It is now June and as the meme accounts and internet jokes abound about how May was the longest year in 2020. Each month March, April, and May were packed with change, new challenges, and information.
What would you have told yourself in January when you were making your 2020 plans if you had known that the coronavirus, economic impacts, and stay-at-home orders would happen? Would you have moved in January or sold your home in February? Would you have taken a trip or gone camping? Many of us feel like we have things we would have done if we knew what was ahead. Sadly, hindsight is 20-20 and the “what I would have told myself” doesn’t let us rewrite the past, but make different decisions for the future.
Real Estate in Summer 2020
Hot summer days and a hotter real estate market might be ahead for Southern Californians in 2020. Why? Pent up home buyer demand and many sellers are tired of waiting for conditions to improve to list their homes. Homeowners who are frustrated with their living situation, location, or the state are taking the opportunity to move. When COVID-19 lockdowns began, many economists were puzzled because we do not have any precedent or historic event to refer to. How will the spike in unemployment affect the housing market? How will consumer sentiment affect the housing market? How will wearing masks and the regulations on cleaning listings affect the housing market?
Home Values during Coronavirus: Data and Statistics
REALTOR.com reported that, “Even with the pandemic raging, a battered economy, and the highest unemployment since the Great Depression, median home list prices still jumped up 3.1% year over year last week, according to the most recent realtor.com® data of the seven days ending May 23.”*
In another article, CNBC said, “Record low mortgage rates, combined with strong pent-up demand from before the pandemic and a new desire to leave urban downtowns due to the pandemic, are driving buyers back to the single-family home market.”**.
Realtor.com said that in the first two weeks of March 2020, homes were selling 4x as fast as they were in 2019. Four times as fast year-to-year demonstrates that home buyers had strong motivation in the beginning of March. Those that pressed “pause” on their home buying search during COVID might return in droves to search Zillow, text their agent about that house around the corner, and test out payments with mortgage calculators.
What are your summer plans? Did you hit pause in March and now you are thinking about pressing go this summer?