Home Sales Highest In 2 1/2 Years
The California Association of Realtors has released the numbers for July, and California is looking surprisingly good. After the frightening crash-and-halt action that occurred with the advent of the Covid-19 pandemic, there was a good case to be made that the residential real estate market in California was in for a long, dark, night. However, there are more things at work here than simple bad news and fear.
One thing driving the action we’re seeing is that people still need places to live. There was a housing shortage before the pandemic, and there still is. The pandemic may be directing more buyers out of the urban areas and into suburban areas, but homes are still needed, no matter where one decides to live.
This article from the media center of the California Association of Realtors has all the numbers and does a good job of explaining what’s driving them.
“A housing market trifecta of strong pent-up demand, record-low interest rates and a renewed interest in the value of homeownership bolstered July’s home sales… With this year’s delayed start of the homebuying season due to the pandemic, we expect home sales to remain robust in August and September, extending the season later than what’s typical.”
Residential Real Estate In California Sees Highest Jump Ever Between June and July
There is an argument to be made here that some of this buying action may be somewhat overblown. In suburban areas, and especially in resort areas, we are seeing many folks who have just recently realized that it is possible for society and our usual way of life to be upended without warning. In many buyers, that has prompted a desire for somewhere away from larger population centers… in the suburbs, or in the deserts or the mountains.
However, people are also starting to realize that “this, too, shall pass”, and that the current pandemic… regardless of how horrible the final numbers on that might be… will, eventually, become part of the past. The need and desire for homes to live in, to get away to, and as investments, will not.
Residential Real Estate