MBS Highway’s Barry Habib on the 2021 housing market

In this episode, Habib discusses mortgage rates, what a new administration means for housing and how the industry can build an empire in 2021.

Managing Credit Risk in 2021 and Beyond

Join a panel of industry experts as they provide an economic outlook for 2021 and a discussion with regional bankers on how they are managing credit risk over the next several years.

How the industry is working together to make housing more affordable

Housing affordability has no one solution, but with collaboration across the entire industry, we can create more opportunity for more people to achieve homeownership.

Empowering women to be financially great with Dava Davin

Women of Influence winner Dava Davin joins Girlfunds to discuss everything from her best financial tip to her advice on starting the home-buying process.

Real EstateMortgage

Will there be a housing supply shortage in 2021?

First American's Mark Fleming shares his housing market forecast for 2021

This is the fifth installment of our economist Q&A series, as we work to answer the top 2021 housing market questions for our HW+ members. Every Tuesday in December, HousingWire interviewed a top economist in the HW+ Slack channel. In each Q&A, we attempt to bring clarity to the top questions around housing supply shortages in 2021, the future of foreclosures and the future generation of homebuyers.

In this installment, HousingWire interviewed Mark Fleming, chief economist at First American, on his forecast for next year. This interview has been lightly edited for length and clarity. 

HW: In your commentary, you say the speed of the housing recovery was surprising, but the underlying factors that created it were not. Why is that? 

Mark Fleming: First, I just have to say that I was/am amazed at how well the housing market fared this year, considering! That’s a testament to the hard work of many of you on this chat…so thank you! For what turned out to be an amazing 2020, despite the pandemic

I think I was surprised because I didn’t realize how pandemic-proof the market really was when it all got started in March. But, we quickly realized that the potential homeowner was going to be much less impacted by the recession, and at the same time, those young Millennial buyers were going to benefit from even lower mortgage rates.

Strong demographics, low rates, and then no housing supply…a recipe for market success! These were all in place before the pandemic…they just proved so resilient TO the pandemic!

HW: When you talk about pent-up demand you reference Millennial homebuyers. Are we starting to see any interest in home buying from Gen Z? 

Mark Fleming: Gen Z?  We need to first ride the wave of Gen Y.

But more seriously…not much yet. What Millennials showed was that eventually they wanted to become homeowners (in their early 30’s).  There has been a pretty steady progression in waiting for homeownership by generation.

Silent- early 20’s

Baby boomers- mid 20s

my generation- late 20s

Millennials- early 30’s

soooo… my guess is that Gen Z may wait even longer. They have time!

The rest of this content is for HW+ members. Join today with an HW+ Membership! Already a member? log in

HW+ includes weekly long-form digital content, HousingWire Magazine, access to HousingStack, and free admission to all HousingWire virtual events.

Most Popular Articles

Texas Realtor who stormed Capitol responds to backlash

A week after the insurrection at the Capitol, Frisco, Texas-based Realtor Jenna Ryan released a statement condemning the violence, even after multiple videos and photos surfaced – including ones that she filmed herself – of Ryan participating in the insurrection.

Jan 13, 2021 By

Latest Articles

Prepare for the rise in mortgage rates

Economists offer their takes on how high mortgage rates will climb, how lenders will respond and what impact this will have on the housing market. HW+ Premium Content

Jan 18, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please