I'm sure you've been hearing about how homes sales and prices in California have been increasing, while inventory levels have been low. You may be thinking, "what's in store for next year?"
Well, the California Association of Realtors (CAR) recently released their 2021 forecast, and here are some of the main take-aways:
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Low interest rates and pent-up demand will bolster CA home sales in 2021, but economic uncertainty caused by COVID-19 and continued supply shortage will limit sales growth.
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2021 will likely see a modest increase in the number of existing single-family home sales of 3.3 percent to reach 392,510 units, up from the projected 2020 sales figure of 380,060. The 2020 figure is 4.5 percent lower compared with the pace of 397,960 homes sold in 2019.
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Median home prices are forecast to edge up 1.3 percent to $648,760 in 2021, following a projected 8.1 percent increase to $640,330 in 2020 from $592,450 in 2019.
An extremely favorable lending environment and a strong interest in homeownership will continue to motivate financially eligible buyers to enter the market,” said C.A.R. President Jeanne Radsick. “While the economy is expected to improve and interest rates will stay near historical lows, housing supply constraints will continue to be an issue next year and may put a cap on sales growth in 2021.”
Additionally, though “home prices rose sharply in 2020, driven by strong sales of higher-priced properties and a limited inventory of homes for sale, the pace of price growth will be more moderate in the coming year,” said C.A.R. Chief Economist Leslie Appleton-Young.
So while signs point to a market that will remain robust and competitive next year, give me a call. I can help you get ready to make your move!
Also see: Are we in a housing bubble?
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