Housing market trends are looking good for 2021. Everyone is waiting for the economy to recover after the stumble with the Corona epidemic. Still, a steady 500k people are looking to buy or sell their home in Southern California.
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Regardless of whether you are buying or selling, a pandemic continues to halt usual commerce. Even in conditions with the less-effective market, the real estate industry is experiencing a bullish phase.
Properties are rising in prices. Following the trends over the last year, the median price for a middle-priced home stays at 500.000$.
Demographics are another factor. Two dominant groups buying a home are people reaching retirement and young couples.
Another influence of the pandemic is that people search for homes with more rooms. After the lockdown, people want more space for living.
The whole process of trading real estate slows down during the pandemic. After the spring of 2020, there was a bad period for the estate. With the coming of winter 2021, there’s an expectation that things are getting more stable.
Nonetheless, the prices continue to rise. It rises due to the low housing supply, the property value, and attractive living area.
Living in the city complex is a falling trend. Around 30% of people want to live in the suburbs, while 25% want to live in smaller towns and rural areas.
The prices of houses in the city remain high. However, suburbs are also attractive. They offer more living comfort and allow you to access any of the city resources with ease.
There is a constant demand for homes in the area. Another incentive to keep the prices high is a stable economy.
The tech scene remains active, and investors are changing their operations, embracing local talent and remote work options.
Low Housing Supply
However, a decisive force keeping the price and demand is the low housing supply. While Southern California is an active market, there are fewer homes to sell.
During the last couple of years, Southern California was a prosperous place to live. With good infrastructure and Silicone Valley, investors continue stimulating the local market.
With steady jobs and opportunities, people settled in the area. According to the reports, Southern California is an area for a younger democratic, especially immigrants and people of color.
White Americans relocate to Southern California looking to compete with the local talent for high-paying jobs. Once they bought their first house, they have less incentive to sell.
Another factor influencing the low housing supply is local investors and realtors. They own property and are competing to buy their second house.
That foreshadows another trend that’s going to continue in 2021.
Southern California is a seller-oriented market. That means that more people want to sell their property instead of buying.
A seller-oriented market is a market where there’s a need to buy properties, but supply is low. With the Coronavirus measure, it’s much harder for construction workers to build new homes.
Since all aspects of the industry are experiencing a downturn, buyers have to deal with low inventory when buying.
It opened up the possibility for living in suburban or rural areas. Yet, an interesting fact is an ongoing demand for luxury homes.
People are looking less for single-room homes and small homes in general. They are searching for middle-sized and luxury homes much more.
But, the hopes are high with the first signs of the economic turnaround.
The reason for optimism is the record low mortgage rate. With the failing market, mortgage rates fell low, helping people to get affordable deals.
Following mortgages, the other expenses decrease, making the purchase less expensive. Of course, the mortgage rate should rise with the economic recovery.
Yet, the mortgage rate should remain low for the rest of the year. Expect some volatility, but no major rises or changes.
The trend is positive for buyers and should serve as an incentive for the purchase. For people who are serious about their finances, this could drive the buying decision.
Before you look at the house to sell, look who is willing to buy. For the Southern California area, demographics are young people and those in retirement.
Young people are coming to the area looking to work and to settle down. A segment of the demographic comes for tech jobs and to experience the tech scene.
Also, Southern California is an excellent place to start a family. Parents get steady jobs, while kids get to grow up in a diverse environment.
Older folk may enjoy the quiet neighborhoods. There is a lot of support for people in retirement.
If you want to settle your life, give Southern California a try.
Finally, changes are coming. After the initial year of the epidemic, the economy is stabilizing.
While things are returning to normal, they are far from stable. Once the epidemic ends, there will be more investment, more jobs, and more houses.
The remote work is here to stay. Big companies like Twitter and Facebook claim that they’ll continue allowing remote work.
In any case, the coming economic turnaround should help the market to become buyer-oriented, increasing the home supply.
So, this may be an ideal time to make the purchase.
Buy Southern California Home
Buying or selling a home is a serious decision. If you do it at the right moment, you profit more.
Make sure to consider professional help to make the most out of your property. Ge the right deal for your home.