Back in April, NBC 7 reported the coronavirus had hit the local housing market in San Diego. Listings plummeted and homes on the market were taking longer to sell. Fast forward to today, realtors say inventory is still low, but homes on the market are selling extremely fast.
According to CoreLogic data, last month’s home prices in San Diego County blew past previous records to hit an all-time high of $634,000, which is a 9% price increase over the year before. “Within a day, I will get a bunch of calls. Within two or three days you’ll get people who are putting in offers,” a local realtor said.
Despite high unemployment and a global pandemic, home prices continue to climb due to historically low-interest rates and low inventory. Earlier this month, mortgage rates dropped below 3% for a 30-year-fixed rate mortgage, the first time in nearly 50 years. Last year, you were seeing that balance where you had that 30 days on the markets, which is more typical. Now, you are seeing multiple offers where its taking 3 or 4 days.
There are other reasons for the scarcity of homes on the market. Some people think selling now could expose them to COVID-19 by letting people into their homes. Plus, buyers are seeing increased value in homeownership as they are stuck working and taking classes from home. You have those that are sitting in their homes and saying this is a little more cramped for me. I have to stay here for I don’t know how long of a time. We need more space to work, more space to move around.
Across the six-county Southern California region, The biggest gain was in San Bernardino County. But this real estate trend is being seen nationwide. The Commerce Department recently reported that construction of new U-S. homes surged nearly 23% in July as homebuilders bounced back after a coronavirus lull.