2021 California Housing Market Forecast

December 2020

2021 California Housing Market Forecast

According to housing and economic forecast by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.), economic uncertainty due to the current coronavirus pandemic as well as low housing inventory will continue to be issues next year, however, a strong interest in homeownership along with historically low interest rates with continue to fuel the California housing market into 2021.

-    Low mortgage interest rates and pent-up demand from a desire for homeownership will bolster California home sales in 2021…

-    The California median home price is forecasting to edge up 1.3 percent to $648,760 in 2021, following a projected 8.1 percent increase to $640,330 in 2020 from $592,450 in 2019.

-    The average for 30-year, fixed mortgage interest rates will dip to 3.1 percent in 2021, down negligibly from 3.2 percent in 2020 and down from 3.9 percent in 2019, remaining low by historical standards.

California Association of Realtors

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