According to “The Mortgage Bankers Association (MBA) Builder Application Survey (BAS), data for April 2020 shows mortgage applications for new home purchases decreased 12 percent compared from a year ago.” During the sheltering-in-place phase in California, “April’s sales total was down 25.6 percent from the 373,070 level in March and down 30.1 percent from a year ago” per California Association of Realtors (CAR).
However, there is some positive news in Real Estate as cities open up again: “There continues to be a stark recovery in purchase applications, as most large states saw increases in activity last week. In the ten largest states in MBA’s survey, New York – after a 9 percent gain two weeks ago – led the increases with a 14 percent jump. Illinois, Florida, Georgia, California and North Carolina also had double-digit increases last week,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “We expect this positive purchase trend to continue – at varying rates across the country – as states gradually loosen social distancing measures, and some of the pent-up demand for housing returns in what is typically the final weeks of the spring home buying season.” (Source: MBA)
Per CAR, both buyers and sellers are more confident in May 2020 compared to March 2020, with both parties saying they are more likely to buy or sell.
Many sellers are getting back into the game with multiple homes coming to market daily. If you are a buyer that was “waiting it out,” and have questions about new protocols for viewing homes, for loans, and any other question about purchasing a home today, contact us. We are here to help!