Sellers hesitant to list during the pandemic further accelerated California's inventory woes, bumping up home prices in the process. In September, the California median home price reached an all-time high of $712,430, a 17.6 percent jump year-over-year. Home sales remain strong, notably in the high end of the market, and that is projected to continue well into the year.

Inventory issues will persist in 2021. Sellers will eventually reemerge into the market once they recognize that homes are selling quickly and prices are rising. But a housing shortage persists in the state. California remains about 3 million homes short of what its population needs. Still, as more listings emerge, C.A.R. predicts price growth will moderate somewhat in 2021.

Historically low interest rates, continued population growth, lack of new home development and significant lack of inventory will continue to drive our current real estate market through at least 2021.

Unsurprisingly, in the midst of a global health crisis, buyers and sellers have placed increased importance on cleanliness and personal safety throughout the transaction. This focus on health standards isn't likely to disappear any time soon - many homebuyers and sellers hope procedures such as making hand sanitizer available throughout the house, providing sanitary wipes, and limiting the number of visitors in the house will remain in effect even after the pandemic.

And buyers are increasingly interested in wellness not only during the transaction, but in the homes themselves. Vertical living is not as desirable as it was before COVID. People want homes, they want yards, they want space. Having access to a home office for better work-life balance, an extra room for a home gym, a kitchen big enough to cook healthy meals-these features are nice-to-haves, they're becoming increasingly critical to buyers.