A lack of home supply has pushed up the price of homeownership to its highest in history in much of Southern California.
COVID-19 could not stop the upward pressure on home prices in San Diego County which reached a new high of $600,250 in June.
The median home price in San Diego County crossed the $600,000 line for the first time in June, said CoreLogic data provided by DQNews. It represents a modest 1.7 percent price gain in a year but is still noteworthy as unemployment is at historic highs.
The biggest factor in rising prices is sellers taking homes off the market during the pandemic and causing price wars among buyers. Other factors include a strong desire for homeownership as many are working from home, low mortgage interest rates and construction of homes in San Diego County at Great Recession levels.
San Diego was not alone in this phenomenon, with three of the six Southern California counties reaching record price peaks in June.
read more at: https://www.sandiegouniontribune.com/business/story/2020-07-22/amid-covid-san-diego-home-price-hits-highest-ever-600k
Lenders are slowly and selectively starting to underwrite jumbo mortgages again after all but abandoning the market as the pandemic got underway.
Since February 2020, jumbo mortgage originations have plunged 57 percent, according to data from the Mortgage Bankers Association (MBA). https://www.msn.com/en-us/finance/realestate/lenders-are-slowly-starting-to-offer-jumbo-mortgages-again/ar-BB16ESKD
The once-robust market for jumbo loans, and some other types of loans, collapsed at the onset of the pandemic. Lenders worried about the ability of borrowers to repay their loans as unemployment skyrocketed.
“There was no secondary market to purchase these loans and the banks can only hold so many on their balance sheets,” says Mitch Ohlbaum, real estate broker and president of Macoy Capital in Beverly Hills, California. “In fact, there was no secondary market for jumbo loans, non-QM loans, private loans or much of anything to be honest.”
read more at: https://www.msn.com/en-us/finance/realestate/lenders-are-slowly-starting-to-offer-jumbo-mortgages-again/ar-BB16ESKD
A majority of home sellers are feeling the pressure to sell their homes despite the coronavirus outbreak. Nearly 70% of sellers are willing to accept a lower purchase price just to get to the closing table, according to LendingTree’s latest survey results.
LendingTree commissioned a survey of nearly 1,000 home sellers to gauge their attitudes about listing a home for sale in the midst of a global pandemic.
Nearly 70% of home sellers would accept a lower purchase price in order to sell their home during the coronavirus pandemic.
read more at: https://www.lendingtree.com/home/mortgage/lendingtree-survey-more-than-two-thirds-of-home-sellers-would-accept-a-lower-offer-price-amid-covid-19-crisis/