COVID-19 may have us all stuck at home, but that’s not keeping potential buyers on the couch. In fact, a study from Lending Tree found that 53% of homebuyers are more likely to purchase a home the next year — precisely because of the coronavirus. Among the top motivations:
Taking advantage of record-low mortgage rates (67%).
Ability to save a larger down payment due to reduced spending (32%).
See more in the chart below.
California Association of Realtors 2020 President Jeanne Radsick recently addressed the impacts of the public health crisis on the real estate market:
As expected, California home sales experienced the worst month-to-month sales decline in more than four decades as the coronavirus pandemic kept both buyers and sellers on the sidelines. While some economic activity will resume as the state gradually reopens, the housing market is expected to remain sluggish for the next couple of months.
Thinking about buying a house or refinancing one you already own? Short-term and long-term interest rates have hit all-time lows. According to Freddie Mac, the weekly average on a 30-year mortgage was 3.23% on April 30. The same rate was at 4.94% as recently as November 2018.
There’s always a lag of about 3 to 6+ weeks between a new listing coming to market, an offer being negotiated and accepted, and the close of sale. This means almost all the data we have as of the first week of April still reflects the market before the shelter-in-place rules went into effect. And in virtually all Bay Area counties, median sale prices were actually quite strong in March.
The spring selling season is usually the most active of the year and, typically, the standard market indicators - new listings coming on market, total listings for sale, listings going into contract, sales closing escrow - all climb steadily from March to June.
As you might expect, all of these standard indicators have seen very significant declines during the shelter in place. At the same time, the number of listings pulled off the market has spiked. That said, even though inventory is down, listings continue to go into contract.
– The Geek
Around the Bay Area, many homes have been pulled off the market due to the COVID-19 crisis. But the sellers who are still out there desperately need to find buyers, which means you could get a great deal if you’re ready to act now!
– The Geek
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