Before the effects of the COVID-19 virus, the U.S. economy was at its highest in history and the Bay Area economy was ahead of the country in terms of job growth and unemployment. Mortgage rates were and continue to be attractive to buyers, while citywide property values were, as of a few weeks ago, at an all-time high. Typically, the spring selling season is the most active of the year when you can find our team working nonstop, meeting with clients, prepping properties for sale and doing back-to-back showings. But for now, we’re working from the safety of our own homes carving a path for the future, feeling grateful for video conferencing and being able to have family study hall. We are continuing to monitor the market, which, as you can expect, has changed rapidly over the past 4 weeks. With this ever-changing landscape and the impact of this unfolding situation not yet statistically tangible, it’s difficult to determine exactly where the market will be once we all return to some sense of normalcy. However, we are sure of the following:
• The U.S. economy is uncertain, but historically the Bay Area economy trends ahead of the country in terms of job growth and unemployment.
• Citywide property values have increased over the long term, however, trends in current property values due to COVID-19 have not yet been established.
• Mortgage interest rates remain low causing housing to be more affordable and more accessible.
• Up to 36% of current listings (and increasing) have been placed on hold or cancelled during this uncertain period but remain available for sale. We expect that most of these listings will come back on the market once we can show property.
• Many buyers believe they can get a “deal” in this environment and are therefore continuing their housing searches, in some cases more aggressively than before.
• A collaborative and realistic relationship with your agent will be even more vital to achieving the highest possible price for your home.
While everyone is hunkering down, it is important to keep in mind that the economy will mend and the real estate market will resume. The nature of cycles is to keep turning and we are here to help as we navigate this evolving real estate landscape.
Please don’t hesitate to reach out with any questions. Stay safe and be well.