2021 Real Estate Predictions
Updated: Jan 3, 2021
The Orange County real estate market will continue defy the broader economy devastated by COVID. Experts predict 5 - 8% year over year appreciation in 2021, compounding an already long upward run in real estate.
Inventory - We are starting our year with about 2,500 homes on the market in Orange County - the lowest in recent history.
Demand - With low inventory and high demand fueled by record low mortgage rates, buyers will compete causing additional appreciation in 2021.
Interest Rates - While we expect interest rates to remain low in 2021, we should not be surprised to see them increase from current levels as low as 2.7% to 3.5% by the end of the year. Positive news in the form of vaccines and an opening economy should lead to upticks in interest rates, just as negative economic news tends to lower them.
Foreclosures and Short Sales - Housing appreciation creates equity, and equity allows even distressed homeowners to sell without a foreclosure or short sale. While we will likely see more distressed sales in 2021, we do not expect a substantial increase.
Considering buying and selling in 2021 or the next few years, give us a call to create a long term real estate plan.