Number Talk: Update from CA Realtors

California Association of Realtors 2020 President Jeanne Radsick recently addressed the impacts of the public health crisis on the real estate market:

As expected, California home sales experienced the worst month-to-month sales decline in more than four decades as the coronavirus pandemic kept both buyers and sellers on the sidelines. While some economic activity will resume as the state gradually reopens, the housing market is expected to remain sluggish for the next couple of months.

Number Talk: Mortgage Interest Rates

Thinking about buying a house or refinancing one you already own? Short-term and long-term interest rates have hit all-time lows. According to Freddie Mac, the weekly average on a 30-year mortgage was 3.23% on April 30. The same rate was at 4.94% as recently as November 2018.

News You Can Use: Coronavirus

It’s hard to miss the biggest story in the world right now. Here are some headlines from this week.

California under statewide shelter-in-place

Hours ago, the reality we've been experiencing in Silicon Valley for the past few days became real for the entire state, as Governor Gavin Newsom put all of California on lockdown. KQED has the full story and what we should expect.

Evictions on hold nationwide

Many cities have placed moratoriums on evictions and foreclosures during the COVID-19 crisis, and now the Federal Housing Finance Agency is ordering Fannie Mae and Freddie Mac to follow suit. Get the scoop from HousingWire.

San José Mayor launches #SiliconValleyStrong

Mayor Sam Liccardo joined public, private, and nonprofit leaders on Wednesday to announce the formation of a multi-pronged initiative to respond to the coronavirus and its impacts on our community. Get more from NBC Bay Area.

Seniors-only hours at local grocery stores

If you’re headed out on a supply run and you’re under 65, have an extra cup of coffee and give our seniors a chance to enjoy some added safety during special shopping hours at many Bay Area supermarkets, including Safeway and Whole Foods. Read all about it in SFGate.

Building community through social distancing

It sounds like a contradiction in terms, but some of our neighbors are making the most out of their time at home during the coronavirus crisis. The Palo Alto Weekly has the scoop on a variety of coping mechanisms.

Staying fit in a quarantine

Having trouble keeping active at home and burning off those extra calories from eating takeout and frozen pizza during the coronavirus shelter-in-place? USA Today has seven FREE ways to get your workout on while you’re stuck in the house.

This student created a network of 'shopping angels' to help the elderly get groceries during the coronavirus pandemic.

That's it. That's the headline. What an amazing story from CNN, and any one of us could replicate it in our community. All it takes is some ingenuity and a little tech savvy. Sounds like a job for the Chic 'n' the Geek!

Number Talk: Flip Rate

Did you know? The “flip rate” in the U.S. just reached 10.9% of all home sales. That’s because flipping today is less risky and less speculative than it was a decade ago, and more corporate flippers are entering the market: 41.2% in 2018 compared to just 11.4% in 2005. Learn more

– The Geek

Number Talk: Market Dynamics

It feels like the market is heating up again. I recently worked with a fellow agent on a single-family listing in the Cuesta Park neighborhood of Mountain View. The home listed at $1.87M. Yesterday, on the offer date, we had 21 bids with the highest at $2.22M. As you’d expect, the seller accepted without contingencies. but we were all shocked by the competition.

Ever since September 2018, the market has seemed to slow, so why the sudden jump with this property? Well, there are a couple of factors at play here. First, if you look at the graph below, supply is very low compared to one year ago. When there is an extreme imbalance of supply and demand, you naturally see price hikes.

The second factor is seasonality. Late winter/early spring is generally a great time for sellers, as buyers start to look for houses after the holidays and before the spring break. And with inventory so low right now, it’s like a perfect storm!

Please contact us if you want to know the inventory level in your neighborhood or a particular city that piques your interest.

– The Geek