proof of a rising market in the South is evident in markets such as Atlanta, where Redfin Real Estate Agent Andrew Kolodey faces unprecedented bid- ding wars. "Offering above a seller's ask- ing price was never the norm in Atlanta like it was on the West Coast, but now it is. Today, it's typical for a buyer to bid $50,000 or $70,000 over the list price in or- der to win," Kolodey said. "We've never experienced this level of competition. A bidding war here used to mean up to five offers. Now it means 15 to 20 offers." "Offering above a seller's asking price was never the norm in Atlanta like it was on the West Coast, but now it is."

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