California Weekly Data: May 22, 2021

Market Report provided by California Association of Realtors

The public health crisis continues to fade as the number of new cases falls and the economy prepares to reopen more broadly on June 15th. General economic indicators continue to improve as well, and that is also expected to accelerate the service sector rebounds during the second half of the year. However, strong buyer demand continues to limit the uptick in supply, even as the number of sellers putting their homes onto the market also grows—inventory simply can’t keep up. This is causing home prices to continue to set new all-time highs, which together with gradually increasing mortgage rates, means that buyers will face increasing challenges to that important transition into homeownership as purchasing power is reduced.