The year 2020 was full of twists and turns for the economy. But there were also surprising wins: the housing market saw home sales and prices reach record highs and lows in just a few months.
While some may be cautious about dipping into the real estate market in 2021, acting on these once-in-a-blue-moon trends may be the wisest decision you will ever make.
If you want to jump on this opportunity, here’s what you need to know about the Coachella Valley real estate market:
Return to Seasonality
The housing market normally follows the seasons: with high home sales and listings during spring and summer, and slower metrics during the fall and winter seasons. But the arrival of the coronavirus and shelter-at-home protocols interrupted what would have been the best time to list a home. This resulted in an uneven return of buyers and sellers during fall and winter, driving demand and sales up while supply and time on the market dropped to decade lows.
High Home Sales and Prices
Buyers in the latter half of 2020 felt a sense of urgency to close on deals, mostly from the missed spring season and the low mortgage rate. This frenzy will slow down in 2021 when seasonality makes a comeback, and with the sub-3% mortgage rate feeling less exceptional due to high house prices.
But buyer demand and home prices are expected to remain high. Expect some buyers to lock in the low rates while it lasts, and the surge of millennial trade-up buyers and Gen Z first-time buyers in the market.
Accepting the New Normal
With jobs and the economy on its way to recovery, especially with the mass distribution of the COVID-19 vaccine, buyer demand will continue to surge. Many of them would also be looking to adjust to the “new normal,” with remote working conditions leading to suburban migrations.
With remote work extending into 2021, and possibly semi-permanently, you should expect listings to showcase home features that support this, such as:
- Home offices and Zoom rooms
- Study rooms (for the kids)
- Larger outdoor spaces
- High-speed internet connections
- Proximity to coffee shops and other businesses (that can provide back-up internet and a break from home)
With remote work becoming the norm, potential homebuyers saw themselves free from the grind, commute, and high costs of living in the city. This resulted in rising demand for homes in the suburbs and downtown locations. We can expect buyers to invest more in the houses and home locations that fit their lifestyles, rather than proximity to offices or schools. Expect them to also prioritize home safety and self-sufficiency, considering past natural disasters.
Navigating the Coachella real estate market is trickier than ever. But with real estate experts who have a deep understanding of the desert lifestyle and a passion for giving you the home you desire, you can negotiate the best deal possible. Contact California Lifestyle Realty at 760.989.4631 or send us a message today.