McKae Properties Real Estate Market Commentary

It is so easy to let fear in without carefully examining the situation.  Yes, housing prices are coming down, yes housing prices came down in 2006-07, yes they came down in 1987.  Had you purchased at those times look what happened.  Home prices rebounded and went even higher. I had written in my inaugural letter that the stock market leads the real estate market.  Since records have been kept the price of homes have followed the stock market average.  Whether the average be the Dow Jones or the Standard and Poor 500 or any other index created.  Why?  The averages are economic measurements of our economy.  With every reaction down there was a rebound up and those rebounds kept going onward and went beyond the lows that created the concept of "crash".  10 years from now all those who went back to their rental or their under sized house will look back and regret not moving forward. How can one make a mistake?  Interest rates are at historic lows. There will be a new norma

Harley my Old English Sheep Dog looked up at me as I waited for cocktail hour to begin and said, "Now you know why a chew on furniture". We now are looking forward for the Governor to decide on the resumption of our economy.  Good Political play from POTUS.  If it is successful he wins and if it is a failure the Democratic Governors who opposed him making the decision are left holding "The Bag".   A stinky bag it will be.  Redwood City has declared that all walking outdoors must now wear a facemask.  Isn't this locking the barn door after the horse is stolen? Homes for sale declined 15.7% in March and so far this month the results are: Atherton: 6 new listings, 3 cancels, 2 cuts Menlo Park:  13 new listings, 6 pending, 7 sold, 1 withdrawn,1 expired, 3 cuts Palo Alto:  17 new listings, 9 pending, 9 sold, 3 expired, 4 cancelled, 3 cuts Woodside:  5 new listings, 1 pending, 5 sold, 1 withdrawn, 1 expired, 0 cuts Portola Valley: 2 active, 3 sold, 1 withdra

The new thing appears to be emails from all those we know and have known with their various jokes on being too long in Solitary.  "Going out this week? What should you wear to take out the garbage?" In Santa Clara County list prices of Single Family Homes have had a -2.88% fall in a 30-day trend, Luxury Home list prices have had a -10.78% fall in a 30-day trend.  Importantly, the average sales prices for single family is +8.10% and Luxury Single Family +0.28%. In San Mateo County Single Family list prices have a -5.66% 30-day trend and Luxury Single Family have had a -2.10% 30-day trend.  Average sales prices for Single Family homes are +11.27% with no statistics available for Luxury Homes in the 30-day trend. Watching the daily summary of listings of Atherton, Menlo Park, Palo Alto, La Honda, Redwood City, Woodside and Portola Valley the only trend I can see is that there have been a number of cancellations, expired and withdrawn properties in the Luxury Markets of Woo

LIFE AND HOME SALES DURING THE COVID 19 PANDEMIC, WEEK 3 We are now finishing our 3rd week with the Shelter at Home orders by Governor Newsom .  Cities and Counties have followed up with their orders .  It does not appear that the order will expire until after May at this point.  Next week is the height of deaths and infections per the medical community advising our governmental leaders. STAY AT HOME! The California Association of Realtors have put together forms that require full disclosure of potential issues to protect both the buyer and the seller of real estate in California.  The first is a Quick Guide to Real Estate Transactions in a Safer at Home Environment for Covid 19 .   Buyers and sellers should review this link as the realtor must comply.  Being self-informed is far better than word of mouth.  For the seller there is the Listing Agreement Coronavirus Addendum or Amendment.  Whether you are presently listed or planning to list this is an essential form for comple

My wife, Cindy, has become a great source of news and information for me to use in my Blog.  She is coming to realise Social Media as the way to communicate and promote myself and my business.  This is quite a change as she was once my secretary as a stock broker, who went up the management ladder.  Her final place was with the Western Regional Director of Merrill Lynch (pre 2006 fallout) which had her in compliance as one of her duties.  Mailing, newspaper advertising and the "written word" were all part of the old school marketing programs.  She has realised that Facebook, Instagram, Linked In and the other social media sites are much more than communication sites of friends.  I think of it as a current resume' that lets viewers get to know who I am and how I think.  She realises that and is planning a Instagram video once the quarantine os over.  Look for it! Clients really want someone who thinks like them and can relate to their needs.  Hopefully this Blog will hel

Listings are being cancelled or withdrawn.  Open Houses are gone or going.  The outlook for the virus and the challenges of being protected look beyond the stay home order expiring April 4th.  Work at home, no school, outside activities are all having a dramatic impact on our lives Coronavirus cutback: California Realtors told to stop home showings, open houses   - Realtors: "Cease doing all face-to-face marketing or sales activities, including showings, listing appointments, open houses and property inspections." ...   Read More Will this change the way we knew our lives and the way we lived?   Is this the "New Normal"? Does the "work at home" start a new normal?  Will employees be able to be productive with working at home?  Will working at home change the value of home prices?  Will those working from home find that they can do so in a less expensive area. All that is yet to be determined.  It is my belief that home prices were infl

This is the second edition of the Blog since I re-started it in late February 2020.  Much to talk about and focus on the real estate markets for Atherton, Menlo Park, Palo Alto, Portola Valley and Woodside. The comments I made last edition was the similarity of the price movement of the Standard & Poor's 500 and Real Estate values.  The recent lost in values of over 20%+ in the S&P and other US indexes have been joined with declines in the World's indexes.  From Canada to Japan to Australia, Hong Kong and Africa the World's markets have seen devastating loses that have taken away 50 years of growth in some countries and financial loses that are difficult to comprehend. To review I have attached below the Historical Chart of the S&P 500 and the S&P Case/Shiller SF Home Price Index.  You will note in 2005 that the the decline from a high of about 220 on the S&P Case/Shiller index to 120 in 2010 to represented a 45% decline in home prices.  The decli