The Pandemic's Impact on Bay Area Real Estate
Updated: Oct 7, 2020
Image Source: Google Maps
An interesting article intrigued us this week about the impact of the pandemic in real estate. The study looked at foreclosure rates and the growth of home value over the last 2 years to determine the top 50 U.S. communities that might be in trouble. Shockingly, 4 of the top 10 communities listed are from the Bay Area!
#3 Redwood City #4 San Mateo #5 Fremont #7 Santa Rosa
So why are these neighborhoods at risk and not others? Is the economic reality of these towns so different from those that have not been impacted?
There are many reasons this may be happening, but we believe the most likely is this - if what drew buyers to the communities has been hurt in the pandemic, then perhaps that buyer base has been wiped out by the virus too.
What are we talking about? Affordable commute. Each of these communities provided an affordable option compared to their pricey neighbors that was still within a reasonable commuting distance to working hubs like San Francisco and Palo Alto. But if the commute isn’t happening, then buyers may look to other geographical options to spend that same amount of money.
What this study tells you is that now more than ever a realtor with specific local knowledge is critical to achieving the most from your real estate transaction. What makes your town special? Why have families bought homes in that area over the last 5/10/20 years? Are those reasons changing with the pandemic? How is the local government managing social distancing and how is the school district prepared to handle a return to school? Are there private options available if you are dissatisfied? These are critical questions for both the short and long term value of your home.
All the best,