#1 Sacramento Market
Realtor.com ranked 100 large metropolitan areas based on forecasts for next year’s home sales and price growth and compiled the predictions into an overall score. By this math, California is forecast to have six of the nation’s 20 best-performing markets in 2021.
Sacramento was ranked No. 1, projected to rise 24.6% from a combined 17.2% rise in sales and 7.4% price growth. No. 2 was the San Jose metro with 21.6% growth combined from 10.8% sales growth and 10.8% price growth.
The 100-market median was forecast at 11.1% growth combined from 6.6% sales increases and 4.5% pricier housing.
The report noted that “a common driver of this year’s top markets is the prevalence of high-paying tech jobs. Tech salaries in Sacramento, San Jose, Boise, Denver and Seattle have driven home prices through the roof over the last several years, and this trend is expected to continue in 2021.”
The rest of California in Realtor.com’s study:
No. 8 Ventura County: 18.0% — sales up 12.5% and 5.5% higher prices.
No. 10 Riverside-San Bernardino counties: 17.9% — sales up 12.4% and 5.5% higher prices.
No. 14 Los Angeles-Orange counties: 17.3% — sales up 10.0% and 7.3% higher prices.
No. 18 San Diego: 16.8% — sales up 11.3% and 5.5% higher prices.
No. 26 Stockton: 14.3% — sales up 8.2% and 6.1% higher prices.
No. 28 Bakersfield: 14.2% — sales up 10.5% and 3.7% higher prices.
No. 64 San Francisco metro: 9.7% — sales up 1.3% and 8.4% higher prices.
By the way, the worst projected place for housing in 2021? New York with a -3.3% combined score — sales down 3.8% and only 0.5%higher prices.
Interest rates are expected to remain low, which typically draws people into the market. Lower rates can make homes affordable but at the same time can push prices higher by enabling people to bid more.
The Federal Reserve, and others, also predict unemployment will drop next year as the vaccine rollout continues. Then there are people who have maintained employment throughout the pandemic and have saved because they’re not traveling or eating out.
The Real Estate Market will stay strong through 2021 and home prices will continue to rise. With the news of a viable vaccine on it’s way, the global environment will change and more and more workers will be able to go back to work. Business will soon re-open and hopefully lead to an even stronger economy.