Good Information on the Current Real Estate Market
The California Median sales price for a home is $813,980.00
The National Assoc. of Home Builders reported a 9.5% decrease in overall housing starts in April due to Rising building materials.
Still, housing starts are projected to reach 1.6 million for all of 2021 and 1.7 million for 2022. Which would be the highest construction activity in 15 years.
According to NAHB (National Association of Home Builders) and Wells Fargo Housing Market Index revealed that first time home buyers accounted for almost half of the New Home sales (43%).
You’ve all heard me talk about the ‘Absorption Rate’. This is key indicator of the housing inventory and activity. The absorption rate indicates the amount of time it would take to deplete the existing inventory (with the current number of buyers) if there were no new homes added to the inventory.
A year ago, we had just under a 2 month supply of homes for sale. Today, we have just under a 1 month supply of homes for sale. With the low inventory and low interest rates, we will continue to see home prices increase. I believe this will continue for at least a year… and likely, a few more years.
AND… if you know of someone thinking about selling, give us a call and we’ll take EXCELLENT care of them.
We Truly Do Appreciate Your Referrals.
Take care, Be safe Out there and have a Great Day!