Economic indicators

It’s not just potential buyers and sellers holding this perception; over four-in-10 real estate agents agree with that sentiment.

Modest reductions were made to the 2021 and 2022 outlooks, although the government-sponsored enterprise did boost purchase expectations for this year.

About 40% of likely purchasers are delaying or cancelling their activity, a Redfin survey found.

While 2021 projections are unchanged from November, they are 2% higher than what the organization's economic forecast in October.

Recent existing home sales have been stronger than expected, but next year could see a market held back by the inventory shortage and higher rates.

Similarities between the current rate of appreciation and what took place between 2004 and 2006 are mitigated by changes in the housing market.

Though unlikely to derail a hot housing market, another surge in COVID-19 cases could cloud the outlook for economic growth, analysts said.

The likelihood that inflation remains above the Fed's 2% target contributed to the government-sponsored agency’s decision to dial back its 2022 outlook.

The government-sponsored enterprise also expects purchase and refinancing volumes to drop in 2022.

Meanwhile, investors await word from the central bank regarding monetary policy, as limited housing supply continues to drive prices upward.