Hi friends,
Flush with savings and little to do, many consumers are buying lots of stuff.
Specifically, we're buying durable goods, the kind of stuff that lasts a while and doesn't need to be purchased often, like vehicles, appliances and furniture.
But heightened demand has met material and logistical bottlenecks, those pesky supply chain issues everyone's talking about. As of September, orders for durable goods were up 25% YTD while shipments rose only 14%.
The symmetry is striking between unstocked shelves and the real estate market. After all, real estate is a durable good too.
In the last 18 months, we've seen homebuyer tastes shift towards amenities once consigned to the outside world. Offices, gyms, yards, classrooms. Simultaneously, low mortgage rates have empowered buyers to pay more for the home they want. All this culminated in a record-breaking year for San Francisco real estate (as detailed in our October Market Report).
Whether 2022 is similar to 2021 or more like the "before times" depends on the factors that got us here. Namely: the pandemic, interest rates, and a dash of inflation for good measure.
In the coming days, I am recording a webinar with my friend and loanDepot mortgage expert, Noah Fierro. Stay tuned for our in-depth discussion on all the above, and how to navigate the next moves in the market.
And if you missed my webinar on San Francisco preschools and private schools, click here to watch!
As always, please don't hesitate to reach out with any real estate questions. We are always happy (and grateful!) to help you and anyone you send our way!
Warmly,
Our latest newsletter included the following stories. To get it all fresh in your inbox, subscribe below!
SFGATE: Tahoe officials declare housing emergency, plead with second homeowners to rent long term
SF Chronicle: It's time to make up for housing discrimination
Realtor.com: What you can do about the rising cost of home insurance
And from our blog:
The October 2021 San Francisco Real Estate Market Update
Making Sense of Underpricing in San Francisco Real Estate
Sign up for the Vivre Real Estate newsletter for an info-packed update on San Francisco real estate, local insights and more, delivered twice a month to your inbox.
PS: We hate spam and love privacy as much as you do. We will never sell or share your information — period.
