There is a TON of speculation about what is going to happen with the Huntington Beach housing market thanks to the Coronavirus. And the housing market as a whole. Well, as I’ve said before and as I’m sure you all know, no one can predict the future! But what we can do is look at the past and make an educated guess on what will likely happen. This isn’t the first time the world has panicked due to a virus, or even the first time the vast majority thought the world was going to end. Now, on to the facts.
How is the housing market?
Despite all the Coronavirus talk, the Orange County housing market is still going strong with an Expected Market Time of 48 days. As I mentioned before, there is no absolute answer to what will happen. What it all boils down to is how long this crisis will last here in the US. In China, the number of new cases is dwindling, giving us hope that this will soon come to an end. Inventory is LOW. Like real low. We haven’t seen inventory this low since 2013. With not enough supply and interest rates right around 3%, demand is increasing making this a hot Sellers Market.
In comparison to just last year, for a $750,000 mortgage the savings per month totals to $492. That is a savings of $5,904 per year! The impact on affordability is wild!
So is there a downside?
Yes and no. There are Sellers who may refrain from putting their home on the market for the simple fact of not wanting a ton of people through their home. With inventory already so low, this is not ideal. As of now, there is no real noticeable change in number of homes coming on the market. It will definitely be something to watch as we head into the hottest selling season of the year!
As for demand, the virus could potentially turn some active buyers into fence-sitters due to the uncertainty. At the same time, some fence-sitters may jump off the fence and snag these historically low rates before they’re a thing of the past.
The Coronavirus will effect the housing market to some degree, but not to the extent many may think. The media is REALLY good at over-reacting and telling the world the sky is falling. Housing today is HOT and heavily leaning in the Sellers favor. Interest Rates in the high 2’s and low 3’s are keeping demand strong. If you want to buy that home, BUY IT. If you want to sell your home, SELL IT. Oh, and wash your hands.