Real Estate Market Recovery

With nationwide lockdowns beginning to lift, buyers and sellers who took a pause during the COVID-19 pandemic are starting to venture out into what used to be the hot summer home-buying market.

The economy and the housing market continue to see signs of improvement—particularly in terms of buyer demand. The labor market impacts continue to shrink while mortgage applications and showing appointments continue to improve. More REALTORS® are closing deals and helping their clients to purchase homes.

Real Estate Market Recovery

Nationwide unemployment claims since the start of the pandemic in mid-March exceed 40 million, representing around 25 percent of American workers. California lost 2.3 million jobs in April alone, 76 percent more jobs than the state lost during the entire Great Recession, pushing the statewide unemployment rate to 15.5 percent for April. Even so, things appear to be slowing down, with new claims falling to their lowest levels since the pandemic began.

Here in California, we are facing a $54.3 billion budget deficit, Governor Newsom revised the state’s budget, calling for $14 billion in spending cuts unless the federal government sends further assistance. State legislators have pushed back, rejecting most of the governor’s cuts to healthcare and education in favor of drawing from reserves and delaying payments to schools

Buyer demand continues to rise, home showings have improved dramatically from mid-April, and fewer REALTORS® are reporting having experienced buyers or sellers backing out of transactions. Mortgage applications are rebounding faster than experts predicted — up 54 percent since April. Still, even with these positive signs, it’s important to remember the toll of the pandemic is unprecedented and full recovery will likely take a long time.

As unemployment rose, consumer spending plummeted by 13.6 percent in April. But the Conference Board’s consumer confidence index did show a slight uptick in May. This indicates that while consumers are still pessimistic, they are a little less so than they used to be — a sign the economy is beginning to stabilize.

Thus, even as things move in the right direction, the process will be slow and we all have a lot of work to do individually and collectively before we can fully recover.

For those who were getting ready to list a home for sale, that pause gave them a little extra time to ensure properties look their best.

To get the best price and attract the most buyers, give your home a fresh, modern and move-in ready look.

++++++++++++++++++++++++++

www.brokerforyou.com *** This 21 year old San Diego real estate is for sale! Also, aged real estate sites in many California cities are for sale.

brokerforyou.com traffic

++++++++++++++++++++++++++

Visit our Youtube San Diego real estate channel

Sharing is caring!