The Covid-19 virus Pandemic has affected us all tremendously.The statistics for the real estate markets in the South Bay and Palos Verdes Peninsula for the first quarter of 2020 seem to indicate that the residential markets were not significantly affected by the Covid-19 virus but this was due to the fact that March sales were transactions put under contract in January and February.before the shelter in place order was issued. After the mid-March stay at home order, however, the real estate markets have significantly changed. The number of active buyers has decreased not only because of concern about the virus but also due to losses in the financial markets, stricter lending standards due to lender concerns about the future strength of the market, and job loss issues.
As of April 30th the number of homes listed on the Palos Verdes Peninsula is about the same as at the end of March, but is 38% lower than at this time last year. Sales of homes and the number of homes in escrow have held steady in April, but again many of these sales were under contract before the virus shutdown. The average price per sq.ft. for homes sold in April on the Palos Verdes Peninsula decreased 10%, however, over March.
Most economists are projecting prices to decrease over the near term due to these concerns about the economy. Sales for the next several months will probably decrease significantly. Other economists, however, believe that the impact of the pandemic is not expected to have a large long term effect on pricing as the inventory of homes has also decreased due to reluctance of Sellers to market their homes for sale at this uncertain time. Some real estate experts have in fact projected small price increases by the end of the year. Due to the decrease in both buyer and seller activity, supply and demand seems to be relatively stable now. Only time will tell.
See https://maureenmegowan.com/market-reports/ for my full market report for the South Bay and Palos Verdes Peninsula
