This is the answer I'm supposed to give: California home price increases are expected to slow in 2021, but the Los Angeles-based California Association of Realtors doesn't forecast widespread price drops.
Despite the economic uncertainty caused by the pandemic, California home prices are predicted to edge up 1.3%.
Low mortgage rates and pent-up demand are credited with propping up the market despite the pandemic slow-down.
Here is my real opinion: I'm currently working with several sellers in a few different price ranges.
I'm still getting multiple offers on my listings, way above what I feel is the market value of the home.
Although the official data isn't out yet, I'm seeing that prices have been steadily going up about 1% every single month for the last few months.
LA homes have had such a huge price increase in 2020 that I believe this pace can't keep up.
I predict home prices will go up 3%-4% in 2021.
That is much higher than what the analysts predict, but I'm in the trenches talking with buyers and sellers every day.
I see the demand for housing right now, and that will drive home values above the estimated 1.3% in 2021.
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