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What to expect in the 2021 housing market

moving family into their dream home

Looking for homes for sale in La Cañada ? Want to secure a property before the year ends? It pays to know which way the real estate wind blows so that you can make the best decisions for your investment. Here are five of the biggest real estate considerations if you’re planning to buy a property in La Cañada or its nearby communities.

  1. Price gains are rising sharply
  2. Many news outlets reported that home price gains have risen at an alarming rate since January, growing by 11.2 percent compared to the previous year—the largest annual gain in 15 years. Compare that to January 2020, when the annual gain was at a low 3.9 percent. The reason for this is that demand is very high and greatly outstrips the available homes for sale. In such a market, bidding wars for homes have become more commonplace.

  3. Interest rates are at an all-time low
  4. Mortgage rates are currently at a record low throughout the country, giving home buyers a huge advantage this year. As of the end of July, the average rate for a 30-year fixed rate loan fell to 2.78 percent—that’s just a little over January’s 2.65 percent, the lowest of all time. Experts are attributing the drop to decreasing treasury yields, as well as sustained concerns about COVID-19 keeping consumers from spending.

  5. Home prices remain high
  6. The lowest interest rates, combined with skyrocketing price gains and a low housing inventory, is causing home prices to soar in California, with 47 of the 51 counties experiencing double-digit annual price gains, and 25 counties achieving record-high median prices in June. The San Francisco Bay Area saw the largest year-over-year gain at 35 percent, with the median price reaching an average of $1,350,000. Low supply and high demand means that home prices will remain high, and experts aren’t expecting the trend to change anytime soon.

  7. La Cañada stays a hot housing market in 2021
  8. Homes in the La Cañada Flintridge community saw an 18.2% uptick in June 2021, compared to the same time last year. Properties in the area were also seeing faster selling times, lasting only an average of 39 days on the market compared to last year’s 49 days. A total of 36 homes were sold for the month of June, up 26 from last year, with median prices averaging $2.2 million.

  9. Townhouses and condos are the hottest properties

Single-homes appear to have lost a little of their charm—at least to many home buyers this year—as preference has shifted toward condos and townhouses. The average price for the latter is now at $600,000, marking a $113,750 increase from last year. Condo prices rose by 4.6 percent this June compared to last year, while month-to-month sales improved by 68.5 percent.

La Cañada Flintridge and its neighboring communities still offer plenty of exciting real estate propositions for home buyers and property investors alike. As you move forward with your home search, learn more about the available properties by getting in touch with me today. Contact me at 818.378.7928 or send a message at kathy(at)imuragent(dotted)com to get started.