Realtor.com ranked 100 metropolitan areas based on forecasts of home sales and price increases next year, and summarized the forecasts into an overall score. This calculation predicts that California will have six of the 20 best-performing markets in the United States in 2021.
Sacramento is ranked number one and is expected to grow by 24.6% from a combination of 17.2% increase in sales and 7.4% increase in price. In second place is San Jose Metro, which achieved 21.6% growth with 10.8% sales growth and 10.8% price growth.
The median of 100 markets was projected to grow 11.1%, combined with a 6.6% increase in sales and 4.5% more expensive homes.
“The general impetus for this year’s top markets is the proliferation of high-paying tech jobs. Tech salaries in Sakurament, San Jose, Boysie, Denver and Seattle have pushed home prices up over the past few years,” the report said. This trend is expected to continue in 2021. “
The rest of California in a Realtor.com survey:
8th Ventura County: 18.0% — Sales increased by 12.5% and prices increased by 5.5%.
No. 10 Riverside-San Bernardino County: 17.9% — Sales increased by 12.4% and prices increased by 5.5%.
No. 14 Los Angeles-Orange County: 17.3% — Sales increased by 10.0% and prices increased by 7.3%.
No. 18 San Diego: 16.8% — Sales increased 11.3% and prices increased 5.5%.
No.26 Stockton: 14.3% — Sales increased by 8.2% and prices increased by 6.1%.
No.28 Bakersfield: 14.2% — Sales increased by 10.5% and prices increased by 3.7%.
No. 64 San Francisco Metro: 9.7% — Sales increased 1.3% and prices increased 8.4%.
By the way, what is the worst expected location for housing in 2021? New York with a total score of -3.3% — Sales are down 3.8% and prices are up only 0.5%.
“Last year, we all became more and more dependent on technology to work, learn and maintain personal connections. The technology hubs that make this possible are as prosperous as the housing market. “More,” said Daniel Hale, Chief Economist at Realtor.com. “Home buyers looking for one of these markets, especially young first-time buyers, need to anticipate rising prices and fierce competition. In the meantime, sellers remain in power, but next: When you buy a house, you will find yourself on the other side of the bargaining table. “
“Housing prices in eight of the top 10 markets are higher than the average for the top 100 markets,” Realtor.com said. “But many are relatively affordable compared to nearby counterparts, or offer quite a few square feet at similar prices.”
Examples include Sacramento, San Francisco ($ 679), Ventura County ($ 413), Riverside-San Bernardino ($ 247), and LA-OC ($ 556), which cost $ 284 per square foot.
How much can you believe?
On a scale from zero (no method) to 10 (guaranteed) … seven!
Historically low mortgage rates could drive home purchases and valuations as the economy recovers from the pandemic-induced recession. But at some point, the number of people who can buy at a bloated price will be limited.