Housing Market Update for April 20th, 2020

Real Estate

 

Gavin Newsom's address last Tuesday gave a glimmer of hope. Progress has been made in preventing the spread of COVID-19 and if progress continues, we will be able to begin re-opening businesses. This may involve "toggling" between sheltering in place and conducting business, depending on how rates of infection increase once people start going outside. A contingency of any lifting of Shelter In Place requirements will likely be businesses having a plan to keep the public safe. 

Most Bay Area counties are already requiring those over the age of 12 to wear a face covering while in public. Santa Clara County has not yet required this, but I imagine we will follow, especially if businesses are to re-open. 

Meanwhile, the housing market in Santa Clara County has continued to churn along. In the last week, there have been 179 new listings, 166 pending properties and 185 properties that closed escrow with a median sales price of $1,219,000. The activity has remained fairly consistent over the last 3 weeks. Even with this activity, I sense (as does Inman News) that there is a lot of pent-up demand that will hit the housing market once Shelter In Place is lifted, both on the buying and selling side. 

I'm receiving multiple emails a day from agents that have buyers looking for homes they can't find, because the inventory is so low. I think sellers that would have already put their homes on the market are waiting, and buyers are patiently waiting for those to come on the market. 

I think one impact of this delayed spring market is that the housing market will remain strong into the months when it usually slows down, like late July and August (depending on Shelter in Place and the overall state of the economy). 

There are still so many unknowns, but I am still seeing a lot of optimism in our local market.