Asking price for most home sellers is reducing at an alarming rate. Many sellers have to reduce their prices to ensure they remain in the market and the property off their hands. When companies are laying off workers and filing for bankruptcy, it is a no-brainer why the prices are plummeting.
San Francisco, California, has not been spared of the slash in home prices. Sellers have to lower their costs to remain relevant and competitive. San Francisco faces a 6% increase in home sales, totaling 1,360 unseen numbers for over a decade. The changes come as a result of people seeking homes in less dense areas.
The global pandemic is destabilizing the markets plus affecting the purchasing power of many. It was only in 2010 and 2011 that there were so many houses in the market as it is now. A majority of the houses for sale are single-family homes at 50% more than last year and condominiums at 130%. In the Bay Area, there was a jump of up to 70% in single-family homes after April and May, as per NBC Bay Area reports through the California Association of Realtors.
Working remotely, people losing jobs, and some cities being half shut down poses grave decisions for the property market. Other people feel that two, three, and four-unit houses in Old Victorians are safe enough during the pandemic times. The multi-unit homes provide safety because of little or no shared spaces, a factor that is making it hard to sell condominiums.
As much as property prices are plunging, it is a good idea for those who can afford to buy themselves. When the economy picks up, the costs will skyrocket to the point they were or even higher. Single-family homes and condominiums in high rise buildings are very plenty in the market, and it is up to the buyer to make a move.
The Covid-19 pandemic has adverse effects on the markets, and home sellers are feeling quite a pinch. Reducing market prices means fetching a lower amount of money than the actual value of the property. Sales are operating at a loss, and yet that is the only way for sellers to keep afloat. With the pandemic’s existence, it is not clear if seasonal trends will hold for the property market in 2020.