See How iBuying Can Help California’s Housing Market Bounce Back
The year 2020 has been tough for just about everyone while the majority of Americans quarantine at home in order to control the spread of COVID-19. This quarantine has shown a lot of us changes we need or want to make in our homes, whether that be a renovation, remodel, or simply needing more space. For homeowners looking to move quickly, or conduct the buying and selling process from the comfort of their home, iBuying is the perfect solution.
California’s Current Housing Market
Currently, we are seeing a steep decline of open houses on the market. Nationwide, 6% of homes that were put up for sale in July held an open house in their first seven days on the market, according to a report from Redfin. With a lack of open houses and options to view them, homeowners want a way to view a property they’re interested in from the safety of their home.
Most notably, in major cities like Los Angeles and San Francisco, there is a recent jump in city dwellers moving to their vacation homes full time, or looking to move permanently to a home with more space and privacy. A recent analysis of Census Bureau data by William Frey of the Brookings Institution found that cities with populations exceeding 1 million residents have seen growth slowdowns, and even losses, over the past four years. The idea of living so close to others, in densely populated areas, isn’t as appealing now that you can’t go out and enjoy the city you live in.
How Can iBuying Help in California?
Contactless customer service is quickly becoming the new norm, as businesses and retailers find ways to meet safety guidelines and stay open. For the real estate industry, open houses are still allowed, but agents and potential buyers must meet strict guidelines. The California Association of REALTORS® guidelines state that individual live showings can be done by appointment only. Open houses, which can attract crowds of potential buyers, are not allowed.
For potential buyers that don’t feel comfortable visiting homes, or having strangers inside their homes, iBuying gives consumers the option to feel safe at home while also doing their research and shopping the market.
Companies like Opendoor have resumed business and are beginning to buy homes again, as well as extending their operations into 14 additional markets. Their top competitor, Zillow, also resumed buying homes in July, and now operates in 24 markets across the U.S.
Is Now the Time to Sell in California?
For California, it’s a seller’s market with record high home prices, officially topping the record set in 2008 before the recession. Another record was set in California when existing home sales spiked by 21% in June. Seriously, right now is the time to sell your home in California.
“Pent-up demand, low inventory and low interest rates are driving demand, creating a seller's market,” said Redding realtor Brad Garbutt of Vista Real Estate.
Garbutt also said there are still people who want to sell, but they are afraid to have would-be buyers come through their home because of the pandemic, which has led to the current lack of open houses.