September 17, 2020
4 MINUTE READ
Yep. We’re already here… and it feels like the year is just blazing ahead. Yet another season’s passed underneath the umbrella of 2020’s pandemic conditions. August was a major point in the market recovery period as we’re slowly approaching the lasting effects of COVID’s ‘new normals’ – and hopefully, feeling a bit more comfortable navigating this terrain.
Meanwhile, a lot is going on in California’s real estate market. The last time we came together like this to discuss the local conditions was back in July when the nation had just dipped our toes into market re-openings. At that time, the outlook remained incredibly hazy. But, now that we’re weeks past these initial ‘breaking the ice’ moments, we have a far better ground to move forward on.
By the end of August, life in California seemed to be balancing out. Unemployment rates finally fell below the 10% bracket to 8.4%, the commercial service sector expanded, small businesses continually overcame the pressing challenges, and construction and industrial projects paved ahead. These factors contributed to growing security and stability in the statewide economy.
After the pandemic effects eased and real estate sales were able to move forward again after months of market drought, eager buyers picked off the market’s listings at incredible speeds. Historically low mortgage rates hovering around 2.9% is another factor that kick-started sales. Now, the housing market is seeing a reduction of active listings – presenting a new challenge for California real estate.
However, the outlook is bright – maybe not 100% crystal clear just yet – but certainly closer to being predictable. Navigating the 2020-2021 junction will be about resilience, strategy, and flexibility.
Without further ado, let’s dive right into a rapid-fire exploration of California’s real estate market data collected in August with a special highlight to the DMAs.
Overall, California’s housing market is experiencing an inventory constriction as buyer demands continue to rise while new listings are slow to be added. As a result, the statewide environment seems to be converging into a seller’s market. All the while, California REALTORS® reported an improvement in their business as transactions continue to move forward.
Moving ahead, low inventory and intense buyer interest mixed with a general atmosphere of uncertainty will continue to set the stage for California’s housing market. Keep an eye out for the upcoming coverage of CA’s evolving real estate sphere with Reali’s monthly market updates. If you’ve missed out on the last few rounds of reports, head back to the Reali blog and check them out.