The local Case-Shiller Index for March had the biggest monthly increase in 2+ years, and helps to show why we are getting back to a healthy market quickly. March is usually a strong month though:
San Diego Non-Seasonally-Adjusted CSI changes:
The strength in March prices came even as mortgage rates bumped sharply higher during the month. That should have given homebuyers less purchasing power. Rates began falling precipitously after that and hit a new record low late this month.
“As states are cautiously reopening business activity and people are looking at summer plans in a new light, the reality of 25 million unemployed Americans is casting looming clouds over the horizon,” said George Ratiu, senior economist at realtor.com.” For homebuyers, low availability coupled with still-rising prices are overshadowing the benefit of historically low mortgage rates.”
The March numbers should be taken with a grain of salt since they are 2 months old and are calculated using a three-month running average.
“Housing prices have not yet registered any adverse effects from the governmental suppression of economic activity in response to the COVID-19 pandemic,” Lazzara said. “As much of the U.S. economy remained shuttered in April, next month’s data may show a more noticeable impact.”