It’s SPRINGTIME! And not only are we springing forward an hour, this weekend (and losing a little sleep, maybe?), we’re going to leap into longer daylight hours, warmer temperatures and probably the busiest time of year when it comes to real estate sales.
This month, I wanted to share a terrific little essay by our own company “Chief Evangelist”, Mr. Leonard Steinberg. I really couldn’t say it any better. Enjoy
“The year 2020 may have accelerated many trends, but the one thing it DEFINITELY instilled into the psyche of the consumer is the realization that life is not forever and that procrastination usually does not produce much in the way of different solutions or ‘better timing’.
2021 is revealing a new sense of urgency amongst consumers, especially as it relates to the next chapter of their home needs. Here are some other trends that accelerated:
1. The desire for more space either for home offices, but as much for the expansion of the NESTING trend. Home has become a much more significant HUB in people’s lives and has to accommodate much more than a bedroom, kitchen, and living room. Expanding families or those bringing elderly parents home need and want more space. And they are not that willing to share space with strangers or neighbors.
2. Babyboomer empty nesters are in a position to sell their large homes that for some time were going out of style, viewed by many as being too large. These Babyboomers are now ready for their next stage in life without kids at home. They often are drawn to warmer climates, lower tax environments, places not as reliant on strong education institutions, and places where there is more life, activity, and fun…..including large cities.
3. All demographics are adjusting faster to our digital tech world. Homes are becoming more tech-efficient and more capable of accommodating more delivered products.
4. Procrastination has been inventory’s best friend for years…..till now. As consumers cut back on hesitating, the realization that we have been grossly under-building has been fully revealed and shortages of housing are causing prices to rise
5. The next chapter consumer is EXTREMELY reliant on what they see online. Most will do a SIGNIFICANT evaluation and search online prior to any physical viewing. Any agent who thinks they can show anything less than exquisite, comprehensive imagery online – or anywhere – is bound for extinction.
6. Security and safety requirements have been magnified. Home has to deliver on these fronts. Additional staging items may be the addition of security cameras and other tech features that give a sense of security.
7. Suburban living works. Often it is not forever. Often it is relative to kids and schooling. The suburbs are back….but they never really left either!
ALL human beings are probably more aware now than ever that ALL eight billion of us on this planet have two things in common:
1. ALL of us need shelter, and…..
2. ALL of us are getting older. No-one is immune to aging, whether it’s a student becoming a worker, a single getting married or starting a family, parents waving goodbye to kids as they head off to college and then retirement.
Acknowledging and responding swiftly to your moment in the cycle of life can be very helpful in getting on with it!”
Till next month – Stay healthy, safe and sane.
Derek & Natalie and Geneva
by Patrick Carlisle, Market Analyst for Compass Bay Area
The Spring Market Began in January & Continues to Accelerate
New Listings up 10%
Listings Pending Sale up 95%
At the beginning of the new year, it is not unusual for buyers (demand) to jump back in much sooner than sellers (new listings – supply), a dynamic which commonly accelerates as spring gets underway. When demand surges while new listings lag behind, buyers must increasingly compete, often heatedly, for appealing homes. This imbalance in supply and demand adds considerable pressure to the market, with overbidding and price increases becoming much more common. And this has occurred with a vengeance in early 2021, especially within the city’s house market.
This report will look at median house and condo list and sales prices, supply and demand from a variety of angles, the surge in luxury home sales, and the recent jump in interest rates.
The charts are meant to be self-explanatory, but your questions are always welcome.
Click the above image or here
for to view the entire report.
Tell us what you think! We’d love to hear from you.
New Listings | Just Sold | Announcement
This month we are featuring Carolyn Feibleman, a terrific, successful young woman determined to stop renting and be a San Francisco homeowner. Carolyn knew what she wanted and, after seeing a dozen or so homes together, pulled the trigger on an off-market opportunity we uncovered. In the end, it’s the perfect place for her to call her first home and begin the next chapter of her life. We’ve also connected her with one of our favorite interior designer Julie Jay, and here we are, all smiles under the masks. (Derek is not pictured, that is the listing agent).
DID YOU KNOW? In a Facebook post, EXP CEO Glen Sanford said that, according to his math, sellers who sold to Zillow Offers paid what was essentially an 11.4% commission, compared to the 5.4% they would have paid with a full-service brokerage, on average, when price and associated fees are factored in.
DID YOU KNOW? What are the two most immediate indicators of a rising market: multiple bidders …..and emails from agents desperately seeking specific inventory. BOTH are the kind of insights only agents will be aware of early, well before the press or algorithmic-based entities report on this. Another good indicator is the number of OPEN HOUSE attendees…..not easy to gauge during COVID.
DID YOU KNOW? Those who ‘fled’ San Francisco last year went to the suburbs, the San Francisco Chronicle reports. USPS data shows that only a small percentage of people moved out of state. Tech elites fleeing the region spurred a narrative that most people are moving to Florida and Texas.
DID YOU KNOW? In two months the UK has already managed to provide an initial vaccine dose to more than 25% of the population, the fastest rollout of any big country. The UK expects a return to normalcy by SUMMER 2021. Pfizer, Moderna and J&J have pledged that the US will have 240 million vaccines before April 2021 …..exciting times #comingsoon!
It’s a question on everyone’s minds: What can you do once you’re vaccinated?
Dr. Bob Wachter, the chair of UCSF’s department of medicine who has become among the most widely quoted coronavirus experts in the country, shared his response to this question.
Benchmark Mortgage Rate Inches Over 3 Percent
Having jumped 16 basis points (0.16 percentage points) last week, the average rate for a benchmark 30-year mortgage has since inched up another 5 basis points to 3.02 percent, which is the highest average rate in a little over seven months.
Hang Art has never been your traditional art gallery. Since opening in Union Square in 1998, gestures like posting artwork prices and allowing potential buyers to rent pieces before purchasing them have helped the gallery to carve out a unique niche and launch the careers of dozens of local emerging artists.
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.
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