What Does 2021 Have in Store for Home Values?

According to the latest CoreLogic, Home Price Insights Report, nationwide home values increased by 8.2% over the past twelve months. The dramatic rise was brought about as the inventory of homes for sale reached historic lows at the same time buyer demand was buoyed by record low mortgage rates. As CoreLogic explained:

“Home price growth remained consistently elevated throughout 2020. Home sales for the year are expected to register about 2019 levels. Meanwhile, the availability of for-sale homes has dwindled as demand increased and coronavirus outbreaks continued across the country, which delayed some sellers from putting their house on the market.

While the pandemic left many in positions of financial insecurity, those who maintained employment and income stability are also incentivized to buy given the record low mortgage rates available; this is increasing buyer demand whole for-sale inventory is in short supply. “

Where will home values go in 2021?

Home price appreciation in 2021 will continue to be determined by this imbalance of supply and demand. If supply remains low and demand is high, prices will continue to increase.

Housing Supply:

According to the National Association of Realtors, the current number of single- family homes for sale is 1,080,000. At the same time last year, that number stood at 1.450,000. We are entering 2021 with approximately 370,000 fewer homes for sale than there were one year ago.

However, there is some speculation that they inventory crush will ease somewhat as we move through the new year for two reasons:

  1. As the health crisis eases, more homeowners will be comfortable putting their houses on the market.
  2. Some households impacted financially by the pandemic will be forced to sell.

Housing Demand:

Low Mortgage rates have driven buyer demand over the past twelve months. According to Freddie Mac, rates stood at 3.72% at the beginning of 2020. Today, we are starting 2021 with rates one full percent lower than that. Low rates create a great opportunity for homebuyers, which is one reason why demand is expecting to remain high throughout the new year.

Taking into consideration these projections on housing supply and demand, real estate analytics forecast homes will continue to appreciate in 2021, but that appreciation may be at a steadier pace than last year. Here are the forecasts:

Bottom Line:

There’s still a very limited number of homes for sale for the great number of purchasers looking to buy them. As a result, the concept of supply and demand mandates that home values in the country will continue to appreciate.

Bamboo Is Making Its Way

                  

Bamboo is a great building material that we are seeing more and more in home design, not only in landscaping and furnishings, but also as wall accents and flooring. Bamboo is one of the world’s most durable, sustainable and renewable materials. It’s natural aesthetic is beautiful with its subtle variances. It is a great material for flooring as an alternative to wood, and it comes in a variety of colors. It’s unique structural properties give it a higher tensile strength than any traditional hardwood and even many alloys of steel.

 

The Austin Welcomes Its First Residents

I just sold a unit at The Austin, part of the first round of purchase contracts to close. With over 50% of the building now sold, the new condominium community welcomes its first residents. Offering a total of 100 residences, the new construction is located in the ever-changing Polk Street neighborhood, the epicenter of the city, close to Nob Hill, Pacific Heights, Cow Hollow and Russian Hill. Now that its model homes and amenities are finished the building is gearing up for its grand opening. There are studio, junior one-bedroom, one bedroom and two bedrooms still available with pricing from $695,000 to over $2,000,000. Featuring high-end finishes, flexible floor plans, and floor to ceiling windows, residents will enjoy natural light and sweeping views of the city. The building’s amenities include everything from a Zen -like courtyard to a dog-washing facility, outdoor fire pits, bike parking and a lobby “work hub” lounge with a fireplace and coffee shop, said to be one of the city’s best lobbies.

 

Rare, Modern 1920s Gem For Sale

  

Entering the opulent lobby of 850 Powell, with its arched colonnades and corbeled beams, is like stepping back in time to the golden age of Nob Hill. Built in 1923 by three of the most renowned architects of the day, the Francesca remains one of the City’s true gems.

One of only 40 residences in this historic building, Unit 104 is utterly unique. Beyond its carved wood door, you leave the 1920s behind and find yourself in a luxurious and comfortable 4 bedroom, 4 full bathroom urban retreat that combines grand spaces and gracious details with the sleek open space modern feel of a loft. Skillfully and extensively remodeled, 104 greets you with a serene entry hall warmly lit by pendant lamps of rose-colored glass. The hall opens into a spacious living room with the restored wood-burning fireplace dramatically set against marble that stretches from the wide-planked wood floors to the high, beamed ceiling. Drenched in natural light, the room offers abundant space for relaxing, entertaining, and dining.

   

The chef’s kitchen features high-end wood cabinets, designer tile, and top-of-the-line appliances, including (delivered straight from Italy) an 8-burner gas range and 2-zone wine refrigerator. A broad island welcomes guests to sip and chat as you cook with TV to accompany your breakfast. Off the kitchen is a convenient second entrance to the unit.

   

Each of the four large, peaceful bedrooms is accompanied by its own full bathroom, beautifully remodeled and thoughtfully appointed. The master bedroom takes in breathtaking views of the Bay and the Transamerica Building from windows on two walls. Walk-in closets and built-in cabinets offer tons of in-unit storage.

Cutting-edge smart technology (Control4 and Lutron systems) let you raise and lower the window shades automatically; play music through built-in speakers; and monitor the unit with a video surveillance system from inside and outside of your home.

The Francesca is perfectly situated on iconic Nob Hill, across from the Fairmont Hotel and with the beloved San Francisco cable cars running along Powell Street at its feet. Nearby, you’ll find Huntington Park, Top of the Mark, and the Big 4 Restaurant, as well as the landmark architecture of Grace Cathedral. University Club, Pacific Union Club, Olympic Club, Wingtip Club, and the Battery Club are all nearby as well. A few blocks down, Union Square offers world-class shopping, dining, and theater, with the Financial District, North Beach, Chinatown, and SOMA just minutes away.

850 Powell is among downtown San Francisco’s most exclusive properties. This stunningly remodeled condo offers a unique chance to experience modern luxury in one of the City’s signature historic neighborhoods.