We are in uncharted waters. On the one hand, looking at the data through the end of February, our local real estate market has remained strong with prices starting to rise again. Open houses have been busy and we’ve been seeing more multiple offer situations. At least it was that way. Things are changing fast.
With the growing global concern over the COVID-19 pandemic, the stock market has been volatile and losing value. Given our extremely limited inventory, we are still in a seller’s market with demand significantly exceeding supply. Record low interest rates should keep buyers motivated as we head into the busier Spring selling season.
This is a rapidly evolving situation. It is unclear what effect stock market fluctuations, social distancing, travel restrictions and working from home will have on the real estate market. So far, properties have continued to sell well, and multiple offers have become more common again.
Unless there is a significant downturn in either the Bay Area employment market or confidence in job security, the real estate market should continue to be fairly stable for the foreseeable future.