2021 Predictions from Realtor.com

Realtor.com is predicting that home price appreciation will slow to 5.7% in 2021. Why? They are expecting inventory levels to rise in the second half of the year as homeowners will list more homes for sale due to vaccines causing people to feel safer.

Second, they believe home builders will start 9% more new homes in 2021. But, it's one thing to start a home and it's another thing to complete a home as everything I read tells me that home construction is slowing considerably under the weight of soaring lumber prices, materials shortages and delays, and not enough qualified labor. Realtor.com is also predicting that the number of homes sold in 2021 will by 7%.

Further, Realtor.com ranks Denver as the 9th hottest real estate market in the country as they predict that the number of homes that will sell next year will increase by 12.5% and that home prices will appreciate by 5.4%. If our home sales increase by 12.5% our prices will rise by a similar percentage I believe unless months of inventory doubles at least.