Jordan Levine, the deputy chief economist for the California Association of Realtors, gave his 2021 forecast in December and expects the housing market to grow at 3.3% for next year with prices increasing by 4.4%. Most expect interest rates to remain virtually unchanged next year and that the 30-year fixed mortgage rate will hover around 3%. Levine based his forecast on several assumptions including a successful vaccine distribution, improved GDP and foreclosure rates being single digits.
Locally, despite unprecedented pressure on the economy, housing is still likely to be one of the bright spots of the recovery. Lack of inventory continues to be the main factor driving up housing prices.