What impact has 2020 had on our housing here in California? All in all, it looks like it may have had a positive impact. Despite all our current economic strangeness of the moment, historically low-interest rates seem to have propelled home buyers and homeowners alike to take advantage of rates that are extremely appealing right now.
Not to say that we weren’t negatively impacted initially by the recent pandemic from a housing perspective. In May, our housing market suffered its worst month in 13 years. Fortunately, housing sales are back up by 42.4 percent from May with home prices following suit.
March’s Wait and See Approach
In March, new home sales declined with many buyers and sellers taking a wait and see approach, adding to temporary company closures, furloughs, and unemployment. Many sellers delayed listing their homes and buyers were faced with weaker financial positions to approach mortgage approvals.
May’s Doom and Gloom
According to the California Association of Realtors®, California home sales fell to its lowest since the great recession in May, with both demand and prices taking a dip. This was the first time home prices fell from the previous years since February of 2012.
Today Things are Looking Brighter
Fast forward to today. Thanks to the Federal Reserve's initial reductions to corporate lending rates, we have seen two historic mortgage rate drops over the past couple months. Now, that housing slump is showing a turnaround with some real estate agents even saying they are seeing bidding wars due to the low inventory and incredibly cheap mortgage rates.
Listings Have Risen
Although sellers pulled their homes from the market this past spring, listings have now continued to rise since April though some areas of California still saw listings at 26 percent drops from last year’s figures. While the unemployment rate continues to fall, there are still those who are suffering financially with temporary lay-offs and furloughs.
The Perfect Time for Those with the Financial Means
But even those who have the financial means to buy a home are hitting another road bump: inventory. Unsold inventory has dropped, and prices have increased. Consequently, buyers have less to choose from.
Andrew Pence with Granite West Funding shared, "The bright horizon of cheap rates keeps them going. Low-interest rates are the fuel behind optimism for buyers right now. Equally, sellers are finding that it’s a good time to be a seller in our current landscape, some getting full price or more for their homes."
Buying a Home in Oakhurst with Granite West Funding
If you are considering buying or refinancing your home in California right now, Granite West Funding's current rates should be a great incentive. If you are in a good financial position with solid employment, this may be the time to move, lock in your rate, and shop for a new home with confidence.
At Granite West Funding, they would be glad to help by getting you pre-qualified so you can get your future back on track. Call them today at (559) 540-2275.