The state of California has affected every area of life in California due to the pandemic, and real estate is no different. Some may assume property prices will be cheap because of the epidemic, but in fact, you’re completely wrong.
As the housing market saw the full effects of the coronavirus outbreak in May, sales in California slumped to the lowest level since the Great Recession.
In the past several months, it’s been the same narrative. The median price of $610,000 established a new record in September for Southern California. Even while mortgage rates have been low, borrowers who have the necessary funds are more willing to acquire a new house.
In terms of what would happen in 2020 if sales maintained their May pace, the statewide annualized sales figure shows would be the total number of houses sold over the year. It takes into consideration seasonal influences that frequently affect the number of homes sold.
Predictions that there would be a large increase in property purchasing chances for sellers who want to move on with their deals in June, July, and August. Despite this, new home sales have yet to return to prior-year levels. It’s probable that overall house sales have fallen from April because of the high “stay-at-home” orders around the state.
The coronavirus does more than simply affect the price of a home; it is also influencing people’s valuations of the living environment they move into.
The entire economy will affect the real estate market in a big way since it does so with all other markets. The lifting of stay-at-home regulations could provide us the opportunity to try to save what remains of 2020.
What effect did the coronavirus have on the property market
This pending home sales reduction was attributed to stay-at-home orders put in place by both buyers and sellers. While the median price in California has remained north of $600,000 for the second consecutive month, house sales took a large hit in April due to the full impact of COVID19.
Single-family detached home sales decreased by 25.6% in April 2020 as compared to March, and a further 30% in relation to April 2019. That prevented house sales from declining at the levels seen during the economic downturn, and overall sales increased as a result. This year-to-year decline was the biggest since 1979, demonstrating the effect that the COVID-19 has had on the Los Angeles and California Housing Industry and on the California Property Markets.
Searching for an apartment in California
A piece of excellent news! Most people were searching for ways to clean their house and set up a home office rather than apartment searching in mid-March, according to Google Analytics data. Looking at the data from before the pandemic, it appears that real estate investors saw April as the time to intensify their search for apartments, which shows them to be optimistic about the housing market and encourages others to begin moving as well.
Although searching for apartments drops in March, the bounce-back and realignment of consumer’s apartment searches coincide with the seasonal norms, leading us to believe that the dread and gloom might be lifting. The number continues to rise! It’s a great time to find a new home because the costs are going down.
The initial spread of the COVID-19 epidemic came to a halt with the Orange County housing market collapse. Between March 15 and the end of the month, new house sales dropped from a weekly average of over 100 to only nine purchases. Employment in Orange County will have fallen by 260,000 people by April of 2020 if the economy remains stagnant. To brace for a lengthy slowdown in the real estate industry, some home builders exited land agreements and laid off personnel.
This also happened: After that, the housing market saw a strong comeback. The majority of the employment losses in Orange County were found to be short-term and focused on renters rather than house buyers. The number of new homes sold weekly rose again in September 2020 to 100. Roughly 21% of the new home community count in Orange County fell each year over year in 2017 due to projects selling out faster than expected. In order to restock their project pipelines, home builders compete for land transactions.
Overall, market renters decreased in 2020 due to the onset of the Coronavirus Pandemic, however, as of this year 2021, and the vaccines are already rolled out not just in the US but all over the globe, industries together with the real estate is becoming strong again.
According to Zumper’s website, the national 1-bedroom median rent remained flat at $1224, while the 2-bedroom median increased 0.3% to $1491. In year-to-date terms, the 1-bedroom median was up 0.6% and the 2-bedroom median was up 2.1%.
To know more about your local county, visit the Zumper website and check your local county.