The 2020 State of our Real Estate Market
The new year is upon us! Although the economy took several unexpected twists and turns in 2020, the housing market remains on solid ground as we enter 2021. While there was plenty of buzz surrounding the uncertain future of the economy and markets, much of it was only noise. That's why I am dedicated to cutting through the noise and identifying the market trends that matter. I present this information as my biannual market update designed to help you access relevant, up-to-date statistics to enhance your knowledge of our real estate market. Dive into this content to learn all you need to know about what's happening in the industry, both on the national scene and as a whole.
The housing market in our area fared incredibly well this year for home sellers, as well as for buyers who succeeded in having an offer accepted in this competitive market. Quite a few changes happened in 2020 as inventory dwindled and buyer demand started to increase. For example, here are the trends we experienced in Simi Valley/Moorpark in 2020:
In general throughout our neighborhoods in Ventura County and West L.A. County, more homes are selling than they did last year, we saw price appreciation leap from an average of 3% year over year to 9-10% appreciation this year, homes are selling more quickly and there are fewer homes for sale, making it a challenging, but rewarding, market for buyers.
2021 is Forecasted to be Another Great Year in Real Estate Why? For these three key reasons: 1) The Economy is Expected to Continue Improving Tim Duy from the University of Oregon puts it this way: “There is nothing fundamentally ‘broken’ in the economy that needs to heal…there was no obvious financial bubble driving excessive activity in any one economic sector when the pandemic hit…With Covid-19 cases surging again, it is understandably hard to look optimistically to the other side of this winter…Don’t let the near-term challenges distract from the economic stage being set for next four years.” 2) Interest Rates are Projected to Stay Low In the latest projections from Freddie Mac, interest rates for a 30-year fixed-rate mortgage are expected to remain at or near 3% next year. These low rates will continue to make homes more affordable, driving demand for housing in 2021.
3) Future Home Sales Are Forecasted to Grow While the economy improves and interest rates remain low, homes are also expected to continue appreciating as more people buy in the coming year. Danielle Hale, Chief Economist at realtor.com, says: “We expect home sales in 2021 to come in 7.0% above 2020 levels, following a more normal seasonal trend and building momentum through the spring and sustaining the pace in the second half of the year.” What does 2021 in Real Estate look like for you? Who do you know who is considering making a move next year? Whether it's to sell a property, buy a new home, or purchase an investment, I'm here for you and the people you care about. It's not the right market for everyone, and I'm dedicated to helping people make the right choices. Call or email me with your questions at (805) 630-2869 and at firstname.lastname@example.org.