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Maggie Visser Moving you to what's next! DRE #: 01925742 415.793.3470 maggie.visser@compass.com

"Mad Rush" out of SF?

"Mad Rush" out of SF? You may have seen this article from Bloomberg earlier this week, trumpeting a “mad rush” from San Francisco as residents flee from the city to surrounding suburbs, desperate to spread out. Suffice to say, the article fails to include some rather important details. Here’s what the article does not mention: The SF market had a herculean rebound in May. The number of homes being purchased picked up rapidly, bouncing back from the steep plunge following shelter-in-place.  Based on the trajectory, it is fully expected the recovery will surge and normalize in the coming weeks. While it's true SF hasn’t rebounded as well as the surrounding markets, our circumstances have been very different. SF has been more deeply affected by COVID-19 and instituted stricter SIP measures for a longer period of time. Densely populated urban areas have been hit significantly harder by the crisis, and SF is the second-most densely populated city in the country. It’s just not apples to apples. People are buying in wine country, BUT…. Surrounding areas in Marin, Napa, Sonoma, and regions to the south have seen a surge in interest from residents of San Francisco – many of them, however, are purchasing second homes.  Those that are relocating will have various reasons for doing so, but one factor that can’t be ignored is that so much of what people love about living in the city has, for the time being, disappeared.  Relocation may be the balm some people need right now – we are still in this crisis. It is simply too soon to say that this is a trend or will continue after the crisis. We’re learning more about prices and home values. Median sales prices in SF dropped in May, but those figures are based on a very low volume of closed sales in the month.  The sales and prices mostly reflect the huge impact of COVID-19 in March and April. Based on the large jump in purchase activity in May, the next few months will be a better indicator of whether or not changes in home values will occur. I can say, however, that buyer demand has come surging back in some segments, so that is a positive signal for home values. The outshot is that it is too soon to proclaim anything about an exodus or a mad rush or anything else for that matter! We're still feeling the effects of shelter-in-place shake out, not just in the real estate market but in our own behaviors and plans. And hey! That's okay. Please stay safe and strong, everyone. Let me know if there's anything I can do for you this week, real estate-related or otherwise.  Maggie Visser Top 4% SF Agents DRE #: 01925742 415.793.3470 maggie.visser@compass.com © 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.

The lowest mortgage rates EVER!

The 30-year fixed-rate mortgage dropped to an average of 3.15% during the week ending May 28, a decrease of nine basis points from the previous week, Freddie Mac, the lowest level since Freddie Mac began tracking this data starting in 1971. A year ago, the 30-year fixed-rate mortgage averaged 3.99%.The 15-year fixed-rate mortgage dropped eight basis points to an average of 2.62%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.13%, down four basis points from a week ago. (Marketwatch) The previous record low was set at the end of April, when the average rate on a 30-year home loan dropped to 3.23%. This is now the third time in 2020 when the mortgage market has recorded a new historical low for interest rates.

When Home Becomes Everything

This time we’re spending inside will forever change our concept of home. It’s possible that we are living through the biggest shift in the relationship between people and their homes since the 1950s. Then, it was the wide-sweeping American Dream of homeownership becoming real. Now, I predict the shift will be about a sense of possibility.  Our homes have become everything. Home is now where we live... and work... and eat… and sleep… and exercise… and relax… and stress out… and play. Living rooms have become classrooms, exercise studios, and virtual meeting rooms. Kitchens have become restaurants, science labs, and boardrooms. Bedrooms have become offices, infirmaries, and playrooms. Home is now where we shelter in place. Home is where we stay to keep ourselves safe, and keep our families safe and keep our communities safe. When home becomes your everything, the idea of what home should be becomes exponential. It’s still a place of belonging and security, but it’s also become a place of endless possibility. Being forced to make our homes full-service, multi-purpose spaces where all of life happens all at once is… a lot. But it’s also enlightening. Have we already shifted perspective? When this is over, what versatility will we be thinking about when we look at a home? Will we be thinking about its life-saving powers, like we are now? What scenarios will we be preparing for? What will words like “comfort” and “safety” and “community” mean to us? What dreams will we be dreaming and what futures will we be planning for? The future is unknowable, but I do know this: A home that provides a sense of belonging, a sense of security and a sense of possibility will be more important tomorrow than ever before. Stay strong.  Stay healthy. Stay home. Maggie Visser DRE #: 01925742 415.793.3470 maggie.visser@compass.com © 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.