Most of us living in California will be happy to bid, “Good riddance” to 2020. While much of the hallmarks of this past year will go away, the rising home prices in many California counties which became distinct characteristic of this past year, may be here to stay.
Realtor.com’s housing forecast predicts record-high prices will continue rising in 2021. The frenetic pace of price growth seen in 2020 may slow somewhat, but prices are still expected to jump 5.7% next year.
According to Danielle Hale, Chief Economist at realtor.com:
“We expect affordability to become a bigger challenge. It’s going to make housing more expensive. [But] home prices will rise slower than this year, on the upper end of what we consider normal price growth.”
However, higher prices aren’t likely to discourage determined buyers – as has proven this year with continued real estate sales throughout many busy counties including San Francisco, Los Angeles, Sonoma, Monterey and more.
Sales of existing homes are projected to increase 7% in 2021. Besides those buyers who are looking for larger homes for work and school demands, there will be many baby boomers looking to downsize and apartment dwellers seeking homes of their own.
More homes are likely to become available in the last six months of 2021. The increase in inventory will, most probably, be because of more sellers listing their properties as well as builders completing more new homes.
If you are a borrower who cannot qualify for a conventional loan and are looking to take advantage of the lower prices now as opposed to higher prices predicted in 2021, give Sun Pacific Mortgage a call at 707-523-2099. We have been in the private money lending business for over 32 years and have helped thousands of borrowers just like you. Don’t wait until you are priced out of the market, give us call now.