Mid-Year Forecast for California's Housing Market - 2021

Home in Alamitos Heights

In his July 28, 2021 Report, California Association of Realtors economist Jordan Levine recapped what's going on the real estate market so far this year:

1. The share of first time buyers is the highest in 10 years, fueled by low, low interest rates--two of every five homes was sold to first time buyers--while there are fewer repeat buyers in the market because fewer current homeowners are selling.

2. First time buyers are also more affluent:  33% of these buyers have 20 percent down payments, or higher, while only 10% are using zero down loans.

3. Vacation and second home sales are highest in four years.

4. The first half of 2020 ended with a 33% increase in home sales, and a 37% decrease in inventory, making a very competitive market for buyers.

5.  Statewide, 71% of home sales closed over asking price.

6. Despite COVID, 20 California cities grew by 40% last year, with Big Bear, Malibu, and Montecito being the top 3.

7. And 30 cities almost doubled in sales growth in 2021 compared to 2020:  Palos Verdes Estates (148%), Signal Hill (109%), South Pasadena (116%), to name several.

8.  The fastest growing sales were in San Francisco area and Southern California as of June 2021.

9. In May 2021, condo sales rebounded almost 160% by June 2021.

However, housing supply and overall affordability continue to be issues, and the need for more housing is still urgent.  Sales are expected to slow, there may be more inventory (which overall is still low) but the median price is not predicted to go down for the remainder of 2021. 

If you're a local homeowner thinking about selling, please contact me for an evaluation of your home, units or condo.

 

Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996