Real Estate Round-Up: Keeping it positive
Last updated 6/18/2020 at 7:05pm
Is anyone else sick and tired of all the negative? I am. If you are on social media or watch local or cable news, you are probably feeling like I am, which is “not myself.”
I am normally an upbeat person, who finds the good in most situations. I think back to my initial response to the sequester we were being required to participate in. I pointed out all the positive aspects of spending more time with your family, your pets and in your home.
The time at home provided an opportunity to get things done, you had been putting off. It provided time to catch up with family and friends you hadn’t spoken to in a while. It provided time to contemplate and pursue personal goals that a busy lifestyle often eliminates from available hours in the day.
But as the weeks passed, the reported news progressively got worse. From cases and deaths reported to the economic destruction occurring, any good news was buried so deep beneath the surface that you would think there was no good news.
Then we get hit with protests and riots, which once again pointed to the negative. I’m no “Pollyanna” and I understand that there are always “bad” things happening, but there are also always “good” things happening. I firmly believe that what we allow to dominate our thoughts will dominate how we feel. So negative in, expect negative out.
I’m here to tell you, despite the dominance of negative in the news, there is also plenty of good news. For the well-being of all of us, we need to stop being sucked into only the bad. I am going to rekindle the positive Kim in my articles, because as I said, there is a lot of good to report, it’s just buried beneath a preponderance of conversation about the bad.
First bit of good news. Despite the large numbers of unemployment filings across the United States the jobless rate actually fell in May to 13.3% from April’s 14.7%. There were 2.5 million jobs created in May, with 1.4 million of them coming from the restaurant and bar industry.
Even though housing supply remains constrained, 54% of buyers surveyed in May want to purchase a home in 2020. California mortgage applications are up 5% from last year.
In Fallbrook alone, housing inventory in May was down nearly 22% from last year with subsequent closings in May down 35%, but pending sales were just one unit less in May 2020 from May 2019. The median price and average price are holding steady.
Now that we’re on a roll, let’s talk about a few additional positives that are occurring. Buyers are looking at more rural areas to live in. Being able to work from home allows them to have a more balanced lifestyle.
Tele-commuting has opened the door to more employment opportunities, since being close to work is no longer a necessity. People can choose to move out of crowded, high cost cities and find a home with a backyard, an in-home office and more bedrooms for their extended family.
Money is flowing into health care, medical products, new pharmaceutical and biotech discoveries. As of June 10, the stock market had recovered nearly all it lost when the country first went into “stay at home” mandates, with the NASDAQ exceeding where it was March 1.
There is something in business called “animal spirits.” It said that there is an intangible mindset that when things start looking positive, it builds upon itself. Inspired by the unexpected increases in jobs and a strong stock market, companies who were previously holding back, will open up new business lines.
Hiring may pick up as confidence builds. Workers who return to work will start to spend which will stimulate the economy. The cycle of confidence continues to build on itself.
Next time, you feel like you’re being sucked into the negative vibe, turn that channel off in your head and come on over to the bright side of life, and let’s spread the positive.
Kim Murphy can be reached at [email protected] or 760-415-9292 or at 130 N. Main Ave., in Fallbrook. Her broker license is #01229921, and she is on the board of directors for the California Association of Realtors.