First of all, I would like to send out prayers to friends, families and everyone near and far that have been impacted by COVID physically, mentally or financially. Prayers to families that have loss their loved ones due to COVID! It is not over yet. So be safe and be well.
Most of us have survived 2020 and another election. Most are wondering will everything be better in 2021! The economists are now busy predicting the US economy while the global pandemic has not slowed down, despite the fact that the COVID vaccines are now available. Will we ever see everything "back-to-normal"? What is the "new-norm"? Will the local Bay Area Real Estate Market Crash or Boom?
Despite the pandemic, home prices in all major markets saw a rise, instead of a fall as most would expect. Santa Clara County home prices saw an increase in price and a steady demand for more homes. What caused this demand? Will this demand continue in 2021? The one major factor that helped fueled the sales was the low interest. We have heard of the 30-year low interest rates a few years ago. 2020 broke the record... Interest Rates hit an all-time low! Probably the lowest I would expect to see in my lifetime!
In 2020, we saw an active market beyond what we expected to happen during this global pandemic. Will the active 2020 active streak continue in 2021? With the country still dealing with many major changes, perhaps the Real Estate Market will continue to experience the changes. One thing for sure - only when interest rates go up, that homes prices will stabilize. I personally expect interest rate will continue to remain low, as our country continues to rebuild while we are still dealing with the pandemic. During 2020, we saw more home pending, sold than active. Was it a sign of a weak economy or a sign of hidden wealth? The market performed beyond our expectation in 2020. I expect this trend to continue into 2021 as I do not expect the major upside down decision from our law makers. I do expect interest rate to remain low for the near future.
With the election out of the way and the increasing availability of the Vaccine, the forecast for our local market for 2021 is a continuing upward trend. The number of loan refinancing continue to be steady. the number of homes available is still low. It is still pretty much a seller's market. And buyers are still taking advantage of the low interest rates.
Nick Pham | Broker | 01365281
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