Hello Friends & Client Family!
As we are half way into Week 4 (or what feels like 458) of Shelter in Place, I am thinking of you and want to know how you’re feeling! Are you healthy, sane, finding some silver linings? What are you cooking? What are you reading?
There are much more important things than real estate right now, but since some of my clients are trying to make decisions about buying and selling, I will continue to try to provide useful information on market trends and conditions as it is made available to us.
Many properties are on hold status (including mine, scroll down to the bottom for a look) to stay in the spirit of shelter in place because although real estate is considered ‘essential’ it’s with the caveat that showings be done virtually whenever feasible. Now that a few weeks have passed into the shutdown, we have a little more insight into the market and we are hearing of pent-up demand and pre-approvals happening while interest rates are still historically low.
The first thing to remember is that there is a time lag – usually 3 to 6+ weeks – between a new listing coming on market, an offer being negotiated and accepted, and when the transaction actually closes sale. This means that almost all of the sales price data we have, as of the first week of April, still reflects the market BEFORE the shelter-in-place rules went into effect. In virtually all Bay Area counties, first quarter and March median sales prices were quite strong.
This report will look at the effect of the crisis on supply and demand by reviewing week by week statistics, at sales price trends reflecting the market before the crisis, and longer-term trend data to give context to how the market typically performs at this time of year. Spring is usually the most active selling season and often sees the highest median sales prices of the calendar year, due to both the level of buyer demand and the seasonal surge in the luxury home market. (A higher percentage of luxury home sales pulls up the overall median sales price.)
We do not know how the crisis will ultimately play out, depending as it does on so many rapidly changing, socio-economic factors.