The year kicked off with different effects that had a significant impact on San Francisco’s economy, especially in the real estate sector. House sellers around the first two months of the year, gained massively from the Real Estate business in San Jose as few inventories were being listed, and the some available houses were on high demand.
This went on for the first quarter of the year until the Government, due to the pandemic, made the shelter-in-place order. This shelter in place heralded a new phase as sellers were now beginning to lose their clients. The number of buyers reduced considerably because everyone had to stay at home. Apart from this, it became almost impossible for buyers and agents to inspect buildings, making the market price to reduce drastically around April.
THE FACTS AND FIGURES
In April, the sales of a single home dropped as low as 35.8% and inventory by 39.6%. The median sales price, when compared to last year, also dropped by 3.2%. The price became lower in May when it dropped to 51.6% when compared to the previous year.
San Jose is part of Silicon Valley, and it is the third-largest city in California. It boasts having the wealthiest of workers and the highest cost of living; hence, it has the most expensive houses. This implies that real estate businesses have been experiencing a boom in this area and sellers, making quite a lot of profits from houses in this location.
Although there are several news daily about California and its environs that would have discouraged families and workers from settling in the state, people are still getting interested in migrating into San Jose and its environs, irrespective of the political and immigration issues associated with the area.
The median prices, active listings, and the sales-to-list price dropped considerably this year compared with last year. According to the market analysis, the last time the figures experienced an all-time high was in May 2018. Since that time, the market prices and listings reduced became flattened and then reduced again in 2020, due to the pandemic.
Although the reduction in prices is evident and buyers now have the upper edge, this might be the best time for investors to consider putting their money in real estate business in locations like San Jose. Right now, the prices are in favor of the buyers because of the rapid decline of interested buyers, and the ratio of houses listed to those ready to buy keeps increasing per day.
According to a careful analysis of over a decade of price fluctuation, the price is likely to experience an all-time high again. The exact time that this will happen is uncertain, but because of the location of San Jose as well as the kind of business in and around the area, housing prices can only go low for a while, it will eventually rise.
Buyers and investors can make use of this opportunity to secure as much property as they can during the period of this pandemic and even after it. The market might remain flat for some time, but eventually, the tide will change.