The Blog

San Diego Real Estate Coronavirus Update, April 2020

Here are the real estate numbers since my last similar posting 8 days ago on Instagram. You can find us over on Instagram right HERE.

There aren’t any alarming trends in today’s reporting, but the Pending properties are a bit low. Only 906 homes entering escrow in the last 8 days, but it’s not zero.

It’s a little early to venture into 2020 real estate predictions but I will give it a try. First, the refinance boom is over. Lenders don’t want your re-fi business and will start pricing you out of a re-fi. But they will do your purchase money loans, and they will do the loan of the person buying your home.

If you wanted to refinance, you are no longer a priority. What I see in these numbers is the lack of foot traffic out looking at and buying homes. It’s still going on, but clearly the Pending sales should continue to go down. This is all relatively new, but here’s what I think will happen for 2020:

Whatever you want to do in 2020, I think you can do it. If you want to sell, you can. If you want to buy, you can. But sellers will see a dip in their sold prices, particularly in higher-priced neighborhoods (especially over $1 million). Everyone will need to have a reckoning on expectations.

There will be no Spring market or hot demand for you home, but there will be interest in it, and it can and should sell. Listing agents will have to work a lot harder to get interest in listings, but that’s ok!

But there won’t be a full crash. I don’t see a bank-owned foreclosure market on the horizon (but some people do). For me, I see harm coming to the market if unemployment goes above 15%, and I predict that it will. There will be some panic and scrambling if people who never thought they’d lose their job, suddenly lose their job. The clients/friends/people I know would rather cash into their 401(k) plan than sell their home, so you’ll see the tapping into resources to keep homes.

You won’t hear about this. And if a homeowner is on the fringe financially and with no reserves, those are far more fragile situations and those people could become defaulting homeowners.

There will be the “la dee da, nothing wrong here” real estate agents out there, and those who know it’s not going to be good. That is me. I will always be realistic with you. It’s not going to be great. Right now, and for the foreseeable future, all things are possible for you. But realistic expectations are needed for 1) your sale price and 2) the time to sell your home. Buyers, please be advised that there is no “30% off corona emergency” real estate pricing crash coming. Some buyers are waiting for it.

Thanks for reading! Let’s see how close I come to reality.

Kimberly Dotseth

Broker/owner, Blend Real Estate

California DRE License #01179760

(619) 261-1909

Real Estate Stats April 3

 

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