Riverside housing market indicators

Housing 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 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

you need to consider. And given that we are literally in the brink of a recession, who knows what kind of social, political, and economic fallout this pandemic might bring.

“Assuming you can afford a mortgage and the other costs involved and your job is not in danger of being cut, then yes,” says Amanda Abella, millennial business coach and author of Make Money Your Honey. “Smart investors and people who are financially savvy know these times are ridden with opportunity because the general public is going to contract. But every individual situation is different. Unless you’re sitting on pretty hefty savings and know your industry won’t be impacted by what’s going on, then you should err on the side of caution.”

While she sounds so optimistic, there is a good reason to be cautious. One thing you have to understand is that, while we are saying that you should take advantage of the low-interest rates, you should also know that interest rates have very little to do with all the costs associated with purchasing a home like property taxes, insurance and the closing costs that can range from one to five percent of the closing price.

Also, it is worth noting that while people are excited about the “historically low mortgage rates,” they are not zero percent. “Lower interest rates mean lower monthly mortgage payments on your home loan; therefore, you technically can pay more since your monthly costs are lower,” says Drew DeWitt, senior vice president of investments for Ivy Equities. “However, it also means that there is a greater risk in the economy in general. The FED drops rates to spur growth when there is a risk of unemployment and people not being able to make their monthly mortgage payments. As a result, banks will tighten their lending standards, and it may be harder actually to secure a mortgage despite the lower rates. This is where people get confused.”

While the rates play a significant role in how the situation for buyers and sellers might play out, there are still logistical issues at play. Assuming that you could buy a home right now, most buyers prefer visiting the home, carrying along a home inspector to inspect the house. Even if your offer is accepted, you still need to close, hire movers to help you move into the property. All these things are affected by the

However, one mans’ meat is another mans’ poison. “Because of the instability in the world, sellers may be forced to sell at a huge discount that could even exceed 10 to 20 percent below what their fair market asking price is,” says Danielle Lurie, a licensed real estate salesperson with Compass. “It’s a shame for the sellers, but if a buyer buying a home at a discount today is helping to relieve a seller’s financial worries during this unstable time in the world, even if the property sells for less than the seller may have initially hoped, then this can still be a win-win.”

However, note that more sellers are willing to take their home off the market due to the virus, which means it might be hard to make your decision, especially a life-altering decision knowing that you do not see everything the market has to offer.

So, should you buy a home right now? It depends on you. If you want more industry insights, especially for real estate in Riverside County, talk to Ruby Frazier. Ruby is one of the most talented realtors in Riverside, and she is part of the VIP Agents program. A program run and powered by the Power Is Now Media. Find out more about VIP Agents program here.

Ruby is the President and CEO of Frazier Group Realty Inc., a full-service real estate company with a dynamic team. The company’s approach is tailored to each of our clients. Frazier Group Realty is located in the heart of Downtown Riverside, California, servicing the Inland Empire, Orange, and Los Angeles counties. Focusing on residential and commercial real estate as well as property management. Ruby’s objective is to assist buyers and sellers reach their real estate goals. To find out more about ruby, follow this link; https://thepowerisnow.com/ vipagentsservices/ruby-frazier/.

https://www.housebeautiful.com/lifestyle/a31897953/ buying-house-coronavirus/ https://www.nytimes.com/2020/03/13/business/buyinga-home-coronavirus.html https://www.realtor.com/research/march-2020-data/