McKae Properties Real Estate Market Commentary

 Higher interest rates, Low unemployment, Help Wanted signs, Empty store fronts, are all indicating to the passer by that the economy is confusing.  "   Residential sales are down substantially on a year-over-year basis, inventory is on the rise, and price reductions are becoming more common." The reader should keep in mind that our real estate market moves differently than the rest of the United States and the rest of the State of California.  The "media" which reports real estate is 4-6 weeks behind in their reports.  Sort of like listening to a delayed broadcast of a baseball game while watching it live.   Sales are definitely down from June of last year some 30%.  Last year was also the hottest housing market we have had in the past 12 years.  So it is bound to have some pause.  Still it appears there was about 5% over biding during the slow down.  So things are not that bad. What is really bothersome is the "Feeling" of this market environment.  Like

McKae Properties Silicon Valley Real Estate Market Commentary: The Prices Come Tumbling Down : Some years ago I came face to face with a competitor over a Menlo Park Listing.  The owners were from Oregon.  They had owned the property f...

Some years ago I came face to face with a competitor over a Menlo Park Listing.  The owners were from Oregon.  They had owned the property for some time.  They were faced with updating and correcting many problems that would put them in violation of the Landlord/Renters Act if not repaired.  When they faced the costs of updating the house and property and rent the recapture rate was too far out based upon their age.  They opted to sell. The agent I had known from his association with another Brokerage Firm of national recognition.  He was now an independent.  Going independent was not something new.  The real estate brokerage firms at that time had a scale of payouts based upon production.  The more the agent produced the higher the payout.  The exception to the rule were the agents who consistently were larger producers.  They got the highest payout both realtor and brokerage could agree upon. The realtor made a proposal that put me back.  "I will buy the property, all cash, clos