What's a Coronavirus Real Estate Market Like

As the phase 2 reopening entered its second month in California, the recovery is proceeding at a cautious pace. While the rebound in the economy is uneven, the housing market continues to exhibit strength and remains one of the most promising sectors, poised to lead the economy forward. Despite home sales declining more than 30 percent in both April and May, the surge in recent market activity fueled by record low mortgage rates suggest that the market will recover some ground in the coming months. Mortgage rates continue to drop and reached all time lows with a 30 year fixed-rate mortgage average of 3.13 percent in the week ending June 18, 2020, the lowest rate in Freddie Mac survey history which dates back to 1971. Whether the sales momentum is sustainable or not depends on inventory. While new active listings have improved significantly from early April, fewer properties have been added to the market in the past few weeks and tight supply conditions are expected to continue. All major counties in Southern California recorded a decrease in housing supply of 36 percent or more compared to last year, with San Diego dropping the most at 42.7 percent. Buyers from Los Angeles, New York, Bay Area and other densely populated areas continue to invest in the housing market of San Diego county due to lifestyle, more separation from neighbors and lower percentages of COVID-19 cases. In summary this real estate market is extremely strong right now with anywhere from 2-14 offers being received on homes that have a competitive list price. I have experienced this first hand working with multiple buyers and on current listings. Buyers continue to take advantage of the low interest rates and Sellers continue to capitalize off low inventory netting them top dollar for their homes. Call me to discuss your real estate needs and questions.