We’re looking at another banner year come 2021. The move up buyers are going to fuel the mid range prices and the passing of prop 19 will fuel the high end market. Prop 19 is where people who are over 55 yrs are able to take their tax base with them if they buy up. Folks that have owned their bay area home for decades will be enticed to move out this way.
Our inventory is low and demand is up. I wanted to keep this short and to the point. Below are some opinions from various sources. I’m looking forward to another busy year. Feel free to contact me with your real estate needs.
A recent article in the SacBee:
The Sacramento metropolitan area will be the hottest-selling home market in the country in 2021, according to a national forecast published Monday by Realtor.com.
The analysis combines expected house price increases and increases in the number of sales. The online real estate sales and data agency is forecasting the average price of a Sacramento home to go up 7%.
Notably, Realtor.com predicts there will be 17% more houses sold in the Sacramento region in 2021 than in 2020, when very few homes were on the market. Local builders say they expect as well to increase new home supply in 2021 by greater numbers than 2020.
Everyone in sales should be familiar with the name Brian Buffini. Brian was joined by National Association of REALTORS® (NAR) and their take is such:
“Overall, he felt confident that home prices would maintain their stability throughout the pandemic, but he did not anticipate that prices would soar, “particularly in the second half of the year.”
What might the future hold? Yun predicts that home sales could be 20 percent higher in the third and fourth quarter compared to the prior year. Additionally, he sees home sales rising more than 5 percent, possibly 10 percent, in 2021, as a vaccine becomes available and possibly leads to faster job growth with still favorable mortgage rates, which should stay near 3 percent.
RE/MAX Chief Customer Officer Nick Bailey was joined by Ivy Zelman, CEO of Zelman & Associates and their take is such:
For 2021, Zelman predicts that interest rates are likely to rise, especially upon the recovery of the economy when an effective vaccine becomes available. But as long as we are in a COVID environment, Zelman foresees housing will remain center stage. Once we go back to that normal environment, all of the financial stimulus is going to push interest rates higher. Zelman also predicts that home prices will continue to rise by 3 to 4 percent as inventories are at the lowest levels on record.