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Buyer Demand Strong

 

September 20, 2020
Good Morning,
 
The breadth of the recovery is impressive with consumer spending picking up, unemployment claims dipping below 1 million for the second consecutive month, industrial production, small businesses more optimistic, and buyer demand continuing to be strong into September when the buying season is typically winding down. Progress is being made.
 
Have a great day!
Information + Updates
 
Click here to download Harley Bassman’s Convexity Maven’s article about homes and interest rates. If you want to subscribe to his newsletter, contact him at harley@bassman.net.
 
Did You Know? "The bottom line is that most people do not buy a home but rather commit to a long-term payment scheme that just happens to result in owning a parcel of residential real estate.
 
A 1% lower mortgage rate should translate into a 13% higher price. So if one has a fixed budget for a mortgage, they can buy 13% more house at 2.50% than 3.50%." – Harley Bassman
 
Did You Know? In 1982 the mortgage interest rate was 16%……Whoa….
 
Did You Know? Low mortgage rates have spurred a boom in home refinancing, which in turn has spurred a boom in the issuance of mortgage-backed securities. The value of single-family mortgage-backed securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac totaled almost $322 billion in August, a new monthly record. (WSJ)
 
Did You Know? More people die from flash floods than tornadoes, hurricanes, or lightning: Densely populated areas that have less ability to absorb fast falling rains and those located in creeks and valleys that have the ability to have large masses of water runoff fast are most at risk. Maybe evaluate flash flood risk with your clients?
 
Did You Know? A US Trust study showed 77% of wealthy respondents said they grew up poor and a 2017 Fidelity study found 86% of wealth is self-made. 80% of billionaires started out from zero (or close to zero).
 
Did You Know? 10 years of e-growth have happened in the past 6 months. Contactless shopping is becoming the new standard..... (McKinsey)
 
Did You Know? Facebook is buying Recreational Equipment Inc.’s (REI) custom-made new headquarters near Seattle for $376.6 million, the latest sign that big technology companies are driving commercial real estate markets during the coronavirus pandemic. REI had been planning to occupy the 400,000sf campus in Bellevue, Wash., this summer. The elaborate complex reflects its outdoorsy image and features outdoor staircases and bridges, a courtyard of native plants, and skylights to let in sunshine and air. REI never occupied it because of the pandemic, opting instead to cash out while employees work remotely from home or a number of smaller offices in the region. Facebook recently agreed to lease 730,000sf of office space in the historic James A. Farley Building, formerly the city’s main post office and Amazon said it expects to create 2,000 jobs in Manhattan and open a 630,000sf office in the Lord & Taylor building, which it purchased in the spring. (WSJ)
 
Did You Know? SIX MONTHS ago the USA shut down for COVID stay-at-home. The DOW was 19,174 on March 20th, and today it has recovered to 27,657. Treatments have improved dramatically and the death rate has dropped. One day soon we will also have a vaccine. Life keeps improving daily, although some parts of the world are seeing a second wave and for that reason, we need to remain vigilant: and by the way, misleading health information has had over 3.8 billion views on FACEBOOK.
 
For Laughs
Love the Creativity from this Austin, TX diner keeping us laughing from their sign during Covid.
 
 
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Maura Short is known for her strong work ethic, broad industry know-how, and passion for architecture, in addition to her extensive network, confidentiality, and moral code. Combined with her wide-ranging local expertise, all of these assets result in favorable outcomes for both buyers and sellers under her care.
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