Summer is heating up, is the real estate market doing the same?
This year has been a wild ride for those looking to buy or sell their homes. From historically low interest rates early in the year to unpredictable trends due to the global pandemic, 2020 has reminded us all that life can change dramatically.
With what we know now, how are summer sales expected to shape up? Let’s look at the possible summer 2020 real estate predictions in Los Angeles.
Los Angeles Real Estate Predictions for 2020
Shutdowns due to COVID-19 have impacted economies around the world, including the local California economy and real estate market. Home sales dropped wildly through spring (a 26.6-30.9% drop) as many waited out the pandemic’s social distancing orders, but prices remained relatively high.
Moving into the summer, however, many residents are revisiting their plans to buy and sell. For those looking to get into the market, the predictions look good. The requirements and restrictions of mortgage applications are continuing to loosen, making it easier to buy a home.
As life shifts slowly back to normal, more homes are also expected to go on the market, giving buyers a bigger pool to choose from (and potentially dropping prices substantially). It may be best to act fast, though. As time goes on, more buyers will enter the market hoping to take advantage of this lull and home prices are expected to rise with the return in demand.
For sellers, the market may have been a scary place over the past few months with home sales drastically down due to COVID-19. Job loss, furlough, and business closures have put many buyers out of the market for the time being. With summer’s new promise of change and forward movement, however, buyers are encouraged to buy this summer, which may improve the chances of selling – and at a good price.
Is Now a Good Time to Buy or Sell?
If you are ready to buy, now is a great time to get into the market while demand is low. If you are ready to sell, buyers are slowly coming back, giving you better chances of making that sale. The summer is shaping up to be a safe time to buy or sell, but personal considerations should always be at the core of your decision.