Although COVID-19 has made an impression on the housing market in SoCal over the last few months, it has continued to be successful with homebuying moving forward. Sellers took an opportunity at the beginning of the summer to make a change and join hundreds of others who put their homes on the market. With the summer season coming to a close in the near future, there are a few home buying tips that new home buyers should keep in mind as they navigate their search for their new home, even at the last minute.
Due to COVID-19 and how it has impacted the California economy, there are currently more sellers on the market than home buyers. Attempting to downsize or eliminate additional debt is something that many of these homeowners have considered in the wake of the pandemic. This leaves open an area of price negotiation and listing prices dropping on their own to attract buyers to their property. Getting a home for a fair price in SoCal has never been easier.
While this is usually recommended for most real estate transactions, lenders have been stricter this year than before due to the pandemic. Lenders need to know that you have a stable income despite the effect COVID-19 has had on the economy. Having your pre-approval first before you look at homes gives you an idea of what you can afford and direct you to homes in this price range. Lenders are also able to assist you better when the time comes to close and become approved for your new home loan.
Because the pandemic created physical distancing between residents in the state and the country, staying safe and healthy is a primary concern for all parties involved. This has forced sellers and real estate agents to turn to virtual tours for home buyers, reducing the spread of COVID-19 and reducing face-to-face interaction. Most of the interactions that happen in the home buying process have moved to a virtual format, minus the final stages before and when signing for the new home.
A trend over the last decade in SoCal has indicated that home prices start to drop significantly later in the year, beginning around the end of summer. Homes that have spent quite a bit on the market, especially during the summer, are often the first ones with price reductions so that the home buyer can sell the property and avoid taxes that will be fast approaching.
If you are looking to purchase a home in California, be prepared for a new process with virtual tours and stricter lending policies than past years. However, the buyer has more power for negotiating and home options due to slashed prices across the SoCal area. Do not navigate this journey alone. Our agents at Houzerz is ready to assist you with all of your home-buying needs. We look forward to hearing from you soon.