A Feb 3, 2021 Zillow Press Release begins: “Competition is Fierce for Home Buyers, But Acting Quickly Could Save Them Hundreds on Their Monthly Payments”.
The two things which stand out about this press release are that: 1) Zillow has little to gain by urging buyers to buy now and 2) the numbers they provide show the very big impact on home affordability they predict.
| Area | Current Rate & Value | 3% interest + 8% Growth | 3% interest + 12% Growth | 3.5% interest + 8% Growth | 3.5% interest + 12% Growth |
| SF | $3,779 | $4,253 | $4,411 | $4,530 | $4,698 |
| LA | $2,395 | $2,695 | $2,795 | $2,871 | $2,977 |
Zillow says their experts are forecasting 21.9% more home sales than last year and a price increase of 10.5%.
Government policies that are being reviewed right now could have a dramatic effect on the cost of buying a Silicon Valley home.
If you are a first-time home buyer be sure to view Juliana Lee’s rent vs. buy information.