Our hearts go out to you all in these unprecedented times. One way or another, we will all be affected by these turbulent times. Together, let’s figure out how to somehow be better for it!
As we sit and ponder this month’s outreach, it is with saddened heart. Being on lockdown from business and socializing, erratic panic from both the Corona-19 bug and crashing stock market, we have to wonder, what is next? Yet, we cannot let fear or sadness of the unknown dictate how we continue to serve our community.
Let us be constantly reminded of how good our lives are here in the Bay Area! Without friendship and comradery for one another, what would we really have? One thing we know for sure is that we cannot buy time. Our recommendation is to gather your loved ones around you while giving all you can. Reach out in any way possible, to let others know they are in our hearts and minds. The more love we can share, the more benefit our community will receive, and of course, pay forward.
Roark and I, in collaboration with Compass specialize in investment, value-add, and commercial real estate sales and we believe once this is over there will be a lot of people making moves on purchasing and selling properties. We work for one of the largest private independent owned brokerage firms in the United States and are in constant contact with economists, think tanks, lending and brokerage professionals, and most importantly, you. We are speaking to our clients on a daily basis and I would love your thoughts on where you think the market will go. We promise to keep you appraised with insightful real estate forecasts, Buyer and Seller needs, and advice to help you plan and protect yourself. We will be here for you when this challenging time is in our rear view mirror.
Please see graphs below with real estate cycles – and remember, we have seen downturns before, and gotten through them together. Also, we have sourced language here and here you can use for working with tenants, as we all anticipate conversations about money being tight over the next couple of months. As you know, we are not ‘Qualified Landlord Attorneys’, but in an effort to assist our clients in this challenging Covid – 19 business environment, we thought it may be helpful for you to have some language to create addenda to your property leases, in the event a tenant is expressing their inability to pay rent.
Hope this helps and please reach out if you need anything. Here to assist!
Market Cycles in Bay Area Real Estate
This article was written before the coronavirus – in fact, the first version was written over 10 years ago by our chief market analyst to help place the 2008 crash into context. We realize there are much more important things than real estate right now, but since some of our clients are trying to make decisions about buying and selling, we will continue to try to provide useful information on market trends and conditions. At this point, we cannot know how the current crisis will play out.
This first chart is a very simplified, smoothed out look at Bay Area market cycles for higher-price-tier homes using data from the S&P CoreLogic Case-Shiller Home Price Index. It is a very approximate overview of hundreds of different neighborhood markets – whose trends up and down were broadly similar, but whose details, such as specific appreciation percentages, varied.