McKae Properties Real Estate Market Commentary

Welcome 2023 with an out pouring of new listings.  As we ended 2022 the number of active listings began to lessen by the month, week and day; until we had the old stand firm group who just wanted out.  As I look at the Hot sheet I have established with MLS Listings I see all the new listings for the past 7 days; along with, sold, pending, contingent, list price decreased, canceled, expired and withdrawn.  The new listing's out distance the sold's so far.  Price cuts are starting to emerge. Market Watch New Listing (51) List Price Increased (1) List Price Decreased (6) Transaction Fell Through (1) Listing Back On Market (0) Contingent (5) Pending (14) Changed to Sold (13) Changed to Rented (0) Listing Expired (0) Listing Canceled (0) This action is unusual for the beginning of the year.  It is not abnormal for listing's to expire and cancel or withdraw at the end of a year.  They normally stay off until after Valentines Day and then flood the market.  How best to understand

It seems to me the problems we experienced in 2022 are enough for us to endure, let alone, for another year.  Statistically stock market declines of the 20% range , as the one we experienced in 2022, are not experienced the following year.  Real Estate is a different asset in which to use that statistical analysis on.  We live in an area that is a Camelot.  Irrespective of what happens in the world around us, Silicon Valley remains resilient and firm.  The large advances in real estate we experienced from the beginning of the Pandemic, were not unexpected. What we have to work with is the large amount of speculation that needs to be wrung out of our real estate market.   The concept of Risk Free Rate of Return is the major measurement that will or should be used to determine purchases or investing.   2020 saw an enormous amount of money created in the money supply.  Some $9 trillion the Federal Reserve Governors created and disbursed into the US Economy that also found into the World E

 When Saul of Tarsus set out on his journey to Damascus the whole known world lay in bondage.  There was one state, and it was Rome.  There was one master for it all, and he was Tiberius Caesar. Everywhere there was civil order, for the arm of the Roman law was long.  Everywhere there was stability, in government and in society, for the centurions saw that it was so. But everywhere there was something else, too.  There was oppression for those who were not friends of Tiberius Caesar.  There was the tax gatherer to take the grain from the fields and the flax from the spindle to feed the legions or fill the hungry treasury from which divine Caesar gave largess to the people.  There was the impressor to find recruits for the circuses.  There were executioners to quiet those whom the Emperor proscribed.  What was a man for but to serve Caesar? There was persecution of men who dared think differently, who heard strange voices or read strange manuscripts.  There was enslavement of men whose

It has always been my contention that the end of the year is the best buying opportunities for assets; due to the fact, they are under pressure by year end selling.  Whether it was stocks and bonds, when I was in the Securities Industry, or now in the Real Estate Industry.   Assets; such as, stocks and real estate are not like a pound of coffee with a set price per pound.  They are open to negotiation.  A set price, an offer price, will be given and  a bid below the set offer could be accepted.  Why, emotions, taxes, leverage or just tired of carrying a position. Real Estate has gone through a Down Hill Slide this past year and a half.  I saw the potential some time ago when rates went ridiculously low with over $9 trillion added to money supply.  The speculation that occurred was in asset values; along with, the creation of new investments without any reason of fundamental value; other than, demand.  ECON 101 Supply Demand Curve is always in play.  Lack of supply and demand creates hi