The Chief Economist at CoreLogic, Frank Nothaft, commented on this. Related: The Future of Real Estate Investing After the Pandemic. housing market report cited earlier, the “Unsold Inventory Index” for Santa Clara county had fallen to a meager 1.6 months in October 2020. The gist of that article was that more and more home buyers in California and nationwide are opting for suburban areas, over the more crowded cities. Related: Forget Demographics—Research THIS Before Investing in a New Market Based on realtor.com ® 's local market forecast, the areas on this list are expected to see the strongest home price and sales growth in the U.S. in 2021. Check this page each quarter for updates to the San Jose Real Estate Market Forecast. One forecast predicted that home prices will level off, going into 2021. offered a roundup of Bay…, A recent forecast from the research team at Realtor.com predicted that the South Bay Area…, December is days away, and before long we'll be tacking up our 2021 calendars. In fact, the number of unsold homes on the market right now is even lower than it was a year ago. This is a powerful enticement for home buyers and homeowners alike. That’s logical, when you consider the current trend toward social distancing. Get a better interest rate with Mission San Jose Mortgage Learn More. San Jose’s housing market has had its ups and downs in recent years. According to a November news release from the national real estate brokerage Redfin, San Jose is one of the top housing markets in the country for bidding wars. Pre-sales Typically, a developer must sell 70% of homes in a building before they can starts construction, so housing starts are a good indicator of successful pre-sales. Millennial homebuyers, relative affordability, and strong local economies will drive realtor.com®'s Top Markets of 2021 to lead the nation in a year when real estate is expected to be strong coast to coast. The San Jose, California housing market has been something of a rollercoaster over the past decade. Homes in San Jose receive 5 offers on average and sell in around 17 days. This thorough report on the US rental housing market for 2020 and 2021 offers stats, insights, and trends happening as we head toward 2021. San Diego housing is priced to perfection and a lot of big employers are now contemplated remote work and on top of this tourism is a big business in san Diego and Airbnb as well Check out the latest US stats, and discover when you should buy or sell. By Brandon Cornett | November 23, 2020 | © HBI, all rights reserved. According to the weekly industry survey conducted by Freddie Mac, the average rate for a 30-year fixed mortgage dropped to 2.72% last week. Mike Trejo is a Bay Area mortgage broker with 20+ years of knowledge and experience. Housing Market Forecast 2021. At the same time, Bay Area homeowners are now in a good position to refinance their existing loans. And many are considering less crowded areas over the more dense urban population centers. The housing market will remain strong through 2021 as the economy recovers from the pandemic-driven recession. This thorough report on the US rental housing market for 2020 and 2021 offers stats, insights, and trends happening as we head toward 2021. Real Estate . Today, we’ll be zeroing in on the San Jose real estate market. Given the recent trends and predictions for the San Jose housing market, it’s probably not surprising that bidding wars have made a comeback. The market is a 2 tiered one of inner city vs suburbs … Housing Market Crash 2021: The housing reports are comprehensive assessments and predictions of US Housing markets drawing insight from NAR, CAR, Corelogic, Wall Street Journal, Freddie Mac, tradingeconomics, statista, and more industry sources. It bears repeating. Buying a … To quote that report (with bolding added): “Metro areas with at least 1 million people and the biggest quarterly increases in purchase [loan] originations were Boston, MA(up 75.3 percent); Hartford, CT (up 52.6 percent); San Jose, CA (up 49.8 percent); Los Angeles, CA (up 43.3 percent) and St. Louis, MO (up 42.2 percent).”. Recent reports and forecasts for the San Jose real estate market in 2021 suggest that prices in the area could keep climbing for the foreseeable future. Only San Jose, California ranked higher, with a year-over-year price growth forecast of 10.8%. Our mortgage advisors are standing by. Stockton's Direct Mortgage Lender. Sacramento, Calif., San Jose, Calif. and Charlotte, N.C. are forecasted to see the highest home price appreciation and sales growth in 2021. Actually, that is not the case at all. (No, and Here’s Why), Top-5 U.S. Housing Market Predictions for 2021, Mortgage Rate Trends: 30-Year Fixed Outshines ARM Loans in 2020. That’s to be expected, really, when you look at the broader economic struggles the country is facing (and the ongoing COVID-19 situation). The Chief Economist at CoreLogic, Frank Nothaft, commented on this. That…. And the state’s unemployment rate still will be 9%, down from this year’s projection of 10.8%. The San Jose-Sunnyvale-Santa Clara metropolitan area came in at #2, on a list of 100 U.S. metro areas. Many home buyers in San Jose and the surrounding area work in tech, finance, or other jobs that can be performed remotely. Check out the latest US stats, and discover when you should buy or sell. Refinance. It’s the US housing market. In housing markets like San Jose, there just aren’t enough homes available to meet the demand from buyers. This is article part of an ongoing series that examines housing market forecasts for major cities across California. Read the article on California ‘urban flight’. Record-low mortgage rates are also contributing to increased home sales activity and prices in San Jose, and throughout the Bay Area. San Jose ranked second in 2021’s top housing markets and is the most expensive among the top 10, with a median home price of roughly $1.2 million. That has been the case for quite some time now, and it’s a common factor among other Bay Area real estate markets as well. Out of those 100 metros, the Seattle area had the #2 housing market forecast in terms of annual home-price growth. Here’s a roundup of the latest trends, reports and predictions for the San Jose housing market, extending into 2021. That has shielded them from the layoffs that have plagued other sectors of the economy. And the forecast for November and December is for continued higher prices. Disclaimer: This article includes housing market forecasts for San Jose, California through 2020 and into 2021. And that’s boosting house values. Those predictions were issued by third-party sources not associated with our company. Sacramento, Realtor.com’s number one ranked market in 2021, has a price per square foot of $284, a rising technology sector, and also happens to be the state capitol. This has made things challenging for home buyers, to say the least. Rates could inch up a bit, as we head into 2021. That was down from a 2.1-month supply a year ago, and it’s well below what is considered to be a “balanced” market. Because of this, it’s a good idea to think about real estate and home buying from a long-term perspective. I am so excited and also sad because this is our last Bay Area housing market update for 2020. You can see this in the chart below, provided by Zillow. Based on Realtor.com’s local market forecast, the areas on this list are expected to see the strongest home price and sales growth in the U.S. in 2021. Dec 16, 2020 . But COVID-related migration trends could give this market a boost. In November, the real estate data company Zillow predicted that home values in the San Jose area would continue to climb at an above-average pace for the foreseeable future. And during times of economic turmoil and uncertainty, they’re even more difficult to produce. Mortgage rates for 2021 will go up later in … December 2, 2020 2021 National Housing Market Forecast and Predictions: Back to Normal To say 2020 was a year of surprises is an extreme understatement. In early 2021, homebuyers will remain undeterred by the pandemic, eager to take advantage of sub-3% mortgage rates while they last. No. The company’s researchers wrote: “San Jose home values have gone up 14.2% over the past year and Zillow predicts they will rise 9.2% in the next year.”. We’ve seen an increase in moves and relocations during the coronavirus pandemic, as people put a premium on space, home offices, and the like. Report. It’s called “urban flight,” and we’ll probably be hearing that phrase a lot more over the coming months. Other forecasts in this series: Sacramento | San Diego | Oakland | Los Angeles. Specifically, they created a top-ten list of (what they believe) will be the hottest real estate markets of 2021. Purchase. By this math, California is forecast to have six of the nation’s 20 best-performing markets in 2021. The Mercury News recently covered the Moody’s report, writing: “In the wake of a pandemic sweeping through many of the country’s most densely packed areas, analysts expect an exodus from cities in favor of car-friendly suburban areas. Topping Realtor.com’s national forecast were the fast-growing cities of Sacramento, California, San Jose, California, and Charlotte, North Carolina. It’s hard to distance yourself in a crowded city center. In fact, we’re seeing some early signs of this trend already. Sacramento was ranked No. Thus far, the coronavirus crisis has had little impact on home sales. (it's OK to estimate), (It's OK to estimate or if no cash-out leave at $0). And as we know, real estate trends can change significantly in a short period of time, especially in times like these. This indicates a high level of demand for homes in the area. There just aren’t enough homes listed for sale in the area to meet the demand from buyers. On the mortgage front, record-low mortgage rates are giving hesitant home buyers a strong reason to enter the market. The real estate market has been surprisingly strong over the past few months, despite the stumbling blocks in other aspects of the economy. In fact, home prices across the top 10 markets are forecasted to increase by 6.9% and sales by 13.1% year-over-year, which is significantly higher than the national projection of 5.7% price appreciation and 7.0% sales growth. Realtor.com’s annual housing forecast … So perhaps we’ll see some revised real estate predictions for San Jose in the coming months, if demand does rise as expected. Real estate and economic forecasts are the equivalent of an educated guess. Experts project an optimistic year for the 2021 housing market. Stockton's Direct Mortgage Lender. We are also hearing anecdotal reports from agents about home buyers waving contract contingencies in an effort to edge out competing buyers. Welcome to the Bay Area housing market! And these days, many home buyers seem to prefer the former over the latter. A Las Vegas real estate market forecast 2021 with a rise in inventory and dropping home prices means a housing market crash is in the city’s future, right? Many of these same trends are occurring in other parts of Santa Clara County as well. Disclaimer: This article includes forecasts and predictions for the San Jose real estate extending into 2021. In June, the company wrote: “San Jose home values have gone up 2.6% over the past year and Zillow predicts they will fall -0.7% within the next year.”. In fact, home prices across the top 10 markets are forecasted to increase by 6.9% and sales by 13.1% year-over-year, which is significantly higher than the national projection of 5.7% price appreciation and 7.0% sales growth. In November 2020, the California Association of Realtors® (C.A.R.) The same is true for many cities across the nine-county Bay Area region. Yes, home prices in this housing market could soften over the coming months. But it also mirrors predictions offered by other sources, and for most other cities across the U.S. In late 2019, prices turned north again as buyer demand continued to exceed supply. All of those South Bay cities posted double-digit price gains over the past year or so, according to Zillow. The San Jose-Sunnyvale-Santa Clara metropolitan area came in at #2, on a list of 100 U.S. metro areas. The US housing market has its detractors, with a few certain that a housing market crash is imminent. These 13 housing crash factors will shape the housing market. Realtor.com® 2021 Housing Market Forecast Realtor.com ® forecasts mortgage rates will continue to hover near 3% then slowly rise to 3.4% by the end … The San Jose housing market is very competitive. 3 Year Forecast: UP Forecast Accuracy: 77% The forecast for the trend in the San Jose housing market for the 3 years ending with the 3rd Quarter of 2021 is UP. Keep an Eye on Sacramento, San Jose, and Charlotte. According to the C.A.R. So yes, it’s a competitive market. But at the same time housing market is like a titanic and it takes time to turn. Housing Market Forecast 2021 What’s the hottest market going right now? 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