This is true for Riverside, San Diego, Los Angeles and Orange County. The good news is a big decline in new unemployment claims. Only the Central Coast and Far North districts saw sales decreases. It’s the move to the pandemic destination cities/communities. According to Walletinvestor’s Los Angeles real estate market research, home values will increase in the next 12 months. A few different factors will likely lead to a rise in California home sales in 2021. Incredibly, California used to be the second-cheapest state in the U.S.; Oklahoma, Kansas, and Texas took the lead due to their severe storms, with the highest amount of claims for wind and hail, followed by water damage and freezing. The demand is for single-family houses. While it’s not likely 2021 will see a huge boost in housing inventory – enough to meet the growing demand and home sales – some experts do see a gradual increase in the California housing market’s future. -Matthew Martinez, a luxury and investment real estate broker at, who works across California, from Wine Country to the San Francisco Bay Area, Despite a triple terror of ongoing COVID-19, worsening wildfires, and a fractious presidential election, California’s housing market is marching on…. Sales of houses throughout the Bay Area rose a slight 1.5% vs November, yet are up 40.2% from 12 months ago. : How to Tell the Difference, US Housing Market Forecast 2019 and Beyond: What You Need to Know, How to Convert Your Home into a Smart House. Of course, the exception as usual, is single-family detached houses which rose 2.4% across the state in December. ManageCasa’s state of the art property management software integrates the global payment leader’s platform is the industry model. The California Housing Market Will Remain a Seller’s Market in 2021. Not only did COVID-19 slow down general construction activity but many sellers have chosen to wait it out before returning to the market. December 2, 2020 2021 National Housing Market Forecast and Predictions: Back to Normal To say 2020 was a year of surprises is an extreme understatement. -Matthew Martinez, a luxury and investment real estate broker at Diamond Real Estate Group who works across California, from Wine Country to the San Francisco Bay Area. New funds would certainly help save landlords and the, For rental property managers and landlords, the latest employment and rent default numbers are not encouraging. We have a few predictions for this, based on different factors. However, all of the market data and trends prove that the California real estate market is recovering. However, places untouched by the fires will remain competitive. But there are several signs pointing to the fact that a safe California housing market prediction to make is the rise in home sales. But if we look back at August 2020, we will see something even more astonishing – the, California Association of Realtors (C.A.R.) Zumper reported that all west coast rental markets were trending downward. Rent price declines have flattened in the Bay Area, and home prices are expected to rise in February. Mortgage rates have dropped back down and purchase applications rose 24.2% on an annual basis last week. Sales rose 4.4% in December, yet are still up 30.3% from 12 months ago. Zillow forecasts a price of 10.6% by next November 2021. Their mortgage rate forecast calls for an annual rate of 3.2% by the end of 2020, with rates dropping as low as 2.9% in 2021. With workers trying work at home arrangements,we may see more workers able to move away from high rent neighborhoods, perhaps even out of California. California’s weekly showings index rose to 182.3% higher than it was in September of 2019. The double-digit increase in year over year rises, was the 5th month in a row. The 6 foot social distancing mandate makes crowded spaces a big problem. If you can afford to, buying a California investment property could mean that you enjoy real estate appreciation and cash flow next year. The existing home sales will increase by 7 percent in the year 2021. They reported a drop in active listings in most major regions across California, with the Southern California housing market being among the regions with the highest YoY drop – 52.4%. In November, prices declined to $700,000 but returned to set another record high in December. A few experts weighed in and told Mashvisor that they also predict growing California home prices in 2021: The outlook for home prices in California is that they will continue to climb through 2020 and into 2021. As a result, Zillow expects home prices will most likely fall 2%-to-3% through the end of the year from pre-coronavirus levels, and pending home sales to fall as much … Condo prices rose 2.1% to an $485,000 average. Housing inventory continues to drop and the days on market remains low. As a result, an ever-growing number of would-be buyers could get priced out of the market. Although sales dropped during the first major wave of the coronavirus, they began to quickly bounce back. Although apartment rent prices are heading downward in the Bay Area as vacancy rates climb, other housing markets in the state are thriving. The baseline scenario of C.A.R. While those statistics are based on the California homes for sale in our vast database, C.A.R’s data supports this trend. Pending sales are leveling off of late from a torrid pace in the late summer. You have been added to the ManageCasa mailing list. In San Diego, home prices fell $10,000 on average from December, to a new median price of $730,000. Yet without new supply, pending sales are down. The house price trends over the past few months are clear – prices are continuing to grow, despite COVID-19. Google Trends reports the search volume for homes for sale within California. For rental property managers and landlords, the latest employment and rent default numbers are not encouraging. A change in the mix of sales is another variable that keeps pushing median prices higher, as sales growth of higher-priced properties continued to outpace their more affordable counterparts,” said C.A.R. that the Golden State’s home prices surpassed $700k for the first time. The resurgence of the Virus across the state is particularly troubling and could wound confidence in economic recovery. While it isn’t perfect by any means, the overall outlook for the California housing market in 2021 is positive. At the same time, it’s a seller’s market. So even with rising prices, some buyers may find relief with this, One of the reasons home prices are going up in the, It’s true that we still have a few months left in the year. In this article, we break down these predictions for real estate investors to understand what to expect through the end of 2020 and into 2021. The real estate market was a bit more balanced for buyers and sellers before the coronavirus pandemic led to shelter-in-place orders and a sharp decline in housing market activity, though multiple offers on a home were still common. The Central Valley saw the largest year-over-year decline of 53.3% in November, followed by Southern California (49%), Central Coast (-46.3%), Far North (-40.1%), and the San Francisco Bay Area (-18.7%). Los Angeles New York ... Corelogic’s forecast predicts home prices nationally will have fallen 6.6 percent year-over-year by May 2021. If you were wondering “Will the … Top 5 Things to Look For in a Real Estate Investment. Please remember that a modern property management software is a great way to increase rent collection, improve tenant relations, and manage your property finances. Even as the market began to recover at the end of May, Fannie Mae forecasted that mortgage rates would remain low and drop even further come 2021. In Metro Los Angeles, in December, house prices fell .8% to $625,250 which was 13.7% higher than December 2019. In its forecast for 2021, real estate marketplace Zillow predicts that the nation’s housing market will be even stronger than it was last year, which came close to setting records. A number of factors are contributing to California’s positive sales stats: “Low rates and tight housing inventory are contributing factors to the statewide median price setting a new record high three months in a row from June to August. Their forecast of a 1.1% drop in price would have been good news for Millennials in LA, San Diego, San Jose and San Francisco who are hoping to take advantage of historic low mortgage rates. The latest California Association of Realtors report shows overall price drops in most regions. Unemployment will be the heaviest weight, perhaps eliminating new young buyers from the market. https://www.noradarealestate.com/blog/los-angeles-real-estate-market Wildfires and the presidential election are also impacting market trends. Will it remain as strong in 2021 as it was in 2020? It might have been premature, but Realtors and homeowners are asking for much more than the going rate. Why are people buying real estate in California? What started off … Forms & Marketing ... Today’s rising home prices will be brought down by the end of the foreclosure moratorium in 2021, which is currently keeping over 5% of California’s mortgaged homeowners in their homes, despite being delinquent on their mortgages. When launching their company, they'll be looking for simplified, easy to use applications to try out. The California real estate market still seems to be a good investment. At the same time, it’s a seller’s market. The baseline scenario of C.A.R.’s “2021 California Housing Market Forecast” sees a modest increase in existing single-family home sales of 3.3 percent next year to reach 392,510 units, up from the projected 2020 sales figure of 380,060. Expert Forecast on the 2021 Housing Market. Condo prices in San Francisco fell 7% to $1,139,000 on average. Sales actually rose 5.1% during December.