July 2nd marked the half-way point for the 2020 real estate year. As we know, the selling season was put on hold March through April and in the five regions of California; Los Angeles Metro Area, Central Coast, Central Valley, Inland Empire, and the San Francisco Bay Area, sales were down in the range of 46.4% to 51.1%. It’s interesting to note that all areas were down roughly the same.
The rebound began in May within NAR reporting that pending home sales had surged 44.3 percent in May. That is the biggest month to month surge since they started reporting this stat in January of 2001.
Pent-up demand, low-interest rates, lack of new construction, coupled with the knowledge that many buyers can now work remotely, are changing the outlook for the real estate market. According to CAR showing activity was 56.2% above the same period last year at the end of May.
Weekly mortgage rates ticked down but are still higher than a year ago. Rates may become more volatile as we move through the ongoing outbreaks of COVID and the stock markets reacts. NAR revised the latest forecast of existing home sales being off 7.7% in 2020 to a more optimistic 10.7% projected in late May. Both sales and prices are projected to increase in 2021.
The one thing that has become clear through the last few months is our ability to reinvent, optimize our potential, and think out of the box about all aspects of our everyday lives. Our ability to work from home and the need for “home” has never been more important. Our homes are a reflection of who we are, what we care about, and family. This will continue to drive the market across all price categories. If people can work remotely, the need for the city will change as buyers move away from those environments to safeguard themselves and their families from more SIP orders.
A quick snapshot of the market in our area provided by CAR.
As always, your goals are my highest priority. Let me help with the strategic decisions regarding your real estate goals. I have 30 years as a buyer/seller advocate in Sonoma Count.
I consider this area a magical place to call home. Let me show you the possibilities.