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House prices in the USA: what happened in 2020? What will happen in 2021?



The housing market was on the rise during the second half of 2020. Buyer demand increased and the supply of available-for-sale homes reached record levels. The price of anything is determined by the relationship between supply and demand, so that house prices skyrocketed last year. Dr. Lynn Fisher, Deputy Director of the Research and Statistics Division at the Federal Housing Finance Agency (FHFA), explains:


“House prices across the country recorded the biggest annual and quarterly increase in the history of the FHFA Household Price Index. Low mortgage rates, pent-up demand from home buyers and a limited housing supply have propelled all regions of the country to grow faster in 2020 compared to a year ago, despite the pandemic. "

Here are the FHFA year-end house price appreciation numbers and two other prominent price indices:


Federal Housing Finance Agency housing price index report: 10.8%

CoreLogic Home Price Insights: 9.2%

S&P Case-Shiller US National Household Price Index: 10.4%

The past year has been really remarkable for homeowners as prices have risen substantially. Lawrence Yun, Senior Economist at the National Association of Realtors (NAR), reveals:


What will happen to house prices in 2021?

Many experts believe that buyers' demand will decrease somewhat, as mortgage rates are expected to rise slightly. Some also believe that the stock will shrink as more listings hit the market this year.

Based on this, most analysts predict that we will see a strong appreciation in 2021 - but not as strong as in 2020

The information contained and the opinions expressed in this article should not be interpreted as investment advice. Nothing here should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. we are not responsible for any loss or damage caused by your reliance on the information or opinions contained herein.

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