Despite the coronavirus pandemic and shelter in place orders, real estate markets in Silicon Valley and The Peninsula are showing more resilience than is commonly believed. Most economists predict that housing will likely lead the US in the recovery from this recession, and there is strong precedence to support this belief.

What impact will the Coronavirus pandemic have on Bay Area real estate markets? Get up to date information on current market activity, how things are changing in this fluid environment, and why this will not be another real estate recession like 2008, and what you should do if you are buying or selling real estate in this market.

People focus on a few major elements in real estate purchase contracts. But there are important of material clauses, such as Liquidated Damages. This is where buyers and sellers agree, in advance, what the buyers might have to pay if they breach the contract and fail to complete the purchase.

When the next recession comes, whenever that is, real estate prices in the Bay Area peninsula and Silicon Valley will not drop in any signifiant way. They may even rise. There are 3 fundamental reasons why peninsula home prices will remain resilient: 1) Credit 2) Fair Value, and 3) Supply. Historically real estate is less sensitive to recession than other asset classes because it's an absolute necessity. What's burned into our collective memory is the Great Recession of 2008/2009. So when we talk about recession, everybody expects it to be like that, but it won't.