The US housing market continues to heat up in the second half of 2020. It is well past the recovery phase and is now booming with higher home sales compared to the pre-pandemic period. … Real estate is a hot seller’s market as sales rise by 21 percent and unsold inventory shrinks to 3.1 months.

One of the reasons that the housing market is so bullish at the moment is because there is a shortage of inventory. Recent reports from the National Association of Realtors (NAR) indicate that there are one-third fewer homes on the market now than there was a year ago. And a year ago, inventory was already low.

Three experts predict that the housing market could correct sharply in 2020 and 2021. Canada Mortgage and Housing Corporation (CMHC), for example, forecasts a decline of between 9% and 18% over the next year. … Although all these forecasts could be off, investors need to be prepared if the housing market does correct.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.