2021: December San Francisco Real Estate Insider

I hope this email finds you well as we enter the Holidays! The fall market has been very active but now, post-Thanksgiving we are definitely experiencing a major slowdown. Inventory has significantly tapered down in terms of new listings but existing absorption is happening. Overall buyer activity has slowed, but, supply is still fairly high and that will bring the hope of year-end deals for many (if you are still looking, you should be optimistic). The rush of new inventory will wait until 'Q1; some new listings and some re-treads from 'Q4.

Taking a look back at the pandemic effect on the Bay Area market in in terms of housing needs and stratification (within the market), I want to quickly look at the incredible jump in activity in sales of homes priced at $5 million and above. San Francisco Bay Area sales soared 142% in the year to date compared to the same time period in 2019. I would not even call this a spike as its more of a new normal.

The two charts below detail the rise in demand as the pandemic hit as well as how quickly $5M+ homes are selling in each Bay Area County.

Below are examples of what $5,000,000 bought in certain neighborhoods and city's in some Bay Area counties this year. Obviously, once you leave the density of core San Francisco/Southern Marin/Oakland/San Mateo you start to see more acreage with home sales.

What about seasonality and the luxury market? The chart below speaks volumes for the COVID-effect on the luxury market.

With all the recent news about US migration patterns (due to COVID), I wanted to add some quick stats on the top recipients of new residents. From a population perspective, Florida added an estimated 329,717 new residents between April 2020 and April 2021. Florida is the 7th-fastest growing state in the U.S., with about 21.7 million people (and no state income tax). Percentage-wise (of population), Idaho is the fastest growing state (lots of new tech companies / offices), followed by Arizona, Nevada, Utah, Texas and South Carolina.

That is it for now. If you are considering a life change in 2022 that entails selling or new home, give me a call. Let’s put a plan in place to make the most of your goals. Call or email, anytime. Happy Holidays!