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Pandemic Go Boom Boom

SoCal’s home prices and sales rose sharply in Dec., continuing a pandemic housing boom experts say is in large part driven by rock-bottom mortgage rates and people seeking out more space. Topping buyers’ demands are home offices, gyms, meditation rooms, playrooms, in-law suites, pools, and ADU’s.

The 6-county region’s median sale price jumped 10.1% from December 2019 to $600,000 last month, according to data released Friday. Sales rose 29% from a year earlier.
Thursday, government-controlled mortgage giant Freddie Mac reported the average rate for a 30-year fixed mortgage was 2.77%, down from 3.6% a year earlier. The drop enticed more buyers into a market in which they’ve found few homes for sale, prompting bidding wars.

Some experts say home prices will see a smaller rise in 2021 than in 2020. One forecast, from John Burns Real Estate Consulting, predicts 2021 price increases of 7% – 10% in Greater L.A., compared with price increases of 10% – 14% in 2020.

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