The Impact of COVID-19 and The Real Estate Market
The Impact of COVID-19 and The Real estate Market
It has almost been a year since the COVID-19 pandemic changed the way that we view normal. In California it continues to affect our daily lives and impact many industries with the real estate market being no exception. There are still positives to look at as we come closer to reopening the state and adjusting to our new normal.
Mortgages rates are predicted to stay low, and the Federal Reserve may even consider more reductions in the future in an attempt to balance out the negative impact that COVID-19 has had on the market. If this continues as predicted, housing should become more affordable with strong long term prospects. The current seller’s market does place power in the hands of the sellers and buyers have to act quickly if they want a chance at securing a new home. This sudden demand in housing is stemming from uncertainty in what the future holds after the pandemic settles more.
In California in particular, viewing the impacts of COVID-19 and the real estate market trends makes apparent a decrease in the demand for luxury homes. As people’s financial situations continue to bounce due to the massive halt in many industries. The entertainment, hospitality, and transportation industries alone account for hundreds of thousands of jobs lost or negatively affected by the pandemic. With financial strain, these buyers are less likely to spring for a larger and consequently more expensive home. However, for buyers who watch the market closely, it is possible that there could be a turn in the price for high end properties, making them more within reach.
Although there are positives when it comes to homes that are already built, one of the biggest hits of the pandemic comes with the stop to construction projects around the state. Affordable housing as well as low-income housing was set to be expanded throughout many counties. With construction stopping and the housing market having a lack of available homes, it should be no surprise to see that more families are moving out of state, primarily to Texas and Arizona. Not only are these states “open” but they are offering more of what families are looking for after the disruption of the pandemic; space, access to the outdoors, and quieter neighborhoods.
Now that vaccines are entering the market, more people are able to find comfort in seeing the light at the end of this dark tunnel that as a community, country, and world we have entered simultaneously. The housing market is and will continue to be a valuable source of information for people as we move forward. If you are looking for a home in Westlake or are looking for a realtor in Simi Valley, know that with us you are in good hands.
