It’s a Sellers Market, and home value growth is accelerating, and housing inventory in Southern California and other parts of the country remain low and buyer demand keeps increasing, and with historical low-interest rates no only the weather this summer is sizzlin’ hot so is the for sale Hosing-market.
By the Numbers
During the month of July, the average home value went up 4.9 percent year over year to $696,601 In Los Angeles-Long Beach-Anaheim areas according to Zillow.
As a result of the Housing market pessimism generated by high unemployment and a potential wave of evictions and foreclosures and a failing Federal government to provide a second stimulus package, Zillow estimates Home Value appreciation to drop to 3.6 percent over the next 12 months. (although this value could be different when it comes to Southern California).
“While the housing market has so far sailed through the headwind of high unemployment, risks remain, A slow economic recovery that keeps millions of Americans looking for work could dampen homebuying demand and may even lead to a wave of foreclosures when forbearance expires. This pessimistic possible outcome for 2021 has caused Zillow’s price forecast to shade down a bit.”
-Jeff Tucker Zillow economist
The Pandemic effect on Rentals
The rental market has taken a toll at the hands of the COVID-19 pandemic. During the month of July, the average year-over-year rent growth decreased to 1.2 percent, down from 3.9 percent in February, with the biggest hits taking in New York, New York (down 2.6 percent); San Francisco, California (down 2.5 percent); and San Jose, California (down 2.2 percent).
- Home value growth is accelerating, up 4.9% year over year to $696,609.
- Inventory of listed homes dropped to 28%, around 1,031,000 active listings (at a Nation-wide Level)
- The pace of rent growth continues to slow, now up 1.2% year over year to $1,749 (at a Nation-wide Level)