Maggie's Market Minute | 2023 off to a bright start

Happy Lunar New Year! I hope you made it through the storms without leaks or water damage. Hopefully you're dry, but if you need any recommendations for roofers, plumbers, heating specialists, etc, I can help! As you know, the market slowed down in the 2nd half of 2022, inflation shot up to 9.1%, the FED raised interest rates repeatedly, lenders tightened up, mortgage rates followed suit, and buyers became lot more conservative with their offer numbers and terms.  Below is a summary of how we closed out 2022.   Q4 2022 vs Q4 2021  For a detailed report, please click on the Flipbook below. 2023 is Off to a Bright Start I can see clearly now the rain has gone🔆and with that, the year seems to be off to a bright beginning. Inflation is trending down, mortgage rates have decreased (hovering in the 5% range), inventory is low and buyers are out in full force. It seems like the velocity is trending back up.  The latest pulse: competitive bidding, properties that were overlooked last year getting into contract, multiple offers and even some going into contract before hitting the market.  Buckle up and enjoy the 2023 ride! If you paused your home search last year, or you didn't think it's a good time to sell, I highly encourage you to check in with me for hyper local feedback and advice. Cheers! Maggie marketingcenter-sfbayarea-sfcityproper

San Francisco Real Estate - January 2023 Report

Statistics are generalities, essentially summaries of widely disparate data generated by dozens, hundreds or thousands of unique, individual sales occurring within different time periods. They are best seen not as precise measurements, but as broad, comparative indicators, with reasonable margins of error. Anomalous fluctuations in statistics are not uncommon, especially in smaller, expensive market segments. Last period data should be considered estimates that may change with late-reported data. Different analytics programs sometimes define statistics - such as "active listings," "days on market," and "months supply of inventory" - differently: what is most meaningful are not specific calculations but the trends they illustrate. Most listing and sales data derives from the local or regional multi-listing service (MLS) of the area specified in the analysis, but not all listings or sales are reported to MLS and these won't be reflected in the data. "Homes" signifies real-property, single-household housing units: houses, condos, co-ops, townhouses, duets and TICs (but not mobile homes), as applicable to each market. City/town names refer specifically to the named cities and towns, or their MLS areas, unless otherwise delineated. Multi­county metro areas will be specified as such. Data from sources deemed reliable, but may contain errors and subject to revision. All numbers to be considered approximate. Many aspects of value cannot be adequately reflected in median and average statistics: curb appeal, age, condition, amenities, views, lot size, quality of outdoor space, "bonus" rooms, additional parking, quality of location within the neighborhood, and so on. How any of these statistics apply to any particular home is unknown without a specific comparative market analysis. 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 is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.

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🎇🎆 2022 Year in Review 🎆🎇

Wishing you a Happy New Year! May it be filled with new adventures and good fortune. Cheers! Maggie marketingcenter-sfbayarea-sfcityproper

San Francisco Real Estate - December 2022 Report

Statistics are generalities, essentially summaries of widely disparate data generated by dozens, hundreds or thousands of unique, individual sales occurring within different time periods. They are best seen not as precise measurements, but as broad, comparative indicators, with reasonable margins of error. Anomalous fluctuations in statistics are not uncommon, especially in smaller, expensive market segments. Last period data should be considered estimates that may change with late-reported data. Different analytics programs sometimes define statistics - such as "active listings," "days on market," and "months supply of inventory" - differently: what is most meaningful are not specific calculations but the trends they illustrate. Most listing and sales data derives from the local or regional multi-listing service (MLS) of the area specified in the analysis, but not all listings or sales are reported to MLS and these won't be reflected in the data. "Homes" signifies real-property, single-household housing units: houses, condos, co-ops, townhouses, duets and TICs (but not mobile homes), as applicable to each market. City/town names refer specifically to the named cities and towns, or their MLS areas, unless otherwise delineated. Multi­county metro areas will be specified as such. Data from sources deemed reliable, but may contain errors and subject to revision. All numbers to be considered approximate. Many aspects of value cannot be adequately reflected in median and average statistics: curb appeal, age, condition, amenities, views, lot size, quality of outdoor space, "bonus" rooms, additional parking, quality of location within the neighborhood, and so on. How any of these statistics apply to any particular home is unknown without a specific comparative market analysis. 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 is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.

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Maggie's Market Minute - 34 active listings priced at $10M+

The housing market and economy remain in a period of adjustment, and rising interest rates in early Fall caused many buyers to be more cautious as they wait to see how things will settle.  Below is a brief synopsis of how these factors played out in October: Market Summary Home sales are down 38% YoY (the fewest number of transactions since 2011) Single-Family House Median Sales Price is down 7% YoY ($1,680,000 – about where prices were in Jan 2021) Condo Median Sales Price is down 4% YoY: ($1,215,000 – about where prices were in Jan 2021) District 9 vs the rest of SF District 9 neighborhoods (South Beach, Mission Bay, Inner Mission, Dogpatch, Potrero Hill, and SoMa) seemed to be impacted disproportionately more than other districts with longer days on market and low sales volume. A possible explanation is that most of these neighborhoods have office buildings and reports of homelessness. The number of condo sales in all of SF (except D9) is down 39% YoY, while the number of condo sales in D9 is down 52% The median condo sales price in D9 is down 14% YoY Luxury Home Sales Luxury ($5M+) home sales are down 43% YoY There are currently 85 active listings priced at $5M+ on the market (see below the breakdown by price segment). 34 of these are priced at $10M+.    Check them out by clicking the link below 👇 San Francisco Luxury Homes The next 2 months The market now enters a 2-month holiday period which typically see new listings and the number of listings going into contract plunge, and listings that have not sold yet undergo price reductions or get pulled off the market. There will likely be even larger discounts as we brush up against the holidays – so if you’re on the fence about buying, get your financing buttoned up (mortgage rates just had the biggest weekly drop since 1981!) and start to write low-ball offers on properties that have been on the market for a while. Complete Market Report Are you, or someone you know, ready to move? Let me know - I can help. marketingcenter-sfbayarea-sfcityproper

San Francisco Real Estate - November 2022 Report

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Halloween tricks to navigate a SPOOKY housing market

Upward spiraling interest rates, volatile financial markets, a looming recession, mounting tech layoffs.… the perfect concoction for a spooky housing market. Given all these head winds, it seems natural to be fearful when you’re embarking on one of the biggest financial transactions of your life - buying a home.  Here are a few tricks to help you navigate the market: By knowing what you are really worried about, you will be in a better position to adapt. For example, are you worried that your house may lose value after you buy, consider that ………. a drop of 20% in median sales price from this year's Q2 record peak would take us back to Q3 in 2020. In those terms, such a fall may seem reasonable to many. What we’ve experienced in the housing market for the past two years was not normal.  As the market adjusts and normalizes, it may be unpredictable on a day-to-day or week-to-week basis. However, over 5-10 years these downturns become blips on the screen. Nothing is permanent - even a drop in price is likely to wash out over the next few years. The best investors seek long term returns instead of aiming to time markets 'perfectly'.  How long you plan to own and/or live in a property matters more than the price and terms you pay today. So focus on the long term. All markets recover and over time, home prices have increased. The US is still grotesquely under-built.... possibly slowed now as builders face higher borrowing costs.... which could fuel future home price inflation. With interest rates that have doubled since the beginning of the year, evaluate all your financing options. A 30-year fixed mortgage may not be the best fit. Discuss with lenders what programs they have, including rate buy downs, adjustable rates, and “no lender fee” refinancing (if a recession is indeed coming the FED usually lowers rates to stimulate growth). It is entirely possible that renting and waiting for prices to fall could ultimately cost you more even if you do pay less for the house in the future. In the current market, over-bidding has greatly reduced. By not over-bidding those saved dollars may absorb some higher borrowing costs. Focusing on the best quality is always smartest. And now you may have more choices. Buying a quality home for a fair price is always smarter than a bargain price for a bargain. During fearful times, going against the herd mentality of 'wait and see' often produces excellent opportunities...... a market that’s normalizing and a Fall selling season that’s ending mean that buyers can get great deals from eager sellers who want to sell their properties before the year ends. Markets don’t stop.  For many homeowners, objectives such as lifestyle, location and longer-term equity growth are more important than waiting for unknown future market movement to occur.  So, the best time to purchase a home is whenever you can afford it. Are you, or someone you know, ready to move? Let me know - I can help. marketingcenter-sfbayarea-sfcityproper

Success comes with a price.......(and a strategy)

If recent headlines about a cooling housing market and diminished buyer demand have you worried that you’ve missed your chance to sell, here’s what you need to know: People are still buying homes. There are a lot of buyers out there looking for the perfect home. When they find the perfect home, they are willing to pay for it! Need proof? Here’s a success story from one of my transactions that closed this week: 2611 Filbert St List Price: $5,595,000 The sellers received a very strong pre-emptive offer after 1 weekend on the market. However, with multiple interested parties, their strongest negotiating position was to hold off on accepting that offer and instead give everyone a chance to come to the table.  Their patience paid off.  The result: 4 offers Sales Price: $6,550,000 $955,000 above the asking price and WAY above the initial offer! Remember: real estate is hyper localized, even within markets and neighborhoods! While things have cooled a bit, demand for “good homes” that are well prepared and nicely presented are still very high. If you work with a savvy agent who understands negotiating and the nuances of a hyper localized market, your home should sell quickly.  Are you, or someone you know, ready to move? Let me know - I can help. marketingcenter-sfbayarea-sfcityproper

Dear San Francisco - Reflections on A High-Flying Love Story

Reflections on A High-Flying Love Story Yesterday I was drowning in misery…..I woke up too early, with a cold sore on my lip, I'm fed-up with Foctober’s perpetual grey skies, and my good knee suddenly started to ach on my run. Interest rates keep rising, the snack selection at my office is too limited, the streets are filthy, the private showing buyer was not interested, downtown is a ghost town, and tents are taking over.  Am I falling out of love with the city? Walking down Russian Hill to see a show at Club Fugazi (a gift from past clients Kishore & Sharon), my husband said:  “Just say the words and we'll move.” I begrudgingly sat down to watch “Dear San Francisco". The show incorporates readings of love letters to the city from celebrities, poets, audience members, cast members and anonymous people, each letter transitioning into amazing acrobatic/circus acts. It’s a homage to a city that repeatedly rises from the ashes, it pokes fun at stereotypes such as parking, getting towed, how expensive it is to live here (especially artists), and touches on the LGBTQ community.    The cast members are from everywhere..... Britain, Mexico, China, Switzerland, Spain.  They came. They fell in love. They stayed.  Just like me. Thank you Club Fugazi, for pulling me out of my self-inflicted misery. Thank you for reminding me of why I moved to SF 21 years ago. Thank you for making me fall in love with the city all over again. And thank you for reminding me that SF is where I feel most at home ...…despite the uphills and the downhills that come with it. Go see the show! Click here for Tix. marketingcenter-sfbayarea-sfcityproper

San Francisco Real Estate - October 2022 Report

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The Last Quarter

As September comes to an end, we are adjusting to 'new normals' around sales prices, homes staying on the market longer, inflation, sharply higher interest rates and the threat of a deeper recession. As we navigate this, the biggest challenge is that we are still in the midst of big changes. The only certainty in life and markets is ......change We all knew that the era of super-low rates would end…...but the changes happening right now are happening rather fast. We live in roller coaster times.  So how might things play out in the final quarter of 2022?  1. I expect the FED will continue its policy of higher rates. They were slow to raise rates and they will be slow to see the full impact of these higher rates. 2. Buyers will be obsessed with "what if" mentality: if they wait, will prices come down further? Smarter buyers will rather use this moment of uncertainty to negotiate thereby having the opportunity to focus on quality, not just price. There is one thing worse than buying a bargain: owning one! 3. Sellers will adjust their expectations and lick their wounds by not having sold at a premium when they could have. They will still do very well but will have to be far more patient. Many will offset 'losses' if they are buying something else.  4. Inventory levels will increase, but under-building, trillion dollar infrastructure building, repairs and replacement are almost certain to make construction costs continue to rise. 5. The threat of a global recession may push down the prices on many things (energy may be the outlier). Bergdorfs and Neiman Marcus are already discounting ....in September!) Might we even see some deflation? Investors are waiting for one key moment The day the FED pauses interest rate hikes. At that moment we may see a surge in all markets...…including real estate. Markets like some clarity. That day is coming...… Are you, or someone you know, ready to move? Let me know - I can help. Cheers! Maggie marketingcenter-sfbayarea-sfcityproper

Saying goodbye to summer....

The housing market peaked in May, kicking off a summer that was characterized by interest rates hikes, wild stock market fluctuations, and (almost) everyone vacationing in Europe………a season that left us both happy and weary at the same time.  Let’s recap what happened: Increased interest rates and stock market misery weakened home buying power Buyer activity decreased = less competition + lower sales prices Home price appreciation rates and overbidding dropped Price reductions increased The number of days listings stay on the market increased The number of new listings dropped Below are the numbers: In early August, the market perked up for a split second after interest rates dropped and the stock market recovered dramatically. However, in early September interest rates increased again and stock markets declined once more – continued short term volatility that makes predicting movements and the effects on the real estate market difficult.  Summer may officially end in about 2 weeks, but the effects may last a bit longer.  Complete Market Report Are you, or someone you know, ready to move? Let me know - I can help. Cheers! Maggie marketingcenter-sfbayarea-sfcityproper

San Francisco Real Estate - September 2022 Report

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Swept off my feet.......

I just returned from spending a few days in Chicago after dropping my daughter off at college. It’s been while since my last visit and during that time I was single-mindedly focused on running the Chicago marathon and nothing else. This time I was just a tourist soaking in all the sights and sounds of the city. Admittedly the bright blue skies and near-perfect weather may have influenced me a wee bit..........as I fell head-over-heels in love. So, what was it that swept me off my feet?  1. Urban design: the city perfectly blends art and architecture, historic preservation and new construction, work and leisure, pedestrians and bikes, cars and public transportation.  2. Downtown was buzzing with office workers (!!), locals, and tourists alike – at concerts in Millennium Park, in restaurants and bars, on boat tours, in shopping malls and theaters. 3. Chairs and benches to sit, congregate, meet and greet neighbors and visitors.....all designed for human interaction. 4. The streets were lined with perfectly maintained trees and flower boxes dotted the stunning architecture. 5. Flattering street lighting. Not only were the fixtures attractive, but the lightbulbs used were of a color that did not evoke that 'night of the living dead' we see all too often in public spaces.  6. The city is clean, notably absent of trash, tents, feces, open-air drug use and graffiti. 7. Tastefully appointed stores were immaculately clean, perfectly stocked, with friendly staff, and the type of merchandise everyone needed and wanted.  8. T he people were so nice. I could go on.........  Naturally we cannot - and should not - copy Chicago, but we can certainly learn a few lessons from them. Are you, or someone you know, ready to move? Let me know - I can help. Cheers! Maggie marketingcenter-sfbayarea-sfcityproper

Be greedy when others are fearful?

Many buyers feel that waiting for prices to go down more in this "uncertain market" may deliver the one thing almost every buyer dreams of….. A Bargain!  Whilst the view from the sideline may seem safest, there is a lesson to be learned from the big institutional real estate investors.   Blackstone recently secured over $50 billion for opportunistic real estate investments across the globe. This is just one example of this type of institutional money on the sidelines waiting to pounce. There are many others, all loaded with billions of dollars, waiting to buy real estate.   Do I agree with having large institutional, cash-rich investors - not just Blackstone - outbidding and competing with first time home buyers? That's a whole other story. But today I want to focus on why these companies see opportunity while others may not. BIG MONEY views the BIG PICTURE While others freeze up in times of uncertainty, Blackstone is being proactive, seeking out opportunity. And preparing for it in advance. While others react, Blackstone ACTS. They are looking at the big picture, long term, not focused on short term bumps. Blackstone possibly sees value in even slightly discounted buys...why? They fully understand replacement cost. Something built 3 years ago would probably cost 20-25% more to build today.  This almost automatically implies long term upside. Blackstone looks at data: the data shows massive under-building. Under supply that takes years to resolve almost certainly guarantees future upside as demand will outstrip supply for many years to come. Blackstone is a committer. And yes, they may be taking advantage of those who fear commitment. Those people do so at their own peril.  Maybe knowing all this, you may not wait as long as some seeking prices to go lower, lower, lower..... If Warren Buffett sees enormous opportunity in buying stocks at "15% off discounts", I think you have the answer.  "Be fearful when others are greedy, and greedy when others are fearful.”  -Warren Buffett Are you, or someone you know, ready to make a move?  Let me know - I can help. marketingcenter-sfbayarea-sfcityproper

San Francisco Real Estate - August 2022 Report

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The tide is turning

The impacts of this year’s economic headwinds – soaring inflation and interest rates, stock market declines, and fears of recession – are having an impact on the housing market.  As the Tide Turned... The first effect was on buyer demand (fewer buyers, fewer offers, less overbidding and fewer homes into contract), leading to changes in supply (more homes for sale, more price reductions), which led to lower appreciation rates and fewer homes selling.  All of these began to alter buyer and seller psychology and the balance of power between them. As we enter the second half of 2022, we are seeing a new breed of home buyers emerge. And the tide is turning for home sellers. A New Breed of Home Buyers  With mortgage rates that have almost doubled since the beginning of the year and down payments tied to  a volatile stock market,  home buyers are re-balancing their priorities. They are adjusting their expectations to align with their level of home purchase affordability, and they are becoming hyper-selective. Not just any house will do. So, what does this mean for home sellers? The Tide is Turning for Sellers Gone are the days of frenzied home buying that we've seen over the last few years. The good news is that an overheated market slowing from an unsustainable rate of acceleration, does not necessarily imply a weak market by historical standards, even if the speed and scale of the change is startling. A correction is not a crash. Market corrections over the last 40 years typically ran from a flattening in appreciation, to price adjustments of 5% to 10% (relatively small compared to the appreciation rates which preceded them). Going into the second-half of 2022, sellers can expect buyers to be more cautious about making an offer on a home. Sellers need to align their mindset with the new breed of buyers and focus on delivering value. Now more than ever before, take steps to enhance your home’s appeal, make it move-in ready, and price it with laser-like precision. By delivering value to the new breed of home buyers, you can still attract top dollar for your home! June Market Report Is someone you know, ready to move?  Let me know - I can help. marketingcenter-sfbayarea-sfcityproper

San Francisco Real Estate - July 2022 Report

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Celebrate the red, white and YOU

The first half of 2022 has come to and end.....6 months defined by roaring inflation, equity market drops, soaring interest rates, anxiety, energy price spikes, war, deeper political divisions, diminished rights, recession chatter, you name it. Thankfully we have Independence Day to celebrate and lift our mood.   Below are a few options for this holiday weekend: "So Happy Together" is the them of this year's Marin Country Fair, running now through Monday, from 11AM - 11PM daily. This year's fair features unicyclists, jugglers, stilt-walkers, carnival rides, animals of the Barnyard, Global Marketplace, fireworks over the Civic Center’s Lagoon Park, live concerts, and more!  Throughout the weekend, free concerts will also be held at Stern Grove, San Francisco Giants Stadium and Oakland Athletics Stadium. San Francisco Hot Dog Contest While waiting for the main event, enjoy the free live music concert at the Aquatic Park at 6 PM or drop by the Fourth of July Pub Crawl on Austin Street, next to El Lopo on Polk Street where the San Francisco Hot Dog Contest will take place at 7:30 PM. Where to watch fireworks Fisherman’s Wharf Fisherman’s Wharf will host a fireworks event beginning at 9:30 p.m. for approximately 90 minutes. Crissy Field With the Golden Gate Bridge to your left, fireworks show to your right, the SF bay in front, and the rest of the city at your back, Crissy Field is the spot to catch the fireworks show with serene views surrounding you. Twin Peaks Twin Peaks offers high-elevation views of both the city and San Francisco Bay, including a view of the fireworks display with the city lights shining right before it.  Cruises If you'd rather watch fireworks from the water, there are several cruise options. Or you may prefer to just stay home Regardless of how you choose to celebrate, here's to Independence Day and the rest of 2022! 🥂 Cheers, Maggie marketingcenter-sfbayarea-sfcityproper

To many more years to come!

I'm so honored to be included in the 2022 Real Trends America’s Best Real Estate Professionals, honoring the top 1.49% (top 1000) of real estate agents from all across the country.  I couldn't do it without my clients and the support of colleagues and loved ones. Thank YOU. To many more years to come! marketingcenter-sfbayarea-sfcityproper