CAR’s consumer buyers believe it is a perfect time to buy a home in Northern California. California’s market is expected to deteriorate over the coming months. Shelter-in-place orders have slowed the real estate industry to a crawl. Ongoing job losses could lead to fewer home sales. The lockdown continues its devastation on the California economy, making the need for action from the California government so important. Californians are currently struggling with the pressure of unemployment, and this may loosen up houses for sale over the next three months. Yet home sellers won’t have to sell at a big loss. Despite the most devastating economic decline, house prices are still holding.
The April sales data for the California housing market shows sales and listings down strongly with home prices remaining about the same as at last month. As business opens up, more housing stock will be listed, and prices may come down boosting supply which naturally eases asks prices.
Home prices in Northern California are very high, given the sad state of the California economy at present. The upward price trend is much steeper than experts would expect. Sales were at their lowest since 2008. April’s homes sold totaled 277,440 units which are well down from March’s numbers. CAR noted that the Bay area suffered a particularly steep decline, down 37.4%. Pending sales due to the stay at home plummeted 43%. Home showings dropped steeply in Mid-March, and while they are increasing, they are still well less than April 2019 numbers. California home prices declined very slightly.
NEW UPDATE FOR CORONAVIRUS PERIOD
Consumer confidence has suffered a deep drop during this pandemic. Still, if the return to work goes well, we should enjoy a steady return of the Northern California housing market in the remainder of the year. The number of homes sold across Northern California fell sharply in May as the coronavirus outbreak put a hold on the region’s housing market. Unemployment is the heaviest weight, and perhaps, it eliminates new young buyers from the market. Sellers are fast withdrawing homes and buyers backing out of deals this period.
FORECASTS FOR HOME PRICES IN NORTHERN CALIFORNIA
Zillow reported in its latest release that home prices are expected to fall slightly in Northern California for the rest of the year. However, that is not dampening the spirits of hopeful buyers in Northern California.
CALIFORNIA HOUSING MARKET UPDATE
CAR’s California housing market statistics noted that demand was strong and that might tell us that when the pandemic is over, California’s markets will come alive again. As the coronavirus pandemic worsens, the housing market prices are expected to decline precipitously in Northern California in the coming months. Closed sales saw the biggest drop since the last recession and Plunge in pending sales suggests a further decline in closed sales. The real story of Northern California’s housing market is a persistent lack of supply, something that may never be remedied. This means overall home prices and perhaps rent prices might flash up later in 2020 and this is despite recent high home construction numbers.