Hello! Thank you for reading The Real Estate Beat, today – I’m featuring a local San Carlos store…
Geoffrey’s Diamonds in San Carlos
Geoffrey’s Diamonds in San Carlos is synonymous with quality and service – oh yes and beautiful jewelry, sparking diamonds and gems. Growing up in San Carlos – they were known as the standard. It’s where you went to trust your jewelry with and where you went to buy a treat.
I remember my mom brining me into the store as a kid just tall enough to look into those amazing jewelry cases, my eyes still light up! Flash forward to my own engagement ring – we went to Geoffrey’s. Mom wanted to buy her own diamonds, we went to Geoffrey’s. Husband needed his ring adjusted – Geoffrey’s. I needed an appraisal – Geoffrey’s. Today, concerned my prong was loose, I went to Geoffrey’s, and following all the Covid protocols they fixed my wedding band and it sparkles like my wedding day. Always kind, everyone there is so knowledgable and seeing the same faces – now masked sparks joy. Thank you Geoffrey’s for being the standard of quality and service for our jewelry.
The Caton Team does not receive any compensation for any posts, we use YELP for ease of use. All restaurant reviews are unsolicited and unpaid. Photos or edites are my own. Information deemed reliable but not guaranteed. Third party information not verified.
Got Real Estate Questions? The Caton Team is here to help.
We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!
The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.
A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.
Call| Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive. What can we do for you?
WOW – what an amazing Yelp Review from our awesome clients J.R.
This came as a total surprise (I somehow didn’t see the email) so I was literally looking up a place on Yelp when I saw my own 5 Star Review. I was thrilled to read this. JR, your kind words mean the world to us. We love what we do and we love taking great care of our clients – like you!
“Outstanding relators. Sabrina was an excellent communicator with us, and a fierce negotiator on our behalf. Having Susan’s expertise made us stronger each step of the way. Sabrina and Susan first impressed us with their clear knowledge and strong experience, as well as their warmth. They showed clear willingness to understand us as clients and support us in our goal of buying in SF, even when it appeared out of reach. Even though they are based on the Peninsula, they both demonstrated a strong understanding of the SF market and instantly built an effective working relationship with the sellers agents, or strengthened an existing relationship. When it was clear we needed to make a change in our search, Sabrina was understanding and helped guide us to a house we ADORE. Sabrina and Susan quickly sized up properties we were interested in and provided us with factual, detailed responses to help us make decisions about proceeding with properties. Sabrina was clear, thorough and direct in reviewing disclosures with us and helped us as first time buyers to feel comfortable with the process, especially in managing contingencies and the risks involved. Sabrina is highly organized and timely in writing offers, she even knew how to make our letters to the sellers stronger. Sabrina wowed us with her negotiating and advocacy for us with the sellers agent. We were overall thrilled with Sabrina and Susan’s work and will definitely work with them again in the future.”
Need Real Estate help? Contact The Caton Team for a consultation.
Call| Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
Got Real Estate Questions? The Caton Team is here to help.
We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!
The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.
A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.
Call| Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive. What can we do for you?
My phone is ringing off the hook and I’m happy to chat about the hottest topic – where the already amazing Real Estate Market is going… so here’s a great article from First American.
Call| Text | Sabrina 650.799.4333 |EMAIL | WEB| BLOG
In the final month of 2020, the market potential for existing-home sales reached its highest point since 2007, rising to a 6.18 million seasonally adjusted annualized rate (SAAR) of sales. While the winter months are traditionally real estate’s slow season, the housing market had one more surprise for us in 2020 as our measure of the market potential for existing-home sales showed the housing market again broke with traditional seasonal patterns during this unprecedented year.
“Twin housing market accelerants — record low mortgage rates and the demographic boost from millennials, the largest generation in U.S. history, aging into their prime homebuying years – super-charged demand. Yet, the housing market also faces a historic and worsening inventory impasse you can’t buy what’s not for sale.”
Twin housing market accelerants – record low mortgage rates and the demographic boost from millennials, the largest generation in U.S. history, aging into their prime homebuying years – super-charged demand. Yet, the housing market also faces a historic and worsening inventory impasse – you can’t buy what’s not for sale. In 2020, the growth in house-buying power fueled by low mortgage rates was the primary driver of housing market potential, while existing homeowners choosing not to list their homes for sale was the biggest headwind. Fortunately, the potential sales increase from house-buying power was more than the loss from rising tenure length in 2020.
House-buying power, how much home one can afford to buy given their income and the prevailing mortgage rate, is a key driver of home-buying demand. The primary reason for the increase in house-buying power in 2020 was falling mortgage rates. Since December 2019, the 30-year, fixed-rate mortgage fell by slightly more than one percentage point. Holding household income constant at its December 2019 level, that means potential home buyers gained nearly $60,000 in house-buying power from falling mortgage rates alone. If you factor in the growth in household income, home buyers gained approximately $87,000 of total house-buying power in 2020. Because an increase in house-buying power allows a potential home buyer to purchase more home for the same monthly payment or purchase the same amount of home for a lower monthly payment, increased house-buying power helped super-charge housing market potential. Compared with one year ago, falling mortgage rates and rising incomes for those still employed resulted in nearly 389,000 potential home sales in December.
Rising Tenure Squeezes Housing Market Supply
Existing-home sales make up approximately 90 percent of all sales, so the rising tenure length of existing homeowners means fewer and fewer homes for sale and is the primary reason for the lack of housing supply. As existing homeowners have increasingly chosen not to list their homes for sale during the pandemic, average tenure length – the amount of time someone lives in their home – has soared to a historic high of approximately 10.5 years, up from an average of 10 years just one year ago. In last month’s existing-home sales report, months’ supply hit a historic low of 2.3 months. That means it would take just over two months to run out of homes for sale at the current pace of sales. The lack of homes for sale caused by the increase in tenure length reduced the potential for existing-home sales by 170,200 in December compared with a year ago.
What should we expect in 2021? More of the same, but in a more positive economic environment. The successful dissemination of a vaccine should put an end to the “stop-start” pattern of restrictions imposed on businesses, which should help the economy recover. Low mortgage rates will continue to support strong house-buying power as more and more millennials age into homeownership, keeping demand robust. While the supply-demand imbalance will persist, existing homeowners who were hesitant to sell amidst the worst of the pandemic may be encouraged to bring their homes to market, relieving some of the supply shortage. Swelling demand and the potential for greater supply means housing market potential in 2021 is likely to remain strong and build off a historic 2020.
December 2020 Potential Home Sales
For the month of December, First American updated its proprietary Potential Home Sales Model to show that:
Potential existing-home sales increased to a 6.18 million seasonally adjusted annualized rate (SAAR), a 2.3 percent month-over-month increase.
This represents a 77.1 percent increase from the market potential low point reached in February 1993.
The market potential for existing-home sales increased 11.9 percent compared with a year ago, a gain of nearly 658,628 (SAAR) sales.
Currently, potential existing-home sales is 683,971 million (SAAR), or 10.0 percent below the pre-recession peak of market potential, which occurred in April 2006.
Market Performance Gap
The market for existing-home sales underperformed its potential by 1.2 percent or an estimated 73,142 (SAAR) sales.
The market performance gap increased by an estimated 21,960 (SAAR) sales between November 2020 and December 2020.
First American Deputy Chief Economist Odeta Kushi contributed to this post.
What Insight Does the Potential Home Sales Model Reveal?
When considering the right time to buy or sell a home, an important factor in the decision should be the market’s overall health, which is largely a function of supply and demand. Knowing how close the market is to a healthy level of activity can help consumers determine if it is a good time to buy or sell, and what might happen to the market in the future. That is difficult to assess when looking at the number of homes sold at a particular point in time without understanding the health of the market at that time. Historical context is critically important. Our potential home sales model measures what we believe a healthy market level of home sales should be based on the economic, demographic and housing market environments.
About the Potential Home Sales Model
Potential home sales measures existing-home sales, which include single-family homes, townhomes, condominiums and co-ops on a seasonally adjusted annualized rate based on the historical relationship between existing-home sales and U.S. population demographic data, homeowner tenure, house-buying power in the U.S. economy, price trends in the U.S. housing market, and conditions in the financial market. When the actual level of existing-home sales are significantly above potential home sales, the pace of turnover is not supported by market fundamentals and there is an increased likelihood of a market correction. Conversely, seasonally adjusted, annualized rates of actual existing-home sales below the level of potential existing-home sales indicate market turnover is underperforming the rate fundamentally supported by the current conditions. Actual seasonally adjusted annualized existing-home sales may exceed or fall short of the potential rate of sales for a variety of reasons, including non-traditional market conditions, policy constraints and market participant behavior. Recent potential home sale estimates are subject to revision to reflect the most up-to-date information available on the economy, housing market and financial conditions. The Potential Home Sales model is published prior to the National Association of Realtors’ Existing-Home Sales report each month.
Get exclusive inside access when you follow uson Facebook & Instagram
Got Real Estate Questions? The Caton Team is here to help.
We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!
The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true. How can The Caton Team help you?
A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.
Call| Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive. What can we do for you?
Attached is a PDF hotsheet to answer some of your Prop 19 questions. Your CPA is the best person to discuss any and all tax ramifications. The Caton Team stand by to help our clients with their Real Estate goals and questions.
This information is provided as a courtesy. Taxes, though involved in Real Estate – we as Realtors are not privy to discuss taxes. This information is provided for informational purpose and all tax questions should be addressed by a tax professional.
Get exclusive inside access when you follow uson Facebook & Instagram
I read this article in C.A.R – our Real Estate trade magazine.
Got Real Estate Questions? The Caton Team is here to help.
We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!
The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true. How can The Caton Team help you?
A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.
Call| Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive. What can we do for you?
Hello The Real Estate Beat readers, I thought I’d share this article not to instill fear in buying but to show how competitive it is. Which is nothing new around here. Instead of throwing just money at the situation – The Caton Team has some great tools to make your offer stand out – contact us any time.
Call| Text | Sabrina 650.799.4333 |EMAIL | WEB| BLOG
Facing an upsurge in housing demand across the country, many home buyers are finding themselves in bidding wars for the limited inventory on the market. To win, buyers are trying to find ways to entice sellers beyond price—and at times are taking it too far, real estate professionals say.
Mary Lou Wertz of Maison Real Estate in Charleston, S.C., talked to The Wall Street Journal about one couple relocating from New York who fell in love with a $1.2 million, four-bedroom home online. The seller had already accepted another offer, however. The New York couple offered to pay $10,000 more than the other buyers as well as offer their competitors $25,000 to walk away from the home. They also told the seller that they would make a $30,000 donation toward a hospital for cancer research since the seller had recently lost his wife to cancer.
Ultimately, the New York couple’s offer was not accepted. The offer seemed “a little over the top” to the seller, Wertz told the Journal.
Another couple shared with the Journal how they toured 50 Los Angeles homes, submitted 16 offers—sometimes above the asking price—and were outbid every single time. But they weren’t about to lose out on a three-bedroom home listed for $735,000 in the Northridge area. “We were turning up at showings, and there would be a line of people who were there before us,” Andrea Kissling of Los Angeles told the Journal. “These houses were getting 30 or 40 offers and going $100,000 over asking.”
The buyers noticed memorabilia around the house of the Harry Potter films. So they produced a Harry Potter-themed video for the sellers (one of the buyers provides design services for Warner Bros.). The video fawned over the home and showed the couple reading Harry Potter books to their children. The couple also offered to buy the sellers VIP passes to The Wizarding World of Harry Potter at Universal Studios Hollywood.
Despite all the work, the couple still lost out to a higher offer for the home.
Chris Furstenberg of Nourmand & Associates in Los Angeles told the Journal that one of his clients—a filmmaker—once made an offer that came with the promise of tickets to the Academy Awards. Still, the seller went for a higher offer.
Furstenberg says such enticements often only work to settle a tie in a bidding war. But if there’s a higher price, that usually always wins out in the end—no matter how much buyers try to sweeten the deal with other offerings.
The Caton Team is proud to say – most of our clients get their first house when they follow our best practices. We’re beaming when we say – we’ve had a total of $200,000 since 2019 of sellers who left money on the table to take OUR Buyers offer – which was NOT the highest offer due to our Amazing Offer Package. Contact us anytime about The Caton Team Advantage.
Call| Text | Sabrina 650.799.4333 | EMAIL | WEB| BLOG
Get exclusive inside access when you follow uson Facebook & Instagram
Got Real Estate Questions? The Caton Team is here to help.
We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!
The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true. How can The Caton Team help you?
A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.
Call| Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive. What can we do for you?
I am so grateful to mark another year as a Realtor, 18 in fact. I am thrilled to have found a career that is rewarding, fun, exciting and grants me the opportunity to turn dreams into a reality.
I became a Realtor because it was my calling. At 17 I watched my parents be panic sold by their agent. I tried to talk sense into them, but at 17, that was impossible. That feeling, watching all their hard work vanish was awful. Little my little my own life headed towards Real Estate. When I graduated from Business School at SFSU – I knew it was time to do what I was born to do – help people understand Real Estate and how to use it to grow wealth which in turn makes dreams come true.
18 years, 100’s of clients, thousands of houses, tons of disclosures and inspections later – I love what I do – how can I help you?
Get exclusive inside access when you follow uson Facebook & Instagram
Got Real Estate Questions? The Caton Team is here to help.
We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!
The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true. How can The Caton Team help you?
A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.
Call| Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive. What can we do for you?
Sabrina and Sue recently helped us both sell our old home and purchase our new forever home.They were very knowledgeable about buying and selling during Covid 19.They advised us on staging our property to it’s best advantage as well as pricing for a quick sale.We were anxious to find anotherproperty to purchase within a quick turn-around.After setting the parameters of # of bedrooms and baths, location, and pricing; they worked with us to tour the homes in which we were interested.After viewing 5 homes, we made an offer and were in the process of closing within days.The service didn’t stop with the handing over of the keys.After living in our new place for about 3 weeks, we experienced a problem with the air conditioner with water leaking from a light fixture in the ceiling!We contacted Sabrina that evening and she worked with the warranty company to have someone come out to service it the next day!We give the Caton team a big thumbs up
THANK YOU PAM! Your kind words mean the world to us. We love what we do and we love taking great care of our clients – how can The Caton Team help you?
Need Real Estate help? Contact The Caton Team for a consultation.
Got Real Estate Questions? The Caton Team is here to help.
We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!
The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.
A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.
Call | Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive.
What can we do for you?
We love turning Real Estate goals into Reality – even mid-pandemic.
The moment we walked into this home, we knew – this was the home of our clients. After a ton of competition, four counter offers, two counters to the counters, over bidding and prayer – we got it! How can The Caton Team help you?
How can The Caton Team help You?
Many of our clients are our friends, many of our clients turn into friends. Helping our friends brings us joy!
It takes a team to make Real Estate happen – so The Caton Team was very grateful to work with the best in the business.
Thank you Ryan and Sarah for trusting The Caton Team with your Real Estate goals – feels so good to have helped you accomplish it!
How can The Caton Team help You?
Call | Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
Get exclusive inside access when you follow uson Facebook & Instagram
Got Real Estate Questions? The Caton Team is here to help.
We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!
The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.
A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.
Call | Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive. What can we do for you?
C.A.R.’s Housing Affordability Fund Home Essentials Program will provide qualified first-time California homebuyers a $1,250 Lowe’s Gift Card to purchase appliances for their new residence. * Due to limited availability, funds will be distributed on a first come/first served basis.
How to Qualify:
Be a first-time Homebuyer
Homebuyers must use a California REALTOR® in the transaction (That’s The Caton Team)
Purchase a primary single-family residence in California with the intent to occupy the property as your primary residence (“Single Family Dwelling” means any single-family residence (including a manufactured home or mobile-home), a single-family residential unit in a condominium, cooperative or planned unit development, or a single family residential unit within a one-to-four family residence you purchased in California
The conforming loan amount on the single-family residence must be at or below the FHA Conforming Loan Limits
The purchase of the single-family residence must use financing. All-cash purchases do not qualify.
How to Apply:
REALTORS® must complete a Home Essentials Program application and Home Essentials Certification form on behalf of their client
Once the Home Essentials Program Application is received and processed, we will email you the Home Essentials Certification Form for your client to fill out and sign, in order to be considered a completed application.
You will then receive an email confirming your submission of the Home Essentials Program Application
The Home Essentials Program application form along with rules and conditions for HAF’s Home Essentials Program will be available January 08, 2021
Please Note: HAF must receive all program requirements below no later than thirty (30) days after closing escrow:
1. Home Essentials Program Application and Home Essentials Certification Form 2. Purchase Contract 3. Closing Disclosure Form
Got Questions? Contact The Caton Team – Call| Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
Get exclusive inside access when you follow uson Facebook & Instagram
Got Real Estate Questions? The Caton Team is here to help.
We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!
The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true. How can The Caton Team help you?
A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.
Call| Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive. What can we do for you?
Hello Caton Team Friends – sharing this great article about 2020 and Real Estate – what to expect this year…
The housing momentum continues into the first week of 2021.
California’s 2020 Market Stats on Track to Close with More Growth Than Expected: The California Association of REALTORS® is still finalizing its numbers for December of 2020, but preliminary estimates suggest that the year ended with roughly 3% more home sales that occurred the previous year. Although not an impressive rate of growth by typical standards, given that activity virtually ceased during April and May when home sales were falling by more than 20%, it shows how strong the housing recovery was during the second half of 2020.
Rates Still a Bright Spot: Interest rates ticked up ever so slightly last week from 2.66% for a typical 30-year fixed rate mortgage to 2.67%. That is the lowest level ever recorded outside of the previous week. In addition, the Fed has signaled an increased willingness to keep rates low, and although recent election results in Georgia caused 10-year treasury rates to rise temporarily, the outlook for inflation remains dubious and low mortgage rates are still expected to persist through 2021.
Construction Spending Resumes Uptrend in November Report: In a sign of optimism for the future and a testament to the strength of buyer demand, new construction spending rose by 0.9% in November. This was driven entirely by an uptick in residential projects, are homebuyers continue to strain existing supply. Nonresidential construction has not benefitted from the structural shift ushered in by this crisis, which has made our homes more important to us than ever. In some cases, they have increased our individual needs for housing because we work from home and now need more space. As a result, nonresidential spending was down in November as delinquencies remain high and space requirements are being reevaluated.
Buyer Demand Still High Despite Modest Downshift: Mortgage applications declined again last week but remain above last year’s levels by nearly 5%. That marks a deceleration from previous weeks, but the previous week saw a market acceleration from the mid-20%s to more than 44% so the last two weeks are roughly on par with the solid growth of the previous month when taken together.
Pending Sales Down Outside California: Although pending sales in California remained strong in California, the National Association of REALTORS® reported that pending sales fell nationwide in November despite low rates. Demand remains relatively robust and rates remained low, but increasing economic restrictions likely suppressed new escrows. Despite the relatively small decline of 2.6% from October, pending sales were still up by more than 16% from the same time in 2019.
Forbearance Now Back on Uptrend: One observation does not make a trend, but the percentage of mortgages in forbearance has now rise for three consecutive weeks. The percentage of mortgages remained constant at 5.3%, which is down from its peak during the summer, but the number of mortgages in forbearance were up. In addition, FHA and VA forbearance rates rose last week, which drove the overall numbers higher.
California’s Public Health Challenges Persist: California continues to see cases of coronavirus surge to levels far in excess of levels seen during the summer. On Saturday alone, nearly 600 Californians died. This will continue to place economic restrictions on businesses and residents, which will impact jobs and incomes, and therefore rent and mortgage payments. We remain optimistic that the economy will continue to improve gradually as we move towards more general availability of the vaccines, but there will be significant challenges until that time. Even after economic activity can normalize, there will still be significant financial and economic losses that will take time to fully recover.
Get exclusive inside access when you follow uson Facebook & Instagram
I read this article in the California Realtor Association Magazine
Got Real Estate Questions? The Caton Team is here to help.
We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!
The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true. How can The Caton Team help you?
A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.
Call| Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive. What can we do for you?
The Real Estate Beat 
You must be logged in to post a comment.