California’s single-family home sales and median prices are expected to rise slightly next year, according to a forecast.
Home sales are expected to rise 3.3 percent, to 392,510 units in 2021, while the median price will move up 1.3 percent, to $648,760, the Los Angeles-based California Association of Realtors predicted.
“While home prices rose sharply in 2020, driven by strong sales of higher-priced properties and a limited inventory of homes for sale, the pace of price growth will be more moderate in the coming year,” said Leslie Appleton-Young, the association’s senior vice president and chief economist, in a statement.
“The uncertainty about the pandemic, sluggish economic growth, a rise in foreclosures, and the volatility of the stock market are all unknown factors that could keep prices in check and prevent the statewide median price from rising too fast in the upcoming year.”
The average for 30-year, fixed mortgage interest rates will drop to 3.1 percent next year, essentially unchanged year-over-year but down from nearly four percent in 2019, according to the association.