Real Estate TrendsJan 01, 2021 08:34PM ● By Norma Flaskerud
A Super Hot Market
As we begin 2021, we sadly say good-bye to The Focus! We will miss it so much. I so admire the team that puts it together month after month, year in, and year out; they had a wonderful vision and pulled it off! Thanks for publishing this wonderful community oriented newspaper, Becky Coburn, Jennifer Neys, and Elena Hutslar.
The Focus’ graphic designer, Trish Heaney, was a big help in creating our ads. I have to share our connection to Trish. My first full-time job after a year of substitute teaching after college was as an insurance adjuster for The Travelers Insurance Company in the city. My supervisor was a really great guy name John Stone, who happened to be Trish’s father! Trish grew up and married a very special guy named Mike Heaney, who is a swim coach. Early in his career, Mike coached my children on the Pleasant Hill Dolfins swim team, and they loved him!! (We did too!) Circle of life!
2021’s story remains to be written. No one foresaw 2020’s story as it played out. But with vaccinations, we are all hopeful things will improve! The story of real estate from the beginning of the pandemic and during it continues to be fascinating. March’s shutdown stopped our market in its tracks; we were so worried. But then something happened; houses started selling and getting multiple offers, from low-end properties to multi-million dollar homes! Our buyers had to write aggressive offers, offering way over the asking price and buying as-is! Our sellers enjoyed the benefit of selling for top dollar as-is! Home prices soared as much as 10% higher than a year ago.
To get an idea of what to expect this year, we have studied the predictions of economists from Altos Research, Realtor.com, Redfin, California Association of Realtors, and others with reference to the entire USA. Here are snippets of their thoughts:
· The housing market will enter 2021 blazing hot, with off-the-charts demand and an extreme shortage of homes for sale.
· As far as seasonality goes, we expect housing to be busier in spring, like it normally is, and while fall will be strong, we don’t expect it to be sizzling hot like fall of 2020.
· A lot of people wanted to move in 2020 but were too nervous, however, it seems the economy will be in a better place in 2021, which will spur more moves.
· The vaccine may allow the economy to open, leading to more consumer confidence, but we will likely see higher interest rates, which might slow the price growth in homes.
· As remote works become normalized, more people will move across the country to more affordable areas where they can have more space.
· Supply and demand will drive the market in 2021; supply will remain low and demand will stay exceptionally high. There are millions of millennials aging into prime homebuying years and millions more Gen Zers, keeping demand high for years to come
· The comfort and perceived safety of being in a single-family home with no common areas in suburban areas is where there is high demand, which we expect will continue into 2021 (This describes most of our area.)
· Might a double-dip recession happen, and, if so, will it affect home sales? With the government passing stimulus bills it is not likely, but as some people are unable to pay mortgage payments, their home has climbed in double-digit value this past year and they should be able to sell really quickly, without facing foreclosure.
Thanks again to The Focus crew as we sadly say good-bye.
The Flaskerud Team can be reached at Remax Accord, 367 Civic Dr Suite 7, Pleasant Hill, or call Norma at 925-766-6679 or Erik at 925-381-7276. Norma Hawkins Flaskerud Realtor Remax Accord, [email protected]. Erik Flaskerud Realtor Remax Accord [email protected]