Q: “Will recent volatility in the stock market affect the Bay Area real estate market? Do you expect it to last?”

A: Looking at the dramatic downturn of the stock market recently, it’s not a total surprise as analysts were already waiting for some sort of correction. This is not the first time this has happened and most likely will not be the last—the markets have recovered and eventually became stronger. How does this affect real estate?

There are distractions versus focus, and as agents we need to concentrate on our buyers and sellers needs. Stuff happens in life, and people are still selling and buying no matter what happens. Interest rates hit an all time low, giving move up buyers a great opportunity.

If people lost down payment money, then they adjust their pricing, but most people are already cashed in for their quick purchase. Real estate is still a great investment for the Bay Area.

Jeannie Anderson, Compass, 415-271-4887, [email protected]com.

A: So far, we have not noticed any affect in the Marin real estate market due to stock market volatility. Thanks to the past reforms put in place it’s unlikely that any short term correction, or even more significant dip in the stock market like we’ve noted in the past week, will make such a significant impact on the Bay Area housing market like it did in 2008. While it’s true that the stock market can influence housing to a degree, there are other financial factors that play a larger role, such as income growth and jobs. When an area’s economy is seeing rising wages and is adding jobs there is a demand for home ownership. What most Marin home owners need to remember as well is that housing is shelter first, and an investment second.

In the end, most of our clients seem to rely on the fact that real estate is an appreciating asset – so even if the stock market does adversely impact the housing market at some point, the downswing is only temporary.

Kathleen Daly, Coldwell Banker Residential Brokerage, 415-519-6074, [email protected]; Lisa Lange, Coldwell Banker Residential Brokerage, 415-847-7770, [email protected].

A: I don’t believe recent volatility in the stock market will affect the Bay Area real estate market; at least not how some may expect it to. Our housing market is tied closely with our local employment figures and job market. Continued low interest rates and a hedging against inflation may actually cause prices to continue on their trajectory. Inventory levels remain at historic lows and demand for housing is high. Mortgage payments as a percentage of household income are at some of their lowest (15.8%) and the median home resale price continues to increase.

The supply and demand charts in most price ranges remain in the seller’s favor. High construction costs still make remodeled and newer construction homes extremely valuable to consumers and the under $4 million marketplace remains very active in Marin County and San Francisco.

Coronavirus will cause disruptions to supply chains and manufacturing output. And that will spill over to income growth and consumer confidence. But the rising financial market stress can lead to explosive growth of financial assets and may continue to put many in a financially gainful position to assist in their purchase of real estate. Real estate is the best place to invest your money to hedge against inflation, which is up 2.49% in January of 2020, compared to 2.29% in December.

C.J. Nakagawa, Golden Gate Sotheby’s International Realty, 415-407-2151, [email protected].

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