Welcome back to the Bobbi Decker real estate blog! Our market update this week dives a bit into the topic we have all wondered about… the impact of the pandemic on housing prices. While no one wants to focus on ‘doom and gloom’, the reality is that it would be impossible to endure a global health crisis of this magnitude without an impact on our local, national and international real estate markets. And while the impact will no doubt be measurable, the analogy by experts has been likened more to a speed bump than a roadblock.
In fact, the latest market stats which reflect housing prices in March still indicate home price increases. While COVID-19 had already emerged in our state by the beginning of the month, the shelter-in-place did not take effect until mid-month, so April housing data will be a notable trend to follow.
For March, Bay Area home prices rose 11% from the previous month and were 7.4% higher than this time last year (data courtesy of the SF Chronicle). San Mateo County home prices rose 11% as well to a median home price of $1,750,000 (data courtesy of SAMCAR). In Santa Clara County, median home prices increased 5.3% to $1,4000,000 (data courtesy of SCCAOR).
While final April figures will not be complete until month-end, Realtor.com reports that median home prices rose ) 0.3% in the 100 largest real estate markets across the US during the week ending on April 18th. Realtor.com Senior Economist George Ratiu has stated that “We’re seeing prices slow down. They haven’t dropped, but they have slowed down significantly.”
Before you head into dark territory, lets look at the facts that remind us that this is NOT 2008. The Boston Globe is just one of many sources that has pointed out the differences between the times we are in and the time that we are quick to compare it to. Primarily, the cause of the market movements today is not the housing market itself. In 2008, there was a surplus of inventory, an overproduction in new construction and extremely loose reigns in lending. While unemployment levels are no doubt a concern, the projection is that many of these positions will be restored when businesses beyond those deemed essential will resume. How many jobs and in what time frame they will be established remains to be seen, but the resilience, innovation and collaboration of Silicon valley will no doubt serve as advantages.
Please let us know if you have any questions about how the current market may impact your short-and long-term real estate goals. We cannot change the market, but we can help empower you to navigate the circumstances within it.
All our best,
Bobbi & Team
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