Chic vs. Geek: Opportunity is knocking...

We know single family home sales are up during the pandemic, but how’s it going on the condo and townhome market?

CHIC (PEARL)

As it turns out, condo and townhome sales have been down in Silicon Valley — though more in the city than in the suburbs. The reason for this is pretty simple: People need and want more space after working, schooling, exercising, and cooking at home for almost a full year. Add kids and pets to the mix, and life in a condo can get pretty cramped pretty quick. There’s also a need for open space to provide an escape from that cooped-up feeling. This is not to mention that younger generations who had previously been renting condos and apartments have since moved back into their parents houses.

GEEK (KEVIN)

Pearl and I agree that condos and townhomes present a great opportunity for first-time homebuyers and eager downsizers. With demand this low, prices are more negotiable. It’s the same philosophy as investing in the stock market. Low demand leads to low prices, but home prices can only appreciate over the long term, even for condos. Also, most experts agree that we’re probably headed for a hybrid of working from home and commuting to the office, even after the shelter in place has ended, At that point, increasing demand will make an investment in a condo even more lucrative.