Spring is California’s home-buying season, and after an almost complete stall in home buying last year at this time, experts project that this season will be the most competitive market in decades.
So, what does this mean for buyers, sellers, and anyone within the real estate industry in the Pittsburg area? What other predictions does our foreclosure lawyer believe will affect the market this year?
Here are our real estate and foreclosure projections for the very near future.
Housing Supply Shortages Will Increase
Fanny Mae recently decreased its 2021 housing sales forecast. Why? One reason for the drop is the increasing problem of low housing supply, which, by some estimates, is 4 million houses short to meet skyrocketing demand.
Housing supply shortages have been rampant for the past 10 years, both in the Pittsburg area and around the country. However, the recent uptick in buying due to the pandemic and low Federal loan interest rates have exacerbated the problem.
Mortgage Rates Will Remain Low for Residents Near Pittsburg
The Fed dropped home interest rates to record lows last year. Now, experts predict that mortgage rates will continue to be consumer-friendly. Although rates won’t be near as low as during the brunt of the pandemic, they should still be manageable, even in the areas of California where real estate is so valuable.
Home Sale Prices Will Continue to Climb
Low mortgage rates and housing supply shortages are good news for sellers, but these factors are also bad news for 2021 home buyers in and around Pittsburg.
Why? Low mortgage rates are increasing the demand for homes. Meanwhile, home shortages are pushing supply lower and lower.
Combined, high demand and low supply mean that home prices will continue to go up.
Days Your Pittsburg Home Will Be on the Market Will Be Down
With all the demand and so little supply on the market, prices won’t be the only thing affected. Homes will also spend less time on the market.
Fewer days on market also signals that 2021 will be a seller’s market, with buyers scrambling to bid on homes before they’re snatched up.
Foreclosures Will Begin
Even experts don’t know how many homes are in the foreclosure backlog. Surely, there are defaulted home loans from pre-moratorium days in that backlog, both near Pittsburg and around the state.
That’s not even to mention the loans that defaulted during the pandemic due to job losses and normal foreclosure-related circumstances.
In fact, foreclosure rates were already on the rise in February 2021. 6,418 lenders began the foreclosure process.
While that was only a 7% increase from the previous month overall, California led the country with 36% more foreclosures than the previous quarter.
Don’t Let Our Real Estate Predictions Stop You from Buying or Selling Near Pittsburg
Our predictions for 2021 are simple. Home prices and demand will be up, and with little competition, houses will sell in no time. If you’ve recently lost your job, it might be time to consider selling to avoid future foreclosure.
Worried a foreclosure is on your horizon? Estavillo Law can help. Get in touch with us today to find out how Attorney Jason W. Estavillo can help you keep your home.