Page 17 - Green Builder Nov-Dec 2021 Issue

CREDIT: ISTOCK/PHOTOVS SUSTAINABLE
THE STATE OF

A Real Estate Gold Rush BUILDING 2022

$475,000

in late 2019

$625,000

in late 2021

A single-family home may not change much in appearance in only a couple years, but its sticker price can. This Sacramento, California-area residence sold
for $475,000 in late 2019 but was worth $625,000 in late 2021. CREDIT: GREEN BUILDER MEDIA

stimulus-driven economic recovery, along with a massive vaccine
push, that results in herd immunity that brings back consumer 2021 Year-Over-Year 2021 Year-Over-Year
confidence, increases public demand and ultimately leads to pro- Housing Market Stats Predictions Actual (projected)
duction growth and reduced inflation by the end of 2022. Existing home sales ↑ Up 8.5% ↑ Up 21.9%
The not-so-positive version sees the U.S economy continuing
to suffer shortages of labor and goods, inflation that creeps up Newly built home sales ↑ Up 12.8% ↓ Down 3.4%
consistently, stagnant job growth, weakening of consumer real Home prices ↑ Up 7.5% ↑ Up 19.5%
disposable income, and big-ticket spending that slows through
the first half of 2023. Mortgage rates 3% 2.99%
Marco Santarelli, founder of Norada Real Estate Investments, (30-year fixed)
believes more in the former scenario. “While we still face eco- SOURCE: U.S. CENSUS BUREAU AND THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
nomic and health challenges ahead,” he notes, “there is no doubt
that the nation will continue to recover from this pandemic, and varied slightly, but analysts nationwide forecast double-digit growth
an improving economy will continue to prop up the housing mar- in valuation. For example, market projections by COGNITION
ket competition.” Smart Data, Green Builder Media’s market intelligence division,
showed a 13.5 percent growth rate by mid-year, a number financial
THE HOUSING MARKET–——BOOM OR BUST? experts called “very reasonable.” Small mortgage handler Freddie
Nearly every real estate analyst acknowledges that 2021 has Mac offered a 16.1 percent forecast, considered to be “on the high
surpassed their predictions in terms of housing prices, sales end.” Online real estate marketer Zillow saw a 17.7 percent year-
and construction starts. The record-setting numbers in these to-year increase, a number some analysts said was “very bullish.”
categories were attributed in part to a nation’s recovery from But the bottom line was that it meant more financially to own
the pandemic—and resulting need to “get back to life”—and to a home than it has at any time since the early 1980s, according
government-sustained low interest rates. to research firm Statista. Many owners took advantage of their
Homes in general, always considered a strong source of family homes’ increased equity—and pandemic-induced free time—
wealth, became an even greater investment in 2021. The numbers to take out a second loan for remodeling, or refinance for extra

www.greenbuildermedia.com November/December 2021 GREEN BUILDER 15