California Housing Market Forecast For Homebuyers For 2021
This Article Is About California Housing Market Forecast For Homebuyers For 2021 For Homebuyers
California is the third-largest state by size in the United States and has the largest population out of any state. With a population of 39.5 million residents, the area consists of 163,696 square miles (423,970 km2). Los Angeles County and its surrounding areas have the largest area in the state. Los Angeles County is the most populous area in the states and has the nation’s second-largest population with 19 million residents.
San Francisco and the surrounding Bay Area have the fifth largest population in the United States with a population of 9.7 residents. The state capital of California is Sacramento. California has over 14 million homes. California also has the highest home prices in the country. The average home prices in California have skyrocketed since 2012 throughout the whole state.
The median home prices in the state have gone up over 85.5% from 2012 through the end of 2019 on middle-level single-family housing. Excluded from the data were higher-end luxury homes and oceanfront estates. The median home price in 2012 was $305,000. The median California home price at the end of 2019 was $598,500. The median home price today in California (As of the end of August 2020) was $630,500.
Despite the coronavirus outbreak and the economic recovery from the pandemic, housing values still went up 7.0% over the past year. 2021 California Housing Market Forecast is expected to be stronger than ever due to the historic record-low mortgage rates. Compare the median home prices in California to the average median home prices for the rest of the nation which is $345,700 for single-family homes California home prices are double the price of the average home prices for the rest of the nation.
California Housing Market Forecast Remains Strong Despite The State’s Economy
The state of California has 40 million people.
The state’s gross state product of $3.0 trillion makes the state the largest sub-national economy in the world. If the state was separated from the United States, the state would rank as the fifth-largest economy in the world, and rank as the 37th-most populous as of 2020. California will always have in-migration due to its powerful economic engine. Many national news networks keep on reporting that many.
Californians are fleeing the state due to high taxes and the high cost of living to other low-taxed states. However, there are tens of thousands of people moving to California not just from other parts of the nation but from foreign countries. California is experiencing a shortage of housing for many years. Due to the strong housing demand and limited housing inventory, California Housing Market Forecast for 2021 remains strong. Home prices in California have been skyrocketing for almost ten years and there is no sign of any housing market correction. Now with 30-year fixed-rate mortgages at under 3.0%, homebuyer demand will become stronger than ever. The coronavirus outbreak shook the whole country.
Over 50 million Americans filed for unemployment. Unemployment rates are still under 10%. Many Californians were hoping for a huge housing market correction. However, the housing market is stronger today than when the coronavirus broke out.
California Housing Market Forecast And The Economic Impact After The Coronavirus Outbreak Broke Out In California
California Housing Market Forecast as well as the economic outlook after the coronavirus outbreak was bleak. The state, like other states in the nation, was shut down by the governor. Most economic experts predicted another housing crash worse than the 2008 Great Recession. National unemployment numbers topped close to 20%.
Over 50 million Americans filed for unemployment. California, a heavily Democratic state, joined other blue states in politicizing the coronavirus pandemic hurting millions of small business owners and taxpayers. Governor Gavin Newsom extended business and work shut down when other states reopened.
Incompetent Politicians Politicizing Coronavirus Outbreak Hurting Taxpayers And Small Business Owners
Los Angeles Mayor Eric Garcetti, one of the worst mayors in the nation and probably the most incompetent, issued executive orders that were clearly unconstitutional such as shutting down utilities for those who defy his illegal and unconstitutional executive to stay at home order:
It seems blue states with incompetent governors and mayors are struggling and in a financial crisis. This holds true in Illinois. The combination of the heavy-set obese incompetent governor J.B. Pritzker and Chicago Mayor Lori Lightfoot, both the city of Chicago and the state of Illinois are on the verge of financial collapse and meltdown. Due to incompetent Democrat politicians, the California economy got crippled.
Over two-thirds of California workers are employed by small businesses. Democrat politicians from the governor on down to city mayors did everything possible to have the entire state restricted from reopening and Californians going back to work. Homebuyers were at a standstill until the chaos in the state would stabilize. Homebuyers were hoping housing prices would fall due to the California economy deteriorating. Landlords were worried about vacancies and tenants under the CARES ACT not paying rent. Cities and counties throughout the state were implementing moratoriums on evictions hurting landlords and the commercial real estate market.
Historic Low Mortgage Rates And Fast Economic Recovery Expected To Boost Housing Market Forecast In California For 2021 And Years To Come
Real estate investors of rental properties were concerned about the California housing market collapse. However, mainly due to the Federal Reserve Board lowering interest rates to zero. Mortgage rates plummeted with the Central Bank lowering interest rates to zero. Never in history were mortgage rates this low.
Due to the Trump Administration acting quickly with the CARES ACT and other economic stimulus packages, the housing market is stronger now in California than it was prior to the outbreak of the coronavirus pandemic in February 2020. With thousands of homebuyers who suspended their home purchase prior to the coronavirus pandemic, you now have a flood of homebuyers looking for homes in a market with limited inventory. The housing market is booming in all parts of California. Even with one of the highest tax rates in the nation, California is attracting thousands of new taxpayers and businesses. A good economy means a stronger housing market.
Housing Crash Predictions Went The Opposite Way
The U.S. economy was booming prior to the coronavirus outbreak in February 2020. Then the coronavirus pandemic hit the U.S. Most state governors ordered executive stay-at-home orders and shut down their states. Many homebuyers with pre-approval letters halted their shopping for a home because the housing market was going to crash. Many homebuyers were convinced the housing market was not only going to collapse but will be worse than the 2008 housing and credit meltdown. However, this notion of another Great Housing Crashing in 2020 backfired. Instead of housing prices collapsing, it went the other direction. The California housing market is stronger today than it was prior to the outbreak of the coronavirus.
The U.S. economy has quickly recovered from the damage the coronavirus impact did when it first broke out. The unemployment numbers went as high as 20% but quickly recovered to under 10%.
Housing Market Forecast To Remain Strong Under Trump Economy
The Trump Administration is proactive with any negative impact that will hurt the U.S. economy. It is no rocket science that President Donald Trump will win reelection for his second term on November 3rd, 2020 Under the next Trump Administration, the economy and the housing market is expected to boom to historic growth levels Due to the strong demand of homes versus inventory, the housing market forecast in California remains strong not just for 2021 but for the next five years
Construction materials, labor costs, and rising land prices is adding fuel to the fire on rising housing prices for 2021 and years to come Due to the strong tech sector in California, more and more people are locating to the state and will no doubt look for housing Many homebuyers who have suspended their home shopping due to the coronavirus outbreak in February 2020 are now back looking for homes
Many home buyers who had plans to purchase a home in a year or two have changed their plans and want to purchase a home now to take advantage of the historic low mortgage rates.
Getting A Home Mortgage In California With The Booming Housing Market
Mortgage rates are at historic lows. Median home prices in California is double the national average and are expected to rise more due to the demand of housing. The median home price of an average 2,000 square foot home is just under $600,000. Due to high home prices, many counties in California is considered high-cost areas. The maximum FHA loan limit on FHA loans is capped at $331,760 for most areas in the United States. However, both FHA and Conventional loan limits in high cost areas in California is capped at $765,500 on FHA and Conventional loans on single-family
homes. As of January 1st, 2020, there is no longer a maximum VA loan limit. Gustan Cho Associates is a national mortgage company licensed in multiple states including California has no lender overlays on government and conventional loans. Gustan Cho Associates are also experts on non-QM loans. Non-QM loans are very popular in California. Self-employed borrowers can qualify for non-QM bank statement loans with no income tax returns required and no maximum loan limit. Borrowers can qualify for non-QM jumbo mortgages with credit scores down to 620 FICO. To qualify for a home mortgage with no lender overlays on government and/or conventional loans, please contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at [email protected]