New Year, new solutions, new plans. Every year we start a new decision-making cycle. New Year always brings some new trends that we are trying to follow. Except for fashion and lifestyle trends, most people looking for some real estate trends and predictions. Everyone is searching for some kind of change, new style, new life habits, new residence. What a better place to change your life, than California?
COVID – 19 trends and predictions
Real estate trends in California have been shakedown during 2020 caused by the COVID-19 worldwide pandemic. Prices went up briefly at the start of it, then fall down when the pandemic massively hit the USA. After that, around July, the market recovered and returned to normal prices and then started to slowly ascend. The global pandemic shattered the world order and the US economy suffered its biggest blow since the Great Depression in the second quarter. The typical U.S. home was worth $266,104 in December, up 8.4% (or $20,587) from a year ago. A total of 5.64 million homes were sold in 2020, up 5.6% from 2019 and the most since before the Great Recession, according to Lawrence Yun, NAR’s chief economist. Sales also rose 0.7% from November and 22.2% year over year. Existing home sales reached the highest level in 13 years.
This year, 2021. is looking forward to being competitive for new home buyers. Since depression hitting and supply lacking, the current pace of home price growth seems unlikely to change. Realtor.com’s market data for the week ending February 13, 2021, shows that the median listing prices grew at 12.7 percent over last year, making it constant growth in the period over six months.
Decisions about real estate trends and predictions
After all these numbers who talk about real estate trends and predictions, it is not an easy task to decide what to do this year. We have covered estimated risks and affordability of real estate so we can consider buying and seeking a new residence in California. California is also the most populated subnational entity in North America so this is not going to be an easy task. The distance and the type of moving making a big difference. Seems that the best option at the moment is to buy houses in smaller towns, unlike the apartments in big cities.
Due to pandemic crisis and low employment rate, people have trouble keeping up with mortgages in big Cities, and prices are surging up and down, so you can never be sure will you be able to keep up with it. If you organize yourself well this is going to be an easy task. Nowadays you can easily find some great services to support you. They will have some great advice for you, to help settle into your new home in no time.
Housing affordability crisis
When our moving, it is important to think about maintaining the household for a longer period of time. Following the real estate trends and predictions could be tricky this year. If you have to think about the money let the Mod Movers CA take care of your move. When you find the home you can afford just call them, they will do the rest. Housing affordability is driven by the gap between home value and household income. It is affected by supply and demand, mortgage rates and the labor market, and Federal monetary politics. In 2021, mortgage rates are expected to rise, and tied to that affordability will become a bigger challenge.
Intense demand and the low mortgage rates forced home prices to levels that are making it hard to save for down payment. In the last six months, the average contract interest rate for 30 years fixed-rate mortgage backed by the FHA increased to 2.97 percent from 2.94 percent, and the point rises to 0.36 from 0.29 for 80 % LTV Loans. Mortgage rates have increased in four of the first six weeks of 2021. Experts say that it is expected for the mortgage rate to continue to hover over record lows. Before you start to look for a new place, reconsider your moving decisions and think about the stability of your incomes, that is an uncertain item nowadays.
Pack your bags
If those numbers didn’t scare you, and you will start looking for a new home, or you already have found one, it is time to plan the packing and moving. This is, like always, the most time-consuming part of the moving process. You can always find experts to give you a hand. There are several phases of this:
- Make a list – It all starts with a checklist. Write down all things that you have, from your furniture to the last book and fork. In that way, you will see how much stuff you have and you will think about your actual needs. When you live in someplace for a longer time unknowingly you gather a lot of unnecessary things in that place.
- Pack – Supply yourself with enough boxes and bags, be smart, and use them well. Use the boxes for fragile things, glass, smaller, brittle items, and don’t forget the protective materials. Protect the furniture and disassemble what can be disassembled. This will help you a lot. Use the bags for soft and unbreakable things like your clothes, it will facilitate the transport.
- Clean and declutter – After you move all your essential things into the moving pile, make a selection out of the remaining, unnecessary things. Put it in the storage, donate it, give it as a gift or throw it away.
- Move – Do it by yourself, with a friend’s help, or in the best option, hire a moving company. This will be the best money investment. These are professionals who know their job and they will save your time and nerves.
- Settle down – This is the most satisfying part in which you are realizing that all the effort pays off. When you finally unpack and sit for a coffee in your new apartment, you will see that all the effort was not in vain.
This time, it is not an easy task to chase your dream. It is an even more difficult task to accomplish them after all the cries that have happened. If you are searching for some California real estate trends and predictions for 2021 to follow, we have some great advice for you to listen to.