Impact of COVID-19 on Los Angeles real estate market

The Los Angeles real estate market has always been one of the most popular markets for both investors and homeowners, and for both buyers and sellers. However, it is safe to say that the COVID-19 situation has affected not only the Los Angeles real estate market but the real estate market of the entire world in the year 2020. All real estate agents, together with buyers and seller have been preparing for the spring. This is the season when most homes are sold. But, unfortunately, as this spring has come with the virus, the market was drastically changed. And, how? Well, keep on reading to find out.

Everything Is Becoming Virtual

The first rule of protecting yourself and the ones around you from the ongoing virus is to avoid having contact with other people as much as you can, whether you have symptoms of Corona Virus or not. That also means not going to other people’s houses too! So, how can one attend an open-house and see whether the house is worth buying? How can real estate agents work? Well, those are the things that are affected by the virus. But, the industry is not stopping! Real estate agents are now showing the houses online. They schedule a virtual open house and a virtual showing. Yes, even the process of buying and signing the papers can be done online.

A woman using her laptop.
As we live in the age of technology, even buying a home is one click away.

Prices are Dropping

Los Angeles real estate market has always been desirable. Living conditions there are great, so homes that come with hefty price tags were often overlooked. However, this season is quite different. People are scared of investing and buying homes as the entire situation is rather uncertain. Because of that, the Los Angeles real estate market has more sellers than buyers. And, the selling prices are much lower and more easily negotiable. So, if you planned on buying a home in LA this year, you will actually be able to get it for less money. Thus, act quickly. Call Good Movers LA to help you relocate safely and in no time. 

An illustration of a person paying and the other person offering a house.
The home prices will continue to drop until the end of the year, experts say.

The LA Market is Becoming a Buyer’s Market

As previously mentioned, the Los Angeles real estate market used to be the seller’s market. That means that there were more buyers than sellers interested in settling in LA. No wonder, LA is one of the best cities in California for families, businesses, following your dreams, etc. Because of that, the prices of homes were a lot higher, and there was no room for negotiation. However, due to the COVID-19 situation, everything has reversed. Now, there are more sellers than buyers which made the prices drop. The impact of COVID-19 has affected the supply and demand situation.

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