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.
Yun also anticipates home-buying trends to continue moving
toward their current shift from open floor plans and smaller homes to larger
homes with more segmented spaces.
“Because of work-from-home flexibility, people are suddenly
realizing they are not content and are looking for a larger home with possibly
an office space,” said Yun. “Agents should contact their prior clients, as they
may be willing to hear what you have to say even if they were not considering
buying or selling before the pandemic.”
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.
Thank you,
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