So tenants get billions of free cash from the government.
I guess that’s good for the pot business but not landlords?
How will luxury real estate (LAH, LA, PA, Atherton) be affected in Bay Area. WFH is here to stay and fewer big social gatherings in the future mean less need or use of large mansions. Add the economic difficulty and recession, and it does not look good.
I do not trust these news stories. Media can lie through teeth these days. Not to say the story is likely wrong. The purpose of media is to create a perception than to tell truth. Oh, these heatless landlords!!!
I am wondering why KQED and NPR have not yet been defunded?
Wow you are really good at parroting right wing talking points and slander aren’t you? Do you know how much NPR gets from the federal government? Do you also know how much benefit they produce? Next you are going to rant on the need to close libraries. At this point I think you are a Russian troll meant to rile up people
I do not hear stories of landlord helping pregnant women and or other tenants in distress. That is why I was wondering whether all good landlords have disappeared from this planet, or the real estate business has fallen into the hands of cruel people. Maybe all the landlords on this forum should take note and be nice to their distressed tenants and invite KQED and NPR for a story and photo op.
It’s a good question. I could see the opposite happening. Real estate in core areas near PA could go up. If you’re spending more time at home you might want a nicer place. And if you are a core employee I still think you are going to need to come in a good chunk of the time.
I could totally be off base here though. Really hard to say.
Very high chance that luxury real estate will be slow (demand), but will it drop? I think it’s supply and demand question, it’s highly unlikely that not a lot of sellers are willing to sell unless it is needed. And they probably are sitting on enough equity that they might not need to. That’s why during recession, we normally see more sell off in lower price point area. Also those houses gain more percentage when market is recovering as well.
Trophy homes and bedroom+kitchen homes have different market characteristics too and operate in their own segments of market.
I think luxury homes are ready in decline since 2016. But it is such a thin market that it can can change quickly. Definitely a preferred place to SIP. Having an apartment in SF isn’t very attractive when every thing is closed.
Cities are all about social gatherings. Without that they aren’t nearly as attractive.
Much rather be hanging at the pool on my farm.
I am more worried about the freezing up of the mortgage market. I am all ready to buy but all non-QM loans just vanished overnight. Many lenders are pulling back. Just saw Wells putting a stop on HELOC loans.
Golden quote. This is what I tell anyone who cares to listen.
When you buy or rent a home, you are getting not only four walls and a roof, but also the neighborhood.
Who wants to step over homeless and poop to go back to your tiny apartment with no amenities. SF condo market is screwed . No restaurants no clubs no gyms. No life. Millienials will escape
Historically during recessions high end homes go down much more than entry homes. During dot com bubble entry homes went down by 10% while premium were down by 20%.
It seems like lower demand N unwillingness to sell low may imply widely varying prices. Some may go for steep discount while others may find a desperate or willing buyer.
It’s actually not as thin in Bay Area. I’ll call 5M+ luxury homes. There are plenty of such homes in Bay Area. 10s of thousands. A lot owned by older ppl.
The thing is a lot of those people don’t need to sell. They’ll just hang on to their property through the downturn. There will of course be some turnover at discount prices but I doubt you will see much volume in that price range.