No need to dig into specific numbers, but by looking at the chart of single family dwelling newly opened sales in the San Fernando Valley, you can see how the sales dropped off after the “Safer at Home” order was initiated. The order was only put in place March 24th, so the April sales numbers will be worse.
The closed sales weren’t bad, as those transactions were already in a position to close, before the order was put in place.
Some of the pending sales may also have a problem closing, as loan underwriting guidelines have tightened, and some buyer’s income may have taken a hit during the shutdown.
Inventory has also dropped off, as some properties are held off the market. Buyer traffic has slowed down, and the Coronavirus is making sellers apprehensive about allowing buyers into their house.
The upside is there will be a pent up demand and improved inventory levels once the order is lifted, and interest rates will be low. The downside is underwriting guidelines may still be tighter than before the shutdown, and anybody that took advantage of a mortgage or rental forbearance will have an issue getting a new mortgage.
If you are in the Los Angeles area, have any questions or real estate sales or financing needs, feel free in contacting me
Ron Henderson GRI, RECS, CIAS
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals (2017-2018)
Chairman – OutWest Marketing Meeting (Real Estate Education)
BRE #00905793 NMLS #310358
www.mres.com
ronh@mres.com
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth
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