In late October each year, The California Assoc. of Realtors (C.A.R.) releases their predictions for the following year. After gathering data and crunching numbers, here are their thoughts on 2021…
C.A.R.’s forecast points towards a modest increase in existing single-family home sales of 3.3% in 2021 to reach 392,510 homes sold across the state, up from their current projected 2020 sales figure of 380,060. The 2020 figure is 4.5% lower compared with the pace of 397,960 homes sold in 2019.
The number of homes on the market was down 50% in 2020 from 2019 and is expected to stay low in the coming year, creating a more upward push on home prices.
California’s median home price is forecast to edge up in 2021 by 1.3% to $648,760, following a projected 8.1% increase to $640,330 in 2020 (due to the surge of activity surrounding the Coronavirus outbreak) from $592,450 in 2019.
Low mortgage interest rates are expected to continue to fuel and stabilize price growth. The average 2021 rate for a 30-year fixed-rate mortgage will be 3.1%, say C.A.R. economists, down from 2020’s likely average of 3.2%.
Interesting information in challenging times. Contact me if you would like to talk it through.
And Happy Halloween!