McKae Properties Real Estate Market Commentary

There is and has been a constant movement of residents from the Bay Area.  Few have realised that the movement has not been  predominantly  out of state.  The movement has been to areas in California that provide Affordability, Good Schools, Lower Cost of Living and larger and less expensive homes. Rents have collapsed at spectacular rates, with San Francisco leading the race down.  To those who have rented solely for the night life and commuting to work it has ended with COVID 19.  The cramped conditions of apartments with no night life has taken the glamour out of "nightlife".   The one and two bedroom starter homes too have become an upgraded solitary confinement quarters; irrespective of, the ability to walk around a 6000 square feet lot  occupied  by a 1350 square foot home with attached garage. When those who decide to look for a larger home in a community with safety and good schools they are faced with: A  recently  sold West Menlo, "elegant and artistic...modern

 SFGate reports that San Francisco rents may have finally hit bottom.  The rental market may be reflecting the action in the recent Game Stop trading.  Never try to catch a falling knife in stock trading, which begs the question, what does one apply to property rentals?  Apartment List shows that rents fell just .4%, while Zumper is reporting prices actually rose .8%.  After monumental declines of 25% and 27%, depending on which service you wish to follow, even a minimal loss or gain is noteworthy. It questions the point of  who  will be the parties renting?  The techies have departed from the Bay Area to parts unknown, whether it be to Hawaii or parts east of the Bay Area or even out of state.  After the rise in unemployment benefits, checks from the US treasury, matched with renter relief from the State of California, the poor souls who lost their homes or apartments to soaring rents replaced by Techies coming to Facebook, Google, Yelp and the like, have the opportunity to come back