Spring is usually the best time of year to consider selling your home fast in San Diego, CA. The weather is much nicer and people interested in buying houses are more likely to go to more open houses. Unfortunately, COVID-19 has thrown a wrench in the cogs and real estate took a hit in the spring.

According to HomeLight’s Q2 survey, 41% of agents who were polled stated they’re concerned that a second wave of coronavirus could cause real estate to slow down again - though not nearly as bad as it was the first time around.

So, what can we expect going forward?

1. The impact of mortgage rates

Slowly, the economy is “reopening” and the stay-at-home orders are being lifted, so real estate is likely to pick back up. This can be attributed to mortgage rates still at a historical low, fluctuating around the 3% mark. As such, people are taking advantage of these low rates and are beginning to house hunt.

However, 73% of agents are reporting that the supply of houses are lower than they anticipated. This could lead to bidding wars among buyers or buyers settling on houses that they aren’t truly in love with. Why? Because they don’t want to miss out on these low rates. Who knows how long they’ll stay this low?

2. Seller’s are still leery of putting their homes on the market

At the start of the pandemic, seller’s pulled their houses from the market because they were fearful of getting sick, and rightfully so. But, that fear continues to grip some sellers, especially if there’s the possibility of a second wave of the virus.

What’s interesting is that since it's estimated that there will be more people looking to buy and the limited inventory, making it a seller’s market. Seller’s could take advantage of this and list their homes at a higher price, but they’re more prepared to stay at home until it’s safer to list.

3. More interest in new construction

Building off the previous forecast, buyers are considering new construction homes because of the scant offerings. New construction gives buyers the ability to build their dream home exactly how they want it. Plus, as it’s newly built, they can confidently move in without worrying about the risk of contracting the virus as they might with a previously lived-in home.

4. Increased housing prices

A seller’s market means that they can increase their asking prices without worrying too much about not getting bites. Of course, it’s worth noting that not all markets will see an increase of prices. Folks are moving out of the large cities in favor of suburban and rural towns with a lower population so they’re less likely to get sick.

5. Speedier sales

It’s interesting how supply and demand works. You can probably see a theme - low inventory equates to a more competitive market. Buyers who find a house they absolutely love are going to submit an offer a lot faster than during normal times because they don’t want the house to slip through their fingers if they waited too long. As a result of this, houses are being sold much quicker than most expected.

Let’s be honest. It’s hard to predict how the future will go for anything and when you factor in a raging pandemic, a failing economy, and an election with so much importance… Things are up in the air.

At this point in time, the real estate market looks like it’ll be okay. However, what will it be like after the mortgage and eviction moratoriums are over? Well… It’ll be interesting to say the least.

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