2020 in Review

As we closed out 2020 and reflect back, it is clear that despite losing roughly two months of the spring homebuying season, the housing market was very strong in California this year. Although the housing market cooled off some during the final few weeks of 2020, there are still many reasons to be optimistic about home sales and prices in 2021. First, ‘cooling’ is relative and the market remains well ahead of 2019 levels. All indications are that rates will remain relatively low and the economy should heal as the public health crisis abates in 2021. This means that we can continue to expect a strong demand for homes in 2021, not less.

The year-end cool off could have been due to the holidays, the newly imposed stay at home orders, or some combination thereof.  The State of California extended its stay at home order until late January as Covid cases increased dramatically after the holidays. The vaccines have begun to roll out in earnest to front line healthcare workers and vulnerable populations, but we are still several months out from the widespread vaccinations that are needed for ‘herd immunity’ to allow for more normal economic interactions.  

Interest rates remain the accelerant in the market through year’s end as the 30-year fixed-rate mortgage hit its 15th all-time low.  Rates have now been below 3% for 22 consecutive weeks providing a tremendous boost to purchasing power for consumers. Effective 2021, the conforming loan limit is also increased in San Diego County from $701,500 to $753,250 further increasing buyer purchasing power.  The year 2020, also saw more people buying vacation homes or second homes, as its share of total sales rose to the highest level in four years, according to C.A.R.'s Annual Housing Market Survey.  Whether a Buyer or a Seller in this market, opportunity awaits....reach out to me to discuss your real estate needs and questions.