In the course of our lifetimes, we’ve all weathered several recessions that have had radical impact on how many of us view the world.
In the 1980s, we had record, runaway inflation. In 2008–2009, the economy crumbled - giving us the Great Recession. Our recovery from these has been strong, but now we’re grappling with the effects of the COVID-19 crisis.
There is no question that each one of these recessions have left their mark on consumers.
This current recession has nothing to do with housing and, because of that, housing won’t be much affected. Prior to COVID-19, housing had substantial momentum and as we progress through this time, it will come out just as strong.
Compared to any other city in our region or state, for that matter, Davis has a unique housing market structure with significantly greater stability. For this reason, Davis has been less effected during major economic downturns. As someone in the real estate business for five decades, I expect the impacts of this recession to be similar to the last two major recessions, but less severe, especially, in Davis.
Notably, the effects of COVID-19 have softened the stability of the market as some buyers are temporarily out of the market due to job instability and some sellers will opt to wait a year if they are not comfortable showing their home during these times. What remains static is the strength of our community and identity as an attractive place where people want to live, work and establish roots.
These are the fundamentals of the Davis real estate market.
Why is Davis an attractive place for individuals and families to purchase a home?
- Well-funded and strongly supported schools. An ethos of education and its opportunities.
- Location: A small town feeling especially within individual neighborhoods. “A nice place to live.”
- University of California with its strong economic and employment base.
- Safe community: low crime rate and strong civic involvement.
- Family oriented town with associated amenities.
- Conveniently located near a major city, airport and transportation corridors.
- The prestige of affording Davis’ higher real estate prices. There may be bigger, often nicer homes in some Sacramento suburbs, but those areas lack what Davis has to offer.
Nothing is changing in our fundamentals because of this particular economic and health instability.
While the economy is clearly in flux, the fundamental reasons to select Davis over other locations remains firm and constant if you can afford it.
The question facing Bretton Woods’s buyers is: To what degree will a strained state and national economy impact demand and prices for my current Davis home?