March Market Report
Silicon Valley Real Estate Market Update
What’s the best, easiest way to house hunt in 2024?
Answers here As our lives, our businesses, and the world we live in change day by day, we’re all left wondering how long this will last. How long will we feel the effects of the coronavirus? How deep will the impact go?
As of now, I’m here to share where we are in relation to the real estate market today.
With over 90% of Americans now under a shelter-in-place order, many experts are warning that the American economy is heading toward a recession, if it’s not in one already.
What does that mean to the residential real estate market?
The human toll may forever change families, but the economic impact will rebound with a cycle of downturn followed by economic expansion like we’ve seen play out in the U.S. economy many times over.
Are we headed for another housing crash?
As I’ve discussed before, the past shows us that most recessions do not adversely impact home values.
-Doug Brien,
CEO of Mynd Property Management
CoreLogic agrees
This graph highlights their findings of the last five recessions.
What are the experts saying this time?
This is what three economic leaders are saying about the housing connection to this recession:
Robert Dietz, Chief Economist with NAHB:
“The housing sector enters this recession under built rather than over built…That means as the economy rebounds – which it will at some stage – housing is set to help lead the way out.”
Ali Wolf, Chief Economist with Meyers Research:
“Last time housing led the recession…This time it’s poised to bring us out. This is the Great Recession for leisure, hospitality, trade and transportation in that this recession will feel as bad as the Great Recession did to housing.”
"Recessions caused by a pandemic do not significantly impact home values."
-John Burns, founder of John Burns Consulting
Our Local Market..
In taking a look at our local MLS statistics, you can see that the pending sales are remaining consistent, they are muted due to some of the challenges in viewings and showings but they are still consistent and keeping us in a seller’s market.
From expert financial institutions to business leaders across the country, we can clearly see that the anticipation of a quick return to normal once the current crisis subsides is not too far away. In essence, this won’t last forever, and we will get back to growth-mode. We’ve got this.
The Bottom Line
If we’re not in a recession yet, we’re about to be in one. This time, however, housing will be the sector that LEADS the economic recovery.
Lives and businesses are being impacted by the coronavirus, but experts do see a light at the end of the tunnel. As the economy slows down due to the health crisis, we can take guidance and advice from experts that this too will pass.
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