A continuation of low mortage rates and high demand from Millennials for new homes should create a booming real estate market in California next year. This prediction comes from the California Association of Realtor’s “2021 California Housing Market Forecast” report. Economist uncertainty due to the coronavirus pandemic may stifle sales growth but sellers are expected to see near record profits.
Housing supply constraints may also put a damper on growth and put upward pressure on prices which could deter some buyers. The California median home price is forecast to climb 1.3 percent next year, following a projected 8.1 percent surge in 2020.
Those looking to purchase a home will find that mortgage rates are expected to remain near historic lows throughout much of the next year as well. Today, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.5 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.