Here they come!
So many wealthy people are rushing to move away from the big cities that it is creating a bit of a “real estate boom” in many suburban areas, small towns and rural communities. Fear of COVID-19, a collapsing economy and the tremendous urban violence that we have witnessed in recent weeks have combined to create a frenzy of activity. Last week, my wife and I heard from a friend in New York City that is all of a sudden desperate to move to another state, and I certainly can’t blame him for wanting to relocate. If I was in his shoes, I would be wanting to move too. But at this point so many people are all thinking the same thing that the demand for housing in certain areas threatens to greatly exceed the supply.
In fact, one real estate agent in the San Francisco area is describing it as “a mad rush to get out of the city”…
“There’s a mad rush to get out of the city,” said Ginger Martin, a real estate agent with Sotheby’s who concentrates on high-end properties in the San Francisco Bay Area. “What I’m really doing well with right now is anything that’s turnkey.”
Unfortunately, mortgage lending standards have really tightened up over the past few months, and so this is limiting the number of people that are able to successfully relocate.
Mostly, in this environment it is just “wealthy folks” that are able to move away from San Francisco and purchase a new home somewhere else…
Relocation, at the moment, is only by wealthy folks, who still have the financial mobility to move as the real economy implodes and paralyzes the bottom 90% of Americans. Even with a good credit score, lenders are not preapproving folks like they once were. Many people over the years flooded into San Francisco as the economy boomed, and tech flourished. Now with an economic downturn, social unrest, and pandemic — the city is becoming too dangerous to raise a family.
Over on the east coast, violence is one of the primary motivating factors that is causing people to suddenly pick up and move.