Introduction
Just like any other state, the California real estate market was severely affected by the pandemic.
A mid 2020 poll revealed that 54% of buyers backed out of purchasing a home due to the virus. During the same period, 45% of sellers backed out of selling their properties.
The statewide ‘stay at home’ and social distancing orders made it difficult for realtors to take photos of California houses for sale or arrange open houses. Many realtors had to settle for virtual showings of homes, whether via drone or cell phone video.
The impact of COVID-19 was severely felt at the end of 2020, when California home sales dropped to the lowest level since the great recession. As housing demand fell, the prices of homes in California also dropped drastically.
However, the housing market started rebounding, April 2021 onwards- Opines Noted Real Estate Astrologer, Strategist and Advisor, Hirav Shah.
With the massive vaccine drive, the California real estate market is expected to recover fully, by end of 2021- Predicts Hirav Shah, Prolific Real Estate Business Astrologer & Astro-Strategist.
California’s Demand, in 2021
If you are wondering why California home prices are hiking up despite the global crisis, simply because people love to settle down in California. It is the perfect place to embrace your freedom, raise your family, and get old.
Table of Contents
Reasons for California In Demand, in 2021
Multiple Seasons – You can experience all the seasons gifted by Mother Nature in California. From the sweet rainfall during the winter to a moderate amount of snowfall, you will get everything in California. And, the fun part is that you don’t have to shovel snow out of your driveway or have to carry an umbrella daily. The weather is simply perfect here.
1.Nature’s Paradise – California is highly gifted by nature. Joshua Tree, Yosemite, Death Valley, Redwood Trees, and edgy coastline are some of the best places in California. Moreover, who wouldn’t want to visit Disneyland and famous California Adventures with his family?
2.Foodies Paradise – If you love good food, you have so many options in California. You can hop from a Mexican taco truck to a refined Italian restaurant in one go. And, fortunately, if your life is incomplete without a glass of Chardonnay or pinot, Napa Valley and Santa Barbara can be your lifesavers.
3.Treat for Pets – When you want to live in a pet-friendly city, San Francisco and LA are the best places in California. In cities like LA, you can find more pup salons and boutiques rather than schools for your children. Thus, if you want to be surrounded by adorable pups, cats, or other animals, California is your home.
4.Eat Healthy Around the Year – Central California is one of the largest fresh produce areas. From the famous artichokes to the special California almonds, you can grab a variety of fresh produce from your local story daily and prepare a delicious treat for your family. For a healthy and happy lifestyle, California has all the right places and this is what you need amidst pandemic.
Five Cities To Invest in California
From the abyss of an economy-stopping global pandemic, the California real estate market has emerged as one of the hottest markets in the world. Low interest rates and a future of working from home, or at least more flexible office arrangements, caused many Americans to relocate to suburban areas with lower costs and a higher quality of life.
The pandemic-driven shifts ignited a residential housing boom and novel financial technology played a huge role in the surging market.
On that note, Ace Real Estate Strategist Hirav Shah lists down 5 cities to invest in California in 2021.
San Jose
San Jose’s markets may have faced some major challenges this year and last, but it’s remained consistently in the seller’s favor. In other words, the San Jose real estate market is a strong seller’s market, and it has been for months.
The largest city in Silicon Valley, San Jose housing has been in high demand for a while, arguably going all the way back to the dotcom bubble of the late-1990s and early 2000s. Since last year, however, the San Jose housing market has gotten even hotter.
The number of new listings is up more than 50%, from 709 in July 2020 to 1,064 in July 2021. Over the same period, the number of pending sales has exploded, rising by 118.6%, from 510 sales pending last July to 1,115 as of July 2021. Meanwhile, available inventory has declined steeply, by nearly 36%. Over that same one-year period, the median sale price increased by just under 24% — from $1.03 million to $1.275 million.
Elk Grove
Elk Grove’s red-hot home market continued its blistering pace in July 2021 as would-be buyers scrambled to get into new homes.
Elk Grove is a sizable suburb of nearly 180,000 people located outside Sacramento. As housing markets reawakened in the wake of the pandemic, Elk Grove’s in particular has taken off.
Both the number of new listings and pending sales have increased by nearly 25% from July 2020 to July 2021. At the same time, available inventory has plummeted in response to increased demand: From 195 homes for sale in July 2020, available inventory has fallen by 62.6%, down to just 73 homes for sale in July 2021. Over the same period, the median sale price in Elk Grove rose by an impressive 36.4%, from $440,000 to $600,000 as of now.
Irvine
Irvine is a master-planned city in Orange County, California, United States in the Los Angeles metropolitan area. The Irvine Company started developing the area in the 1960s and the city was formally incorporated on December 28, 1971.
It’s a fast-growing city, with a population that’s reached just under 300,000, up from a little over 213,000 back in 2010.
Meanwhile, in July 2021, Irvine home prices were up 25.3% compared to last year, selling for a median price of $1.1M. On average, homes in Irvine sell after 29 days on the market compared to 51 days last year. There were 364 homes sold in July this year, up from 184 last year.
What’s more, pending sales have more than tripled (236.2%) over the same period, going from 105 last May to 353 in July 2021. Not surprisingly, this hot housing market has led to a dramatic decline in available inventory.
Fremont
Fremont is a city in Alameda County, California, located in the East Bay region of the Bay Area. Fremont has a growing population of around 240,000, making it the fourth most populous city in the Bay Area, behind San Jose, San Francisco, and Oakland. It is the closest East Bay city to Silicon Valley and has a strong tech industry presence.
The Bay Area housing market is nearly always engulfed in high demand and high prices. Fremont, however, is hotter than most cities in the San Francisco Bay Area. The median sale price in Fremont is up over $200,000, climbing from $1.025 million in July 2020 to $1.268 million in July 2021.
New sales listings have risen by more than 55%, while the number of pending sales has more than doubled (136.4%) from July 2020 to July 2021. At the same time, available inventory has taken a hit, dropping by nearly 40%, from 208 homes for sale last July, down to 125 homes by end of July 2021.
Oxnard
Oxnard is a city in Ventura County, California, United States. On California’s South Coast, it is the most populous city in Ventura County and the 22nd most populous city in California.
Oxnard is seeing a lot of activity in its housing market in 2021. Available inventory has gone down sharply since last year, with the number of homes for sale being nearly halved, from 302 homes available in July 2020, down to just 156 homes in July 2021.
Over the same period, pending sales have more than doubled in number (109.2%), from only 65 in July 2020 to 136 in July 2021. The median sale price in Oxnard too has risen markedly, by 23.1%, from $519,000 in July 2020 to $639,000 in July 2021.
Final Thoughts: Now, it’s almost clear that the above-mentioned cities have a strong real estate market and a strong real estate future in 2021 and beyond…Says Famed Real Estate Astrologer, Strategist and Advisor, Hirav Shah.
The strength of the real estate market is a testament to the State’s robust economy. It also signals a steady desire by aspiring home buyers to live in these cities, despite the high cost of living and the state’s varied issues.
