Working from Home May Trigger a Demographic Shift
The move to remote work caused by the coronavirus is expected to hasten the exodus from expensive coastal cities to more moderately priced remote communities. A new survey conducted by Redfin found that once this shut-down ends, over half of respondents would move if they never had to go into the office again.
“Redfin is preparing for a seismic demographic shift toward smaller cities.” Said Redfin CEO Glenn Kelman. Up until the recent pandemic, the affordability crisis was already driving people from large cities, such as San Francisco.
Corporations like Twitter have already announced that they will continue to allow their employees to work from home permanently. Other major technology companies ae expected to follow.
50% of San Francisco employees polled said that they would move out of the city into the suburbs if they could work remotely. It appears to be already happening if you look at pending sales, which is a good real-time indicator of what’s happening in the housing market. Oakland’s pending sales were down 15% less than San Francisco’s in April. New listings were down 10% more that San Francisco’s in the first half of May making it a tighter market already in Oakland.
Move-in ready homes in Oakland are selling in 5-10 days with multiple offers. Further out, for instance in Walnut Creek, sales are picking up because buyers can afford a bigger house with room for an office and a yard where the kids can play.
Besides the long-lasting effects on business, this pandemic appears to have the power to launch a major migration away from coast-side cities and into the more affordable suburbs.
So, if you are soon to be in the market to buy a new home, our family company with alternative financing is available to help provide a faster close on your new home or provide the needed mortgage if you are turned down elsewhere. Call Sun Pacific Mortgage at 707-523-2099. As a hard money lender in California, we are here to support your temporary lending needs.