Real Estate Housing Market February 2021 Update | Garrett Forbes REALTOR® Level Up Realty – The Solari Group
Level Up Realty – The Solari Group
1. The lowest interest rates ever are bringing many motivated buyers into the market, which has led to the fastest sales growth in the California real estate market in a decade.
2. The yearly price increase was the highest recorded since March 2014. This connects to a housing shortage. This is creating a very competitive seller's market. We are seeing multiple offers on properties way above asking. Buyers need to expect writing a very strong offer to be considered for acceptance. Some great tips include offering above $10,000 above asking. Be prepared to have your agent think of various strategies to make your offer strong. This includes no contingencies (inspection, loan, and appraisal) shorter close, free rent back if the sellers need more time to relocate, etc. We are seeing an average of 5-30 offers on each property right now.
3. A huge increase in millennials are becoming first time home buyers. They are saving money, building credit, and getting into their very first home. Vastly helping the economy.
4. Remote Work, Suburban Living – The rise of remote work (and learning) has also driven housing demand. Buyers want dedicated space to take calls, get work done, hop on Zoom, etc. Also, people are no longer tied to one location. As a result, many folks are trading big-city living for more affordable options in suburban areas. According to a Realtor.com survey, 75% of respondents reported a "willingness to commute or live further from the office." We have seen a huge increase in San Francisco and other big-city locals deciding to relocate to suburban areas this includes Napa County, Solano County, and Yolo County.
5. A Potential Building Boom - The National Association of Home Builders notes the potential for a building boom in 2021. Similarly, the Mortgage Bankers Association believes 2021's residential construction will flourish. Estimates currently sit at 1.134 million for single-family housing starts.
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