Jose Mier Has Some Good News And…
Visitors to my Jose Mier Sun Valley site know I keep my eyes on the economy in and around Sun Valley. A large part of the economy is housing and this bout with COVID-19 has thrown some wrenches into the housing works while people have been sheltering in place. Things, however, are warming up in more ways than one now. We are moving outside of our homes as things reopen and the weather is getting hotter.
For those Sun Valley homeowners who were or are thinking of selling their houses, the good news is that housing prices in Southern California are remaining high. The bad news, however, is that many of us have lost our jobs as a result of the coronavirus and all that it entails. For younger buyers looking to move out of their apartments and into their first home, the virus has putt the brakes on their hopes for the time being so even if the desire is there, the wherewithal is not.
Managecasa.com cites a big drop in consumer confidence following the intial shutdowns and that may play a role in home buying decreases.
Jose Mier’s Anecdotal Evidence
On the other hand, if I can inject my own anecdotal findings, real estate professionals in the Sun Valley area are telling me that they are still seeing substantial demand for homes. It may just be an aberration in our area, but my friends in the real estate business tell me they are still showing houses despite the restrictions opposed on them.
This may be due to another statistic that while only 29% feel it’s a good time to sell a home in SoCal, the recommendation from entities like CAR says it’s a good time to buy.
Another problem in the housing market is that many have backed out of deals in the face of economic uncertainty—if you don’t have a job, why buy a house? Reports are, however, that confidence is returning to the market. Again, if anecdotal evidence is worth anything, we are seeing more cars on the roads, more diners inside of restaurants and just a general desire to stop living inside our homes and get out. There is a desire to return to a sense of normalcy which would also include resuming halted plans to purchase a home.
As I’ve mentioned before in previous Jose Mier Sun Valley posts, our median home prices our lower in Sun Valley making it a more affordable option for lower-income or first-time buyers.
At the end of the day what matters is that we’re seeing (or at least starting to see) the economy get back up to speed. It can’t come too soon for Sun Valley.