The chart below shows the median house price for San Jose, California, going back several years. report mentioned above, the median selling price for existing single-family homes in Santa Clara County rose by nearly 17% in October 2020, compared to a year earlier. Housing is a key indicator of future economic growth, with most recessions being preceded by a downturn in the housing market. The same is true for most of Santa Clara County. Outlook: 5 Bay Area Housing Market Predictions for 2021. According to the C.A.R. The accuracy of this forecast for San Jose is 77% and it is predicting a positive trend. But recently, a number of housing and economic experts have issued their real estate market forecasts for the US. And as we know, real estate trends can change significantly in a short period of time, especially in times like these. Refinance. Mission San Jose Mortgage. Yes, home prices in this housing market could soften over the coming months. By this math, California is forecast to have six of the nation’s 20 best-performing markets in 2021. LittleBigHomes.com estimates that the probability of rising home prices in San Jose is 77% during this period. Throughout the pandemic, economists have referred to the U.S. real estate market as one of the only bright spots in the economy. Keep an Eye on Sacramento, San Jose, and Charlotte. And during times of economic turmoil and uncertainty, they’re even more difficult to produce. Mike Trejo is a Bay Area mortgage broker with 20+ years of knowledge and experience. San Jose Housing Market Outlook for 2020 – 2021, Roundup of Bay Area Housing Market Trends, Based on C.A.R. The housing market will remain strong through 2021 as the economy recovers from the pandemic-driven recession. The company’s researchers wrote: “San Jose home values have gone up 14.2% over the past year and Zillow predicts they will rise 9.2% in the next year.”. And the forecast for November and December is for continued higher prices. Buyers can lock in a low rate for the long term, by using the popular 30-year fixed mortgage option. This is why we are seeing positive, strong forecasts for the San Jose real estate market into 2021. Realtor.com® 2021 Housing Market Forecast Realtor.com ® forecasts mortgage rates will continue to hover near 3% then slowly rise to 3.4% by the end … And many are considering less crowded areas over the more dense urban population centers. It’s hard to distance yourself in a crowded city center. Santa Clara also experienced a sharp increase in the number of sales. But as the public-health crisis eases, the market will eventually rebound. Only San Jose, California ranked higher, with a year-over-year price growth forecast of 10.8%. Again, I have spent a lot of time gathering all the research and all the statistics, but most importantly, I really wanted to show you guys some of our […] Sacramento, Realtor.com’s number one ranked market in 2021, has a price per square foot of $284, a rising technology sector, and also happens to be the state capitol. But housing analysts and economists can offer predictions based on current real estate trends. The Accuracy of the Trend Prediction for San Jose is 77%. Those predictions were issued by third-party sources not associated with our company. That was the biggest year-over-year increase of any of the nine counties within the San Francisco Bay Area. Disclaimer: This article includes housing market forecasts for San Jose, California through 2020 and into 2021. A Las Vegas real estate market forecast 2021 with a rise in inventory and dropping home prices means a housing market crash is in the city’s future, right? San Francisco home values have gone up 0.9% over the past year and the latest forecast is that they will increase by 5.9% in the next twelve months. Our mortgage advisors are standing by. 2 was the San Jose metro with 21.6% growth combined from 10.8% sales growth and 10.8% price growth. According to a November 2020 report from Irvine, California-based ATTOM Data Solutions, San Jose was one of the top cities in the country for mortgage loan activity during Q3 2020. Those projections were issued by third parties not associated with the Home Buying Institute. Disclaimer: This article includes forecasts and predictions for the San Jose real estate extending into 2021. In June, the company wrote: “San Jose home values have gone up 2.6% over the past year and Zillow predicts they will fall -0.7% within the next year.”. Thus far, the coronavirus crisis has had little impact on home sales. Out of those 100 metros, the Seattle area had the #2 housing market forecast in terms of annual home-price growth. And for the San Jose housing market, most forecasts point to one overarching trend — rising house prices. And yet, that’s exactly what is expected. And the state’s unemployment rate still will be 9%, down from this year’s projection of 10.8%. This is good news for real estate investors looking to buy a rental property in a strong housing market. Housing Market Crash 2021: The housing reports are comprehensive assessments and predictions of US Housing markets drawing insight from NAR, CAR, Corelogic, Wall Street Journal, Freddie Mac, tradingeconomics, statista, and more industry sources. According to a recent study by the data analytics firm Moody’s, San Jose could see an increase in housing demand as people leave the much more crowded San Francisco real estate market. All rights reserved. Based on realtor.com ® 's local market forecast, the areas on this list are expected to see the strongest home price and sales growth in the U.S. in 2021. Last time it took 4 years in San Diego to find the bottom . In June, the company wrote: “San Jose home values have gone up 2.6% over the past year and Zillow predicts they will fall -0.7% within the next year.” Granted, that’s just one forecast, and it’s the equivalent of an educated guess. In fact, we’re seeing some early signs of this trend already. Inventory within the San Jose housing market has been tight for the past few years. On December 7, Realtor.com’s research team published a 2021 forecast for the nation’s housing market. On the mortgage front, record-low mortgage rates are giving hesitant home buyers a strong reason to enter the market. The Mercury News recently covered the Moody’s report, writing: “In the wake of a pandemic sweeping through many of the country’s most densely packed areas, analysts expect an exodus from cities in favor of car-friendly suburban areas. Millennial homebuyers, relative affordability, and strong local economies will drive realtor.com®'s Top … The market is a 2 tiered one of inner city vs suburbs … Rising unemployment and economic anxieties have rattled the real estate market in San Jose and other parts of California — along with the rest of the country. Realtor.com looks to a strong seller’s market in 2021 in it’s Housing Market Predictions and Forecast. 877 Ygnacio Valley Road That report looked at the share of offers handled by Redfin agents that ended up in bidding wars. Within the San Jose housing market — and much of the Bay Area — low inventory is forcing home buyers to compete fiercely with one another. Related: Forget Demographics—Research THIS Before Investing in a New Market Dec 16, 2020 . In five decades, we have never seen mortgage rates as low as they are right now. The Covid 19 shutdowns have impacted the rental housing market, yet prices have risen and look to rise further in the face of ongoing rental housing shortages, and a housing market that may cool. Economic and housing-related forecasts are the equivalent of an educated guess. The Chief Economist at CoreLogic, Frank Nothaft, commented on this. South Bay Area Real Estate Market: One of the Hottest in 2021? It’s the US housing market. Other cities that will likely see their housing markets boosted by the popularity of remote working include San Jose proper, Denver, Seattle and last year’s No. Homes in San Jose receive 5 offers on average and sell in around 17 days. Here are the top 25 housing markets for 2021, as ranked by Realtor.com: 2021’s top housing markets, as … (adsbygoogle = window.adsbygoogle || []).push({}); © 2020, Home Buying Institute (HBI). And these days, many home buyers seem to prefer the former over the latter. In November, the real estate data company Zillow predicted that home values in the San Jose area would continue to climb at an above-average pace for the foreseeable future. You can see how this housing market appreciated steadily from 2012 through the summer of 2018, after which prices dipped a bit. These 13 housing crash factors will shape the housing market. Real estate and economic forecasts are the equivalent of an educated guess. housing market report cited earlier, the “Unsold Inventory Index” for Santa Clara county had fallen to a meager 1.6 months in October 2020. With a median home price already exceeding $1 million, it’s hard to imagine that home values in San Jose could continue rising into 2021. The coronavirus (COVID-19) pandemic is the driving factor. In San Jose, there are roughly 5,300 residents per square mile. And all of this comes at a time when there are a lot of active home buyers in the area, seeking properties to buy. Record-low mortgage rates have pulled a lot of would-be home buyers off the fence and into the housing market. No. Real Estate . But it probably doesn’t factor the urban flight situation into account. Following that trend, house values took a downward turn due to affordability issues and other factors. So yes, it’s a competitive market. It’s called “urban flight,” and we’ll probably be hearing that phrase a lot more over the coming months. This thorough report on the US rental housing market for 2020 and 2021 offers stats, insights, and trends happening as we head toward 2021. In early 2021, homebuyers will remain undeterred by the pandemic, eager to take advantage of sub-3% mortgage rates while they last. published a statewide housing market update that showed significant home-price gains for most counties across the state. Get a better interest rate with Mission San Jose Mortgage Learn More. Actually, that is not the case at all. The San Jose housing market is very competitive. But it also mirrors predictions offered by other sources, and for most other cities across the U.S. That has shielded them from the layoffs that have plagued other sectors of the economy. (No, and Here’s Why), Top-5 U.S. Housing Market Predictions for 2021, Mortgage Rate Trends: 30-Year Fixed Outshines ARM Loans in 2020. This indicates a high level of demand for homes in the area. That could be one of the driving factors for the San Jose real estate market, during the second half of 2020 and into 2021. According to the weekly industry survey conducted by Freddie Mac, the average rate for a 30-year fixed mortgage dropped to 2.72% last week. Check out the latest US stats, and discover when you should buy or sell. Specifically, they created a top-ten list of (what they believe) will be the hottest real estate markets of 2021. This is article part of an ongoing series that examines housing market forecasts for major cities across California. This trend could carry into the first part of 2021 as well, with housing propping up the broader economy. Based on realtor.com ® 's local market forecast, the areas on this list are expected to see the strongest home price and sales growth in the U.S. in 2021. 210 The real estate market has been surprisingly strong over the past few months, despite the stumbling blocks in other aspects of the economy. But at the same time housing market is like a titanic and it takes time to turn. Inventory shortages are playing a key role here, as well. Begin your home loan process today! Low inventory, stiff competition, and rising home values are common conditions in cities like Cupertino, Los Altos, Palo Alta and Sunnyvale. And it hasn’t gotten any better. In November 2020, the California Association of Realtors® (C.A.R.) In fact, home prices across the top 10 markets are forecasted to increase by 6.9% and sales by 13.1% year-over-year, which is significantly higher than the national projection of 5.7% price appreciation and 7.0% sales growth. The San Jose housing and home-price predictions above are based on current trends in the market. Looking forward, the research team at Zillow offered a somewhat conservative forecast for the San Jose housing market that stretches into 2021. Yet housing supply is dwindling fast, aggravated by slower construction due to the pandemic. But keep in mind that home prices are unlikely to fall to the bargain-basement prices many were hoping for. One forecast predicted that home prices will level off, going into 2021. It’s based on Zillow’s proprietary home value index. Time will tell. Because of this, it’s a good idea to think about real estate and home buying from a long-term perspective. We are also hearing anecdotal reports from agents about home buyers waving contract contingencies in an effort to edge out competing buyers. 3 Year Forecast: UP Forecast Accuracy: 77% The forecast for the trend in the San Jose housing market for the 3 years ending with the 3rd Quarter of 2021 is UP. In the South Bay Area, there are several reasons for the real estate market’s surprising and ongoing strength: All of these trends combined are putting sustained upward pressure on home values. As predicted, the housing market continues its spectacular recovery into the fall months. Specifically, they created a top-ten list of (what they believe) will be the hottest real estate markets of 2021. Sacramento was ranked No. No one can predict future real estate or economic conditions with complete accuracy, especially in unpredictable times like these. Here is a short and crisp housing forecast of the San Jose Metropolitan Statistical Area for the 3 years ending with the 3rd Quarter of 2021. offered a roundup of Bay…, A recent forecast from the research team at Realtor.com predicted that the South Bay Area…, December is days away, and before long we'll be tacking up our 2021 calendars. Other forecasts in this series: Sacramento | San Diego | Oakland | Los Angeles. Pre-sales Typically, a developer must sell 70% of homes in a building before they can starts construction, so housing starts are a good indicator of successful pre-sales. At the same time, Bay Area homeowners are now in a good position to refinance their existing loans. Realtor.com’s annual housing forecast … According to a November news release from the national real estate brokerage Redfin, San Jose is one of the top housing markets in the country for bidding wars. (it's OK to estimate), (It's OK to estimate or if no cash-out leave at $0). San Jose is among the cities best-positioned to reap the benefits of a post-coronavirus world, according to a new study from the data analytics firm Moody’s.”. We’ve seen an increase in moves and relocations during the coronavirus pandemic, as people put a premium on space, home offices, and the like. The Covid 19 shutdowns have impacted the rental housing market, yet prices have risen and look to rise further in the face of ongoing rental housing shortages, and a housing market that may cool. But they are expected to hover in the low 3% range for much of next year. Boise comes in at number four on Realtor.com's rankings of the top real estate markets for 2021 behind Sacramento, San Jose, and Charlotte, North Carolina, and just ahead of Seattle. Check out the latest US stats, and discover when you should buy or sell. The Seattle Metro looks to a 9.7 % increase in prices in 2021 getty Realtor.com looks to a strong seller’s market in 2021 in it’s Housing Market Predictions and Forecast. The Atlanta housing market is expected to see one of the country's steepest rises in home prices next year, according to the 2021 housing forecast from realtor.com. San Jose’s housing market has had its ups and downs in recent years. “At the regional level, all major regions posted double-digit, year-over-year median price increases, and all regions, except the Far North, set a new record high median price in October … The San Francisco Bay Area had the second largest price increase of 17 percent…”. But the San Jose housing market also has a lingering supply shortage, in terms of the number of homes for sale. 1) Home Prices Predictions Based on Realtor.com’s local market forecast, the areas on this list are expected to see the strongest home price and sales growth in the U.S. in 2021. Recent reports and forecasts for the San Jose real estate market in 2021 suggest that prices in the area could keep climbing for the foreseeable future. The San Jose-Sunnyvale-Santa Clara metropolitan area came in at #2, on a list of 100 U.S. metro areas. Housing market forecasts are an inexact science in the the best of times. From October 2019 to October 2020, home sales in the area rose by a whopping 32.4% — more than any other Bay Area county. On the other hand, in San Francisco, Silicon Valley has driven the price per square foot up to … Many of these same trends are occurring in other parts of Santa Clara County as well. Some Highlights. This has made things challenging for home buyers, to say the least. The median price is forecasted to rise 5.7% hitting a historic high. And in the San Jose area, those fundamentals can be summed up in a single sentence: In 2021, the number of buyers in this market will likely exceed the number of homes available, and that would put upward pressure on prices. It’s also helpful to focus on the fundamentals of supply and demand, because that’s what will drive the market once the turmoil subsides. Today, we’ll be zeroing in on the San Jose real estate market. The average sale price of a home in San Jose was $1.1M last month, up 18.3% since last year. In San Francisco, there are more than 17,000 residents per square mile. The San Jose-Sunnyvale-Santa Clara metropolitan area came in at #2, on a list of 100 U.S. metro areas. Experts project an optimistic year for the 2021 housing market. 2021 Top Housing Markets Ranked. Sacramento, Calif., San Jose, Calif. and Charlotte, N.C. are forecasted to see the highest home price appreciation and sales growth in 2021. Housing Market Forecast 2021 What’s the hottest market going right now? Check this page each quarter for updates to the San Jose Real Estate Market Forecast. Mortgage rates for 2021 will go up later in … New home sales and new housing starts both remained strong in 2019. San Jose ranked second in 2021’s top housing markets and is the most expensive among the top 10, with a median home price of roughly $1.2 million. Realtor.com’s top 10 housing markets for 2021 have substantial momentum from 2020 which they will carry into next year. As more buildings complete in 2021 and 2022, and people move out of their rental or sell their current home, this new supply should help maintain a balanced market. California jobs are forecast to increase 0.5% in 2021, following a projected loss of 12.7% this year. A recent report from the California Association of Realtors (C.A.R.) Given the recent trends and predictions for the San Jose housing market, it’s probably not surprising that bidding wars have made a comeback. In housing markets like San Jose, there just aren’t enough homes available to meet the demand from buyers. To quote that report (with bolding added): “Metro areas with at least 1 million people and the biggest quarterly increases in purchase [loan] originations were Boston, MA(up 75.3 percent); Hartford, CT (up 52.6 percent); San Jose, CA (up 49.8 percent); Los Angeles, CA (up 43.3 percent) and St. Louis, MO (up 42.2 percent).”. That was the lowest average rate in 50 years of tracking (to date). The gist of that article was that more and more home buyers in California and nationwide are opting for suburban areas, over the more crowded cities. 1, projected to rise 24.6% from a combined 17.2% rise in sales and 7.4% price growth. But housing analysts and economists can offer predictions based on current real estate trends. A recent report from The Mercury News stated that real estate agents in the area “report brisk sales, anxious house hunters searching through limited inventory, and bidding wars for desirable suburban properties with indoor and outdoor space.”. In fact, the number of unsold homes on the market right now is even lower than it was a year ago. Here is the latest market forecast for the SF county and metro areas until September of 2021. Topping Realtor.com’s national forecast were the fast-growing cities of Sacramento, California, San Jose, California, and Charlotte, North Carolina. By this math, California is forecast to have six of the nation’s 20 best-performing markets in 2021. Bridgepoint Funding specializes in residential mortgages and serves borrowers and real estate agents throughout the entire state of California. Sacramento was ranked No. The general consensus is that home prices in many parts of the country will either slow down or dip slightly through the second half of 2020 and into 2021. What started off … As you can see, home prices in San Jose began a steady upward climb in 2012 that lasted until the summer of 2018. Forecast for San Jose Housing Market in 2021 No one can predict future real estate or economic conditions with complete accuracy, especially in unpredictable times like these. A Las Vegas real estate market forecast 2021 with a rise in inventory and dropping home prices means a housing market crash is in the city’s future, right? The Chief Economist at CoreLogic, Frank Nothaft, commented on this. Top Housing Markets for 2021. You can see this in the chart below, provided by Zillow. That…. Realtor.com predicted that home values within the Seattle-Tacoma-Bellevue metropolitan area would rise by 9.7% during 2021. September’s sales were up 8.8% from July and 24%… Read More → California Housing Market Update Predictions. Rates could inch up a bit, as we head into 2021. But COVID-related migration trends could give this market a boost. Stockton's Direct Mortgage Lender. That’s to be expected, really, when you look at the broader economic struggles the country is facing (and the ongoing COVID-19 situation). Forecast Ranks Seattle Housing Market #2 for Price Growth in 2021, FHA Loan Limits Increased for 2021, Due to Rising Home Prices, Austin, Texas Housing Forecast for 2021: Stiff Competition Among Buyers, California Conforming Loan Limits to Go Up in 2021, Due to Rising Prices, 10 ‘Tight’ Housing Markets Where Home Buyers Could Struggle in 2021, San Jose Housing Forecast: A Supply-and-Demand Imbalance in 2021, Outlook: Charlotte Housing Market Will Be Very Competitive in 2021, Will the U.S. Housing Market Crash in 2021? There just aren’t enough homes listed for sale in the area to meet the demand from buyers. According to the C.A.R. These 13 housing crash factors will shape the housing market. The San Jose housing market forecast above predicted a slight dip in prices over the next year or so. Consider the difference: We’re talking about the difference between sprawling suburbs and a packed-in city. Read the article on California ‘urban flight’. After falling to the lowest level since the Great Recession, continued to improve in August as home sales climbed to their highest level in more than a decade as the median home price broke last month’s record and hit another high, according to September 16 release by C.A.R. I am so excited and also sad because this is our last Bay Area housing market update for 2020. Last week, we shared some predictions and polls that suggested more and more urban residents are considering a move to less crowded suburban and rural areas. San Diego housing is priced to perfection and a lot of big employers are now contemplated remote work and on top of this tourism is a big business in san Diego and Airbnb as well nation’s housing market. Buying a … Report. In late 2019, prices turned north again as buyer demand continued to exceed supply. It bears repeating. Let’s start by looking at home price trends over the past few years. Walnut Creek, California 94596, Veterans and active US military may be eligible for a $0 down VA loan. That was down from a 2.1-month supply a year ago, and it’s well below what is considered to be a “balanced” market. December 2, 2020 2021 National Housing Market Forecast and Predictions: Back to Normal To say 2020 was a year of surprises is an extreme understatement. Housing Market Crash 2021: The housing reports are comprehensive assessments and predictions of US Housing markets drawing insight from NAR, CAR, Corelogic, Wall Street Journal, Freddie Mac, tradingeconomics, statista, and more industry sources. With the continued rise of remote working, well-educated works in tech and other industries now have more flexibility as to where they live. Many home buyers in San Jose and the surrounding area work in tech, finance, or other jobs that can be performed remotely. Realtor.com’s top 10 housing markets for 2021 have substantial momentum from 2020 which they will carry into next year. Purchase. That’s logical, when you consider the current trend toward social distancing. In fact, home prices across the top 10 markets are forecasted to increase by 6.9% and sales by 13.1% year-over-year, which is significantly higher than the national projection of 5.7% price appreciation and 7.0% sales growth. In this article, we break down these predictions for real estate investors to understand what to expect through the end of 2020 and into 2021. Housing Market Forecast 2021. The stats of course, suggest the opposite, and it’s adding to overwhelming demand for homes. This is a powerful enticement for home buyers and homeowners alike. The same goes for Santa Clara County as a whole. Stockton's Direct Mortgage Lender. Buyers who were currently “on the fence” about making a purchase have been given an extra push from the current low-rate environment. Related: The Future of Real Estate Investing After the Pandemic. The market is a 2 tiered one of inner city … Realtor.com® Top Housing Markets: Tech Hubs and State Capitals Will Dominate 2021. (not applicable for refinances), Use the slider to select the price range of homes you're interested in 4 years in San Diego to find the bottom rising home prices in San Jose $! 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