Hi this is Jack Ma with Jack Ma Real Estate Group in Walnut.
First and foremost, I want to send my thoughts to everyone that’s been affected by the Bobcat & El Dorado fire. And to everyone, please be safe and wear your mask when you are out and about…both for COVID and the ashy air quality.
We are now in September… official start to Autumn is only a few days away. School started, and halloween costumes are popping up in stores. Typically the Autumn market starts at the end of August. We normally will see a slow down in number of buyer as well as home owner pulling their home off the market.
2020 is definitely not your typical year! The typical spring market turned out to be the slowest spring market in memory due to stay home order. The summer market exploded and become the new spring market. All trends pointing to this Autumn market is going to be the summer market of 2020 – not quite as hot as June, July and August but still busy with homes flying off the market with multiple offers.
How do I know that? Here are some reasons:
1. Supply and Demand imbalance. The number of homes for sale on the market is at its lowest August level since 2012 and the number of buyers looking is at the highest level since 2012. We have 26% less homes for sale and 24% more buyers on the market compare to same time last year.
2. Record Low Mortgage Rate – With interest rate dropping below 3%, people just can buy more home for the same amount of money. Imagine this…. when interest rate was at 5% end of 2018, a $2700 a month payment will allow you to borrow $500,000 and with a 20% down payment, you purchse a home around $625,000. Today, the same $2700 mostly payment and the same $125,000 down payment will get you a house that is $765,000 – now talk about a free upgrade.
3. First Time Home Buyers surge – The millennial have surpassed baby boomers as the largest living adulate generation. More and more millennial are ruching the average first time home buyer age of 32 years. That means housing in heading into a strong demographic patch of first time home buyers, one that we have not seen since the baby boomers were in their prime 30 years ago.
So there you go….. Low supply, strong demand, increased affordability and a strong demographic surge all are the foundation of an exceptionally hot Autumn Market.
Therefore…I give you….the NEW SUMMER MARKET OF 2020.
I hope you enjoy this message. If you or anyone you have know have any real estate plan, I would love to work with you. I service the tri counties area: San Gabriel Valley, North Orange County, and Eastside Inland Empire. Look forward to hear from you.
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All the information can be found below!
Stay safe and I will see you soon.
If you have any questions regarding real estate, kindly call at 909-529-1989
