2020 has been a tough year across the board, yet residential real estate seems to be thriving in certain sectors while struggling in others. Alan dives into the details of they dynamics behind these factors

1. 2020 Curveballs and
Impact to Real Estate
By – Alan Wang
Founder Alan Wang Realty Group
Founder Keller Williams Santa Clara Valley
10/5/2020

2. 2020
Challenges-to-
Date
• Coronavirus Threat
• Sheltering-in-Place
• Coping with Online Schooling
• Social Distancing
• Social Unrest
• A Nation Divided
• Wild-Fires and Smoky Conditions

3. 2020 Real Estate Trends
• A Momentary Freeze in the Market
• Temporary Halt of the “City Center”
• Out-of-State Migrations
• Flight from San Francisco

4. SF Rental Market Supply and DemandRentalandHomePrices
Available Rental, Condominium and Townhome Units
Spc
Dpc
1 – Rental Market Pre-Covid
Qpc
Ppc
2 – Migration Out of the City
Dsip
Qsip
Psip
3 – Increase of Rental and
Supply of Homes for Sale
Ssip2
Qsip2
Psip2
Result is Increased Supply and
Lower Prices

5. Government
Interventions
• Paycheck Protection Program (PPP)
• Economic Injury Disaster Loan (EIDL)
• Forbearance
• Tenant Relief
• Interest Rate and Monetary Policy
• Stimulus and Unemployment Benefits

6. 30 Year Fixed
Mortgage Rates
Source Freddie Mac -
https://fred.stlouisfed.org/graph/?g=NUh

7. State of California
Unemployment Rates
• Source – US Bureau of Statistics -
https://data.bls.gov/timeseries/LASST06000000000
0003?amp%253bdata_tool=XGtable&output_view=
data&include_graphs=true

8. NASDAQ
Index Last
Two Years
• Source – Verizon/Yahoo
Finance! – 10/2/2020

9. New Buyer
Requirements
in New Times
Larger Home
More Bedrooms for an Office
Good Size Backyard
Move-in Ready Home

10. Location
Trends
Migration Away from Center
Hot East Bay Market
Southern Markets
Peninsula
Southbay

11. Post Covid Single Family MarketHomePrices
Available Units for Sale
Spc
Dpc
Scenario 1 –Supply and Demand
Pre-Covid
S1
Qpc
Ppc
P1
Q1
P
Q
Scenario 2 – Reduced Supply Caused
an Increase in Prices
Results – Lower Supply and
Increased Demand resulted in
increasing prices
Scenario 3 – Demand
Increased due to Shelter in
Place
D2
Q2
P2

12. Q3 2020 Santa Clara County Year-over-Year
Data Points Single Family
Homes
Condominiums/Townhomes
Currently Active 950 (1.8% ) 678 (35% )
Active Days on Market (And Counting) 48 (26% ) 42 (11% )
Pending Units 1075 (112% ) 402 (106% )
Sold Units
(July 2020 to September 2020)
1598 (60% ) 543 (40% )
Sold Days on Market
(July 2020 to September 2020)
10 (29% ) 14 (33% )
Expired/Cancelled/Withdrawn Listings Q1 2020 – 415 114%
Q2 2020 – 375 10%
Q3 2020 – 249 9%
Q1 2020 – 260 160%
Q2 2020 – 233 4%
Q3 2020 – 189 32%
Source REIL MLS Listings October 2020 Compared to September 2019

13. Real Estate
Outlook 2020
and Beyond
• Work From Home June of 2021 At Least
• 2021 Likely Same Trends
• Vaccine is a Key Factor
• Monetary Policy and Presidency
• Health of the Nation
• Health of the NASDAQ