Welcome to the “new normal”, our “new reality”.
The events of the past three-plus months have led to the use of new terms, bordering on clichés. “In these ‘challenging,’ ‘trying,’ ‘uncertain’ or ‘unprecedented’ times, we’re assured that “we can all get through this, together”.
But with constant repetition, it’s no wonder folks are on edge. Fear, doubt, ignorance, and yes, uncertainty, drive anger and resentment, and some wonder how we’ll ever return to the way things were, before.
As if to truly test us, in addition to the pandemic, the death of George Floyd has thrown our world into a tailspin. Protests, violent eruptions, curfews, we can’t go to bed and wake up the same way.
I don’t know that there’s anyone who’s more nostalgic than I am – it grows in intensity the older I get – but I’m also practical and pragmatic. I didn’t invent “going with the flow”, but the term flows with me. It probably comes from my love of martial arts. Interception, diversion, redirection…much more preferable than force against force. If the times we’re in call for it, we can adapt and go with the flow. Do what’s necessary to survive. Knowing this, I find it just as important to help others around me do the same. To treat others with fairness and kindness, empathy over sympathy.
I’m acutely aware that this outlook has been with me since I was very young. If I’ve enjoyed any success in real estate, it’s probably more due to this core principle than my ability to write marketing copy.
I’m reminded that during upheaval, I need to slow down, acknowledge the strange time I’m in, and be compassionate with myself and others.
It always comes down to how we are functioning in this life, and the ripple effects of every action we take, every word we speak, every thought towards another human being. It’s kind of why I enjoy this business so much. The commissions are terrific – I’ve been provided a great life – but the positive effects our actions and counsel have had on our clients…that gives me real juice. Never thought that was what I’d most appreciate when I first got my license.
Just remember, “What comes around goes around”, because “at the end of the day”, “it is what it is”.
Derek & Natalie and Geneva
by Patrick Carlisle, Market Analyst for Compass Bay Area
Supply & demand statistics, median sales price trends, sales and values by city district, the luxury home market, and the ongoing effects of COVID-19
Generally speaking, market activity – as measured by the number of listings going into contract – continued to pick up rapidly in May, bouncing back from the steep plunge following the first shelter in place orders. However, activity in May, which is typically among the busiest selling months of the year, still remained well below May 2019. Still, with the easing of shelter in place, as well as the market learning to adjust to new circumstances, it is expected the recovery will continue to surge closer to normal.
Interest rates hit yet another historic low at the end of May.
Click the above image or here
for to view the entire report.
Tell us what you think! We’d love to hear from you.
Where Are The Best Real Estate Investments Now?
This is a question being asked around the country and the world. And it’s a question asked of us all the time, regardless. Too many investors are exclusively focused on big, deep discounts, and granted those are always appealing to investors. Yes, if there ever was a time for some bargain hunting, now would be the time.
Already we am hearing of a few pretty spectacularly discounted deals, but not nearly as many as some imagined.
Why? We think for two reasons:
1. The divide between buyer and seller pricing expectations is too far apart. Buyers are feeling ENTITLED to discounts as deep as 30% for some properties. We hear of seller greed…..well, buyers can appear to suffer from a similar affliction.
2. The volume of cash that has been stock-piled over the past few years anticipating a recession is unprecedented. Add into that a flood of Government-fueled capital. The more capital, the more bidders. The more bidders, the higher prices go. Never forget supply-demand!
So today, these are the six primary considerations we’d factor into my search:
1. Identify and evaluate long-term trends, not just short-term trends. Hurricanes, fires, mudslides, tornadoes, snowstorms, and yes, viruses come and go. Some take more time than others to heal. Often the best buyer negotiations happen during and after storms. Beware of storms that deliver ‘bargains’ that are bargains because the storm has exposed their long-term weakness.
2. Where are the “jobs-of-the-future” going? These areas are almost certain to have a growing economy too. This was a driving force behind Compass’ selection of territories early on.
3. Which areas have the infrastructure in place or planned and funded to allow growth?
4. Which areas have the education for the “jobs-of-the-future”?
5. Which areas have local governments that have a healthy balance between responsible, efficient governance and business-friendliness? Real estate is an ultra-localized entity. In some cities things vary from neighborhood to neighborhood, but in others they can vary from block to block!
6. Which areas deliver a solid quality of life? Today more than ever people will care about this. Life is short! And it could be shorter than imagined.
Immediate returns are as important as long term capital gains for real estate investments. We know there are multiple other considerations, but the six above are the ones most important to us.
And if you are considering a real estate investment in another part of the Bay Area, California or across the country, we have agents in other areas we can connect with, please just let us know.
New Listings | Just Sold | Announcement
DID YOU KNOW? VIRTUAL REAL ESTATE BUYING is not a new thing at all……in fact, John and Yoko never actually looked at properties. That would freak people out and drive up the price. Instead, they dispatched a servant to take Polaroid pictures. The servant would tell the real-estate agent that he represented a businessman who preferred to remain anonymous. Yoko would then study the pictures with her Council of Seers. Maybe a new song is in the making: “Imagine all the Virtual Real Estate Sales”?
DID YOU KNOW? The economic news has been grim, and it would seem the pandemic that has confined people to their homes could also threaten the stability of housing. More than twice as many Americans lost their jobs in April than in the 2 years during the Great Recession. About 33% of apartment renters didn’t pay their rent in the first week of April. Consumer spending in March plunged 7.5%, the largest one-month decline since the government started tracking it in 1959. Despite the real threat to our economy, the housing market could end up being more resilient than many homeowners and would-be buyers expect. (Barron’s)
DID YOU KNOW? Congress’ stimulus package gave US homeowners with a mortgage backed by the government the right to pause their monthly payments if they experience hardship. Through early May, the Mortgage Bankers Association estimates that almost 4 million U.S. borrowers (nearly 8% of residential mortgages in a weekly survey) are in forbearance, meaning that they still owe the payments eventually but can skip them for now without penalty.
Aiming to prove that middle-aged dogs can learn new tricks, here’s a quick look at how we’ve adjusted to our current landscape for our selling clients. (Woof!)
Visualizing your Upgrade:
Curious to know how Compass can transform a listing and improve its sale price?
Compass Lens uses Artificial Intelligence (AI) to visualize the potential of your space! See exactly the difference working with us can make.
Virtual Property Presentations:
Sticking with what we’ve always done, we’ll provide Professional Photography & Videography, including Matterport 3D home tours, and a dedicated property website which includes all of this within the site.
We’re able to make quick (10 seconds or less) videos of our listings with essential details to our social feeds.
Create a virtual open house experience using standard video from our phone:
We can record a Home Tour – more informal than a professional video, we’ll walk the property and show it as we would in a traditional open house, pointing out all of the features, opening closets and cabinets, send to prospective buyers and their agents, and be available for questions.
Facetime or Zoom conferencing in the property:
As above but on a live feed that is mutually scheduled with prospective buyers and their agents. Offers a personal experience and 1:1 questions are answered.
Dynamic Digital Brochures:
Home features will come to life inside this dynamic, digital brochure while creating an immersive experience for even the most discerning of buyers. Pages will turn and videos will play while allowing us to capture real-time data and actionable insights from potential buyers.
Mobile Listing Ads:
We’ll run geo-targeted mobile ad campaigns to reach buyers in the right place, at the right time. Now more than ever, buyers and sellers are spending most (if not all) of their time at home. We’ll create a geofence around the neighborhoods where you’d like your ads to be seen. These ads will appear in mobile apps and will re-target viewers on their desktops and laptops.
All of this is designed to bring proper exposure to our wonderful listings, and encourage eager buyers to make safe, virtual visits before making safe, in-person visits.
Since Compass launched in 2012, we’ve been simplifying the real estate process one community at a time. Today, we have more than 250+ offices extending from coast to coast.
Please let us know if you or a friend/colleague needs a fantastic agent in an area other than San Francisco. Through our network we can make the connections and introductions and help to find a perfect fit.
If you like what you have received, we encourage you to share it with your friends and follow us on Facebook & Instagram.
© Compass 2020 ¦ All Rights Reserved by Compass ¦ Made in NYC
Compass is a real estate broker licensed by the State of California operating under
multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075,
1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footage are approximate. Equal Housing Opportunity.