Housing Market in 2021
Wow! The housing market is literally exploding in 2021. The chief economist, Jordan Levine, for the California Association of Realtors projects an astronomical gain for 2021 of 20.3%. In recent years we have seen a high gains nearing 10 percent. Over 20 percent is mind boggling!
Historical graphs of 90815 and 90803
The graphs below show the rolling 12-month calculations in one year increments goin back to 2013. While Long Beach as a whole (gray line) and 90815 show a significant rise at the start of 2021, the 90803 graph is veers dramatically upward. This my friends, is what a 20+ percent gain looks like.
Statistics for housing market in 90815
The median sales price for the homes sold in September in the 90815 zip code was $930,000. The median home price in California is expected to go over $800,000 soon. At this median price only 23% of the population at afford a median priced home. The average sale price in 90815 in September 2021 is a whooping $1,010,000. Keep in mind 90815 includes the high priced homes in Park Estates and Bixby Hill, therefore the median price will give you a better feel for pricing if you live in Los Altos, The Plaza or Stratford Square.
Homes in 90815 are selling fast. Average days on market is just 2 weeks before going into escrow. There were 33% less listings from September of last year.
Statistics for housing market in 90803
The median sale price in 90803 in the month of September was $1,624,000, up from $1,250,000 last year. The median price for a rolling 12-month period was $1,350,000. The amount of new listings was over 50% less in 2021. This year there were 19 new listings as opposed to 41 the year prior. Days on market (DOM) is double what you see in 90815 at 30 days, but this is usually the case for higher priced inventory.
Housing Market Predictions for 2021
Most economists are agreeing with Levine when he says, “We don’t see home prices reversing course”. Levine believes that due to continued lack of inventory and the large number of qualified buyers we should see the median home price rise by 5.2% in 2022.
Michele K’s Market Prediction
Although there is mention of an increase in lending rates I don’t think it will be high enough to cause much of a slow down in the housing market. There are many first-time, move-up and change of scenery buyers out there driving the prices with competitive offers. I do know that many qualified buyers are getting burnt out with the looking for a house, writing an offer on the house, and not getting the house. But life goes on and when the time is right, those buyers will return the market ready to do battle.
Although this is not 2008 and the loans on the books are very solid, I do worry about the unforeseen. The bottom line is, if you are thinking of selling in the next year or two, now may be the time to act. We only know what the market is, in the market we are in, and this market is an excellent time to be seller.
Call me today for a free home market evaluation. Market preparation is my forte and I am happy to advise.
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