Homes prices and sales are expected to continue to rise next year, according to the 2021 California Housing Market Forecast recently released by the California Association of Realtors. While it is likely they will continue to increase, it should be at a more modest rate, the report noted. The problem remains lack of inventory. So while the economy is expected to improve, and the desire for home ownership is likely to continue to be strong, there also will continue to be a shortage of homes on the market. Leslie Appleton-Young, CAR’s chief economist, cautioned that factors such as uncertainty about the pandemic, a rise in foreclosures, and the volatility of the stock market, are all unknown factors that could keep prices in check.
Meanwhile mortgage rates this week hit the 11th all-time low with the 30-year fixed rate mortgage at 2.8 percent, according to Freddie Mac. It notes that the rates today are on average more than a full percentage point lower the rates over the last five years. “This means that most low- and moderate-income borrowers who purchased during the last few years stand to benefit by exploring refinancing to lower their monthly payment,” it said.