A report from California Association of REALTORS last March 20, 2020, conveyed a piece of grave news; the ongoing COVID19 pandemic, together with current government restrictions, could potentially be the reason for the housing market’s decline in the coming weeks. As COVID19 worsens, the housing market will be negatively affected, especially the ones affected by the Assembly Bill 1482.
As of April 14, California ranks 4th of the highest number of COVID19 cases in the U.S. They currently have forty-five thousand thirty-one confirmed cases, and 1,809 casualties. New York continues to be the 1st in terms of the highest number of COVID19 instances, with over 295,000 cases and 17,638 deaths.
Housing markets such as Rancho Palos Verdes Real Estate will be affected by the unexpected pandemic. The new rent control laws also play a critical part in the housing market decline. Financial and psychological causes are at play here, dampening the real estate market quite effectively.
Is California Facing an Imminent Housing Market Crash?
Truthfully, this can’t be the case, but investors and the likes should expect the prices of real estate to drop significantly across the state.
A currently imposed quarantine order across the entire state of California affected multiple lives. Such laws – even though crucial for the battle against the pandemic – have burdened companies and employees to some degree. Businesses had fewer to none-at-all workers and customers. This dilemma means no income; no income means no food on the table.
Against popular belief, housing conditions and home prices still plague the residents of California, amidst the ongoing coronavirus pandemic. Home sales and prices may significantly decline in the real estate market should be expected later this year. But fear not, a recession-like crash is not likely to happen, experts say.
Real Estate Deals Continues
The real estate business is an essential trade in California, even amidst the quarantine guidelines. Homes are still being bought, sadly, with a considerably lower price before a pre-crisis California.
The majority of the paperwork has the transition from done-in-the-office, to remote and digital means, to exercise social distancing. Virtual tours are getting prevalent since open houses are not possible, as agents still cater to prospective buyers. Several protective measures, such as putting alcohol and hand sanitizers by the door and other practices that ensure the mitigation and infection prevention of COVID19 such as wearing face masks, were made. Real estate agents have also adapted measure when showing a home to a customer; they open all doors and entrances so that onlookers won’t have to touch anything,
The California real estate condition may be in a rough spot right now and on the months to come, but experts are remaining optimistic about the situation.