New Builds can be great….but watch out! 

There are some things you should know BEFORE stepping foot in a new build community

1. Don’t go alone! Unless you want to be represented by the new build salespeople. It’s a rule that if your agent is not present during your tour, they will no longer be able to represent you. So, if you like your agent, better plan to bring them along.

2. Litigation- it’s common for new builds to go into litigation within 5-10 years of being built. This Is a loaded conversation, but something you should be aware of prior to purchasing a new build home

3. Lastly, check the builder reviews!! Not all developers are the same, and it’s important you do your due diligence about the company who is building your new home

Have more questions about new builds? Just reply to this email!

Do you know anyone who is looking to buy or sell this year?

There has never been a better opportunity for investors and we have a lofty goal to help over 100 families in 2023! If you have any family, friends or colleagues that might be in the market, we'd love an introduction so we can help them!

BREAKING NEWS ON PCE

Personal consumption expenditures (PCE), also known as consumer spending, is a measure of the spending on goods and services by people of the United States.

January PCE inflation, the Fed's preferred inflation gauge, hits 5.4%, above expectations of 5.0%. Core PCE inflation is now at 4.7%, also above expectations of 4.3%.

We now have higher than expected CPI, PPI, jobs and PCE data. Not good news for mortgage rates.

2008 v 2023

After a strong job report, our unemployment rate came in at 3.4%. This is the lowest unemployment rate since 1969. We saw interest rates jump about 0.5% as a result. When the American people are working, they’re also spending money (PCE). Demand for housing remains strong despite the rate volatility specifically because we have low inventory. For context, in 2008 there were over 4M homes on the market, today, we have just over 600K in active listings. The average days on market is now at 33, with 54% of homes selling in under 30 days. What does this mean? Home prices are not positioned to take the dive many anticipated with the onset of higher rates.

Interest rates have an impact on demand and affordability. The mixed signals in the economy such as rising energy prices and a resilient job market present a challenge. The Federal Reserve will not consider eliminating rate hikes or lowering the Fed Funds rate until inflation is down to 2%. A higher interest rate environment is beneficial because it helps stabilize home prices. It also gives first-time buyers, which make up 31% of the market, stronger odds. With less competition, we can create balance.

Today, you can secure an interest rate between 6%-6.875% depending on the program, down payment, credit score and property type. We will see demand rise significantly when rates drop below 5.5%. We expect a significant improvement to mortgage rates over the next 12-18 months.

What will it take?

Historically, the Fed hikes rates when inflation gets out of hand. Once inflation cools, rates come down again. The Fed’s current policy is designed to slow down the economy, create price stability, and to keep inflation in check. You can expect the Fed to hike rates again. The odds of a 50 bps rate hike in March reached a new high of 36%. Prior to this morning’s PCE inflation report, this was at 24%. 3 weeks ago, the odds of a 50 bps rate hike were 1%. We should see the odds of a 50 bps hike hit 50% soon. 26 days until the next Fed meeting.

For the real estate market, this creates a great opportunity for buyers to shop within their means without paying a massive premium. For sellers, this means they have to price their home just right to get traffic. This interest rate environment is not permanent, but a short-term strategy designed to slow thigs down for the greater good of the economy.

Recessionary periods in real estate don’t last long. Take advantage of this opportunity to shop with less competition today. Always shop within your means, and never give into FOMO.

Article written and provided by Padi Goodspeed SVP Cross Country Mortgage 

Après Village and Ice Rink - East Palo Alto, Now to Feb 25

Jammin' at The Crossing Jammin' at The Crossing - San Francisco, Feb 25

Willy Wonka by Children’s Theatre Association SF – 

San Francisco, Jan 29 – Feb 25

Fun for Families: Free Second Saturdays at Gamble Garden - Palo Alto, Recurring monthly on the 2nd Saturday

The 6th annual Black Joy Parade - Oakland, Feb 26

Marine Science Sunday – Sausalito, February 26

Disney on Ice – Road Trip Adventure, Oakland, Feb 23-26

The Sound of Music – San Jose, February 17-26

Discover Art with NUMU – Los Gatos, February 28

STEM Saturdays - Burlingame, February 28

Penguins and Pajamas Sleepover – San Francisco Feb 28

Olivia was the buying agent for my current home. She was an absolute professional throughout the whole process. It's a TIC so there are more hoops to jump through and she was ready for each and every one of them. She followed up on everything I threw at her and even some things I didn't remember I said!! So you know she listens.

Buying a home (and in my case selling one at the same time) is a very stressful thing, but I felt much less stress because I knew Olivia would be on top of things if something ever came up. She even saved me a good chunk of money during the negotiation process by educating me on the nuances of the TIC market.

I can't say enough great things about her...she's the best!!!

- M. L. 

We are a boutique residential real estate team helping clients achieve their real estate goals in the Bay Area. We are a group of women who specialize in different markets across the Bay Area, while following a custom process that allows us to help buyers and sellers achieve their real estate goals efficiently. Our team is top 1% of all realtors in San Mateo County and San Francisco with a total of $340M+ lifetime sales. We take pride in knowing that our clients become friends and refer us to their friends and family members because we work to make dreams become a reality. Once our clients speak to us for an initial call, they understand why we are different and why they want to work with us. We are your personal real estate concierge in one of the most dynamic real estate markets in the world.