Will the Real Estate Market
Still Have Seasonality in 2021?
California is well-renowned for our delightful, temperate year-round climate. While other regions of the country suffer from harsh winters and muggy summers each year, we have subtle, yet beautiful California seasons. Now we are starting to see signs of spring in the air, which typically signal the start of the peak real estate season. Many are asking if COVID-19 has impacted the traditional real estate cycle, and if spring will remain the traditional peak of sales activity in 2021.
“With COVID-19 in 2020, that traditional spike in spring real estate activity got pushed into the summer and fall. The disruption in seasonality stemmed from the seismic shift of children going to school online and adults working from home. Without summer camps, summer vacations, and the typical start of a school year, families had more leeway in terms of timing to purchase a home. Suddenly, it could hinge on finding just the right one or waiting until when it was most convenient, rather than everything being dictated by the calendar. But now, with vaccines being deployed, schedules will come into play again. School and sports will resume more normal patterns, and more typical seasonality including traditional real estate cycles will return,” said MLSListings partner economist Elliot Eisenberg in a recent episode of MLSListings Live.
“The 2021 real estate market may benefit from a number of additional positive factors,” remarked Karl Lee, Chair of the MLSListings Board of Directors.
“Millennials are getting married, having babies, and buying homes. Low interest rates are also a huge driver. Many have been amassing savings during the pandemic and those funds could be unleashed as part of the release of pent-up demand.”
Local tech companies are thriving and have benefited from the increased need for technology for work, school, telehealth, entertainment, socializing, and shopping. With almost every aspect of daily life shifting online, these companies have become more important than ever in our lives. With the tech industry as a major local employer, our region’s economy is able to benefit from this significant economic driver and contributor.
Housing supply and demand is also a factor as the greater Bay Area and Monterey Bay region benefit from a finite supply of homes to choose from in the area. There is also a greater appreciation for houses due to the pandemic. Suddenly we know what it’s like to spend a lot more time in our homes. The concept of a house is fundamentally more valuable than it was before COVID.
As our new world slowly inches toward normalcy and real estate seasonality gradually makes it return, one thing becomes clear: now is a good time to buy or sell a home here. Remember that your Realtor® is a guiding star. Armed with MLSListings data, your Realtor® can point the way forward in 2021.