Strong home sale activity expected in winter, a good indication of things to come

Posted at 5:07 PM, Dec 09, 2020
and last updated 2020-12-09 20:07:57-05

The annual Kern Taxpayers Association meeting on Wednesday had a lot of positive news. One aspect focused on the fact that many Americans chose to save those $1,200 stimulus checks they received earlier this year. And could be saving it for less restrictive times.

Wednesday’s Kern Taxpayers Association meeting was presented virtually over Zoom this year. The main speaker was Dr. Lawrence Yun, chief economist and senior vice president of research for the National Association of Realtors. Dr. Yun gave a presentation on Kern’s economic and real estate outlook in the coming years providing some good news.

“Once it’s available, one can easily envision the unleashing of these savings back into the economy,” said Yun. “2020 is full of surprises but real estate is one positive surprise.”

Yun said the number of pending real estate contracts this year around August was about 20 percent higher than it was the year before, which is a good indication for things to come. He said low-interest rates are helping too.

“This winter will be one of the strongest winters for home sale activity ever.”

UCLA economists also issued an optimistic forecast, predicting the U.S. economy will experience “a gloomy COVID winter and an exuberant vaccine spring,” followed by robust growth for some years.

Dr. Yun told the virtual audience that Californians should expect a slower job recovery condition because the states with more restrictions are showing slower signs of job recovery. Still, he said in the scheme of the state, Bakersfield has faired well in the past, overperforming with jobs during the 2008 recession and continuing now.

“Bakersfield is certainly doing much better than the rest of California in terms of a 20-year job market performance.”

One thing that will catch up with the nation, Dr. Yun said is that in about 5 to 7 years inflation rates will rise because of all the cash that has been printed lately. He also said interest rates won’t remain this low forever. That’ll likely end in the coming few years.