According to the San Francisco Chronicle, real estate agentst are looking for home prices and sales to fall as a result of the coronavirus, but they are still hoping for a positive year thanks to lower mortgage rates. The hope and predictions come from the California Association of Realtors, which has already said it will be revising it's 2020 forecast downward but not dramatically. "If current economic forecasts of modest declines in GDP growth are realized, the effects of lower rates should help to offset the effects of a slower economy and increased economic uncertainty such that California would still achieve a modest improvement in both home sales and prices this year," said the Association.
The association had been expecting a 0.8% increase in single-family home sales and a 2.5% increase in the median price this year over last. On Thursday, the association released the results of a member survey conducted March 6 to 9. Asked what impact the spreading disease would have on home prices, 45% said no impact, 40% said a negative impact and 15% said a positive impact.
As for the impact on sales, 50% said it would be negative, 36% said no impact and 13% said positive. The email survey drew 240 responses. It ended Monday, after panic buying in Treasury bonds sent mortgage rates to record lows, but before stocks plunged into a bear market, President Trump banned most noncitizens coming from continental Europe and sports leagues halted their seasons.
Kalena Masching, a Redfin agent in Silicon Valley, saw a sudden shift in the market this week.“Last week, everything was going very quickly with 10 to 20 offers,” she said. Demand “was really hot due to interest rates and low inventory.”
