July 2020 Market Update

Happy Summer Folks! Today is my birthday and I wanted to start this newsletter by thanking you all for supporting Hatch Realty Group all these years! Reflecting on my life as a 41-year-old living through these crazy times - amid a coronavirus pandemic, a war against systematic racism, and an impending recession, I must say, I remain extremely grateful for this life and am hopeful for a brighter tomorrow. I believe the universe is going through a much needed reset and my hope is that we all come out of this for the better, together. 
 

Like the rest of the world, the real estate market is also going through a huge adjustment. SiP (shelter in place) and WFH (working from home) has changed the face of Bay Area real estate...forever. What I am witnessing is an exodus of city dwellers into the suburbs (and beyond) as people yearn for room to stretch out. Despite my previous predictions that vacation homes would take a hit, prices for those types of properties are on the rise as buyers are purchasing them now as primary residences or 2nd homes to get away from the city, which remains on lockdown. Buyers who grew up in SF or on the Peninsula are also venturing as far out as Brentwood, Lathrop and Oakley because they are priced out of their home towns and prefer space and savings over convenience. As companies choose not to renew their leases and announce that WFH is the way of the future, proximity to the city and transportation is no longer the priority.

I am so proud of my amazing team who has stepped up to the plate during this pandemic to show up for our clients needing homes, landlords needing tenants placed and properties sold. From between March to May, our sales, like the rest of the market, were down 50%. Now we’re back on track pacing to meet last year's numbers. Buyers and sellers are realizing that the pandemic is far from over and they are now starting to make moves albeit cautiously and safely. 

The real estate market, with the exception of condos in the city, is hot! Rates are now below 3% , with one of my clients currently locked in at 2.625% on a 30-year conforming note. If you can qualify, banks are giving out practically free money, so you may want to consider purchasing or refinancing now. 
 

Homes, in general are garnering multiple offers above the list price and buyers are once again writing non-contingent offers for homes they really want. 
 

If you have any questions about a specific market, want to buy or sell property, need referrals, or need help with leasing, please don’t hesitate to reach out. Hatch Realty Group is always ready to help you with all of your real estate needs! Thank you again for being part of our lives and we look forward to hearing from you in the near future! 

Sincerely,

-Monica Sagullo