Uncategorized June 15, 2022

An Overview Of The California 2021 Real Estate Market

So what happened in real estate in 2021?! Well, here’s an overview of the California real estate market for 2021. Prices went up over 11% in 2020 and the forecast was that values and prices would only increase by 6.8%, but the actual increase was 20.3% this year. Hi, I’m Maya Crelan Ray with David Lyng Real Estate. About 67% of homes that are closing above list price and homes are still going pending quickly, in the past it was at 7 days and now it’s 9 days for a home to go pending. More homes were sold in 2021 than homes have been sold per year in the last 7 years, we’re predicting to end the year selling somewhere between 440,000 Single Family Homes. We are selling more homes over a million dollars in California than homes under $500,000. Also, we are selling more homes over 2 million dollars in California than in history! If you look at the 2021 fastest growing cities 69% are over a million dollars, and 25% are over 2 million dollars, all positive signs of the 2022 real estate market to continue to trend up. The Bay Area, Orange County, Los Angeles tend to be vacation areas and second homes, which is also conducive to a positive housing market. Housing is growing fastest in California’s Core. If you look at home sales growth by broad region, it’s the coastal and frankly the least affordable parts of California that are actually doing the best. The Bay area is up 32.8%, Central Coast up 26.6%, Southern California up 23.2% whereas all of California as a whole is up 21.3%. As the demand for second homes or larger homes because of remote work continues to increase we are predicting this to help the housing market as well. 35% of sellers actually left the state and less than ⅓ of sellers who sold stayed in their same county. More people are able to work remotely so moving away from California has never been easier. This will make it a bit easier for people to find homes who are staying here. 35.5% in 2021 were First time home buyers (FTHB), that was more than 1/3 of buyers are, and 32% of them put down 20% or more which
shows they have more skin in the game so to speak. Only 2.7% put down 0% and 4.4% paid all cash as a First time home buyer. So the housing market forecast for 2022 according to the California Association of Realtors looks good.
I’m always happy to help with any of your Santa Cruz Real Estate needs, feel free to call with any questions large or small! Have a wonderful day and come back for more in site on the Santa Cruz real estate market. I hope you have a wonderful day!