3 Reasons Silicon Valley Home Prices Won't Fall in the Next Recession
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.