Buyers are stretching budget limits Multiple offers high in 2020

The Pacific Southwest Association of

Realtors (PSAR) is predicting the California housing market will continue to rebound in 2021, despite the economic shock of the 2020 coronavirus pandemic. According to realtor Ditas Yamane, a PSAR board member and 2021 PSAR president, fueling the rebound will be rock-bottom mortgage rates, a rebounding gross domestic product and strong homeownership demand.

“I’m expecting financially-eligible buyers will be motivated to enter the market due to a favorable lending environment and strong interest in homeownership,” said

Yamane. “Also, watch for buyers to remain motivated by low rates, which means they will be willing to stretch their budget limitations.”

The Pacific Southwest Association of

Realtors (PSAR) said the average number of multiple offers made on available homes for sale in 2020 reached its highest level since 2013, according to a recent survey of California real estate agents. The survey, conducted by the California Association of

Realtors, revealed nearly two-thirds (59.2 percent) of homes sold in 2020 received multiple offers at an average of 4.8 offers per home. In 2019, less than half (47.7 percent) of homes sold received multiple offers with an average of 3.9 offers on each home. Homes priced between $500,000 and $1 million received the most multiple offers in 2020 with 67.3 percent receiving an average of six offers.