The Market & Industry: Unseasonably Strong Market Persists

The housing market continues to be a bright spot in the U.S. economy with housing starts up and home sales growing both in California and across the country. California’s market has remained unseasonably strong, with pending sales data indicating double-digit sales gains will continue into November. September also saw California reach another all-time high for median home prices, and recent analysis from Renofi projects the average California home price could top $1 million by 2030.Cities with the highest housing prices, like those in the Bay Area, are seeing the largest exodus as residents leave for areas with lower costs of living. And smaller cities, like Santa Barbara, are seeing the biggest inflows of new residents. Similarly while foreign buyer activity has fallen in the pricier metros, it’s thriving in “Zoom cities” — popular vacation spots where now-remote employees have set up shop — like Lake Tahoe and Sonoma.Buyer demand has remained strong, with more young Americans entering the market. But inventory has stayed tight as financial anxiety and uncertainty about the future has kept sellers from listing their homes; a survey from Zillow found nearly 40 percent of potential sellers think they’ll get a higher price on their home if they wait to list. Meanwhile, builders say key supply shortages are affecting their timelines, and they are hiking premiums to reflect higher lumber costs.Source: Inman News, C.A.R. Research & Economics, REALTOR® Magazine, NBC Bay Area, CNBC, Zillow Research

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