Welcome to the March 2020 SoCal Real Estate market update!
The Southern California Real Estate market is on fire thanks to the Federal Reserve recently lowering mortgage interest rates by half a point. This move was made to stop the United States economy from dipping into another recession thanks to Corona Virus (COVID-19), a virus that’s been responsible for taking over 2,000 lives around the world.
How Corona Virus Has Influenced the Real Estate Market
Since the outbreak of Corona Virus, economies around the world have been adversely affected, and the U.S. stock market has lost over $113 billion in revenue so it made sense for the Fed to take drastic action to stop a recession (or worse) from occurring in the United States.
Despite Corona Virus, we have good news to report. With 30-year fixed mortgage interest rates at 3.375% (or lower), now is the perfect time for homeowners to refinance their current mortgage loans, and for buyers to move forward with purchasing homes.
Low Home Inventory in Southern California
Besides the news about historically low mortgage interest rates, another important thing that you have to be aware of is that home inventory is also low as well. Low inventory + low-interest rates have led to home prices being driven up and most sellers receiving top dollar for their homes as buyers compete and engage in bidding wars.
Should you list your home for sale right now? If you were planning on selling it within the next 3-6 months, then you should move forward with listing your home for sale because it’s always ideal when you can take advantage of a hot real estate market that has plenty of demand from buyers.
It’s A Great Time to Be A Home Buyer
If you’ve been thinking about buying a home, you can rest easy in the fact that now is the perfect time to be a home buyer because interest rates are low and you’re going to pay less for a home over 30 years.
As we move into the spring and summer months, we see the Southern California real estate market as continuing to be a very “healthy” market that should last up until the November 2020 election.
Contact the Fred Sed Group