Real Estate Market Begins to Bounce Back - Slowly

[PREVIEW]

View in browser

Sonoma County Real Estate Market Begins to Bounce Back - Slowly Market activity begins to tick up after severe shelter-in-place plunge. Median home sales prices are up. Interest rates hit new low. May 2020 Crisis Update ------------ Shelter-in-place caused steep drops in activity across the board in what is typically the beginning of the busy spring and summer selling seasons. However, though still far below normal levels, activity has been slowly picking up since bottoming out in late March/early April, and will presumably continue to do so with the easing of both shelter-in-place and property-showing rules. So far in 2020, year-over-year monthly median home prices have increased, but a fair proportion of the sales behind the April median sales price still reflects offers accepted prior to shelter in place. Interest rates hit a new historic low in the last week of April. Week by Week Supply & Demand Trends The best way to clearly perceive the recent changes in the market sudden plunge and the beginning of recovery, is by looking at WEEKLY trends in buyer and seller activity. These are illustrated in this first chart below. Year-over-Year Changes in Median Home Sales Prices Generally speaking, the first months of 2020 have been characterized by often substantial, year-over-year increases in median home sales prices across the Bay Area. Long-Term Trends in Median Home Prices - 12-Month Rolling Illustration Mortgage Interest Rate Four Year Trend Low-interest rates are driving strong buyer demand and with limited inventory, well-priced and desirable homes are seeing multiple offers. The 30-year interest rate is averaging 3.25%. If you have a home mortgage that has an interest rate of 4% or higher, you could save hundreds a month on your monthly payment, and refinancing your home may be a good option. Unemployment Below is a graph showing a sharp rise in unemployment. How quickly this trend can be reversed will probably be the single largest factor behind economic recovery. © Compass 2020 ¦ All Rights Reserved by Compass ¦ Made in NYC Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footage are approximate. Equal Housing Opportunity.

Want to stop receiving our emails? Unsubscribe now.