An overview of the Real Estate Market in California for 2021
Prices went up over 11% in 2020 and the forecast was that values and prices would only increase by 6.8% but actual increase was 20.3% this year. About 67% of homes that are closing above list price and homes are still going pending quickly was at 7 days and now it’s 9 days for a home to go pending.
Homes are still going pending quickly. More homes were sold in 2021 than homes have been sold per year in the last 7 years, we’re predicting to end the year selling somewhere between 440,000 Single Family Homes. We are selling more homes over a million dollars in California than homes under $500,000. Also, we are selling more homes over 2 million dollars in California than in history. If you look at the 2021 fastest growing cities 69% sixty nine percent are over a million dollars, and 25% are over 2 million dollars, all positive signs of the 2022 real estate market to continue to trend up. Bay Area, Orange County, Los Angeles tend to be vacation areas and second homes, which is also conducive to a positive housing market. Housing is growing fastest in California’s Core. If you look at home sales growth by broad region, it’s the coastal and frankly the least affordable parts of California that are actually doing the best.
Bay area up 32.8%, Central Coast, up 26.6%, Southern California up 23.2% whereas all of California as a whole is up 21.3%. As the demand for second homes or larger homes because of remote work continues to increase we are predicting this to help the housing market as well. 35% of sellers actually left the state of and less than ⅓ of sellers who sold stayed in their same county. More folks are able to work remotely so moving away from California has never been easier. This will make it a bit easier for people to find homes who are staying here. 35.5% in 2021 were First time home buyers (FTHB) that was more than 1/3 of buyers are FTHB, and 32% of them put down 20% or more which shows they have more skin in the game so to speak. Only 2.7% put down 0% and 4.4% paid all cash as a First time home buyer. So the housing market forecast for 2022 according to the California Association of Realtors looks good.
Average Income for Realtors in 2020 was 180,000 which was an increase in 16.1% from the previous year. However, the Average income for the median realtor the Bottom 80% was $35,000 which was a decrease from the previous year by 16.7% even in the midst of all time high prices and 15 year high in terms of transactions. 30% of agents are doing about 70% of the deals which is on average of 10 deals per year, and the other real estate agents are going to do less than two sides a piece