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Housing Update Oct 2020 [video] – Reasons Why Sellers in the SF Bay Area Should Consider A Move Now
Oct 2020 market report for national and SF Bay Area. Hello Sellers! If you were waiting for that time that you wished. you had taken advantage of last time and WISHED you had got the most out of your money before it went down – well, maybe this is your time. Here’s Oct housing trend and we take a look at what the economy has done nationally and what’s happening now locally in the SF Bay Area. We learn how the economist forecasters change their home price appreciation predictions. We discuss why the average U.S. citizen (not home buyers) have improved their FICO scores and proof that the American entrepreneurial spirit is alive and well during times of economic distress. And lastly, we learn why being a seller in this market is a fantastic opportunity (with existing home sales up 34% YTY and listings down -32% in the Bay Area).
Does the home I’m currently in meet my needs for the next decade?
Lynne Watanabe MacFarlane, MCDM, SRES | Realtor
Intero Real Estate Services 831-246-2743 text anytime
What’s My Home Worth? https://sfbay.areahomevalues.net/
I like to educate my clients and friends about what’s going on in the real estate market and depending on whether you’re a seller or buyer (or investor) I’ll give you the facts so you can make informed decisions. Give me a call, let’s have a cup of coffee to discuss your real estate goals, I want to help you achieve them. 831-346-2743 Lynne Please LIKE and Subscribe I’m happy to help and educate. If you know of someone who needs assistance, I’m also a PFAC affiliate (Professional Fiduciary Assoc. California- Silicon Valley) I have a great network of specialist who can assist with special needs, disabilities and seniors. I also have an advance certificate in SRES (Senior Real Estate Specialist) I partner with Intero | Berkshire Hathaway affiliate, the top brokerage network in the SF Bay Area, offering off-MLS listings, Pinnacle concierge services, lending and title to bring my clients a smooth and seamless transaction experience.
Housing Recovery Trend Disrupted by Wildfire in San Francisco Bay Area
Last May, the Brookings Institution wrote about the post-Covid19 recovery as having several possible shapes of recovery (Z-shaped, V-shaped, U-shaped, W-shaped, L-shaped, and even the Nike Swoosh) but here are four major financial institutions predictions for recovery (below image).
In a Realtor.com study- we have seen a similar V-Shape recovery, but recently there’s been a deceleration as potential sellers found it harder to list and show their home as wildfires spread through the West coast.
Housing Market Recovery Index Highlights – Week Ending September 12
California has shown that social distancing and economic resilience continue to be key factors driving local differences in the housing recovery. Per Realtor.com’s research, the spread of COVID-19 is closely linked to the housing slowdown, with markets with higher cases per capita more likely to see a bigger impact on supply and the pace of sales. The speed and sustainability of the reopening, and each market’s ability to contain COVID-19, are dictating the speed of recovery across the regions. Finally, resilient economies may have an edge in the housing recovery, and areas with strong job markets before COVID-19, especially those with thriving tech sectors (such as in the SF Bay Area), are seeing buyers and sellers reconnect faster than the rest of the country.
Below are the V-shaped curved found in the northern California communities. Notice the downward trend in Aug – Sept due to the numerous wildfires.
The higher the index value, the higher the level of recovery. The lower the index value, the lower the level of recovery.
Recovery of Roseville, Sacramento, Arden, Arcada, California from Feb 1, 2020 – Sept 1, 2020
Recovery of San Francisco, Oakland, Hayward California from Feb 1, 2020 – Sept 1, 2020
These are photos taken as my husband and our Chihuahua, Angel, crossed the Golden Gate Bridge in San Francisco, Sept 9th, 2020 – 11AM Smoke and fog
Recovery of Recovery of SJ, Sunnyvale, Santa Clara California from Feb 1, 2020 – Sept 1, 2020
Thank you to the brave California Fire Department for coordinating a fantastic job containing many of the fires in California, we applaud their heroic service as many sacrificed their time, energy away from their families to protect people and properties throughout California.
https://www.sfchronicle.com/projects/california-fire-map/
How is your family and how are you handling the aftermath of the fires? I hope you and your family are doing well, but just know that it has effected everyone. It’s been a very rough few weeks here in northern California and the housing market certainly has been effected by the enormity and tragedies around us. Be safe & let me know if there’s anything we can do to assist.
| Lynne Watanabe MacFarlane, MCDM, SRES | Realtor
PFAC Silicon Valley affiliate Intero | A Berkshire Hathaway Affiliate phone 831.346.2743 |
Weekly Update Look at Five SF Bay Area Counties
It’s the Weekly Update look at real estate activity in the five SF Bay Area counties (San Mateo, Santa Clara, Santa Cruz, San Benito and Monterey). Take a look at the contrast between 2019 vs. 2020 (March 1st – Aug 22nd) and how far we have bounced back from SIP looking at May, June and July differences between the years. In July 2019 we had a total of 2,757 Closed Sales, but July 2020 we had 3,134 Sales, that’s a 13% Year over Year difference.
#realestate #bayarearealestate #sfbayarea #housingmarket #bayarearealtor #Intero #MLSlisting #Aculist
Are People Really Leaving San Francisco For The Suburbs? [Video]
Here’s my latest vlog post – I hope you and your family are doing well, staying healthy.
One of the first trends that became evident when quarantines began was the large number of young professionals who had gone home to wait out the virus with their parents. Having left the cities where they work and return to their hometowns, many of these young people may not go back. If the work-from-home situation continues – or if their jobs are eliminated – they might find themselves moving back home for good. This may be one of the factors to my discussion here on this post.
As the quarantine lifts, what are the potential market shifts and migration patterns in the SF Bay Area will we see?
Let me know if you or someone you know is interested in making a change (moving to a bigger home with more office space, multi-generational living, layout changes, bigger garden or fresher outside living at the oceanside.) I’m always here to help you make informed, knowledge-based decisions in the shifting markets!
There is a record nine year high in the number of homes on the market in S.F. as it continues to represent 60% more inventory than at the same time last year and 110% more inventory than in 2015 (according to http://socketsite.com/archives/2020/06/most-homes-on-the-market-in-san-francisco-in-nine-years.html)
What’s the Impact of COVID19 on the Housing Market
Earlier this month, realtor.com announced the release of their initial Housing Recovery Index, a weekly guide showing how the pandemic has impacted the residential real estate market. The index leverages a weighted average of four key components of the housing industry, tracking each of the following:
- Housing Demand – Growth in online search activity
- Home Price – Growth in asking prices
- Housing Supply – Growth of new listings
- Pace of Sales – Difference in time-on-market
The index then compares the current status “to the last week of January 2020 market trend, as a baseline for pre-COVID market growth. The overall index is set to 100 in this baseline period. The higher a market’s index value, the higher its recovery and vice versa.”
The graph below charts the index by showing how the real estate market started out strong in early 2020, and then dropped dramatically at the beginning of March when the pandemic paused the economy. It also shows the strength of the recovery since the beginning of May.
It’s clear to see that the housing market is showing promising signs of recovery from the deep economic cuts we experienced earlier this spring. As noted by Dean Mon, Chairman of the National Association of Home Builders (NAHB):
“As the nation reopens, housing is well-positioned to lead the economy forward.”
The data today indicates the housing market is already on the way up.
Bottom Line
Staying connected to the housing market’s performance over the coming months will be essential, as we continue to evaluate exactly how the housing market is doing in this uncharted time ahead.
Will The Corona Virus Create A Housing Crisis …And Our New Norms
I provide a Home & Lifestyle Consultation to prepare what buyers want now! Today’s modern savvy realtor uses virtual real estate technologies. I provide what buyers and sellers truly want in experience and safety. Click on image to learn more!
Concerns about the impact COVID-19 will have on the global and local economy are real. They’re scary too as the health and wellness of our friends, families, and loved ones are high on everyone’s emotional radar.
While we don’t know the exact impact the virus will have on the housing market, we do know that housing isn’t the driver as it was in 2008.
A Recession Does Not Equal A Housing Crisis:
- The COVID-19 pandemic is causing an economic slowdown.
- The good news is, home values actually increased in 3 of the last 5 U.S. recessions and decreased by less than 2% in the 4th.
- All things considered, an economic slowdown does not equal a housing crisis, and this will not be a repeat of 2008.
As our country begins to collectively roll out shelter in place, I hope we can come together, take the time to share gratitude; let’s remember that this will pass. As a country we’ve experienced multiple divisive events such as Civil War, WWII, and more recent traumatic events as 9/11. The concerns about an impending recession are real, but housing isn’t the driver. During the Dot.com bubble starting in late 90’s, a period of massive growth of Internet & telcos, in 2002 (the dot.bomb) I personally would have lost my entire wealth because I was young (& mostly naive) never imagined stocks could crash! The only thing that helped preserve it was a little Los Altos house we divested. I sure am grateful for owning real estate – I am not a financial planner by any means, but I am conservative and because I’ve seen these recessions I advise my buyers to diversify their portfolios; try to have 6 months to a year’s worth of savings, have savings that are a mix of stocks, bonds, mutual funds but work towards owning property. the SF Bay Area our homes are not only places to live, but a wonderful wealth generating asset over time. With our current ongoing global uncertainty, including a U.S. stock market correction, no one could have seen coming. We first should do what’s best for our country, and for our families and that is to take care of one another.
Let’s fight this COVID-19 epidemic together by staying indoors & practicing social distancing, and checking up on loved ones and neighbors.
Take care of your needs now & let me know if I can help in anyway!
We’ve got this!
Lynne MacFarlane, MCDM, Realtor, PFAC affiliate
DRE# 02066698
(831) 346-2743 text/voice anytime
New Homes Coming to the Housing Market This Year
The number of building permits issued for single-family homes is the best indicator of how many newly built homes will begin to come to market over the next few months. According to the latestU.S. Census Bureau and U.S. Department of Housing & Urban Development Residential Construction Report, the number of building permits issued in January was 1,551,000. This is a 9.2% increase from December.
How will this impact buyers?
New inventory means more options. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explained how this is good news for the housing market – especially for those looking to buy:
More construction will mean more housing inventory for consumers in the later months of this year…Spring months could still be quite tough for buyers since it takes time to convert housing starts into actual housing completions.
How will this impact sellers?
More inventory means more competition. Yun continues to say:
As trade-up buyers move into these newly completed homes in the near future, their existing homes will be released onto the market.
Today, because of the tremendous lack of inventory, a seller can potentially anticipate:
- A great sale price on their house as buyers engage in potential bidding wars.
- A quick sale as buyers have little inventory to choose from.
- Fewer hassles as buyers want to smoothly secure a contract.
Bottom Line
If you’re considering selling your house, you’ll want to list sooner rather than later. This way, you’ll get ahead of this new competition coming to market and ensure the most attention toward your listing and the best price for your house.
