Have we hit a ceiling? It looks like it. With the surge of Bay Area residents selling their homes and chasing tech opportunities in Texas and other states it might get easier for natives and others to buy, live, or invest where they were born and raised.
Is anyone losing money in the sale of their houses? Absolutely not. Anybody who bought a home in the past 20-plus years, in the Bay Area, has seen appreciation in their values. Now, what to do with it when there are so many options? Stay put, move out of state, invest in a house or duplex in the Central Valley, head for the hills, or retire on all that built up equity? The Bay Area real estate market will offer such a variety of options in 2021 for anyone who is anxious to be a homeowner, near or far.
Karin Cunningham, Berkshire Hathaway HomeServices California Realty, 650-438-3504, firstname.lastname@example.org.
A: The Bay Area’s real estate market will be robust in 2021.
According to a survey of 20 top U.S. economic and housing experts, in 2021 the post-pandemic economy will rebound, jobs will steadily recover, and interest rates will remain stable. For those wishing to buy or sell, having an agent who understands the nuances in the market is a must. Move-in ready single-family homes will continue to be in high demand, while the condo market will continue to face challenges as an additional 4,000 new condo units will become available in 2021, joining an already crowded market.
The reality is people are initiating what they can control and change now: renters will be motivated by record low interest rates to finally purchase, families crammed in condos will be driven to find spacious single-family homes. As for the exodus of tech workers, many may be back as they may face less flexible remote working options by their employers. Expect the game of musical chairs homes to continue throughout this new year.
Suna Mullins, Sotheby’s International Realty, 415-516-3273, email@example.com
A: The past year was challenging for real estate, but 2021 holds cautious hope for our market once the Covid vaccines are widely distributed and the political transition has occurred. Optimism will replace the malaise.
• Interest rates will remain at record lows.
• Though neighborhood-specific, the single family home market will be in high demand. Covid showed us the value of having more space.
• The condo market, which softened this past year, will strengthen as companies expect their employees to return to the office or be available for meetings.
• The practice of pricing low and expecting buyers to bid up will be a thing of the past. We will price listings more accurately and expect only 1 or 2 good offers.
• The days of non-contingent offers are going to dwindle. Sellers will be more flexible and offers with appraisal and other contingencies will be more common.
• The commercial real estate market is going to improve but it will take substantially longer.
There is opportunity in our market for those who are open to it and working with a professional.
Maitri Ratanasene, Compass, 415-215-5505, firstname.lastname@example.org.