Your guide to Southern California’s real estate in the time of COVID-19

Southern California continues to have lots of uniquely interesting possibilities for anyone who is involved in real estate. Let’s take quick look at what makes SoCal such a potentially lucrative real estate market to be involved in.

Stretching from San Diego all the way up to Los Angeles, Southern California boasts a huge and ever-growing population. Encompassing a variety of environments, it has everything from huge expanses of desert to snow-tipped mountain enclaves and astoundingly beautiful beaches–all within access of each other, albeit via traffic-heavy freeways.

Planning for the future

The second biggest urban population in the States, SoCal’s headcount has swelled owing to the unabated influx of migrants both from abroad and other states. Its growth may wane a little in the near future—but not over the long
term, what with the desirability of the weather as well as the lifestyle it offers to its residents.

Despite the slowdown in the market owing to COVID-19, the access to opportunities for social distancing via outdoor recreation will likely be a huge crowd-drawer.

Before COVID-19 hit, the real estate market was seeing a strong start to the year. Figures prior to the current health crisis reveal a relatively healthy California housing market, with both home sales and prices growing at a good pace.

A shift is seen

How have California real estate market trends shifted? For one thing, ever since the “stay at home” order was announced, open houses and face-to-face meetings with clients have been cancelled. Realtors are conducting virtual tours of homes for sale in Santa Monica CA and elsewhere, and have been carrying out virtual closings to protect themselves and their clients while keeping activity up in the California real estate market.

The spread of the coronavirus in the state appears to be under control and, as a result, the economy is expected to be able to recover. The $2 trillion coronavirus stimulus package may just keep the economy afloat and, with it, the California real estate market as well.

Positive forecasts

Experts foresee that the economy will continue to grow in 2020, but at a slower pace than originally expected. The climate remains optimistic that, as things stand now, the California real estate market won’t likely to crash.

While there appears to be a overall decline in buyer demand in the California real estate market, low mortgage rates and the fact that real estate sales are allowed to continue during the pandemic are expected to help pave the way for the industry’s continued survival.

Slowdown in residential construction

Residential construction is expected to slow down. This could worsen the dearth of affordable housing but will also ensure prices do not drastically drop, which could potentially lead to a housing market crash.

But real estate agents believe that, as the spread of the coronavirus is stemmed by staying home, more virtual real estate transactions will begin to take place. Investors will take advantage of historically low mortgage rates that will help spur growth.

Need a clearer picture of where the real estate market is moving? Get all the info you need from top realtors in Santa Monica who know this community best. Call 310.729.9726 or email melissa@melissamenardhomes.com or Hello@melissamenardhomes.com for more information.

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