The State Of Bay Area Real Estate
Gentry asked some of the San Francisco Peninsula and Silicon Valley’s top real estate professionals, including Pacific Union International CEO, Mark A. McLaughlin, to sit down and discuss the state of local Bay Area real estate, as they see it, right now. We think you’ll find their frank answers thought provoking.
GENTRY: Describe your most interesting sale in the last 12 months.
Mark McLaughlin: The most interesting phenomena we’ve seen recently are distinct trends in the market. For a while we’ve had a lot of buyers who are focused on the quantitative aspects of the home—they absolutely don’t want to overpay. But we are just starting to see emotion come back into the marketplace. That’s something that had disappeared over the past 3 years.
GENTRY: Have you seen any shifts in the market over the past year?
Mark: They are turning to real estate professionals with intellect, experience, and knowledge of the market. Knowledge is paramount.
GENTRY: You’ve all identified trends, including all cash offers, the influence of Chinese buyers, and certain markets. Does anything else stand out?
Mark: We’ve seen a lot “frugality fatigue.” Buyers who waited because they thought they should have finally said we need a home for our family. You need to have confidence in your job to make a purchase. This past year, 24,000 net jobs were created in California (16,000 of which were in the Bay Area!).
GENTRY: What are the hot properties in your markets? Last year it was a family home with a good public school, etc.
Mark: Growth has come from $1 million and up.
GENTRY: How are the mega-houses faring?
Mark: We are seeing high priced properties in Napa Valley selling.
GENTRY: How is the fall market shaping up? Are you optimistic?
Mark: I’m cautious. July was a little slower than it was in June. We haven’t had a predictable quarter in the last 4 years, so I can’t say with certainty.