RIVERSIDE HOUSING MARKET INDICATORS SHOULD I BE WORRIED? Ruby Frazier
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ousing is one of the most significant contributors to the GDP of the US economy. Being that the GDP is considered as the preeminent measure of the economic performance and health in a country by most economic analysts, it wouldn’t be unfair to say that as the housing markets go, so does the economy of the country. Right now, the table is turned, and the narrative has changed in that, while the housing markets have had nothing to do with the current turmoil, its effect on the economy has been felt and continues to be felt in the housing market. On a more practical level, if you are looking to buy a home, you would want to know how the market is and how it is performing, relative to other markets, just to get an idea of what you should be expecting. Right now, acting in your favor are low-interest rates and low mortgage rates, which means it is time to get yourself in your dream house. If you are a seller, on the other hand, you might also be excited by the fact that the inventory is generally very low, which is the primary reason why prices over the last few years have been skyrocketing. If you are in the market housing hunting, the pandemic that has almost crippled the global economy might have you worried about buying or even selling your home. One of the questions that you might have come across is will the COVID-19 WWW.THEPINMAGAZINE.COM
causes housing collapse. We were expecting a competitive housing season this year in light of the historically low mortgage rates and the near rockbottom inventory. While economic recessions do not touch the housing markets severely, the coronavirus pandemic is making markets all over the country anything but ordinary. Zillow conducted a study to analyze the effects of pandemics on housing markets and concluded that while home sales suffered a dramatic decrease, prices remained relatively the same, which makes much sense because it is relatively hard for prices to change when there are fewer transactions. What the previous pandemic did was to pause the market, with no major changes. That brings the question, what happens next. When all this is over, what will happen? Will the mortgage rate or interest rates remain low? And what about the prices? The best course of action is to act now because it is uncertain what the pandemic means for the future of the economy or the housing market. In this issue of the TPIN magazine, I will help you make sense of the Riverside housing market so that you can make an informed decision. While the low-interest rates might be encouraging you to take the big leap, there are several factors
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