The pandemic may have pushed the housing market into a temporary hibernation, but real estate has really rebounded throughout the summer. Here are some of the trends we've been keeping my eyes on.
1. Existing home sales took a giant leap in June.
According to the National Association of Realtors (NAR), home sales went up 20.7% from May to June, making it the largest month-to-month increase in history! That tells us that while the real estate market got off to a slow start in 2020, it’s making up for lost time.
2. New home sales are even better.
Across the country, 776,000 new homes were sold in June. That’s the highest number we’ve seen in 13 years! In fact, those numbers are so good they are 7.6% higher than last year’s — when there was no pandemic to slow things down.
3. Unbelievable mortgage rates.
One of the biggest driving factors of the previous two insights is the unprecedented mortgage rates we’re seeing on the market. Some buyers are landing sub-3% loans! While this is great for anyone looking to refinance their home, it’s even better for individuals looking to purchase a new property.
4. Home prices are going up.
If you’re currently looking to sell your home, you’ll be happy to know you’re likely going to get a good price for it. If you’re looking to buy a home, don’t expect a big discount because of the pandemic, but do keep in mind that current mortgage rates can make up for a higher base price.
5. Rural areas are on the rise.
With COVID-19 accelerating the adoption of the digital workplace, many city dwellers are considering moves to the suburbs and exurbs while working from home. Many businesses are also reducing their expenses by giving up their pricey metropolitan office spaces and increasing their virtual presence. With lower property costs and more room for new construction, the appeal of rural areas is likely to continue growing for many years to come.
6. Coachella Valley Housing Market
The Coachella Valley median detached home price in July was $460,000, up 10.2% above a year ago. The Valley’s median attached price in July was $279,000, down 2.1% from last year. Demand for condominiums is very seasonal and the period between June and September has been weak every year since 2010. Valley inventory, at 2,050 units, is historically at the lowest level in history. Because of growing sales and record low inventory, the “month of sales” ratio is also at a record low of 2.7 months.
If you have any other questions about the real estate market, we are always a text, email, or phone call away! Stay safe, and stay informed.