Despite a difficult start, 2020 is turning out to be a promising year for the national housing market. And here in LA, buying or selling real estate is still one of the most financially savvy investments you can make. If you’re looking for an update on the fluctuating Los Angeles market, we have a few tips you’ll want to consider before making a move.
What’s Going on with the Real Estate Market?
It’s safe to say that real estate will be forever changed by COVID-19 and the following economic downturn. But before you press pause on your real estate goals, it’s important to remember that we aren’t experiencing the same crisis we saw in 2008. In fact, both agents and economic experts alike believe that the housing market will see a full recovery, especially in hotspots like LA.
The market has almost fully recovered
Back in late spring, the global pandemic reached its peak, which resulted in countless business closures and stay-at-home orders. Consequently, the market also saw an unprecedented slowdown, with many sellers deciding to pull their listings from the market.
Since then, the market temperature has returned to pre-pandemic levels, and we’re now seeing much more activity in the Los Angeles area. According to a recent survey by ManageCasa, 54% of consumers believe that now is a fantastic time to sell. To top it all off, prices have increased by nearly 7% compared to last month, and home sales surged by over 400k since the start of the pandemic.
Inventory shortage remains a top concern
Now that the market has stabilized, agents and buyers are focusing on a different problem: lack of inventory. Even before the pandemic, the number of homes for sale throughout the Los Angeles area remained low. And in a study by HomeLight, 60% of agents said that lack of supply and high demand will be the biggest problem for the 2020 housing market.
Agents have adapted to a new normal
Since the start of the pandemic, much of the buying and selling process has gone virtual. Most agents now offer a variety of digital services to their clients, and these changes could be here to stay.
Remote closings, e-signature software, as well as virtual tours and showings have become the new norm here in Los Angeles. Buyers and sellers should also expect to follow some additional safety protocols, such as wearing a mask and limiting contact during showings.
Some are bracing for a second wave
Certain major metro areas in the nation (like Los Angeles) have seen a recent uptick in COVID-19 cases. And while this will likely affect the market, experts don’t think we’ll see another downturn similar to what we saw earlier this year.
Thanks to new safety measures, a majority of agents believe that home sales would only slightly slow or remain the same should there be a second wave of the coronavirus. So if you’re thinking about making a move soon, the pandemic may not be as impactful as you might expect.
Buying or Selling in Los Angeles?
Making a move soon? The Brad Korb Group has the tools you need to buy or sell your home in the LA area! Just give us a call to get started—we look forward to putting our three decades of experience to work for you.