Will home prices rise in 2021 in Eau Claire market? It Seems So.
As 2021 begins, real estate trends are in the seller’s favor. Home prices across the country are on the rise. The housing market is seeing a surge of would-be sellers renovating their homes and economic uncertainty leading to lower housing inventory.
Demand remains high while supply is limited, leading to rapidly appreciating home prices that aren’t expected to fall in the near future. We expect the average home price for 2021 in the Eau Claire market to rise as well. There are, however, still affordable options for homeownership.
Housing Prices Rose in Eau Claire in 2020
Redfin reports that homes for sale in Eau Claire had their prices rise whopping 15.5% since last year, with the city center and Shawtown experiencing the highest appreciation. The average homes in the area remain on the market for just 54 days and sell for 1% less than asking prices. Homes in high-demand neighborhoods are selling in just 39 days and for 2% more than asking price.
Eau Claire’s housing market remained strong despite the pandemic, which caused some markets to experience declining sales. Interest rates remain at historic lows, but new home prices are being driven up by rising lumber prices. For some lumber products, we saw almost doubling of the prices. The market only experienced a slow period at the end of March and in early April due to economic uncertainty surrounding the COVID-19 pandemic. The national market quickly rebounded as well as in Eau Claire.
Factors Leading to Rising Prices
Nationwide, home prices are projected to rise in 2021 despite mortgage rates remaining between 2.8% and 3.3%. Record low rates are expected to help potential buyers seek higher priced homes, which are flooding the market.
Multiple factors are leading to higher prices for National and Eau Claire home market. Factors include:
- December 2020 national inventory fell by a staggering 39% to drop below 700,000 homes on the market. The figure, the lowest in Realtor.com’s history, is expected to continue into 2021.
- Inventory in metropolitan areas rose 7.6% last year, as more people are leaving cities for smaller cities and suburbs like Eau Claire, where listed properties declined by 0.8%.
- The pace of home sales remains faster than in previous years, as many buyers are paying for homes in cash or willing to go above asking prices for homes. High demand is causing new listings to come off of the market faster.
- Increase material cost due to increased demand of renovation and decreased supply due to the pandemic.
Home prices nationwide are expected to appreciate in 2021, with recent forecasts showing prices increase across the board. National Association of Realtors, (NAR) expects prices to rise 6%, Freddie Mac expects prices to rise 2.6% and Fannie Mae projects prices to grow by 2.1% in 2021.
Rates are forecasted to rise at a slower pace than in 2020, yet inventory levels are expected to remain low, which can push prices higher.
You Can Still Find Reasonably Priced Homes
Buyers that are looking to purchase their first home or find more affordable housing options may have to seek other opportunities. One of them is manufactured housing.
Hillcrest Estates in Altoona and Villa Diann in Eau Claire have homes for sale in the $49,900 to $68,000 range. They are made with high quality materials and provide excellent homeownership opportunities. Best of all, prices for these beautiful mobile homes are less than half the median price of $213,000 in Eau Claire market. Visit Hillcrest Estates and Villa Diann’s website for more information