As expected, the market slowed down after the July 4th weekend. People were intent on getting out of the house and taking family vacations. Two weeks afterwards, the market has definitely slowed down a bit. Interest rates are still phenomenal. As of this publication there are 20 new listings that have just hit the market in the last 7 days!!! Skewing the supply and demand dynamic. The Federal Reserve just met and it seems like they are denying pending inflation, however, there is talk about raising rates possibly next year. The ten year treasury stands at 1.75%, boosted slightly by foreign investors seeking a safer haven for their money as most countries are at a negative rate. We are seeing fewer cash buyers, but most offers from buyers have a minimum of 20% down. Closings are very quick still, most escrows typically closing in 30 days. However, we are seeing offers with as little as 14-21 day closings and allowing the seller to rent back at no cost to seller post close of escrow. The buyers that are paying cash are getting “purchase money rates” and are refinancing within 90 days after close of escrow. We are seeing some buyers taking advantage of their relationship banking, moving their 401K money into these institutions to get as much as a half a point off their interest rates. Most buyers are locking in their rates upon acceptance of their offer and not “floating” to see where the market ends up. We are seeing a cross section of buyers from young families with their parents helping out on the down payment to young professionals in the tech industry with lots of money down. The lower rates kind of eases the tension buyers feel when they thing they have overpaid for the property.

We are starting to see a lot of commercial space available as the stay and work at home dynamic becomes more permanent in nature. All indications from leading economists say the market should be strong and steady for the rest of 2021 and 2022. By steady, they mean a lower single digit appreciation across the board, compared to the double digit appreciation we have seen in the South Bay the last two years.

The numbers are in for the first six months of 2021 and RE/MAX again is the #1 company in the South Bay in transactions (number of homes sold) and dollar volume. As agents we are bombarded by what others consider the next best thing, the next best app, and the next widget to help our business, Sandy and I pride ourselves on personal care

and attention. While we do have the best technology at our fingertips, and feel we market our properties better than anyone, it’s still about the personal care and attention that makes a difference.

Please don’t hesitate to call us for any of your real estate needs, from a simple valuation of your home, what to do to your property to make it the most presentable, or referrals to trust and probate attorneys we have worked with, to all of our vendors including plumbers, electricians, handyman, painters, haulers, etc. See you around the neighborhood!