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The California Association of Realtors (CAR) reveals that house sales in California have come down by 41.4% in May ‘20’, compared to the same time last year. Over a year, such a drop hasn’t been seen since November ‘07’.
CAR President Jeanne Radsick Bakersfield feels that the worst is past us and things will improve, come June. It is a relief that at least the house prices have shot up from year-ago levels for each county in Southern California (barring the Orange county).
According to CAR, if the whole year runs at May’s speed, California would be selling only about 238.470 homes. Such slack pace hasn’t been witnessed since 1982. That, however, was a clearly different time; what with interest rates being 5 times higher than they are today.
In the wake of the coronavirus pandemic, Southern California has shown comparatively greater stability. Riverside County gained 1.4% Year-over-Year while San Bernardino prices shot up by 1.6%. The Los Angeles county prices improved by 3.4%.
What we refer to as the perception gap is also giving optimistic signs. In place of 90% of buyers confident of a price drop in late April, only about 77% believed that would be the case in late May.
“While we expect sales activity to remain below pre-COVID-19 levels, closed sales should improve markedly as the phased reopening of the economy continues and consumers feel more confident returning to the market.”, felt Leslie Appleton-Young, Chief Economist, CAR.