No doubt there are plenty of concerns about the housing market given the challenges we are confronted with, given the coronavirus and the Shelter in Place order here in California (and in multiple other states as well).
Unemployment has all of a sudden risen dramatically, and the stock market has been particularly volatile. Businesses are closed, and many workers have been layed off or likely will be.
BUT we also just heard about the new CARES Act passed into law this week (just one of many sites reporting on this, and no doubt more clarification will be forthcoming).
NOTE: by the way, if you own a home you might want to check with your lender, as a number of them are now offering a 90-day forbearance on loan payments for those suffering a hardship at this time. My understanding is there will be no late charges and no dings to your credit. Find out what the terms and conditions are for your loan and what you need to do.
Homes are still coming on the market, and selling. In Carlsbad, for example, we have 254 homes on the market (up 15% from the end of February), with 126 homes listed this month plus another 48 that were listed and have already gone pending. We are also, not surprisingly, seeing some homes being withdrawn – 26 since the beginning of the month, although not all listings are withdrawn due to Covid-19, and some don’t state the reason.
The manner in which real estate is taking place has shifted, and will likely continue to change – we are now seeing lots of virtual showings and open houses, and plenty of requested precautions (masks, gloves, sanitizing, wipes, and of course social distancing) as strongly recommended by the CDC, just some examples of the “new normal.”
We are hearing more about a recession coming our way, and some even say we are in one now. Given what happened in the Great Recession, I’ve had a number of people asking about the housing market and what we can expect going forward – those thinking about buying, those who want to sell, and homeowners who just are concerned about their investment, among other issues.
Some of that, of course, is unknown, as we do not know how long current conditions will last, or will they worsen before getting better. But there is some positive information about economic conditions now versus back in 2006 – 2008. This short video, with 5 simple graphs, will help explain how things are different in today’s market.
If you would like to talk about the market, and any concerns or questions that you have, please let me know. I will continue to share information that I believe will help you as things move forward and am happy to talk at any time.
I don’t have a crystal ball, unfortunately, and no one knows for sure what will happen as this challenging time continues to unfold and impact us all in a variety of way. But I will share what I see happening in the market, as well as what the real estate experts and economists believe will likely take place going forward.