The novel coronavirus pandemic has literally gone viral and real estate sector is also getting impacted by it. Due to Covid-19 outbreak the new home sales dropped in February. Today, we decided to take a look at the short-term impact of the coronavirus pandemic on the California housing market. We’ll also look at the likely medium and long-term effects of the outbreak.
Before the coronavirus outbreak, the declining interest rates bolstered February home sales and price in California, according to C.A.R. The no. of home sales in February went up 6.6 percent from the 395,700 level in January, marking the first time in three months that sales jumped above the 400,000 benchmark. February also marked the eighth consecutive month of year-over-year sales increases.
As the coronavirus pandemic worsens, the sales activity in the California housing market is expected to decline in the coming months, particularly in cities with a “stay at home” mandate. This is because of open houses and home showings which are impossible be held in such conditions.