Wednesday, May 13, 2020 / by Mark Palermo
Every day, plans roll out to reopen our economy and try to normalize our lives as much as possible. Parks, construction, some stores, golf courses, and real estate services are examples of the loosening that our state has implemented this week. In terms of real estate, we feel the future will include significant changes that differ from the pre-pandemic experience we all knew.
Prior to Shelter In Place, buyer demand was robust and home prices were approaching historic highs again. However, on March 16th the housing market virtually stopped.
In San Mateo County alone, over 600 homes were withdrawn from the market just as the spring selling season was ramping up. But once SIP is lifted, many of those homes will become active again, causing inventory to surge.
We should add to this surge some number of homeowners who had planned to sell in the months of March, April and May but decided to wait. How many might this be?
Well, looking at historical records for San Mateo County fr ...
Wednesday, April 22, 2020 / by Mark Palermo
The Bay Area has been in Shelter-In-Place (SIP) mode for a month now. Have we adequately adjusted? Have our daily habits changed? Have these changes made us better employees, parents, partners, individuals? Will we continue these habits in a post-SIP world or will we go back to business as usual?
This first in a series of 5 articles is about virtual meeting and contact.
I must admit, I am a big fan of virtual meetings. Most multi-national corporations have been using web conferencing for over a decade now, and while it has been available at the small business and consumer level for some years, it never reached universal mass appeal until SIP.
With any paradigm shift, adoption can creep at a slow pace. Innovators and early adopters are easy to convince but reaching the majority tends to take time. According to the Interaction Design Foundation, “As a product begins to have mass market appeal, the next class of adopter to arrive is the ea ...
Thursday, April 16, 2020 / by Mark Palermo
The Bay Area was the first major metro to take the COVID-19 virus seriously as early as late February and eventually became the first to enforce a 7-county Shelter-in-Place order. Looking back over the past several weeks, what have we learned? How will this change the way we work, educate our kids, source our food, travel, entertain, and for the purposes of this paper, buy and sell real estate?
During this tough crisis, we have definitely seen a change in homebuyer behavior, going from outright frenzy to cautious hesitation. Just a mere month ago, my buyers put an aggressive offer on a home in San Mateo that had 31 other offers and unfortunately, we came in the fourth highest...the top three being all-cash. At that time, I started to plan my year as if we were going to experience another surge of buying like we did in 2017-2018.
I also had an ‘opening weekend’ open house on a $2.9M home in San Carlos on March 14th with 60 groups touring. Four of those confirmed th ...
Saturday, March 28, 2020 / by Mark Palermo
“Where do we go from here?" These are uncertain times and we are often asked by homeowners wishing to sell and buyers who were looking to buy prior to the Shelter in Place and subsequent market dip, if home ownership is still viable. The following is a very detailed analysis from Compass’s Chief Market Analyst.
This article was written before the coronavirus – in fact, the first version was written over 10 years ago by our chief market analyst to help place the 2008 crash into context. We realize there are much more important things than real estate right now, but since some of our clients are trying to make decisions about buying and selling, we will continue to try to provide useful information on market trends and conditions. At this point, we cannot know how the current crisis will play out.
This first chart is a very simplified, smoothed out look at Bay Area market cycles for higher-price-tier homes using data from the S&P CoreLogic Ca ...