COVID-19 and the San Diego Real Estate Market: The Road Ahead
We are now well into what would customarily be one of the busiest months in the San Diego real estate market. Each spring ushers in a new wave of homebuyers competing for the available homes. Sellers, as a result, often get more for their property and can sell faster during the spring and summer months. As such, the customary seasonal spike in demand usually results in a seller’s market in this time of the year.
But what about this year? Will we be seeing the same trends? With the novel Coronavirus pressing the pause button on the everyday lives of San Diegans, and the global community alike, there are a lot of unknowns about what this year’s spring and summer real estate market is going to look like. On the one hand, the volatility of the stock market is creating insecurity in investors and anxiety in the general public about what lays ahead for the economy. Many people are losing their jobs and having to shutter their businesses as they wait out this unpredictable and unprecedented storm. As such, it’s possible that this could result in fewer buyers in the usually high demand spring/summer market and, thus, a drop (or at least slowdown in increases) in home prices. On the other hand, that same insecurity in the stock market may lead some investors to pull their money out of the stock market and place it in real estate, thus introducing the real estate market to a wave of new buyers. Further, with mortgage interest rates historically low, borrowing to buy a home has never been cheaper (although, some lenders are making mortgage borrowing harder, see here). Which way this will all go remains to be seen and will be greatly determined by COVID-19 developments (for local San Diego updates, see here).
With all the uncertainties at the moment, there are some things that are known. First off, California’s efforts to flatten the COVID-19 curve, such as state-wide school closures and “stay-at-home” orders, are paying off (see here). In San Diego, specifically, the number of new cases per day peaked at 146 on April 2nd, but has stayed well below that number ever since (see here), suggesting that the curve may be flattening locally too. Second of all, it’s a great time to consider refinancing your home mortgage, as mortgage rates have taken a dip (see here). Finally, although the ways in which we can serve you have momentarily shifted (open houses are not currently permitted, but virtual tours and private showings are), the level and quality of service that you can expect from us remains constant. Please don’t hesitate to contact us with general market questions, specific property inquiries and/or any other real estate matters.
For more information on how Esquire Real Estate Brokerage, Inc. can help you in the San Diego real estate market, feel free to give us a call at 949-413-6699 or send us an email at email@example.com.