Like many domestic and foreign markets worldwide, the United States housing market reaped the consequences of economic and social changes caused by the novel coronavirus (COVID-19) pandemic. The real estate market in California, specifically, experienced turns and twists in 2020. When the year began, local markets across California were highly active with loads of competition. The prices of homes were rising for the most part, and at the time, it seemed the real estate market in California would have a solid year. While the year hasn’t been as solid as once predicted, California’s real estate market has experienced success, a decline, and resilience.
A Pandemic-Driven Decline
Wildfires across the northern part of California, a housing shortage, and a recession plagued the real estate market. Subsequently, the COVID-19 pandemic exacerbated expensive home prices.
When the Golden State transitioned into lockdown mode in late March in response to the virus’ outbreak across the state and the West Coast, home sales plummeted. Unsure of how much damage the coronavirus would cause and what was in store for the United States economy, many sellers removed their homes from the market, and those in search of a new home stopped shopping and closing on deals.
The market was able to begin rebounding as the mortgage and real estate industries learned to adapt to closures of physical businesses, stay-at-home orders, and curfews by implementing digital workflows that don’t need in-person contact. Such changes encouraged resilience and growth.
What is the current state of the real estate market?
Down since this past March, low-interest rates on homes may have also attracted buyers, which could have prevented the real estate market from destruction among this ongoing pandemic. While current sales are still lower than those from earlier this year, they’ve increased sharply since this past spring when the state enacted stay-at-home orders that almost froze the market.
According to reports in July from the California Association of Realtors (CAR), home sales throughout California had a significant increase of 42 percent from May to June, most likely caused by the state’s gradual reopening during that time. June saw house sales across the Southern California area’s six counties, specific, increase by approximately 43.5 percent from May sales. Additionally, this region’s median sale price—the point at which 50 percent of the homes on the market sold for more and the other 50 percent for less—rose almost three percent to $555,500, a record high.
Real estate market and mortgage industry experts predict that, for the most part, the California housing market will remain favorable in 2021 even with any after-effects of the coronavirus pandemic. Specifically, the predictions are that there will still be low mortgage rates and increased house prices.
Buying a Home in California
The real estate market can be consistent, but considering the changes it may experience, primarily because of the coronavirus and the economy of specific regions in California, homeowners may search for alternative ways to sell their homes, just as home seekers might look for other ways to make a purchase.
One option for people who intend to sell their homes is to do so without a real estate agent’s help. For example, California homeowners living in Sacramento may put the keywords “sell my house fast Sacramento” into a search bar to explore the ways of selling their home without relying on the market or an agent.
Selling a home through Sell Quick California is a solution for homeowners to make a quick, appropriate sale. Using this reputable company’s services to sell one home and purchase or rent another doesn’t require property owners to pay l costs, a real estate agent’s commission, and other expensive fees. With Sell Quick California, homeowners receive an immediate, appropriate cash offer, whether their home needs repairs or renovation at the time of the sale. This company’s decision to buy and sell homes in as-is condition is an essential one that can be beneficial in a market that could continuously change as the world continues feeling the coronavirus’s impact.