2020 is coming to a close, my friends, and I don’t think too many people are upset about it. And who can blame them? It’s been a rough year—a global pandemic, a tough economy, mass job losses, and even murder hornets.
But homeowners have had at least one bright spot this year with the hike in home value—and we can continue to expect good things in the San Diego housing market in 2021.
So what real estate trends will we see in the upcoming year?
There’s no guarantee, of course, since anything can happen (as we’ve learned this year). But real estate experts like those of us at Jessica Foote & Associates are seeing some good signs.
Here’s what we think we’ll see in San Diego’s housing marketing in 2021:
2021 Will Still Be a Seller’s Market, especially in San Diego
Low inventory (fewer houses on the market) and low mortgage rates will mean more sellers will be on the hunt for a new home—and will be willing to pay more. This spells good news for home sellers.
“We expect sales to grow 7 percent and prices to rise another 5.7 percent on top of 2020’s already high levels,” Danielle Hale, chief economist for realtor.com, tells Forbes. “While we expect mortgage rates to tick up gradually, sales and price growth will be propelled by still strong demand, a recovering economy, and still low mortgage rates.”
In the beginning of the pandemic in the U.S., the housing market saw a huge decrease in sales. But within a few months, that turned around and more people began house hunting, creating a seller’s market. In September, the price of single-family homes in San Diego increased by 32.8%!
That trend doesn’t look like it’s going to change in 2021. So if you’re thinking of selling your home, this is the perfect time.
San Diego’s Housing Prices Will Increase
CoreLogic’s Home Price Index indicates that home prices across the nation will vary, but thankfully they’re expected to rise in San Diego. As the pandemic continues, Americans are looking for more spacious property in less densely populated areas. So while more densely populated cities will either decrease or increase only slightly, San Diego’s home prices are forecasted to increase 7.9% by October 2021.
With fewer houses on the market, people will need to bid higher and higher to get their dream home (or any home).
This means things will get increasingly better for sellers, but it also means that if you’re looking to buy a home within the next year, you should do it sooner rather than later. Prices will only keep going up in 2021, so save some money and get your dream home now.
We may see prices go down in late 2021 or early 2022, but that’s not necessarily guaranteed. The longer you wait, the more money you’ll likely have to spend. Plus, you’ll want to take advantage of the low mortgage rates we’re seeing now.
If you’d like to start the process of buying a home, reach out to the Jessica Foote team and learn how we can help you!
People Will Rely Even More on Online Methods When Buying a House
There’s no telling when this pandemic will finally end. So you can expect more people to rely on digital search methods so they can house hunt from the safety of their homes. Online tours, virtual meetings, and so on—the internet will play and even bigger role in purchasing homes in 2021.
This news is important for any house sellers reading this blog post. If you’re looking to sell your house within the next year or so, it’s absolutely crucial that the realtor you go with uses the latest and most effective marketing methods.
Our team has always prioritized digital marketing for house selling—especially now during the pandemic. We’ve written before about how important marketing is to our real estate team at Jessica Foote & Associates.
Our marketing arsenal is full of both in-person and digital tactics—including professional video—that experience and data have proven effective. As buyers look more to online house hunting methods, our team is rising up to meet the challenge.
Are You Ready for San Diego’s Housing Market in 2021?
We hope this article encourages you to look forward to the good real estate trends we’ll likely see in 2021.
If you’re ready to sell your home and reap the benefits or if you’re ready to buy a home now, we at Jessica Foote & Associates would be happy to help you achieve your real estate goals.
Schedule a meeting with us to get started!
Let’s not just welcome the new year for the sake of putting 2020 behind us. Instead, let’s embrace 2021 for what it can be—and what it will be. There are good gifts and blessings ahead of us, and our team at Jessica Foote & Associates is ready to receive them! Are you?
Happy New Year!