The housing market is largely unpredictable and it’s quite difficult to say what each new year will bring. But that doesn’t mean there are no signs and signals for us to interpret and then make informed decisions based on current data.
It’s the first quarter of 2021 now, and people are wondering if this is going to be the right year to sell their homes. Most of the homeowners unlisted their properties last year, what with pandemic and all.
But by all accounts, 2021 will pan out to be quite a profitable year for home sellers. It’s time to put your home back on the market, and if you need any help with that, SleeveUp Homes can make the process as smooth as it gets.
Whether you like it or not, the pandemic will still play a leading role in determining the market this year. And it seems it will tip the scales in sellers’ favor. Here’s what you need to know about the Southern California housing market.
Southern California Housing Market in 2020
Before we discuss what all the data is suggesting about 2021, you need to understand how the Southern California market fared in the preceding year.
First, we have to point out that the pre-pandemic Southern California housing market was already much stronger than most other housing markets. It’s one of the most sought-after areas and houses there tend to be highly valued.
The pandemic was not able to change that fact. The average median prices of Southern California homes rose by 8.3% in 2020. The reason for the increase in price stems from very low supply and historically low mortgage rates.
But what lead to the low supply of homes? Unsurprisingly, homeowners weren’t that eager to host open houses for strangers in the midst of a pandemic. More importantly, they didn’t want to leave their homes in such tumultuous times. Thus, buyers were left empty-handed.
And that was just the spring of 2020. Towards summer, the residential real estate market recuperated from the initial shock, but the damage had been done. By the end of 2020, existing single-family home sales dropped by 4.5% when compared to 2019.
And that brings us to the present-day US. Are home sales going to keep plummeting? And will the prices keep going up?
Home Sales in 2021
What can you expect after the decrease in home sales of the previous year?
As it turns out, the market seems to have recovered enough that the experts are forecasting housing market growth to continue. It seems that the residential housing market will pick up where it left off in 2019 as if nothing happened.
According to the California Association of Realtors (C.A.R.), existing single-family home sales are going to increase in 2021 by 3.3%. We mentioned one of the reasons for that increase already — low mortgage rates.
Another reason why experts are more confident about 2021 is that vaccination is well underway. People are slowly, but carefully warming up to the prospect of open houses, less social distancing, and better economic circumstances.
If you look at the C.A.R.’s predictions regarding median home prices, they too are expected to keep growing. The median price of a Southern California house will increase by 1.3% this year.
Is 2021 the Right Year to Sell Your Home?
According to all the sources, the answer is yes, 2021 is the right year to sell your home.
First of all, it’s less risky for you, the seller, to leave your home and move to a new one. The economy is looking better, and health officials are hoping to slow the spread of the virus this year.
Secondly, the value of your Southern California home is only going to keep going up. The price increase has slowed down, but it’s still in an upward motion. However, don’t think about sitting on your property for too long, because you might miss out on a sale. Here’s why.
Buyers aren’t in a very good position right now. At least not as in good of a position as sellers. C.A.R.’s survey revealed that 59% of Californians think 2021 is going to be the right year to sell your home. But only 25% of them think that’s it’s the right time to buy. The reason for such low buyer confidence is the economic downturn of the last year, as well as high prices.
There’s a catch, however. Buyers know they’re in a tough spot right now, but most of them are aware that the home prices are going to keep rising. Sooner or later, prices will be too high for them, and they won’t be able to afford new roofs over their heads. Buyers need to act now or risk the prices getting too high.
And that’s very favorable for you, the home seller. But remember — at the moment, there are far more willing sellers than there are buyers. If you wait too long, all the buyers will be settling in their new homes, while the price of yours will go down due to long waits.
There’s no time to lose. Summer is coming, and with it, all the seasonal home buyers. Even in California which’s sunny the whole year round, most homes are sold starting May and during the entire summer season. That’s going to be your window to sell your property.
2021 is going to be an amazing year for home sellers in Southern California. Home prices are high and buyers are willing to purchase houses before the prices go further up.
If you need help selling your home, there are online services that can assist you. These services often cut out the middle man, giving you a price that’s much higher than what you’d get by hiring a realtor. Or you could try and sell it on your own.
Whatever you decide, 2021 is the year to act. It’s time to sell your property and move on.