Last Saturday I enjoyed being a guest on Protect Your Assets, a radio show on KNBR 680 AM. The host, David Hollander, is my financial advisor and producer of the show that airs each Saturday morning from 8 – 9 am. This was my third appearance on the show, and still I was amazed at how quickly time zips by on the air!
My topic was the impact of the Election on our local real estate market, and I began with a comment about how tricky it is to make any predictions, especially given our recent experience of many clouded crystal balls! But there are some reactions that are already in evidence in our market:
Emotional: I’ve already heard stories of some buyers who had planned to move to this country and will now delay their move here for four years. Within our borders we may see buyers living in red counties or states move to the East Bay to seek life in sanctuary cities. Some buyers are talking about putting their search on hold, and sellers too may take a wait and see attitude until we actually experience the new administration. Others talked even before the election about moving to Canada…will these various scenarios balance out?
Economic: Obviously the rapid rise in interest rates will be the main impact on our market. I shared on air an example of my set of current buyers who had been quoted around 3.75% during the search, 3.81% soon after the election, and who now will be paying a rate of 4.25%. As a rough calculation, for each increase of a half point, buyers will pay $30 additional per month for each $100K of mortgage. There is always so much more I would have liked to have shared! But we know that some buyers will now be priced out of the market. Others will be inspired to finally jump in…and how will those scenarios balance out??
On a more personal level I am feeling inspired to step forward, to donate to causes that share my values and to donate my time where I think it can make a difference. I talk with so many people who feel the same, and together we truly can make a difference.
I hope this holiday season will be a time when you enjoy some special pleasures, and the company of family and friends with renewed appreciation. For a guide to local holiday events, click on the Calendar of Community Events link to the right. Thank you for being part of my community!
