As the country reopens, the housing market continues to rebound from coronavirus shutdowns. And while economic uncertainties
"Historically, cities with high concentrations of jobs in resilient industrial sectors experience the quickest recovery in housing prices," Brodie Gay, Unison's vice president of research, said in a press release.
Of the 20 major cities in
But
"Real estate capital is beginning a secular rotation out of undiversified retail and commercial spaces like malls and large office buildings. Investing in diversified residential real estate, with a tilt toward resilient cities, will provide institutional investors better, more balanced exposure to the U.S. economy."
Overall outlooks for the country remain cloudy. The latest government-sponsored enterprise forecasts offered mixed bags, given the large number of uncertainties at play.
In its June outlook, Freddie Mac projected home prices to grow annually by 2.3% in 2020 and 0.4% in 2021 — a decline from paces of 5.2% in 2018 and 4.2% in 2019. The GSE estimated the average 30-year fixed mortgage rate to settle at 3.4% for 2020 and 3.2% for 2021. It averaged 4.6% in 2018 and 4% in 2019.
"While the housing market undoubtedly has
Fannie Mae's June forecast shows it expects home sales to fall 10.4% year-over-year before bouncing back at a growth rate of 7.1% in 2021. Annual sales grew 1.1% in 2019.
Despite the lowered sales, mortgage volume should be buoyed by refinances. Boosted by historically low interest rates, Fannie projects about 3 million single-family originations in 2020, with nearly 1.8 million refis. About 2.3 million originations with 1 million refis took place in 2019 and over 2.3 million and 1.1 million are expected in 2021.
"Housing appears to be providing some support to the overall economy, very much in line with our long-stated view that the slower growth of supply compared to demand would likely limit any downside risk to the housing sector," said Doug Duncan, Fannie Mae senior vice president and chief economist.
"However, it remains to be seen whether the recent multi-week