SANTA CLARA — 2021 will be a robust sellers market as home prices hit new highs (+5.7%) and buyer competition remains strong despite uncertainty over Covid-19, according to the realtor.com 2021 housing forecast released this week. Inventory is expected to make a slow but steady comeback, which will give buyers some relief. However, increasing interest rates and prices will make affordability a challenge throughout the year.
Realtor.com is forecasting home prices and sales to be up 10.8% in the San Jose metro area.
“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. “With less cash and no home equity, millennial and Gen Z first-time buyers will be impacted the most by rising home prices and interest rates. While waiting until the fall or winter months of 2021 may mean more home options to choose from, buyers who can find a home to buy earlier in the year will likely see lower prices and mortgage rates.”
Realtor.com 2021 Housing Market Forecast
|
Mortgage Rates |
Up to 3.4% by year end |
|
Existing Home Median Price Appreciation |
+5.7% |
|
Existing Home Sales |
+7.0% |
|
Single-Family Home Housing Starts |
Up 9% |
|
Homeownership Rate |
65.9% |
2021 Metro Housing Forecast (Top 100 Metro Areas)
|
Metro |
2021 Sales |
2021 Price |
|
5.3% |
4.2% |
|
|
7.1% |
3.7% |
|
|
4.5% |
3.2% |
|
|
0.3% |
4.9% |
|
|
3.6% |
6.2% |
|
|
5.1% |
3.2% |
|
|
8.4% |
4.6% |
|
|
10.5% |
3.7% |
|
|
4.8% |
6.2% |
|
|
6.5% |
2.6% |
|
|
3.7% |
3.2% |
|
|
9.8% |
9.1% |
|
|
5.4% |
5.7% |
|
|
9.7% |
7.8% |
|
|
6.3% |
4.0% |
|
|
1.5% |
4.3% |
|
|
9.5% |
4.3% |
|
|
13.8% |
5.2% |
|
|
4.9% |
3.5% |
|
|
8.3% |
3.5% |
|
|
4.9% |
3.8% |
|
|
6.7% |
2.7% |
|
|
5.4% |
6.2% |
|
|
8.1% |
5.4% |
|
|
10.3% |
7.6% |
|
|
11.3% |
4.4% |
|
|
0.7% |
1.7% |
|
|
5.4% |
6.3% |
|
|
12.5% |
5.4% |
|
|
6.9% |
2.8% |
|
|
-2.8% |
4.9% |
|
|
4.8% |
4.3% |
|
|
10.6% |
6.4% |
|
|
8.9% |
8.5% |
|
|
9.1% |
3.6% |
|
|
6.8% |
4.1% |
|
|
4.3% |
1.3% |
|
|
14.4% |
3.8% |
|
|
12.1% |
3.4% |
|
|
5.3% |
4.6% |
|
|
4.1% |
2.3% |
|
|
5.3% |
1.9% |
|
|
9.4% |
5.0% |
|
|
12.1% |
3.5% |
|
|
7.9% |
5.7% |
|
|
5.1% |
4.9% |
|
|
12.0% |
5.2% |
|
|
1.9% |
1.5% |
|
|
10.0% |
7.3% |
|
|
7.0% |
4.2% |
|
|
5.1% |
2.1% |
|
|
10.0% |
3.6% |
|
|
9.1% |
4.8% |
|
|
3.7% |
7.1% |
|
|
6.3% |
6.0% |
|
|
0.5% |
4.8% |
|
|
3.1% |
4.8% |
|
|
8.6% |
3.1% |
|
|
5.3% |
4.2% |
|
|
-3.8% |
0.5% |
|
|
10.3% |
6.6% |
|
|
5.8% |
3.0% |
|
|
1.4% |
4.9% |
|
|
10.1% |
5.8% |
|
|
12.5% |
5.5% |
|
|
11.6% |
4.7% |
|
|
7.0% |
4.5% |
|
|
11.4% |
7.0% |
|
|
9.2% |
4.1% |
|
|
2.0% |
6.4% |
|
|
8.1% |
6.2% |
|
|
4.5% |
5.5% |
|
|
6.0% |
3.9% |
|
|
6.2% |
4.5% |
|
|
12.4% |
5.5% |
|
|
8.4% |
5.1% |
|
|
17.2% |
7.4% |
|
|
7.5% |
5.7% |
|
|
7.2% |
4.3% |
|
|
11.3% |
5.5% |
|
|
1.3% |
8.4% |
|
|
10.8% |
10.8% |
|
|
6.7% |
1.1% |
|
|
8.9% |
9.7% |
|
|
3.8% |
5.6% |
|
|
8.1% |
4.2% |
|
|
3.4% |
3.8% |
|
|
8.2% |
6.1% |
|
|
4.2% |
4.6% |
|
|
8.7% |
7.5% |
|
|
3.9% |
3.3% |
|
|
3.4% |
4.5% |
|
|
2.7% |
2.0% |
|
|
5.2% |
1.6% |
|
|
8.1% |
1.8% |
|
|
5.2% |
6.7% |
|
|
2.4% |
3.4% |
|
|
2.6% |
4.4% |
|
|
3.5% |
4.5% |
|
|
6.1% |
4.5% |
