Is This the Right Time to Buy a Property in the Golden State?April 16th, 2021 by Administrator
COVID-19, a devasting pandemic that impacted many areas of lives, also influenced the real estate market in 2020. With the lockdown and quarantine orders, many people lost their jobs. This highly affected the housing market. Many people were unable to keep up with the mortgage payments or pay their rent.
Even with all the difficulties, the real estate market found its way to adapt and continue with a shifting market. In these days of numerous proposals and bidding wars, the chances of getting a real estate transaction across the finish line have become challenging.
Current Situation of California Real Estate Market
Compared to other states, the mortgage rates of California have always been higher. That’s because many people prefer to move to cities like Los Angeles.
Property prices are increasing at a rapid rate. They are up more than 11% from a year ago. The price increases are more at the lower end of the market. In addition, there is a rise in mortgage rates as well. However, this is not affecting homebuyers’ demand that much.
In 2021, California witnessed its biggest increase in real estate sales and pricing in 17 years. The year-to-percentage of property sales in the Golden State have reached almost 16% in February.
How is the Pandemic Affecting California’s Real Estate Market?
California had to go through the same phase as the other states. Real estate agents had to cancel open houses. Because of this, the buyer interest went down. Many potential buyers backed out from purchasing new homes because of the pandemic.
However, technology helped real estate brokers get sellers and buyers. There were virtual open houses, and this was because real estate transactions, including home purchases, were allowed to take place despite the pandemic.
Although the pandemic did affect California’s real estate market for a while, it quickly recovered months after the pandemic began. Eventually, there was a strong housing demand within the state.
Is this the Right Time to Buy a Property in California?
It is a good time to look for a property in California, but you should take the decision according to your financial situation and priorities. Know that mortgage rates are rising, so you need to be careful when house shopping.
Treat the housing marketing like you did during the pre-pandemic periods. In a few months, the mortgage rate may rise a bit more.
If you’re looking to buy a property, the best time to buy a house is during the first few months of the year. That’s because, around June, the number of house listings is considerably high. If you fail to get a property during the beginning of the year (Jan-May), you may have to try again in the winter months. Many sellers are in a hurry to sell their homes during this period. So, there are high chances of getting good discounts.
Cities like Los Angeles have costly real-estate properties because these are highly commercialized areas. If you’re on a budget, consider cities in the San Fernando Valley.
The Bottom Line
If it’s your first time buying a property, take your time and research house prices in a particular area. In order to make things easier, consider working with a professional real estate broker.