Have you been thinking about buying a home in Stockton, CA? Is one of the questions going through your head, is the price of Stockton homes accelerating? Well, let us take a look at Stockton house prices and what the experts are saying about home prices nationwide. And with that information, we can make some assumptions about what might be happening with Stockton, CA home prices this coming year.
As we moved into 2021, industry experts were calling for home price acceleration to slow to nearly half of the double-digit pricing appreciation we have seen over the past few years. Their thoughts were that we would be seeing an increase in inventory from the record-low levels of 2020. Thereby putting an end to the bidding wars that were driving the prices up for the past year. I’ve been in the industry for the past five years and have been involved in various aspects of the industry, in one form or another for my entire adult life. And I do not see an end to bidding wars anytime soon. If anything, this trend will continue as long as interest rates remain at historic lows (currently around three percent).
Nationwide the National Association of Realtors (NAR) in a recent report said that there are 410,000 fewer single-family homes on the market now than there was last year at this time, which is a nine percent drop.
Low mortgage rates and low inventory are the two main reasons why prices in Stockton have been steadily increasing for the past year, with little to no relief on the horizon. Buyers are getting more aggressive as they watch their home equity grow by leaps and bounds while waiting on other buyers to make an offer that will beat theirs. Low-interest rates combined with buyer competition have increased demand exponentially over the last 12 months, making our local housing market one of the fastest appreciating areas within California’s Central Valley.
All the experts have raised the 2021 Home Price Forecasts from the January projections. After seeing the first-quarter home sales results. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, the National Association of Realtors, and Zelman & Associates January and current forecasts are on the chart below.
The jump in average home appreciation projection from 5.3% to 7.7% after just one quarter is considerable. Still not as high as the 10% appreciation in home prices in 2020. Demand will remain strong, so future increases in the value of homes are likely dependent on how quickly new listings enter the market.
Many buyers are betting that prices will continue to rise in Stockton and don’t want to miss out on the opportunity.
The average price of a home is now $426,000 compared to January numbers which were at just over $389,000. In April 2021, homes have been selling for 10, 20, 30 thousand dollars over the asking price. With some sellers receiving three or four offers before they even put their house on the market! And it has been very common for there to be well over 10 offers on nice, well-priced homes.
Entering 2021, there was some speculation that we might see price appreciation slow dramatically this year. Today, experts believe it will remain strong throughout the year. Home values will continue to increase through the end of 2021.
No matter whether you are selling your Stockton home or anywhere within San Joaquin, Stanislaus, Sacramento, Amador, Calaveras, or Tuolumne counties if you have any questions you can call or text me at 209-528-5158. Or schedule your FREE 15-Minute Virtual Consultation by CLICKING HERE
No matter which one you do always remember to go out and "Be the sunshine in somebody's rainy day"!
And of course, always remember to "C. Ray To Find Your Perfect Home"!