May 2021 California Real Estate Market Update



With a slow down in buyer demand, should you expect to see lower house prices or just less craziness in the housing market when it comes to making offers? What’s the median house price in California? How many days on average is it taking a home to go under contract? What’s the price to sale ratio? In this video, we discuss the latest California Association of Realtors latest May Home Sales and Price Report to give you some insight on where the California Real Estate Market is headed.

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Articles mentioned in this video – April Home Sales and Price Report –

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Jeb Smith (huntington beach Realtor/orange county real estate)
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35 comments

  1. As long as the dollar becomes less and less valuable, assets like real estate and commodities will increase in the amount of dollars needed to buy those things. Don’t dream for a second that real estate prices are going to drop.
    Supply and demand aren’t the only factors in real estate prices.
    The worth of the dollar plays a massive role as well and it affects all neighborhoods in the entire country rather than a regional supply and demand.

  2. I gave up as well. Every time I felt I had found a home I could love and qualify for 3 of them were sold before I could even make an offer! The other one I offered over asking and they took a cash deal.

  3. And why dont you talk about the underlying causes such as the Fed Reserve buying up MBSs at 40 billion a month to support the economy. What do you think happens when they start to taper? You should look at macro data outside JUST the real estate market itself. The housing market is just like any other asset and its not immune to the frothiness of FOMO and ATHs. The equity market and housing market hand in hand are at ATHs, are you not blind to the fed reserve just propping up boomer assets?

  4. When I see APPLE press release saying that of its 20,000 increase in US workforce, 5,000 (1/4) will be in San Diego (Rancho Bernardo and UTC), I am reminded that the areas drawing 'high-tech' will be the areas that will see 'higher' home prices moving forward – aka, Rancho Bernardo and UTC).

    Go to Google Earth and scan San Diego from the top, and you will see only a couple 'Tech' Industrial Areas – Rancho Bernardo, Poway, UTC (Golden Triangle) as most prominent.

    Places like San Diego, Boston, Austin, and more are drawing tech like never before. San Diego is already home to many BIO-TECH, FIN-TECH, MED-TECH, LOGISTICS-TECH, and more…

    So while I agree a slow down is logical, it doesn't correlate to a drop in home prices – more likely a normalization into the single digit appreciation…

    Lastly, Fed Chair Jerome Powell is calling MUCH HIGHER wages, and lower inflation. How can this be? Only one way 'higher' wages would lead to lower inflation – spend less on consumer goods and more on your mortgage. Higher home prices ahead, albeit, slower…

  5. I recently found your channel. Where is the safest and least expensive City in southern California? Which City would you recommend? I once lived in San Diego but times have changed! I'm looking to move either to California or Florida from Colorado. Thank you 🙂

    Ps, I prefer a Condo 😁 not sure how the market is for condos.

  6. Real estate in the USA, price to income ratio, is very cheap in the USA. I was looking at a list that showed most countries in the world, and the USA was about 5th from the bottom. Basically any country with an economy that is enough to generate these type of numbers, is more expensive to buy real estate than the USA.

    Americans have no idea how good they still have it.

    We have only just begun compared to the rest of the world.

    Bottom of the list after the USA
    United States of America 4.18
    Bahamas 3.42
    Oman 3.41
    Saudi Arabia 3.02
    Suriname 1.87

    Europe.

    Romania 24.97
    Croatia 23.16
    Ukraine 22.49
    Italy 21.86
    Slovenia 20.7
    Moldova 20.23
    Portugal 19.45
    Austria 19.36
    Belarus 19.19
    Albania 19.09
    Sweden 18.61
    Serbia 18.56
    Spain 18.1
    Greece 16.37
    Germany 15.93
    Macedonia 15.59
    France 15.47
    Russian Federation 15.16
    Lithuania 14.93
    Latvia 14.5
    Poland 14.28
    Estonia 14.1
    Finland 13.71
    United Kingdom 13.13
    Switzerland 12.6
    Bosnia and Herzegovina 12.51
    Czech Republic 12.47
    Norway 12.38
    Belgium 12.02
    Denmark 11.98
    Malta 11.97
    Netherlands 11.69
    Slovakia 11.33
    Cyprus 10.83
    Iceland 10.15
    Ireland 9.9
    Bulgaria 9.64
    Hungary 9.43
    Turkey 9

    Asia

    Maldives 50.77
    Bhutan 50.57
    Vietnam 40.91
    China 40.8
    Tajikistan 32.05
    Myanmar 31.13
    Thailand 29.23
    Indonesia 28.77
    Philippines 26.91
    Nepal 26.19
    Iran 25.95
    Mauritius 25.41
    Cambodia 23.48
    Mongolia 21.79
    Azerbaijan 20.76
    Japan 19.85
    Sri Lanka 19.41
    Armenia 19.14
    Lebanon 19.08
    Israel 18.92
    Pakistan 18.76
    Georgia 18.05
    Uzbekistan 17.63
    Kyrgyz Republic 17.57
    Lao People's Democratic Republic 17.4
    South Korea 17.16
    Kazakhstan 15.68
    Bangladesh 15.45
    Turkmenistan 14.92
    India 14.06
    United Arab Emirates 13
    Yemen 11.46
    Malaysia 11.08
    Jordan 9.88
    Iraq 9.85
    Taiwan 7.92
    Qatar 7.52
    Kuwait 5.63
    Brunei Darussalam 4.79
    Oman 3.41
    Saudi Arabia 3.02

    Here is the world list

    Country Ratio
    Papua New Guinea 181.6
    Congo 153.16
    Barbados 133.77
    Solomon Islands 106.1
    Cameroon 98.58
    Gambia 87.61
    Mali 62.5
    Uganda 59.4
    Rwanda 56.7
    Senegal 53.65
    Maldives 50.77
    Bhutan 50.57
    Vietnam 40.91
    China 40.8
    Ghana 40.67
    Madagascar 38.21
    Zimbabwe 36.94
    El Salvador 36.34
    Algeria 32.38
    Venezuela 32.33
    Tajikistan 32.05
    Myanmar 31.13
    Thailand 29.23
    Indonesia 28.77
    Philippines 26.91
    Peru 26.73
    Kenya 26.7
    Swaziland 26.43
    Nepal 26.19
    Iran 25.95
    Seychelles 25.91
    Mauritius 25.41
    Romania 24.97
    Morocco 24.42
    Colombia 23.67
    Ethiopia 23.6
    Cambodia 23.48
    Brazil 23.43
    Croatia 23.16
    Argentina 22.72
    Ukraine 22.49
    Italy 21.86
    Mongolia 21.79
    Ecuador 21.22
    Azerbaijan 20.76
    Slovenia 20.7
    Moldova 20.23
    Japan 19.85
    Portugal 19.45
    Sri Lanka 19.41
    Austria 19.36
    Belarus 19.19
    Armenia 19.14
    Albania 19.09
    Lebanon 19.08
    Israel 18.92
    Pakistan 18.76
    Sweden 18.61
    Serbia 18.56
    Botswana 18.36
    Spain 18.1
    Georgia 18.05
    Angola 17.8
    Uzbekistan 17.63
    Kyrgyz Republic 17.57
    Lao People's Democratic Republic 17.4
    South Korea 17.16
    Trinidad and Tobago 16.79
    Tunisia 16.55
    Greece 16.37
    Burundi 16.29
    Dominican Republic 16.16
    Germany 15.93
    Kazakhstan 15.68
    Macedonia 15.59
    Uruguay 15.59
    Australia 15.49
    France 15.47
    Bangladesh 15.45
    Russian Federation 15.16
    Egypt 15.11
    Panama 15.09
    Chile 14.98
    Lithuania 14.93
    Turkmenistan 14.92
    Latvia 14.5
    Poland 14.28
    Estonia 14.1
    India 14.06
    Greenland 13.74
    Finland 13.71
    United Kingdom 13.13
    United Arab Emirates 13
    Bolivia 12.92
    Switzerland 12.6
    Bosnia and Herzegovina 12.51
    Czech Republic 12.47
    Nigeria 12.43
    Norway 12.38
    Cuba 12.13
    Belgium 12.02
    Denmark 11.98
    Malta 11.97
    Netherlands 11.69
    Dominica 11.6
    Yemen 11.46
    Slovakia 11.33
    New Caledonia 11.13
    Malaysia 11.08
    Paraguay 10.97
    Cyprus 10.83
    Iceland 10.15
    Guatemala 9.99
    Ireland 9.9
    Jordan 9.88
    Iraq 9.85
    Bulgaria 9.64
    Namibia 9.56
    New Zealand 9.46
    Hungary 9.43
    Turkey 9
    Fiji 8.9
    Nicaragua 8.79
    Mexico 8.4
    Belize 8.24
    Taiwan 7.92
    Costa Rica 7.79
    Canada 7.59
    Qatar 7.52
    Kuwait 5.63
    South Africa 5.49
    Jamaica 5.03
    Brunei Darussalam 4.79
    Honduras 4.68
    United States of America 4.18
    Bahamas 3.42
    Oman 3.41
    Saudi Arabia 3.02
    Suriname 1.87

  7. You’re looking at all the wrong data. 1- lumber prices are crashing. 2: millennial demand is actually down while boomer demand is way up. This is not sustainable. 3: appreciation rates are over 20% higher than 2006 levels. Again, not sustainable. 4: mortgage home applications back down to 2019 levels. 5: millennials not having kids, which means less incentive to buy a home. 6: rental moratorium ending will allow more supply to enter the marketplace. 7: mortgage forbearance ending in sept will give a strong incentive for those behind to sell this summer. 8: homebuilding artificially up as a result of perceived demand. So the question is why did we see this surge during the pandemic? 1: supply was low due to shelter in place orders which included limitations on open houses, rental moratorium and mortgage forbearance. 2: supply also decrease as a result of boomers refinancing homes with lower interest rates. 3: lumber prices surged due to increased renovations. 4: increased demand due to folks leaving the cities, but primarily driven by single boomers with no kids.

    Bottom line the surge in home prices was just another Artificially driven pandemic phenomenon just like toilette paper shortages and lumbar shortages. As everyone opens back up, we will see a return to normal trends but have to contend with the fallout of these asset prices having been overinflated.

  8. Thi opinion highly depends on timing. You’ll be eating your words in minimum 6 months when the housing market has crashed.

  9. Squatters aren’t leaving, before they left on their own, now they’re staying and the laws on their side. What new homeowners wants to put up with that?! Maybe private equity firms would, but not normal people. More riots are coming up ahead this summer and more police are resigning thanks to defund the police. So good luck getting rid of them.

  10. I am seeing some softening in Bay Area as well. Things were quite crazy couple of months ago. Reasonably priced good homes still go pending quickly. But if a house has some undesirable feature e.g. on or backing a busy street, two story home with no bedrooms on first floor etc. are now sitting on market for longer. Some sellers have started to reduce the price if the house does not get any offer within a week.
    Another issue is the appraisal. It had become normal in bay area to offer $500k-$600k over asking in the heat of the bidding war. But the appraisals had started to come in low.
    Also, inventory seems to be increasing. People are now more comfortable putting homes on market – some neighborhoods have several open homes.

  11. Townhomes and condos definitely slowing down! Have a listing since 2 weeks ago and very slow! Single family still crazy here in Denver!

  12. Supply is definitely increasing in the Twin cities where I’m looking. I agree with you why demand is slower, but I’m seeing price reductions. There is a change, might not be much in price though.

  13. They are Dropping now in Maryland. Don't give up. I've been looking since March and got out bidded several times now. Alot of Houses hitting the market….there's Light at the End of the tunnel. 😁

  14. People paying 20-100k over asking price is understandable, if you do the math borrow 500k (30 year fixed 3%) will cost $260k in interest, but we are expecting interest rate will increase to 5% in the near future. The (30 year fixed 5%) now cost you $466k in interest.

  15. In California..in a city in California..where I live, the worst single family house, which you wouldn't put your dog, starts from $700.000

  16. Six weeks ago my friends got offered $800k for their house but weren't ready to sell. Then they listed it two weeks ago at $725 and have received only one offer from a buyer that backed out.

    The buying frenzy has cooled and I see several more "for sale" signs popping up. The law of supply and demand states that as supply increases and demand decreases, prices must go down. Anyone who says otherwise either doesn't understand basic economics or has a financial incentive for making you believe otherwise.

  17. Can you make a video about homeowners are asking to stay at the property after you buy for 60 days or 90 days ..

  18. The 2008 housing crash is an anomaly. You can never see that kind of crash again in the next 100 years. If you think housing price is high now, watch out for the next 30 years. Even the vacant lands will be gobbled up by the rich and the investors.

  19. Without watching the video, let me predict. Prices are not going to decrease, on the contrary, they will continue to go up.
    Ok now I will watch the video.
    Ok, a more bipartisan video. My apologies, I really like your opinion at end of the video.

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