Who has had to turn off the news, close out social media apps, and step away from the constant stream of information & videos on our phones and TVs? We can all admit to being sucked into a Facebook or Instagram vortex or checking the news lying in bed.
With many states reversing reopenings after a surge of coronavirus cases, you might be wondering: how does this affect real estate?
If there were a Real Estate 101 class, the syllabus might state: Location, Location, Location. The subheading would be Local, Local, Local.
Real estate is local. Trying to compare real estate trends in San Francisco to San Bernardino, or trends in San Diego compared to San Dimas, will not give you an accurate prediction. Home styles are different. Demographics and commuting patterns are different. Price points are different.
Local Real Estate Market
How is our local market doing? Here are a few trends for our local markets:
Months of Inventory for June 2020:
4 months [but Covina, Upland, and Claremont have only 2 months]
9 months [but Riverside City has 2 months]
What does Months of Inventory mean? It is an indicator of how much housing supply we have and how quickly the homes on the market would sell if they sold out their current rate. Translation: low months of inventory means that there is nothing on the market and/or homes are selling very quickly.
Broader Real Estate Economy
1. Mortgage interest rates for 30-year fixed-rate mortgage average 2.98% for the week ending July 16*
2. More than half of homes sold in June 2020 were a part of bidding wars**
3. “After falling to the lowest level since the Great Recession, California’s housing market rebounded in June with the largest month-to-month sales increase in nearly 40 years, while the median home price set another record high”***
This shows there are two clear opportunities for home buyers and home sellers:
Mortgage rates are UNDER 3 percent!
Housing inventory is unbelievably low which means it is a great time to sell!
Even with the second wave of COVID cases, our local real estate market is moving. The MLS is displaying record lows for number of new listings in cities like Covina and Glendora.
This year has been a marathon, but you can pace yourself and ask for help along the way. If you have questions about your mortgage, selling your house, or maybe helping your kids buy right now, then call our office at 626-609-2130.