McKae Properties Real Estate Market Commentary

 The Lock down is now beginning to hit various real estate markets.  Follow that up with various real estate ballots which can do more harm than good. Bay Area Hotel Loan woes are intensifying.  Five Hotels in the East Bay, South Bay, and San Francisco all deemed luxury, high end lodgings are suffering severe financial difficulties per the Thursday October 29th issue of the Mercury News.  What the Pandemic hasn't shut down the ballot measures could.   Proposition 15 will tax commercial properties at market; rather than, the Proposition 13 rules of the past.  This passage will put Proposition 13 for residential in the target next.  Prop15 will raise a pittance of $11 billion of so.  A far cry from the deficits the State of California and counties are facing.  I doubt if raising taxes will replace the loss of business the shut down has created.   Another Ballot measure will stop the transfer of property taxes upon death to heirs.  Under the present law the parents property tax remain

 I recently spoke to a few buyers.  They had the attitude that we will see a bust in real estate for a sundry of reasons.  Yes, people are moving out of state and the area.  Yes, the rental market is collapsing.  Yes, prices of being cut, some drastic and some minor.  Others opine that the Democrat sweep with raise taxes, destroy high tech. Still other like to look back at the Financial Crisis of 2006 and think this is the model of the near future crash like 2006/07. So sorry to disappoint you.  I agree that there are a number of factors that can weigh on the real estate market.  They a not deal busters.  The key is interest rates.  They are  just too low and the Fed is willing to fund capital into the system.  Congress too is willing to send checks and fiscal support to the American Public  That does not seem to me to be the making of a collapse or bubble busting.   Near term I do believe you have seen the drive upward in prices have ceased and the trend is come off the top, but no ne

Joshua fought the battle of Jericho and the Walls came tumbling down.  For as long as I have been a residential real estate agent the walls of Silicon Valley were impenetrable to the various market and economic cycles that threatened home prices.  The East Bay and communities around us saw prices decline Silicon Valley remained strong.  It was like a wall that surrounded it.  Just as the Biblical Walls of Jericho came down so are ours. I have written in the past of the immigration of residents as the pandemic began.  Employers embraced work from home and as they did employees began to look at greener more affordable pastures. This weekend's San Jose Mercury News and the San Francisco Chronicle have finally put the fact on front pages. It started with Marisha Kendall's article..."Santa Clara County properties valued at $553B before pandemic".  "We have peaked" said Santa Clara County Tax Assessor Stone.  "Next year, Stone expects to see even more propert