We are in the middle of a devasting pandemic. How come houses are selling? There is record unemployment ravaging our economy. We are in a recession if not a depression. Why aren’t we seeing home prices dropping? Isn’t this a perfect economic storm?
There’s no question we are in a historically bad economic situation. I have seen some effects on the lower end of the Marin housing market. Condo sales have suffered and some prices are softening. Homes on the upper end of the market in Novato are seeing price reductions, lower offers and longer times on the market. So it’s not like the market is untouched. It’s a lot like the virus itself, hitting selective areas and market segments, not everyone at once.
Meanwhile the market continues to move forward with lots of buyers due to historically low interest rates. With relatively little inventory the conditions remain ripe for sellers and stacked against buyers for most properties. Are you expecting to find a deal on a million dollar Marin home? Good luck with that, so is everybody else. Lots of people are moving out of the City too as telecommuting becomes more prevalent.
Sadly I believe the people who can least afford homes have suffered the most. The other shoe has not dropped yet either as the $600/week federal unemployment stimulus is expiring soon. What happens when people are out of jobs AND money? We may see tenants unable to pay rent, evictions and more inventory by the end of the year, which may balance the market where it’s hot now, and weigh down the market where it’s not.