Case in point ; SF Gate reported that Sales Force cut back 325,000 square feet of space it was planning on occupying in San Francisco after adopting a permanent remote work policy . Many companies have followed , such as Dropbox , Twitter , and Facebook . Rents in the surrounding areas have decreased as much as 20 %; however , prices for homes have not seen such a decrease , and , homes that have more square footage command a premium . However , there is the possibility that , once a vaccine is widespread and we have moved on from the pandemic , many companies will start to require workers report back to the office . Some companies are already requiring employees go back to working in the office , as they believe productivity will increase compared to at home workers . This may start to force a shift of people moving back to the city from the suburbs .
Interest rates are still relatively
Image by Gerd Altmann from Pixabay
low , but they are starting to creep up . Many home buyers believe they should find something soon before the rates for mortgages go higher . The demand for capital is still strong , and it does not appear that it will
taper off anytime soon . Banks still have strict criteria regarding lending standards , and recent changes in the Dodd Frank rules did not dimmish these standards . In addition , borrowers who requested deferments from their lender may not have had their credit scores lowered due to these requests , but a memo recorded in the credit report has effectively
The demand for capital is still strong and it does not appear that it will taper off anytime soon . Banks still have strict criteria regarding lending standards , and recent changes in the Dodd Frank rules did not dimmish these standards . prohibited conventional financing for them , at least for a while .
Other reasons many believe demand for housing will continue is due to a housing shortage . Too many restrictions by city or county officials
hamper housing starts , and costs of both material and labor have dramatically increased . This put an undue burden on builders as their profit margin gets squeezed ; thus , the law of supply and demand as well as low interest rates [ that appear to be relatively stable ] should keep housing prices strong . During the Great Recession , many homeowners lost their houses to foreclosure . Many Millennials remember how their parents lost their home , and this lent itself to many people choosing to rent instead of purchase . Over time , however , these [ now grownups ] are starting their own families and have healed from the wounds of the Great Recession to where they are deciding it is better to buy rather than rent .
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