For a variety of reasons, the predicted recession of 2020 never affected the real estate market segment anywhere in the United States, but particularly in California.
Back in March there was much “gloom and doom” with a tsunami of foreclosures expected as we sheltered in place. Instead, a housing boom has emerged in many of the top counties of California including Sonoma County, San Francisco and the Peninsula areas of San Mateo & Santa Clara Counties. All with appreciation exploding and homes being swept up in record time! You just need to ask a homebuyer from this past year how easy it was to find and procure a home, given the stiff competition and lack of inventory.
We have definitely seen a V-shaped recovery in the real estate market as opposed to the other shaped recoveries, i.e., U-shaped, W-shaped, and L-shaped. Even early in the pandemic, the WSJ polled its economists and found that 68% predicted a V-shaped recovery for real estate. Nevertheless, some naysayers persisted in believing and predicting a real estate crash akin to the last one. And yet August sales for both existing and new homes hit their highest mark since 2006.
This winter, when we generally expect to see a slowdown in real estate sales given the holidays and bad weather, instead we saw an increase of 30% in mortgage applications for home purchases. Also surprising was the increase of 11.4% in home values nationwide and an even greater increase in California.
While the stock market has seemed like a dizzying rollercoaster ride this past year, the real estate market has had a steady ascent. Investors looking for a haven for their wealth, have turned to the real estate market in greater numbers than ever.
If you have ever thought about adding real estate to your retirement portfolio, this may be the ideal time to do it. Want more than 7-9% return on your investments? Deeds of Trust can help you achieve this!
Give us a call at 707-523-2099 to become one of our trusted private money investors. It’s a great way to expand your wealth in property and become a land baron without the hassle of being a landlord/landlady. We have 3 decades of experience as a family-owned-and-operated private money broker while maintaining a sterling reputation with buyers and investors alike.