CALIFORNIA HOUSING MARKET REPORT & PREDICTIONS
F O R Q2, 2020
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he first quarter of 2020 saw the housing market across the US face many hurdles due to the impacts of Covid-19. Businesses closed; millions of Americans lost their jobs as the economy submerged into recession. Though not more profound than the Great Recession, the current recession is a unique one. It has impacted the whole world with the closure of businesses, bringing the world economies to a sudden halt. The housing market is one of the areas that suffered a significant blow from the pandemic. Despite the sector’s declaration as an essential service in the US, it faced challenges due to Covid-19. In California, the housing market was troubled in the first quarter due to its pandemic impacts. In the second quarter, the housing market was still troubled as the shutdown continued to devastate California’s economy. Despite the government’s efforts to support small businesses, including the housing market, the situation has not been better due to the continued Covid-19 impacts. However, as the economy is expected to reopen slowly, there is some light at the end of the tunnel.
CALIFORNIA MAINTAINS HIGH PRICES
Despite these hard times, home prices in California have retained their high prices. April data for the California housing market has shown that sales and listings dropped significantly, but home prices have maintained their positions the same as the one witnessed last month. The rising rate of home prices in California is steeper than anticipated as the sales are at their lowest since 2008. In April alone, a total of 277,400 homes
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THE POWER IS NOW MAGAZINE | JULY 2020
