The real estate market remains a seller’s market as homes continue to sell quickly with soaring prices.
Nationally, homes are selling at historically high asking prices. Redfin reports that houses are being sold at record breaking prices, increasing 17% from this time last year. Demand for homes continues to increase as the number of new listings continues to drop. The number of active listings has decreased 42% since 2020. With a shrinking housing inventory, sellers are taking advantage of the high interest in newly available homes on the market.
In California, the impact of 2021’s unique housing market is even more apparent.
According to the California Association of Realtors, home-sale price has increased 21.7% from this time last year, with an average price tag of $699,890. The home-sale price increase in California is nearly 5% greater than the national increase.
Many listings now encounter bidding wars that further drive up the selling price of the home. For instance, a home for sale in Citrus Heights, CA garnered national attention when it received 122 offers in two days. While all new listings may not make headline news, sellers are benefiting from the small inventory of homes on the market and climbing home prices.
Top 10 CA Counties with the Greatest Home-Sale Price Increase:
|County||Median Sale Price||Price Increase YOY|
|El Dorado County||$649,000||29.8%|
|San Benito County||$734,000||25.6%|
|Contra Costa County||$805,000||23.8%|
|San Luis Obispo County||$735,000||22.5%|
For a complete list, see here.
Source: Redfin Market Data
The benefits of selling in today’s competitive market will be short-lived. Experts are reminding potential home sellers that the current seller’s market won’t last forever. Realtor.com’s Chief Economist Danielle Hale asserts, "As the risk of serious illness declines because more people are vaccinated, we expect to see more sellers.” As the market begins to moderate in the upcoming months, expect there to be fewer bidding wars on new listings.
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