Current housing market causes optimism for 2021, jobless rate causes uncertainty beyond

Continued strength in the housing market is reflected in nationwide numbers including Kansas City, where home values are up 6.3 percent year-over-year as of last month, a recent survey predicting market growth will continue through next year in the U.S., though unemployment levels leave foggy predictions for the market beyond 2021.

One area of the economy on a remarkable rise is the housing market, home value and sales on a continued upward climb over the last few months.

Strength in the market has been noted nationwide as well as in the Kansas City area, data showing that metro home values are up 6.3 percent year-over-year as of last month in August.

A recent survey by Zillow and Pulsenomics polled predictions for next year’s housing market, and the results show that experts believe market strength will continue for the rest of 2020 and into 2021, though one looming concern for the market beyond is the nation’s jobless rate.

The survey panel consisted of 104 economists and real estate experts, according to the report published by Zillow, respondents showing optimism for the rest of 2020 and into 2021 in part due to heavy buyer demand and historically low inventory.

Respondents predict U.S. home prices to grow 3.7 percent this year, and a further 2.7% next year, an optimistic outlook compared to three months ago when the same panel predicted a small price fall in 2020, Zillow reports.

Beyond 2021, the outlook from panelists is unclear as employment levels remain shaky, the labor market expected to take years to recover from where job levels sat pre-COVID-19.