Southern California Home Prices - COVID 19 (San Francisco, Corona: real estate market, mortgage, refinance)

[Inter441]

Covid 19 is a global pandemic ! Will we see home prices drop drastically like 2008 recession plus we going to have elections in November . Any thoughts and suggestions when is good time to buy a starter home in decent LA area ?




https://www.msn.com/en-us/finance/re...es/ar-BB11O0ZD

[JohnG72]

Probably not like 2008. Sorry. But yeah rents and home prices will relax. Probably some push of those who were living beyond their means in LA to move to more affordable places. But probably not as large as an effect as say a huge earthquake might have.

What is true is the overall US economy will suffer in the coming months.

[BOORGONG]

If California is less hit by this pandemic, relative to other states and countries, the cost of housing may remain stable or even spike somewhat.

[Commonproject]

Originally Posted by BOORGONG

If California is less hit by this pandemic, relative to other states and countries, the cost of housing may remain stable or even spike somewhat.

California has the #3 most cases in the U.S. It's already hit hard.

[BOORGONG]

Originally Posted by Commonproject

California has the #3 most cases in the U.S. It's already hit hard.

Yes, you're right.

[HB2HSV]

This is our minds as we were considering selling and buying a new property.

Here're the info I get from the news media (interpret it how you will)

This pandemic can last upto 18 months

The total death rate in the U.S. is projected from 100K to 200K people, per Dr. Tony Fauci.

So how does this extrapolate to the SoCal Real Estate Market? Real Estate reacts slowly to the economic conditions, but as this drags out, I think the trend has nowhere to go but down. The question is how much lower? One way to gauge this is predicting how high is the unemployment will go up? Some predict it to 15% or higher. How does this relate to the 2008?

One thing is for sure, we are holding on to our cash and will be looking for good deals when the time comes.

[ima30something]

Home prices will dip slightly but nothing like 2008. Reasons:

- This is not a real estate crisis. Thanks to stricter lending laws since 2008, many who currently have a mortgage are much more qualified buyers than pre-2008. In addition, don’t forget about all of those cash buyers that everyone in LA has complained about for the past 10 years.

- The service industry type of workers are the most effected by loss of income and they are typically renters. Professionals who own such as doctors, lawyers etc are still busy.

- interest rates are at all time lows.

- Thanks for high appreciation over the past 10 years, if someone did loose their job and needed cash, they could just refinance and obtain some serious cash. Chances are many distressed owners aren’t at all underwater like they were in 2008.

[CA4Now]

Originally Posted by ima30something

- This is not a real estate crisis.

It's too soon to tell.

Originally Posted by ima30something

- The service industry type of workers are the most effected by loss of income and they are typically renters. Professionals who own such as doctors, lawyers etc are still busy.

I don't think that the unemployed and soon-to-be-unemployed are mostly renters.

The jump in new unemployment claims is unprecedented. On a typical day, the California department of unemployment sees 2,000 new claims. Last week, on Wednesday, 80,000 new claims were filed in a single day:
https://www.theguardian.com/us-news/...loyment-newsom

Coronavirus layoffs: California jobless claims soar to record high:
https://www.ocregister.com/2020/03/2...o-record-high/

[NewbieHere]

Not likely. The house across us was just sold March 30 for more than asking price. I don’t know how they do it because mortgage companies are not working.

[stub303]

Originally Posted by ima30something

- The service industry type of workers are the most effected by loss of income and they are typically renters. Professionals who own such as doctors, lawyers etc are still busy.

Massive layoffs are affecting all levels of employment including the executive level. The San Francisco tech scene is being obliterated as we speak and I know 7 of my friends just lost cushy 6 figure jobs. We are about to see staggering unemployment claims and the economic fallout from this is going to take years to recover.

California real estate prices are cyclical and this time is no different. LA is due for a massive correction and this is the catalyst. Anyone buying right now is out of their mind. Hold onto your cash and job and wait 12 months.