5 minute read
The new reality of the housing maket in the Bay Area
THE NEW REALITY O F T H E H O U S I N G M A R K E T IN THE BAY AREA
Lewis Sanders III C oronavirus Stimulus Checks Do Less for the Bay Area Renters and Homeowners With the stimulus care package, checks have begun landing in the bank accounts. However, soon, the Bay Area residents will come to realize that this money will cover less for their housing costs than anywhere in the country. While there are some states and counties that stand to benefit more, only 8% of the homeowners in San Francisco will be able to cover their monthly mortgage payment with the amount they get from the CARES package. According to a new analysis by Redfin, 9 in 10 Bay Area homeowners will have less than half their monthly mortgage and utilities paid by the $1,200 stimulus check. Remember, this is the smallest relief for any region in the country, and even for a twoincome family receiving $2,400 in aid would come up short of paying the Bay Area mortgages and utilities. “That’s not going to help too much,” said Redfin senior economist Schery Bokhari. In some cities, with a $1,200 check, the money can go quite far. In about 12 cities all across the country, more than 90% of the renters would be able to cover at lease all of the costs associated with housing. Buffalo, N.Y leads, as 94% of the city’s renters could cover their rent at $1,200. The median rent in Buffalo is $809. Even with the Coronavirus pandemic, Bay Area housing costs remain relatively high. The median sales price for a single-family home in seven Bay Area counties in February was $888,100, according to Zillow. And despite the falling housing inventory and the shelter-in-place orders, the demand has kept on rising.
The amount that Americans will receive from the stimulus check will depend on their income. The higher-earning Americans will receive a smaller amount and, in some cases, nothing in the stimulus. The households with children will receive $500 more funds per child.
Redfin also found that over three-quarters of the renters in the large metros could cover a month of their housing expenses with a $1,200 check. Comparatively, with the same amount, Redfin found that slightly less than half of all the homeowners nationwide will be able to cover a month’s mortgage payment.
Renters in Bay Area Are Likely to Suffer More While the stimulus check is likely to do more for renters in most parts of the country, renters in the Bay Area are likely to see relatively less relief than anywhere else in the country. Just 1 in 5 renters in San Jose and 1 in 3 in San Francisco and the East Bay would see the majority of their housing costs paid with the $1,200 check.
According to Zumper, In April, the median rent for a two-bedroom apartment in a place like Oakland was $2,990 in San Jose- $3,030 and $4,540 in San Francisco.
Most of the cities and counties where the renters and homeowners are well off are located in the Midwest and South. These areas have lower housing costs and tend to be the cheapest. Nonetheless, other factors could help alleviate the situation for the residents struggling to meet their mortgages and rents. For instance, the out-of-work Californians have received an extra $600 weekly supplement to unemployment payments, helping to bridge gaps in lost incomes. The Situation Might Get Worse before Getting Better Things look much worse in the San Jose and San Francisco metros. Redfin ranked the two in 50th and 49th, respectively, among the 50 largest metros it
studied. The median monthly mortgage payment for a place like San Francisco and East Bay was $3,100, while the median in San Jose was $3,370. Additionally, the pandemic has not eased the tension therein between the supply and demand forces in the housing market. Both the buyers and sellers are pulling back in equal measures, which has left the prices in the area intact.
During the first week of April, the demand for customers taking their first home tour dropped 26 percent Y-o-Y, and at the same time, the housing listings on Redfin website also dropped 44 percent from the previous year.
If you are looking for market insights about the Bay Area, talk to Lewis Sanders. He is an industry expert operating in the Bay Area. Lewis is part of the Power Is Now VIP Agents program. Find out more about the program here.
Lewis is a licensed real estate expert for many years. He started working in the communications business learning to establish himself with the public and local communities by serving as a barbershop business owner in the Bay Area. There he discovered his hidden talent and skills through helping my clients as he entered the mortgage industry, which led to his career as a licensed real estate agent.
To find out more about the Bay Area, contact Lewis. If you would like to purchase a property in the Bay Area, Lewis has the best houses at a very affordable rate. The good news is that you do not have to worry about down payments, Lewis will show you an easy way to get into a home with zero money down. Find out more about Lewis and his work here.
Lewis Sanders III President & CEO Sanders Realty Group
Sources
https://www.redfin.com/blog/governmentcoronavirus-stimulus-package-impact-onhomeowners-renters/ https://www.mercurynews.com/2020/04/16/ coronavirus-stimulus-checks-do-less-for-bayarea-renters-homeowners/ https://www.marketwatch.com/story/these-arethe-cities-where-stimulus-checks-will-helphomeowners-and-renters-the-most-2020-04-17
The power is now Events:
FIRST TIME HOMEBUYER SEMINARS
FIRST TIME HOMEBUYER SEMINARS LIVE ON FACEBOOK
National Events:
NAREB
HOMEOWNERSHIP WEEKEND
June 20th – June 21th, 2020
NAREB 73RD ANNUAL CONVENTION – DETROIT
August 9th – Aug 16th, 2020 DETROIT MARRIOTT at the Renaissance Center 400 Renaissance Dr W, Detroit, MI 48243
NAHREP
SNEAK PEEK! WHAT TO EXPECT IN THE FOURTH CORONAVIRUS STIMULUS PACKAGE – POWERED BY QUICKEN LOANS
June 3, 2020
NAHREP AT L’ATTITUDE GRAND HYATT SAN DIEGO, CA
September 24–27, 2020
AREAA
NORTHEAST REGIONAL RETREAT
June 11, 2020
SOUTHWEST REGIONAL RETREAT
June 26, 2020
NORTHWEST REGIONAL RETREAT
July 16, 2020
REOMAC
ECONOMIC OUTLOOK: COVID-19 AND THE STATE OF THE REAL ESTATE MARKET
June 2, 2020
REOMAC 2020 ANNUAL SUMMIT & EXPO
Sunday, July 19 - Tuesday, July 21, 2020 Gaylord Rockies Resort and Convention Center
CAR and NAR
REALTORS® CONFERENCE & EXPO
Nov 13-16 New Orleans, LA
