The Housing Supply Is Even Tighter

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.