Here in California, it’s been a strange and bumpy few months in housing. At the beginning of the year, we were churning along with a lot of activity and rising home prices, looking like our housing momentum was continuing. Then came COVID-19 and our state locked down, throwing housing into a bit of a limbo as people took their homes off the market.
Here in Stockton, some of us remembered the great recession when our housing market became devastated and Stockton eventually was forced into bankruptcy. Those were dark times and we didn’t want to go back.
But it seems as if things have taken a turn for the better in housing. When we were forced into lockdown, we were also forced to learn how to adapt to different conditions. And we now look stronger for it.
The California Association of Realtors reported in July that home sales had risen by a huge 42% from the May to June 2020 time. This tells us that, despite the pandemic, there is still huge demand for homes here. In fact, real estate remains a “bright spot” in the economy right now, according to Frank Martell, CEO of CoreLogic, a housing analytics company.
Add to that our current historic mortgage rates and we may have an optimistic future awaiting housing in California.
Home Prices
Into 2021, we hope to see a continuation in home prices. According to Zillow, the median home value in the state has risen by 4.4% over the past year. Although this may stall temporarily in some cities, it seems conceivable that prices will return to an upward trend in the coming year.
Shift Back to Suburban Areas
According to Redfin, there is now a shift to suburbia from the crowds of urban areas, otherwise known today as “urban flight.” According to Navy Federal Credit Union economist Robert Frick, “The numbers also verify that many people are leaving, or planning to leave, big cities as telecommuting becomes the norm for many businesses.”
Additional Inventory
Right now, many places in California are suffering from a home shortage due to many sellers taking their homes off the market during the early days of COVID-19. But there seems to be a shift in that mindset with consumers now feeling it’s a good time to sell, according to the California Association of Realtors. And homeowners who have wanted to sell are now feeling, with the right precautions, it is now safe to do so.
Mortgage Interest Rates
Don Burns, President of H.O.M.E. Lending in Stockton shared, “There’s no bigger bright spot compelling people to get out and buy than today’s historic mortgage interest rates that are expected to stay very low for the foreseeable future. With the Federal Reserve’s commitment to keeping rates low, more people are considering buying if they are financially able to do so.“
Buying a Home in Stockton with H.O.M.E. Lending
In June, when Governor Newsom began to ease virus restrictions, we saw a large uptick in home sales. We hope for another gradual reopening, leading to an additional shot of adrenaline for our home sales here in California.
If you are considering purchasing a home right now, interest rates are a compelling reason to do so. At H.O.M.E. Lending, their licensed Stockton mortgage brokers are here to answer any questions about mortgage lending you may have. Call them at (209) 477-0262 for professional advice or a prequalification.
