Where We Are Now: April 13, 2020
Work From Home — Day 29
Market Dynamics — Shifting to Offense
5:12AM PST
Team –
Survey count over 720. Thank you!
Two quick items before our survey results on market dynamics.
- The reSolve Group in Palo Alto had the suggestion to use your Compass Cares funds to encourage local restaurants, who need the business, to provide meals to first responders, health care workers, or the locals in the community that need a helping hand. We all have a favorite restaurant. Please give it your consideration.
- Here is a quick laugh my sister Marita sent to me. What if our in-person meetings were like an online meeting? Give it a look.
Our market dynamics survey was answered by more than 720 of our professionals in California. While not without its challenges (I apologize for the frustrating experience), the results are compelling.
- Responses are balanced 58 percent and 42 percent respectively between NorCal and SoCal and in line with our number of real estate professionals.
- In NorCal & SoCal, approximately 79 percent of you believe there will be the same or more sellers post-SIP.
- In NorCal & SoCal, approximately 68 percent and 73 percent respectively, you believe there will be the same or fewer buyers post-SIP.
This represents a possible abrupt shift from a sellers’ to a buyers’ market. Be ready!
- For properties priced between $500,000 to $2.9 million, 62 percent in NorCal and 56 percent in SoCal think post-SIP pricing will be down 5 to 10 percent.
- For properties over $3 million, 48 percent in NorCal and 45 percent in SoCal feel post-SIP pricing will be down by more than 10 percent.
- It’s very clear your greatest concern coming back to work post-SIP is the behavior of others. The second greatest concern is the mortgage markets. Noted!
We clearly have some work to do with our sellers on pricing expectations. In addition, the mortgage markets are experiencing significant short-term stress. We will address the mortgage related stress in Tuesday afternoon’s Closing Bell.
Join us Tuesday afternoon at 2PM for our shift from crisis response to playing offense. Sign up here for The Path Forward. We do not control the virus or the timing of the flattening of the curve; we do however control our attitudes, behaviors, and readiness to make things happen. Time to play offense in this new normal.
This afternoon’s Closing Bell will have our pending escrow and cancellation reports.
Tomorrow morning will feature a perspective from Brent Thomson, COO. For those of you who don’t know what an amazing woman Brent is, she ran the Mt Everest Marathon for her 60th birthday. Brent hiked for 15 days to get to the starting line at 17,000 feet and then ran a marathon. Hiked another few days back to civilization. I am not sure what Brent is going to share but trust me it will be both authentic and powerful.
This is Where We Are Now.
Thanks!
Mark
Mark A McLaughlin