2021 CA Rental Housing Market Forecast
2021 CA Rental Housing Market Forecast
The new year is here, and real estate professionals are making their predictions about what the California housing market will do in 2021. The California Association of Realtors’ looks at things such as supply and demand, home prices, interest rates, and other factors that determine the overall health and growth of the housing market.
Here’s what experts are saying about the 2021 CA Rental Housing Market Forecast:
Rental Housing Prices Will Rise
Even with a worldwide pandemic, real estate experts still expect home prices to rise in 2021. At the end of 2020, the California housing market saw an increase in demand and a decrease in inventory, which is always a recipe for increased prices. According to the Zillow housing forecast in California, housing prices are expected to rise 3-5% between now and summer 2021. It’s important to keep in mind that areas that were most severely impacted by the wildfires in late 2020 will most likely see a drop in home prices. Murrieta and Temecula property managers have not noted a significant impact from wildfires.
In Murrieta, home prices are up 16% since last year, and according to Redfin, “Many homes get multiple offers, some with waived contingencies.” The hottest homes in the area are going for 3% over asking and are usually off the market in less than a week. The median home price in Murrieta was $510k, but experts predict these prices will continue to rise in 2021, even amidst a pandemic. One thing buyers and sellers in this area need to keep in mind is that active inventory has decreased significantly since last year, as more sellers are more hesitant to put their homes on the market. Temecula property management companies have had issue with meeting the demand for new rental homes.
Rental Housing Inventory Will Be Limited
At the end of 2020, the inventory of California housing was low. The wildfires, the pandemic, and an overall shift in jobs and the economy meant there were fewer homes on the market than in previous years. Covid-19 put a halt to new construction activity, which limited the number of new homes on the market. Many sellers also chose to “wait and see” what the pandemic would do before putting their homes on the market. The good news for sellers is that as we enter the first half of 2021, the California housing market will stay a seller’s market. Low mortgage and interest rates combined with limited inventory means sellers will have the upper hand in 2021.
Suburbs Will Be Real Estate Hot Spots
Experts predict that 2021 will be the year many California residents will ditch their overpriced apartments and opt for single-family homes in the suburbs instead. Because many Californians are working from home, being close to their downtown offices is no longer a factor in where they live. This opens up opportunities to move to the suburbs or rural towns and find more affordable housing. 2021 will be the year to invest in single-family property because the demand for this kind of housing will be high. The pandemic has accelerated the move into suburbs.
Monthly Rental Housing Will Stay Consistent
Along with steady home sales, experts predict that 2021 will be a good year for rental properties. As young professionals flock to California for high paying jobs, the rental market will continue to see a high demand for rental properties. Multi-family rental developments, especially those in high-density markets, may struggle a bit in the first half of 2021, but single-family rental homes in suburban areas will be hot. Landlords in California are already seeking out Murrieta property management companies to help them manage their properties in the new year. A landlord’s pandemic safety check list is a smart play during these times.
Benefit National Is Ready For 2021
If 2020 has taught us anything it is to expect the unexpected. It can be hard to predict future market trends after a year like the one we’ve had, but real estate professionals are optimistic about the future of real estate in California in the new year. A steady increase in inventory and a consistent demand for suburban housing. It’s looking like 2021 will be the year that landlords and property managers thrive. You may want to consider a flat fee property manager to keep your overhead consistent.
Now’s the time to invest in the California real estate market, and a Benefit National Property Management can help you manage all of the details for a productive and profitable year. Check out all of our services to help you navigate the California housing market in 2021.