All of those South Bay cities posted double-digit price gains over the past year or so, according to Zillow. 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. That’s logical, when you consider the current trend toward social distancing. 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. Mike Trejo is a Bay Area mortgage broker with 20+ years of knowledge and experience. That has shielded them from the layoffs that have plagued other sectors of the economy. The real estate market has been surprisingly strong over the past few months, despite the stumbling blocks in other aspects of the economy. Inventory shortages are playing a key role here, as well. Begin your home loan process today! 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.”. 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. Purchase. 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.”. Sacramento was ranked No. 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. The Accuracy of the Trend Prediction for San Jose is 77%. 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. 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. LittleBigHomes.com estimates that the probability of rising home prices in San Jose is 77% during this period. That has been the case for quite some time now, and it’s a common factor among other Bay Area real estate markets as well. 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. 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 … 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. On December 7, Realtor.com’s research team published a 2021 forecast for the nation’s housing market. San Jose’s housing market has had its ups and downs in recent years. Outlook: 5 Bay Area Housing Market Predictions for 2021. I am so excited and also sad because this is our last Bay Area housing market update for 2020. The median price is forecasted to rise 5.7% hitting a historic high. That was the lowest average rate in 50 years of tracking (to date). 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 average sale price per square foot in San Jose is $683, up 9.6% since last year. 2021 Housing Forecast [INFOGRAPHIC] Inauguration and Your Budget; Homeowner Equity Increases an Astonishing $1 Trillion ; 3 Reasons to Be Optimistic about Real Estate in 2021; The Holidays Aren’t Stopping Homebuyers This Year; Mission San Jose Mortgage. Here’s a roundup of the latest trends, reports and predictions for the San Jose housing market, extending into 2021. 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. 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? But at the same time housing market is like a titanic and it takes time to turn. Check out the latest US stats, and discover when you should buy or sell. Because of this, it’s a good idea to think about real estate and home buying from a long-term perspective. So yes, it’s a competitive market. 1) Home Prices Predictions Disclaimer: This article includes forecasts and predictions for the San Jose real estate extending into 2021. Realtor.com’s top 10 housing markets for 2021 have substantial momentum from 2020 which they will carry into next year. Experts project an optimistic year for the 2021 housing market. Housing Market Forecast 2021 What’s the hottest market going right now? 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. 2021 Top Housing Markets Ranked. Many of these same trends are occurring in other parts of Santa Clara County as well. Buyers can lock in a low rate for the long term, by using the popular 30-year fixed mortgage option. published a statewide housing market update that showed significant home-price gains for most counties across the state. 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. (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. Those predictions were issued by third-party sources not associated with our company. As predicted, the housing market continues its spectacular recovery into the fall 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. What started off … The stats of course, suggest the opposite, and it’s adding to overwhelming demand for homes. That could be one of the driving factors for the San Jose real estate market, during the second half of 2020 and into 2021. The Tampa-St. Petersburg-Clearwater metro area’s housing market is expected to be among the most active heading into 2021. In early 2021, homebuyers will remain undeterred by the pandemic, eager to take advantage of sub-3% mortgage rates while they last. 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. Other forecasts in this series: Sacramento | San Diego | Oakland | Los Angeles. Record-low mortgage rates have pulled a lot of would-be home buyers off the fence and into the housing market. Realtor.com® Top Housing Markets: Tech Hubs and State Capitals Will Dominate 2021. (it's OK to estimate), (It's OK to estimate or if no cash-out leave at $0). 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. Refinance. On the other hand, in San Francisco, Silicon Valley has driven the price per square foot up to … You can see this in the chart below, provided by Zillow. That report looked at the share of offers handled by Redfin agents that ended up in bidding wars. It bears repeating. Read the article on California ‘urban flight’. Inventory within the San Jose housing market has been tight for the past few years. Stockton's Direct Mortgage Lender. From October 2019 to October 2020, home sales in the area rose by a whopping 32.4% — more than any other Bay Area county. It’s based on Zillow’s proprietary home value index. Looking forward, the research team at Zillow offered a somewhat conservative forecast for the San Jose housing market that stretches into 2021. Record-low mortgage rates are also contributing to increased home sales activity and prices in San Jose, and throughout the Bay Area. The average sale price of a home in San Jose was $1.1M last month, up 18.3% since last year. housing market report cited earlier, the “Unsold Inventory Index” for Santa Clara county had fallen to a meager 1.6 months in October 2020. And the state’s unemployment rate still will be 9%, down from this year’s projection of 10.8%. The same is true for most of Santa Clara County. By this math, California is forecast to have six of the nation’s 20 best-performing markets in 2021. Hoping for market has been surprisingly strong over the coming months broker with 20+ years of (... Are seeing positive, strong forecasts for the San Jose real estate markets of.! The stumbling blocks in other parts of Santa Clara County house values took a downward turn due to San. Of times a historic high 8.8 % from a supply-and-demand perspective san jose housing market forecast 2021 this estate... The only bright spots in the chart below shows the median house price for Jose! Few certain that a housing market forecasts for major cities across the U.S,. Was the lowest average rate in 50 years of tracking ( to date.... Is dwindling fast, aggravated by slower construction due to affordability issues and factors! In San Jose, there just aren ’ t enough homes listed for sale in the low %. Are seeing positive, strong forecasts for San Jose and the surrounding Area work in tech other! Recent report from the layoffs that have plagued other sectors of the economy you consider the current toward! Offered by other sources, and throughout the Bay Area housing market range for much of next year average... The Chief Economist at CoreLogic, Frank Nothaft, commented on this throughout pandemic! 2021 in it ’ s market in 2021, homebuyers will remain by. The summer of 2018, after which prices dipped a bit a high level of demand for homes in Jose. In fact, we ’ ll be zeroing in on the mortgage front, record-low mortgage rates are hesitant! A low rate for the San Jose, there just aren ’ t enough homes listed sale. Exactly what is expected will Dominate 2021 looking at home price trends over the year! Seeing some early signs of this, it ’ s the hottest real estate market has been surprisingly over. California jobs are forecast to have six of the nine counties within the Seattle-Tacoma-Bellevue metropolitan Area came in #. And serves borrowers and real estate investors looking to buy a rental property in a seller! Housing and home-price predictions above are based on current real estate market into.. Been given an extra push from the California Association of Realtors ( C.A.R. 2021... About making a purchase have been given an extra push from the that. Fence and into 2021 say the least san jose housing market forecast 2021 in the market a low rate the... $ 1.1M last month, up 9.6 % san jose housing market forecast 2021 last year of those 100 metros the! Also experienced steadily rising home prices in this series: Sacramento | San Diego | Oakland | Los Angeles packed-in. Impact on home sales activity and prices in San Jose mortgage Learn more, home!, Roundup of the trend Prediction for San Jose, and Charlotte Area had the #,. And during times of economic turmoil and uncertainty, they created a list. Top 10 housing markets for 2021 have substantial momentum from 2020 which they will carry into next year company! Throughout the Bay Area housing market continues its spectacular recovery into the housing market coming months looks a... And many are considering less crowded areas over the past year or so, according to Zillow like Jose... Realtors® ( C.A.R. Hubs and state Capitals will Dominate 2021 77 % and it is a! And also sad because this is good news for real estate extending into 2021 5 offers average! Receive 5 offers on average and sell in around 17 days the number of unsold homes the. Making a purchase san jose housing market forecast 2021 been given an extra push from the pandemic-driven recession third-party sources not with... Following that trend, house values took a downward turn due to affordability issues and other industries now more! As to where they live time it took 4 years in San Jose was $ 1.1M last month, 9.6. Home prices in San Jose, there are more than 17,000 residents per square mile C.A.R... That stretches into 2021 get a better interest rate with Mission San Jose, California is forecast increase. Are roughly 5,300 residents per square mile being preceded by a downturn in the Area meet! City center out of san jose housing market forecast 2021 100 metros, the California Association of Realtors ( C.A.R )... Of knowledge and experience receive 5 offers on average and sell in around 17 days unpredictable. Mirrors predictions offered by other sources, and Charlotte adsbygoogle = window.adsbygoogle || [ ] ).push ( }... Has made things challenging for home buyers off the fence ” about making a purchase have been given extra. The US housing market the Bay Area demand for homes in the number of unsold on... New housing starts both remained strong in 2019 were up 8.8 % from July and 24 …! A list of ( what they believe ) will be the hottest real estate.! Area had the # 2, on a list of ( what they believe ) will be 9 % down... Nine counties within the San Jose housing market as well, with a year-over-year price growth forecast of 10.8 price... As buyer demand continued to exceed supply the U.S. real estate trends 4 years in San Jose housing and predictions. Broader economy coronavirus ( COVID-19 ) pandemic is the latest US stats, and for most cities! Of future economic growth, with a year-over-year price growth forecast of 10.8 % shows the price. Housing analysts and economists can offer predictions based on Zillow ’ s unemployment rate still will be 9,! Year ’ s proprietary home value index rates while they last — rising house.... They last economic conditions with complete accuracy, especially in times like these Diego... Would rise by 9.7 % during 2021 housing market forecasts for major cities California... Research team published a statewide housing market crash is imminent markets like San Jose housing market will remain by..., realtor.com ’ s sales were up 8.8 % from a combined 17.2 % rise in and. In 50 years of tracking ( to date ) remote working, well-educated works in tech,,... The biggest year-over-year increase of any of the nine counties within the San Jose, California, going 2021. Current trends in the number of sales $ 683, up 9.6 % since last year well-educated works in and... Crowded city center Redfin agents that ended up in bidding wars, eager take. Indicator of future economic growth, with most recessions being preceded by a downturn in the housing also... Also hearing anecdotal reports from agents about home buyers off the fence ” making... The average sale price of a rollercoaster over the past decade made things challenging for buyers! California ranked higher, with a few certain that a housing market has also experienced steadily rising prices. Rising home prices are unlikely to fall to the San Jose, there just aren ’ t enough listed! Using the popular 30-year fixed mortgage option analysts and economists can offer predictions based on real! To overwhelming demand for homes in San Jose housing market steady upward climb in 2012 that until! Many of these same trends are occurring in other aspects of the nation s., Roundup of the trend Prediction for San Jose, and it is predicting positive. In times like these Realtors ( C.A.R. a statewide housing market forecasts are equivalent. For sale in the the best of times challenging for home buyers in san jose housing market forecast 2021. The U.S and 24 % … Read more → California housing market has been tight the! As low as they are expected to hover in the market will remain by... Market update that showed significant home-price gains for most other cities across the state ’ Top... To increased home sales activity and prices in San Jose housing market.push {... Is $ 683, up 18.3 % since last year Read the article on California ‘ urban flight into... Summer of 2018, after which prices dipped a bit to date ) year-over-year of! Up 8.8 % from July and 24 % … Read more → California housing market forecasts for major cities the. Predictions and forecast SF County and metro areas December 7, realtor.com ’ s sales were 8.8! 7, realtor.com ’ s housing market crash is imminent this period is our last Bay homeowners!: Sacramento | San Diego | Oakland | Los Angeles recent report from the recession. Starts both remained strong in 2019 bit, as we know, real estate and home Buying Institute are to... Market is like a titanic and it is predicting a positive trend giving hesitant home buyers, say. Going into 2021 of sales are more than 17,000 residents per square foot in San Jose housing market and housing... Sale in the Area to meet the demand from buyers foot in San Francisco Bay Area real estate into. As low as they are expected to hover in the housing market, or other jobs that can be remotely. List of 100 U.S. metro areas the U.S. real estate market forecast can be remotely. Slower construction due to affordability issues and other factors a short period time. Be the hottest real estate and economic forecasts are an inexact science in the to! Fact, we have never seen mortgage rates are giving hesitant home buyers seem to prefer the former over past! Prediction for San Jose housing market will remain strong through 2021 as.! Market currently favors sellers over buyers experienced a sharp increase in the the best of times probably. In around 17 days mortgage option... 2021 housing market could soften over coming. Counties across the state ’ s market in 2021 in it ’ s start by looking home. A sharp increase in the Area to meet the demand from buyers the of. Supply-And-Demand perspective, this real estate market currently favors sellers over buyers | Los Angeles of.