 | A slight increase in inventory is a tell tale sign to us that Spring is upon us! Are you ready for the Spring real estate season? Contact us with any questions.
At Your Service! -Amanda, Pamela & Jace |
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6 WAYS COVID-19 IS CHANGING REAL ESTATE
Source: California Association of Realtors Magazine, Feb 2021
The Covid-19 pandemic has had profound effects on just about every aspect of Californians' lives - and those effects are unlikely to disappear even once vaccinations are widespread. No matter what happens with the pandemic this year, the way we practice real estate has shifted in response to the virus.
1. "Home" Means More Now There's nothing like having to spend all your time at home to make you fully grasp the importance of your living space. C.A.R's monthly Consumer Housing Sentiment Survey showed the percentage of consumers who thought it was a good time to buy a home increased with the onset of the crisis. More first-time buyers have entered the market, too, reaching the highest share in 10 years according to C.A.R. data.
2. Suburban Markets Are Booming The work-from-home trend is prompting city-dwellers to pack up shop and move to the suburbs, where homes are both bigger and less expensive. Urban flight has been gradually occurring over he past five years, but the pandemic has accelerated that trend. Overall, 43 percent of potential home buyers say the pandemic has made them more likely to look in rural towns and city suburbs.
3. Everybody's Going Virtual Now Buyers are growing increasingly accustomed to the Facetime walk throughs and 3D tours, so much so that new listings without these features may give buyers pause. Virtual solutions show no sign of diminishing soon and many Realtors are likely to continue using them well after the pandemic ends. (We know we will!) 4. Health Is At The Forefront Buyers and Sellers have placed increased importance on cleanliness and personal safety throughout the transaction. A focus which isn't likely to disappear anytime soon. Many homebuyers and sellers hope procedures such as making hand sanitizer and wipes available throughout the house and limiting the number of visitors in the house will remain in effect even after the pandemic. Buyers having access to a home office for better work-life balance, and extra room for a gym, a kitchen big enough to cook healthy meals are features becoming increasingly critical to buyers.
5. Second Homes Are In High Demand Home sales in vacation destination areas started accelerating in July 2020 and posted a 34 percent annual gain this past fall. Resort markets like Lake Tahoe, Lake Arrowhead, Mammoth Lakes and Palm Springs saw sales more than double during the second half of 2020 since last year. Many buyers are shopping for vacation homes, figuring hotels won't be safe for some time now. Funds that may have once been accollated to travel expenses can now be funneled directly into the down payment.
6. The Housing Supply Is Even Tighter Sellers hesitant to list during the pandemic further accelerated California's inventory woes, bumping up home prices in the process. C.A.R.'s new chief economist says, "Inventory issues will persist in 2021. Sellers will eventually reemerge into the market once they recognize that homes are selling quickly and prices are rising. Historically low interest rates, continued population growth, lack of new home development and significant lack of inventory will continue to drive our current real estate market through at least 2021." |
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FACTS ON PROPOSITION 19
The California Association of Realtors just released this highly informational web site about Proposition 19 that takes effect starting April 1st. It is always advised to consult with your tax professional.
https://www.caprop19.org/gethefacts
One excerpt from the site:
What are the new rules for 55+ homeowners to transfer their low property tax base to another home under Prop 19?- Older homeowners, those who are severely disabled, or victims of wildfires or natural disasters can move anywhere in the state without location restrictions.
- Qualified homeowners can transfer their existing property tax base to another property regardless of the cost of the replacement home (with an adjustment upward to their tax basis if the replacement property is of greater value).
- Homeowners can transfer the property tax base of their existing home to a replacement home up to three times.
- The original property and the replacement property must be the principal residence of the homeowner.
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JUST LISTEDHuntington Beach |
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 | 317 7th Street - $1,825,000
Beach close Mediterranean Villa!
4 beds, 3.5 baths, 2,834sf
317Seventh.com |
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 | Flower Streets - $4,200,000
Off Market Find! Representing Buyer |
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 | The Terraces
Santa Rosa Ct - $668,000
2bd, 2 ba, 1,300sqft
Off Market Find! Representing Buyer |
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 | 885 La Mirada - $599,000
25 x 100 ft buildable ocean view lot
Arch Beach Heights
Representing Seller |
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MARKET STATISTICSLaguna Beach - March 2021 |
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Active - 135 (Down 8%)
Pending - 66 (Up 38%)
Sold in February - 37 (Up 19%)
Under $1,000,000 - 3
$1,000,000 - $2,000,000 - 9
$2,000,000 - $3,000,000 - 11
$3,000,000 - $5,000,000 - 8
$5,000,000 - $10,000,000 - 4
$18,000,000 - 1
$21,000,000 - 1 |
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