2021: It’s a Seller’s Market
There is an old joke about our great state of California: “California only has two seasons, wet and dry. You can tell when it’s the dry season because all the trees are burning!”.
Between half of the state going up in flames and the effects of a global pandemic, 2020 threw us all for a loop. It also created hesitant home sellers which further accelerated the need for more housing inventory while at the same time increased home prices in the process.
According to the California Association of Realtors, in September 2020 California median home prices reached an all-time high of $712,430, a 17.6% jump year over year. Real estate sales remain strong, especially in the higher end market, and should continue well into 2021.
The housing shortage continues in California. Our state is about 3 million homes short to support the current population in need of housing. Another way to gauge the strength of the market is to look at the supply of homes listed for sale and current demand levels. When the number of homes sold is close or equal to the number of remaining homes available, it indicates a strong market in favor of sellers.
Several factors in favor of the decision to sell are the lack of inventory, especially higher end homes, the voracious appetite of willing buyers, all time low interest rates, the passing of Proposition 19, the tax base transfer, and telecommuting, courtesy of COVID-19.
Due to COVID, is it safe to sell? YES! Fortunately, we live in a part of the state that has an abundance of highly professional groups in the real estate industry (sales, title, and escrow), and coupled with protocols set forth by the state, county, California Association of Realtors, National Association of Realtors, and local real estate boards (SILVAR and SCCAOR), it is very safe to list your home for sale right now.
So if you’re thinking taking advantage of the seller’s market, send us an email, letsconnect@eq1re.com, or call 408-912-7670, and we can show you how we can safely sell your home.
Dennis Steinbach is the Broker of Record for EQ1 Real Estate
236 N. Santa Cruz Ave, Suite 102, Los Gatos
