We get asked this question almost every day. What’s gonna happen with housing prices in 2021?
Well the short is we don’t know. No-one knows.
That said, there are a few signs that point to a continual increase in prices in 2021…
Number one is that people are moving due to life changing circumstances. The pandemic has caused people to reevaluate where they live. A lot of people are just simply moving. That means first time buyers who can’t live in their apartment any longer I need something bigger to long time California residents who want to cash out of their equity. There’s more buyers out there and there’s more sellers out there and all that is creating a healthy market.
Number two is that interest rates ought to remain low for some time. We’re not economists, but the federal government has every incentive to keep interest rates low in order to spur the economy during what could be a recession year.
And the third reason why I am prices will go up in California in 2021 is that the flight from urban centers to suburban and rural areas will continue. The demand for homes in areas just outside the city in the bay area is incredibly strong. Buyers can get a backyard and extra room to work from home and that has made the suburban area the hottest market of this past year.