Transition in Buyer Attitudes
Daniel Chinni of NBC News wrote on July 19, 2020 on the way the Pandemic has changed the way Americans live, ..."but the long-term repercussions may be in our world even after the virus eventually is controlled". The way we shop and spend money began to change before the virus hit. The virus only accelerated that movement. More people found acceptance to online shopping, home delivery, working from home, with serious movements out of the congested urban environments.
In June, Visa reported American volume of spending on credit cards declined 21% from May 2020. Debit card spending increased by 12%! Good news, as credit card debt will decline, and spending only on money in the pocket. Bad news for the banks.
Spending habits are declining and people are more careful with their money.according to McKinsey and Company. 40% of Americans were becoming more mindful of where they spend their money. 31% were changing to less expensive products to save money.
IN OTHER WORDS, THE COVID CRISIS IS CHALLENGING AND CHANGING LONG-HELD CONSUMER PATTERNS!
Realtor.com reported this June 2020 to June 2019, that homes in the rural and suburban zip codes saw the biggest jump in average views per property. Property views are not sales. It is still hard to imagine the trend not stopping for views and turning into sales. It is impossible to ignore the larger impact of Covid 19. Communities that are spread out have the lesser impact of the virus and social distancing is a natural occurrence. Away from the crowded streets and mass transit are part of everyday life in urban areas. Working from home is becoming a greater attraction of an occasional long term commute to 5-days commute stuck in traffic.
My Comments: I have seen more buyers look outside the area as they became disenchanted with home prices and the quality of life; most importantly, forced upon them from Shelter in Place and Covid 19 guidelines. As I pointed out in previous commentaries there is a trend. Irrespective of the movement, there will be movement into the Bay Area as it is highly beneficial to new careers and those advancing up in their career ladders.
The San Francisco Chronicle reports more home buyers are becoming selective amid pandemic concerns. The rumors of SF residents fleeing the city have been exaggerated. A robust market is in San Francisco quotes the Chronicle, but home buyers are becoming ever-pickier! The demand is a must have private outdoor space. Outdoor living is becoming a big trend in San Francisco.
The Chronicle further states that Single Family Market for Single-Families are being stimulated by declines in the demand in the rental and condo markets. Those buyers eye the outdoors of rural and suburban areas that offer outdoor space. Rents may continue to decline and condos without private outdoor space are likely to see a drop in value. The Chronicle goes on to state that the Ultra-Luxury market is seeing a slow down in San Francisco. Days on the market are increasing, offers are few, and buyers are becoming more discerning when they consider the additional construction and inspection costs. Summer is becoming the new Spring as the shutdowns have forced buyers out in time. This is very different than a typical spring as buyers will not compromise on what they want. Over pricing and selling homes with flaws are passed over by buyers. Buyers want the perfect mix of outdoor and indoor space with work at home capabilities.
My Comments: San Francisco is a reverse market to the Peninsula. Weather patterns make looking for homes pleasant in summer in the peninsula compared to the cold, foggy summers in San Francisco. The other issue of condos and renters moving can be seen from previous remarks on the movement to rural and less expensive areas where there is outdoor space and costs of living are much less.
MSN reports that Bay Area home sales rebounded 70% from May 2020 to June 2020. The surge in June represents a sharp turn around from May 2020, April 2929 and March 2929 when home sales fell 51%, 37% and 12% respectively. The market for condos was generally weaker than for single-family homes. The median condo was down 6.5%. OLD NEWS!
Yahoo Finance Sarah Paynter reports that Americans delayed buying homes during the coronavirus. 22 million or 9% of the population delayed buying a home. "If there is one thing we have in abundance right now, it's uncertainty". For those who put off purchasing 62% said they would wait more than 6 months, including 20% who have stated they have delayed indefinitely. their searches. Mortgage forbearance is prevalent but is declining. 4.2 million Americans were in forbearance as of July 10th.
My Comments: The trend in America is changing. Homes with outdoor space whether it is condo, townhouse or single family are chosen, but with more pickier conditions. The days of multiple offers maybe behind us.
Zillow reports as of June 2020 a .3% decline in one year in Atherton, .7% decline in Portola Valley, 1.3% decline in Aptos. Opposing the slight declines from the Mercury News reports that Marin has shaken off the coronavirus slump with a 5.3% jump in June.
My closing comments: Judging by the news reports it is easy to see the move to outdoor space. The value of living in a small space with neighborhood spots to hang out with friends are gone. Marin with its outdoor space, trails and easy access to SF by Ferry make great sense. I listed in June, 4 properties in the Middleton Tract next to Portola State Park. The interest, views and requests for disclosures were unbelievable. Selling one property in a little more than 30 days with multiple offers was high and exceptional. Something I have not experienced in 14 years of dealing with Middleton Tract. 1-3 years DOM were more likely. Trends are changing, buyer attitudes are changing. I seriously doubt that the buyers want to live in fear once the epidemic ends. Near terms fears take very long to remove and new attitudes accepted take even longer to change.
In June, Visa reported American volume of spending on credit cards declined 21% from May 2020. Debit card spending increased by 12%! Good news, as credit card debt will decline, and spending only on money in the pocket. Bad news for the banks.
Spending habits are declining and people are more careful with their money.according to McKinsey and Company. 40% of Americans were becoming more mindful of where they spend their money. 31% were changing to less expensive products to save money.
IN OTHER WORDS, THE COVID CRISIS IS CHALLENGING AND CHANGING LONG-HELD CONSUMER PATTERNS!
Realtor.com reported this June 2020 to June 2019, that homes in the rural and suburban zip codes saw the biggest jump in average views per property. Property views are not sales. It is still hard to imagine the trend not stopping for views and turning into sales. It is impossible to ignore the larger impact of Covid 19. Communities that are spread out have the lesser impact of the virus and social distancing is a natural occurrence. Away from the crowded streets and mass transit are part of everyday life in urban areas. Working from home is becoming a greater attraction of an occasional long term commute to 5-days commute stuck in traffic.
My Comments: I have seen more buyers look outside the area as they became disenchanted with home prices and the quality of life; most importantly, forced upon them from Shelter in Place and Covid 19 guidelines. As I pointed out in previous commentaries there is a trend. Irrespective of the movement, there will be movement into the Bay Area as it is highly beneficial to new careers and those advancing up in their career ladders.
The San Francisco Chronicle reports more home buyers are becoming selective amid pandemic concerns. The rumors of SF residents fleeing the city have been exaggerated. A robust market is in San Francisco quotes the Chronicle, but home buyers are becoming ever-pickier! The demand is a must have private outdoor space. Outdoor living is becoming a big trend in San Francisco.
The Chronicle further states that Single Family Market for Single-Families are being stimulated by declines in the demand in the rental and condo markets. Those buyers eye the outdoors of rural and suburban areas that offer outdoor space. Rents may continue to decline and condos without private outdoor space are likely to see a drop in value. The Chronicle goes on to state that the Ultra-Luxury market is seeing a slow down in San Francisco. Days on the market are increasing, offers are few, and buyers are becoming more discerning when they consider the additional construction and inspection costs. Summer is becoming the new Spring as the shutdowns have forced buyers out in time. This is very different than a typical spring as buyers will not compromise on what they want. Over pricing and selling homes with flaws are passed over by buyers. Buyers want the perfect mix of outdoor and indoor space with work at home capabilities.
My Comments: San Francisco is a reverse market to the Peninsula. Weather patterns make looking for homes pleasant in summer in the peninsula compared to the cold, foggy summers in San Francisco. The other issue of condos and renters moving can be seen from previous remarks on the movement to rural and less expensive areas where there is outdoor space and costs of living are much less.
MSN reports that Bay Area home sales rebounded 70% from May 2020 to June 2020. The surge in June represents a sharp turn around from May 2020, April 2929 and March 2929 when home sales fell 51%, 37% and 12% respectively. The market for condos was generally weaker than for single-family homes. The median condo was down 6.5%. OLD NEWS!
Yahoo Finance Sarah Paynter reports that Americans delayed buying homes during the coronavirus. 22 million or 9% of the population delayed buying a home. "If there is one thing we have in abundance right now, it's uncertainty". For those who put off purchasing 62% said they would wait more than 6 months, including 20% who have stated they have delayed indefinitely. their searches. Mortgage forbearance is prevalent but is declining. 4.2 million Americans were in forbearance as of July 10th.
My Comments: The trend in America is changing. Homes with outdoor space whether it is condo, townhouse or single family are chosen, but with more pickier conditions. The days of multiple offers maybe behind us.
Zillow reports as of June 2020 a .3% decline in one year in Atherton, .7% decline in Portola Valley, 1.3% decline in Aptos. Opposing the slight declines from the Mercury News reports that Marin has shaken off the coronavirus slump with a 5.3% jump in June.
My closing comments: Judging by the news reports it is easy to see the move to outdoor space. The value of living in a small space with neighborhood spots to hang out with friends are gone. Marin with its outdoor space, trails and easy access to SF by Ferry make great sense. I listed in June, 4 properties in the Middleton Tract next to Portola State Park. The interest, views and requests for disclosures were unbelievable. Selling one property in a little more than 30 days with multiple offers was high and exceptional. Something I have not experienced in 14 years of dealing with Middleton Tract. 1-3 years DOM were more likely. Trends are changing, buyer attitudes are changing. I seriously doubt that the buyers want to live in fear once the epidemic ends. Near terms fears take very long to remove and new attitudes accepted take even longer to change.
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