JLM Blog | How Much Is A Home In California In 2021Real Estate News, Updates, and Tips
Real Estate Agency San Diego, CA
Article published on January 17, 2022.
In 2021, California has reflected the national real estate trends with the prices of homes skyrocketing in otherwise economical suburbs and small metro towns like Sacramento. Interestingly, the same increase was significantly less in the urban side like San Francisco.
When it comes to the overall prices of homes, they outshined the national average price. This can be best demonstrated with the price hike over the last couple of months. For instance, in October 2021, the average price of a small family abode across California was close to a whopping $800,000 which is a 12+% increase when compared to the previous year. According to the Department of Finance in California, in November 2020, the price of the same house was around $355,000.
In 2021, the Bay area has joined the list of cool places to live as confirmed by leading economist Jeff Tucker. The value of homes in the Bay area is therefore rising. However, the numbers are still lower than the state average. According to the estimates from Zillow, San Francisco only witnessed a price increase of real estate by 9+% between 2020 and 2021. However, this is significantly lower than the state average which is at least 20%.
Currently, the real estate trends have taken a unique pattern. In several parts of America, buyers are keener on investing in affordable housing areas. That is one of the main reasons why affordable single-room homes are at a super-high price right now.
While many areas within California witnessed real estate value improvement, the East bay is perhaps the biggest benefiter. The bay which also has parts of Berkeley and Oakland witnessed a price increase like never before. In Oakland alone, houses along the bridge have amassed an excellent value. Economists have confirmed this and have also stated this to be one the highest increases over the last couple of years.
Both Oakland and Berkeley are part of the Alameda County and here a single-family home cost $1.3 million in 2021. This is a 24 percent increase from its price set at $1.05 million in 2020. The same couldn’t be said about San Francisco. Here, the average price of a single-family house was 1.9 million in 2021 as opposed to the $1.67 million in 2020. The increase is sharp and by a significant 12 percent but nowhere near the state average.
According to brokers in the area, the fluctuation in real estate prices has continued throughout the two years. They have observed that barring the minor slowdown in June, the demand was considerably high. It is worth noting, that June wasn’t the best month because following the vaccination many people were fatigued and others were going on vacations. However, this didn’t stay for long as the demand picked quite quickly in the later summer months itself. The biggest demand was for homes that were ready for move-ins with dedicated zones for working from home. In other areas, homes with backyards received considerable popularity.
When it comes to the demand points, Sacramento was one of the tops of the list. Most buyers were keen on purchasing homes in this area at a more affordable price range. In 2021, the usual value for a single home in the area was around $472,000. This was impressive and almost a 23% increase in price from the last year. However, the numbers were still lagging when compared to the state average.
As with Sacramento and California, other states like Los Angeles were doing quite well. For instance, the average price of a single home in the area was $810,000 in 2021. This was significantly more and almost an 11% increase from the previous years. However, here, both affordable and expensive housing was purchased. Santa Monica was a top favorite and many homeowners chose their Los Angeles home here.
Given the strong growth in the real estate segment, it is only worth buying or selling your home at this point. In case you’re looking for a similar service, you might want to check out a real estate agency San Diego. These agencies will handle the issue from start to finish, helping you get a clear idea about your home value and get it sold at the best and highest price. Because these companies also offer provisions for buyers, you might want to check them out before buying a home in California.
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