In the South Bay, all over LA, and nationwide, it has been a hot Sellers’ Market since June of last year.
Homes were typically on the market for 53 days at the start of 2020. They now sit for an average of 33 days which means there is barely a one-month supply of homes for sale. Multiple offers and bidding wars are the new normal.
This 9-month streak almost rivals the record 15-month streak from April 2012-July 2013. That streak ended as interest rates rose. The current streak is likely to end in the same way. In 2021, the rise in mortgage rates from a record low of 2.65% in the first week of January to 3.09% in early April, is just the beginning of rising rates.
As multiple vaccines become available, it is generally felt that there is light at the end of the pandemic tunnel. Additional positive factors include relief bills, improving employment rates, and overall recovering economic factors that will all feed into raising 30-year mortgage rates. Inevitably the housing market will evolve from its current crazy pace to one that is much more tolerable.
Experts are looking toward a robust economy in the second half of 2021; the next “Roaring 20s”. Prior to the pandemic, interest rates were between 3.5% and 4%, and forecasts call for the same by year-end.
Having said all of that, this will remain a Sellers’ Market for the foreseeable future. There is no expectation of a roll-back in prices. Most experts predict home prices will continue to rise, probably by about 5% per year.
Considering buying or selling a home? Navigating well through this changing environment is important. I’m here to be your guide, let me know how I can help.