The pandemic has left many businesses broken. Real estate, however, is experiencing a housing boom despite restrictions and limitations. One thing for sure is that technology has saved real estate from the sad fate experienced by other businesses. The Southern California housing market saw an increase in home prices for the eighth month in a row.
Median home prices increased by 14.5% from a year earlier to $630,000, a record high according to real estate firm DQNews increasing the number of sold houses, condos, and homes by 32.2%.
Even before the pandemic, the housing market was heating up. After the pandemic, to save the real estate market, low mortgage rates and people’s interest in more space, increased demand in the market. On the other hand, fearing the unknown future, homeowners are less interested in selling their homes. But how much longer will this trend continue?
Low mortgage rates have allowed homebuyers to bid up prices while keeping the monthly payments almost the same. Experts believe the same trend will continue unless mortgage rates increase and something happens to the economic recovery for some reason.
Analysts at John Burns Real Estate Consulting predict that by December 2022, prices in California will probably have increased roughly 6%. Low supplies and increasing demands are the reason for this trend. And these trends seem to stay. At least for the next couple of months.
