Temecula, California 2021 Housing Market Predictions
Temecula California has definitely become a popular destination for people looking to relocate from other states or other parts of Southern California. As everybody knows, people in big cities are seeking safer, more family-oriented, less expensive options to live and I think this trend will continue through 2021.
I am a local Temecula, California real estate broker/owner.I thought it would be a great idea to give my opinions on what will happen in the upcoming housing market for 2021 for Temecula and the surrounding area. I have access to all the local data and have a wife who has been a licensed real estate appraiser for over 20 years in the area.We sell and appraise hundreds of homes every year, which gives us a great pulse on what the local market is doing. I can go as far as saying we see trends of neighborhoods thriving versus flattening out in real time.
Hopefully this blog post and video will give people some sort of sense of the Temecula California housing market. If you have further questions, please do not hesitate to call us. As I mentioned earlier, we do a lot of business in this area, both sales and appraisals and know it very well. We have lived in the Temecula area for over 30 years, And enjoy helping people and sharing our knowledge of what we know best.
Home Prices in Temecula for 2021
Currently, you can buy a home from 2000-2500 sq ft for anywhere between $525,000 and $610,000 in 2021 in Temecula. For many people throughout the United States, this might be expensive but in Southern California, this is a bargain. Not only are you buying homes cheaper than pretty much anywhere else throughout Southern California but important things like safety, school ratings, amenities, restaurants, grocery stores are all superior to many areas.
Moving forward to 2021, I expect home prices in Temecula to rise another 3 to 5%. People are learning about this gem of a city. I get calls from all over the country, also Orange County, LA County and San Diego County asking about what it’s like living here. When you add the low inventory to that home prices are only going to go up.
An important point from people looking from out of state. If you want to live the Southern California dream and have a pool, be prepared to pay up. Last year I witnessed pool homes go anywhere from $30,000 to $60,000 above list price. I’m not saying this to scare you, just want to be honest and upfront. If you’re not prepared to be aggressive, 2021 is probably not the best time to be looking for a pool home in Temecula.
Inventory in Temecula for 2021
One of the biggest factors driving home prices all throughout the United States is inventory. One of the things that makes Temecula, California unique but also an inventory killer is the lack of buildable land. What do I mean by that? Many properties in Temecula are zoned from .75 of an acre all the way up to 20 to 30 Acres. Developers cannot come in and put 30 homes in an area that’s not zoned for multiple residential properties. Personally, I love this because it keeps the population down but for inventory purposes, it’s a killer. The only new-build happening in Temecula right now is Somers Bend, although being a fairly large community there is not much in the way of additional building going on. People are still buying single plots of land in places like Deluz or wine country, but those are only for single homes, not track home communities.
Interest Rates
Low interest rates are not only driving home prices up in Temecula, California but everywhere throughout the United States. In Temecula specifically, you can now put 20% down on a home and pay the same in the way of a mortgage as rent. A 2500 square foot home in Temecula in 2021 is going to rent for around $2700- $3300.
I predict that throughout 2021 interest rates will stay low. They will probably hover around 3% or lower. Personally, I believe, if interest rates did rise the economy would tank. This is one of the many factors and why I believe home prices will rise in Temecula, California in 2021. Interest rates are making the Housing Industry advantageous for both buyers and sellers. Yes, sellers are getting astronomical amounts when selling but buying these homes at these low interest rates still puts you, an affordable monthly payment.
What is important to people in 2021
Generally, you hear things like extra bedrooms, office space, larger square footage when talking about why people are moving over the past year throughout the USA. In Temecula specifically, I see people moving from the city and wanting pool homes, great schools and sunshine. These are the 4 constants I continually get calls about. My YouTube channel, called ExploringTemecula.com has given me a great Insight of why people want to move to Temecula.
Are people not moving out of California in 2021?
I get this question a lot, and yes, politics, cost, traffic are all reasons people move from California to other parts of the country like Texas, Florida or Arizona. The one thing I can assure you is that Southern California will never be dead. We have the best weather in America and that is what people gravitate to. When it’s January and it’s 75° you can’t change that. when summer hits and there’s no humidity, just a little heat you can’t change that. People will always flood Southern California because of the weather. I say this a great deal in my blogs but I am sitting here at the end of January and it’s 75 degrees and sunny out. I just had a couple move from Seattle, they said, and I quote, “THIS IS THE BEST DECISION WE HAVE EVER MADE!”
If you are worried about home prices dropping because you hear everybody is moving out of the state, it’s a myth.
Bottom Line
The housing market in Temecula for 2021 is going to thrive. Whether you’re a buyer or a seller there are opportunities for everybody. If you are a buyer, please be aware, it is not easy. There are multiple offers on every home especially in Temecula.Make sure the real estate agent you choose is aggressive and knows how to close deals. You want to be in the mix on every single transaction or offer. I am not promising that your first offer will be accepted, but you do need to have an agent that will go through a brick wall for you in this market.
If you have any further questions please don’t hesitate to reach out. We have successfully being a part of the Southern California real estate market since the early 2000s. We have weathered the storms of 2007 through 2010 and thrived throughout every housing market.
Thank you for reading our blog, if you have any interest in moving to Temecula or the surrounding area please read the Google Reviews here for Greenleaf Real Estate & Appraisal.
We are licensed as both Real Estate Brokers & a Certified Residential Appraiser. We love what we do and will bring a great deal of passion, experience and expertise to the table for you.
