Reasons for Optimism in the New Year
The Santa Clarita housing market was a big surprise in 2020 and the positive trend should continue throughout 2021. At the start of the pandemic I was unsure as to what would happen in the real estate market but within 6-8 weeks it was already starting to move and by the end of 2020 we had more closed sales than either of the past two years.
Here are a few of the predictions by real estate experts for 2021
1. Home Sales are expected to rise by around 10%
2. Home Prices will also continue to climb. (2020 home prices went up over 7-13% in SCV)
3. Mortgage rates will stay favorable and near historic lows of 3% on average
4. With the vaccine becoming more available the labor market will strengthen.
5. The unemployment rate could go back down to around 5% by the end of 2021.
6. Some buyers are turning to vacation properties as a work-from-home option.