A continuation on the topic of the current state of the market.
This is a continuation of the topic about the state of the market right now. A Zillow economist wrote an article recently forecasting that 6.4 million homes would be sold in 2021 in the U.S. They now also expect homes to appreciate by 10.4% nationwide by December 2021. Watch out for the data by different economists that you see on TV because Southern California’s different. We might see 6% to 7% growth.
The biggest problem I mentioned last time is that inventory is so low. We’re selling more homes than we have on the market. That’s why you’re seeing increasing prices and many multiple-offers scenarios. You are only able to find a home on the market without multiple offers if it’s overpriced. Data shows this would be anything from $765,000 to $840,000.
“We’re selling more homes than we have on the market.”
A lot of people are asking if we’ll still have affordable homes. The answer is unfortunately no, but keep looking. The median price going up so much is decreasing affordability.
With prices going up, people want to know whether we are in a bubble or not. The answer is simply no, this is not a bubble. Prices will continue to rise, especially now that everybody’s getting the vaccine. People are understanding that working from home is the new norm.
When you spend more time at home, you want a better home, and that’s why we’re seeing the spike that we’ve seen in the last few months. We have to embrace the change and look into a property that can offset our costs. What you want to do is be smart about buying, and get a property that has an additional unit. Next time I’ll explain what you can do with that.
Feel free to reach out to me if you have any questions about the market, where we’re headed, or how to offset the cost of your mortgage. Talk to you soon.
