The coronavirus pandemic has literally gone viral and the California real estate market also got impacted by it. Today, we decided to take a look at the 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. After the real estate market suffered its worst month in 13 years, California’s Realtors and landlords saw a big rebound in the housing market in Los Angeles, San Francisco, San Jose, San Diego, and Sacramento, in June.
Home sales bounced back in June by almost after hitting a record bottom in May. Sales were up 42.4 percent from May and down 12.8 percent from June 2019. The luxury market suffered the most with more than 50% drops in sales. Sales Price to List Price Ratio of 99.5% in June means homes are selling for very close to their listing prices.
June’s statewide median home price was $626,170, up 6.5 percent from May and up 2.5 percent from June 2019. Throughout the state, single-family home prices rose 6.5% to $626, 170, or a rise of $38,000 from the previous month. Sales grew 42.5% from May. California condo prices rose 4.6% as a month to month sales increased by 68.5%. Condo prices have risen 4.6% YoY while sales slumped 16.2%.
The return in the COVID-19 cases remains a concern across the nation as well as California, and it may hinder the recovery of the housing market in the second half of 2020. Meanwhile, the lowest ever mortgage rates have been able to increase the buyer activity, which in turn may help to sustain the rise in sales in the coming months.
The latest “CALIFORNIA HOUSING MARKET REPORT” is given below.