These are interesting times for the housing industry, considering how it – as well as the rest of the world – was knocked off its axis by a microorganism that’s so small yet so deadly.
Mixed opinions
Experts’ opinions are mixed with regard to how businesses related to housing are faring. They sit on both sides of the situation with glass-half-full or glass-half-empty scenarios. However, both camps agree that the current real estate market volatility is all-too-real. They observe that home sellers remain in the wings, fearful to let go of their homes due to the thought that they may not be getting their money’s worth for their massive investment.
The economy reopens
Despite the risks brought by the deadly coronavirus and the apparent lack of thorough government response to the health crisis, many states are slowly reopening businesses to revive a badly bruised economy. However, there are some industries that can only operate depending on the approval of the states where they are located. Industries like real estate may be considered essential to one area but non-essential to another. Thus, the differences in how those in said industries cope with the confusing labels.
The situation at home
In the Golden State, real estate is considered an “essential service,” as stated in a March 2020 article in the National Association of Realtors’ website. Even with the overall volatility present due to uncertainties brought by the ongoing pandemic, the Bay Area housing market is still keeping its head above water.
While real estate took a hit in March and April when severe lockdowns were imposed and businesses were brought to a halt, those in the industry immediately made some adjustments to the conduct of transactions. Soon after setting up the entire home buying and selling process in the digital world and placing safety protocols in activities that required face-to-face interaction (e.g., the home inspection), it was business as usual again.
Buoyed by a resilient tech industry, homes for sale from Silicon Valley going northwest to San Francisco are eagerly being snapped up by buyers.
What lies ahead
According to a June 2020 industry report by Compass, the sudden surge of market activity in the San Francisco area in May is leading analysts to believe that real estate transactions in the next few months will be closer to the “old” normal – or even better. However, long-term forecasting will still prove to be difficult, given the continuing threat of COVID-19.
A redeeming factor comes in the form of interest rates diving to record lows. This could serve as the momentum for a more bullish outlook for the Bay Area’s housing market. As it is, the Bay Area housing market has been literally buzzing with activity even while shelter-in-place directives were still being enforced in most counties of California. Market trends show that the said market is even busier now than last year.
Don’t let the opportunity to make your own bid in a hot market such as San Francisco pass you by! Let me, Amir Hardy, help you navigate your way through San Francisco real estate by calling me at 415.602.0570 or sending an email to amir(dotted)hardy(at)compass(dotted)com.