SACRAMENTO (CBS13) – This year will be a home seller’s market, with the Sacramento region leading the nation in percentage growth of sales, according to a housing forecast out Thursday from Realtor.com.
The announcement came as home prices hit new highs and buyer competition remains strong.READ MORE: Who Is Mark Lavea, Suspect Killed In San Andreas Hostage Situation?
California recently broke another record with the median home price now over $750,000. Realtors recommend buyers be smart about their offers – some are offering to look past any repairs to purchase the property as-is.
And while inventory is expected to steadily increase, higher interest rates and prices are expected to make affordability a challenge.
“The 2021 housing market will be much more ‘normal’ than the wild swings we saw in 2020. Buyers may finally have a better selection of homes to choose from later in the year, but will face a renewed challenge of affordability as prices stay high and mortgage rates rise,” said realtor.com® Chief Economist, Danielle Hale.
The Sacramento-Stockton-Modesto metro region is forecasted to have the highest sales growth in the country at 17.20% over 2020.READ MORE: Trap, Tag, Haze: New Efforts To Get Bears To Behave In Tahoe Area
Scott Sweeney a realtor with M&M Real Estate in Elk Grove says he sees 15-20 offers per home and is selling homes, on average, $50,000 over the asking price.
“It’s crazy you know the pandemic really has changed what home means to people,” he said. “And what we’re seeing is people now are able to work from home, they need much more space.”
It’s also forecasted to have the 11th highest price growth in the country at 7.4% growth over last year.
Elsewhere in California, the Oxnard-Ventura-Thousand Oaks metro is forecasted to have the 6th highest percentage growth in the nation, while the Riverside-San Bernardino-Ontario area will have the 8th highest percentage growth.
Realtor.com forecasts that mortgage rates will continue to hover near 3% then slowly rise to 3.4% by the end of the year. Home sales are expected to increase 7% and new construction will increase 9% over the previous year.MORE NEWS: Yuba City Neighborhood 'Traumatized' After High Speed Drivers Repeatedly Crash Into Homes