The Coronavirus has massively impacted our economy and sadly as a result, millions of Americans have lost their jobs, businesses and for many, dreams have slipped away. Surprisingly, against all common sense, the exact opposite is happening nationwide in the real estate market. Home sales are up over 30% in some markets and home values are on a sharp upward trajectory! But how is this possible?
Three big factors:
1) We are seeing the lowest interest rates in US history averaging under 3%. While home prices have risen for 97 consecutive months, July’s and August's record-low mortgage rates have made purchasing the average-priced home the most affordable it’s been since 2016.
2) There just aren't enough homes for sale. Inventory is scarce and the demand is high. Homes are receiving multiple offers within the first 10 days if priced well.
3) A migration of buyers from high-density to lower density urban areas.
There is no doubt that the real estate market is hot right now. Depending on how long the coronavirus will last, the real estate market may just be the driving factor in pulling our crashing economy out of a recession.
It's a great time to buy and sell right now for move-up buyers or empty nesters wanting to downsize. If you are thinking about selling your own home or hiring an agent to help you sell, then you'll want to know about our 27 Quick Tips to Sell Your Home Fast and for Top Dollar.
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Steven and Jeanette
Median House Sales Prices - Short-Term & Long-Term Trends
Supply & Demand
Active listings on market, new listings, listings accepting offers, closed sales volume
Inventory is not keeping up with demand, putting increasing pressure on the market (and prices)
Bay Area Markets Comparison
This table ranks each county by the percentage of active listings going into contract in June/July 2020 - a standard statistic of market heat - compares it to the same period of last year, and then rates the scale of the year-over-year change.
Many counties are seeing dramatically increased demand over last year, with Sonoma seeing one of the greatest jumps. One reason why its June/July 2020 percentage-of-listings-accepting-offers is lower than some other counties is its respectively very high inventory of very expensive home and estate listings for sale (see "by price segment" chart above). These listings, on average, take much longer to sell due to the much smaller pool of prospective buyers. This is the case despite the enormous, recent surge in demand for such homes in Sonoma County.
Need a loan or want to refinance?
Stuart's got you covered. Today's interest rates are at an all-time record low again. In some cases, rates are 2% less than what they were in 2018 at 3% for a 30 year fixed rate. If your current interest rate is 4% or greater, this could save you thousands of dollars a year. Or, if you want to purchase your first home or sell and buy, now is a great time to secure an affordable loan. Stuart's got you covered with all your real estate financing needs.
We Have the Buyers and Sellers
We have buyers and sellers all over the Bay Area. If you are thinking about buying or selling, give us a call. Your current home may already be sold or future home may already be found.
You can always call or text us at (707) 328-9766
