JULY 2020
Hi friends,
Real estate has long been considered a relatively safe investment. Amidst our country’s worst economic crisis in decades, that’s more true than ever.
When California instituted stay-at-home orders in March, uncertainty ruled the day. A deluge of sellers pulled their active listings off the market. But unlike the Balboa Peninsula after Friday’s tidal surge, local homeowners have managed to stay afloat.
In fact, real estate has emerged as one of the few resilient sectors of our distressed economy. Despite a steep decline in new listings and pending sales this March, the median sale price actually rose.
Since then, more buyers and sellers have come out of the woodwork to strike a deal. Pending home sales in SoCal steadily rose every week in May and June. Nationally, pending home sales rose over 44% in May alone.
We are still not out of the woods. Sales volume is up, but it has a ways to go before reaching pre-pandemic levels.
With that in mind, and with the benefit of a few months of hindsight, here’s what we expect to come:
- Record-low mortgage rates will continue to drive demand.
- Wary sellers and the existing housing shortage will continue to limit supply.
- Therefore, home sale prices will likely continue to rise.
In short, it’s not a bad time to be in the market to buy or sell a home! We are proud to provide the same five-star service as ever to our clients while managing health and safety concerns. If you feel it’s time for a change, or if you just have questions about the market, please don’t hesitate to reach out.
Talk soon,
Andy Stavros
