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NorCal Real Estate Update

By BayArea follow BayArea   2020 May 14, 7:31am 665 views   10 comments   watch   nsfw   quote   share    


I haven’t seen any impact to pricing from Corona just yet, but I expect this is coming. Real estate impact typically trails the stock market by a quarter or so.

According to this MarketWatch article, pricing impact comes in July/August.

https://apple.news/AWoapL1NDT6KVXtg18-j6Hg
1   ad   ignore (0)   2020 May 14, 7:40am     ↓ dislike (0)   quote   flag      

.

Its all about supply versus demand.

If a lot of those tech companies allow remote working (i.e., Work From Home (WFM)) then that may impact the Bay Area housing market.

It may be cheaper for Silicon Valley companies to employ people out of state in Nevada, Florida, Texas, etc.
2   B.A.C.A.H.   ignore (0)   2020 May 14, 8:21am     ↓ dislike (0)   quote   flag      

ad says
It may be cheaper for Silicon Valley companies to employ people out of state in Nevada, Florida, Texas, etc. Bangalore
3   Hircus   ignore (0)   2020 May 14, 12:06pm     ↓ dislike (0)   quote   flag      

ad says
If a lot of those tech companies allow remote working (i.e., Work From Home (WFM)) then that may impact the Bay Area housing market.


In the 3-4 years before covid, I felt like there was a movement against remote working in some tech companies. There was a certain study or something cited that said something about higher productivity, employee happiness, engagement etc... when employees worked face to face. So, upper mgmt seemed to be discouraging remote work when they could.

I felt like that would, assuming enough bay area companies adopted it, surely increase bay housing prices.

But, I've recently seen a few big tech companies signal a new level of acceptance for remote work. Some is obviously short term due to covid, but I think we may see an increase in remote work leniency for at least a yr or 2, maybe more. I'm sure some employee's have gotten a taste, and will demand more.

And of course, more remote work leniency should reduce demand on bay housing, while maybe increasing it for the suburbs.
4   Hircus   ignore (0)   2020 May 14, 12:13pm     ↓ dislike (0)   quote   flag      

Another thought - I wonder how much covid will impact bay housing prices. The bay is generally expensive, and so there's probably a strong percent of home owners who work professional jobs, like tech, that aren't very affected by shutdowns.

I'm sure there will be some affect, but I recall some bay neighborhoods were hardly affected by even the 2009 crash, which to me suggested owners had reserve capital and/or jobs that weren't much affected.
5   Ceffer   ignore (6)   2020 May 14, 12:28pm     ↓ dislike (0)   quote   flag      

A house in my hood just sold at peak price after one week on the market.
7   FortWayneAsNancyPelosiHaircut   ignore (4)   2020 May 14, 1:03pm     ↓ dislike (0)   quote   flag      

I haven't seen the impact on my neighborhood. But few things to keep in mind.

A lot of our neighbors are unemployed and are making a lot less money.
A lot of our neighbors are collecting unemployment plus one time Trump stimulus 2k check.
A lot of our neighbors aren't paying their mortgages or rent now, it is temporarily allowed, but not forgiven.

At some point banks and landlords will requirement payment, how that will be, what will it look like, no one knows. If people can't pay their debt if it's asked to be paid fast, shit will be really bad.
8   BayArea   ignore (1)   2020 May 14, 1:04pm     ↓ dislike (0)   quote   flag      

ad says
It may be cheaper for Silicon Valley companies to employ people out of state in Nevada, Florida



Why would they go through that expensive trouble when they are already employing cheap labor from Calcutta and Shenzhen in mass?
9   just_passing_through   ignore (7)   2020 May 14, 1:08pm     ↓ dislike (0)   quote   flag      

Redfin CEO was on TV yesterday claiming he expects a crash in real estate. He said they plan to resume buying properties again soon but their asking prices will be much lower.
10   just_passing_through   ignore (7)   2020 May 14, 1:09pm     ↓ dislike (0)   quote   flag      

FortWayneIndiana says
At some point


Yeah, it's going to be a delayed reaction if it happens. I wouldn't expect large discounts for at least a year.

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