Wow, what amazing finish to one of our most difficult years ever, in terms of worry and hardship; but those who had the nerves to pursue housing were rewarded on both the seller and buyer side. The result were some staggering rebound sales numbers, the second half of 2020, (to be given in the next section), that have set the stage for an equally strong 2021. According to DataQuick/CoreLogic, the first half of 2020 plunged on average 24% in 6 So Cal counties and climbed 51%, the second half which is the greatest turnaround in 33 years. Historically, second half rebounds are a precursor for a strong year following— so far that appears to be the case. According to Jonathan Lasner’s Bubble watch algorithm, a scale of 1-5, 5 being huge bubble, we are currently at a 1. Good news for sellers, but better for buyers afraid of buying at the top of an over inflated market. These types of rebounds generally have a beneficial advantage for purchasing power, the beginning of 2021 giving buyers 2% greater buying power.
(This according to projections by UCLA’s Allen Matkins/Anderson economists.). On the commercial side, office space is holding even, retail has slipped significantly, and the true bright spots are multiple family units and industrial. Particularly warehouse and manufacturing or assembly and distribution as Californian’s change how they pandemic shop, reflecting a massive shift to online.
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