You might be thinking about buying or selling and wonder like everyone else…. what the heck is going on with the market? Especially after such an unpredictable year. No one could have predicted 2020; it was the perfect storm of people being homebound 24/7 with the option of remote work and wanting more space, and needing a change. Space and nice backyards become a very hot commodity.
So what IS the market doing?
According to the National Association of Realtors, low mortgage rates and the rise of remote workers with flexible schedules will keep home sales going in 2021. With new buyers entering our market from the South bay, Peninsula and San Francisco, not enough homes for sale to meet demand, home sales and prices will still go up. Home sales and prices are likely to be higher in the coming months than compared to last year.
When we start to see inventory rise of how many more homes come on the market is the indicator that will tell us it’s time for prices to cool off. Consumer confidence in the housing market fell at the start of this year, according to the most recent survey from Fannie Mae. People think house prices will continue to go up. As a result, the share of consumers who say it’s a good time to buy a home dropped from 52% to 48%. But even still nationwide, 58% of home offers written by agents faced bidding wars according to Redfin.
Bottom Line, it’s still a sellers’ market, and prices will be steady for most of the rest of 2021, but at the pace we have been going, you’ll start to see that declining towards the end of 2021.
Always remember, the housing market predictions can give you an idea of what’s going on, but never let that be your only factor in your housing decisions. The time is right when it’s best for your family.
By Tiffany Stock, Real Estate Broker, Keller Williams