June 17, 2023

Good morning,

Prices are projected to remain stable with some increases where supply is limited. The real estate market is expected as a whole to exhibit conditions of moderation. Overall, major changes in the short term will be minor. 

If you have any questions regarding our local

housing market, please reach out!

Information + Updates

DID YOU KNOW? 

State Farm’s (and Allstate) freeze on ALL NEW California insurance policies….. What does this mean for other insurance companies and going forward…. State Farm stating the “historic increases in construction costs,” “rapidly growing catastrophe exposure, and a challenging reinsurance market” as the culprits, adding that it needed to take this action to “improve the company’s financial strength.” (LA Times)

DID YOU KNOW? 

In October 2018, the 10-year treasury hit 3.23%. This week it stands at 3.796%... The FED didn't raise rates for the first time in 15 months this last Wednesday.

DID YOU KNOW? 

Inflation was 2.48% in January 2020. In May it dropped to 4% from 4.9% in April......Maybe inflation is transitory after all, but not over a few months, rather.... a few years? The rise to its peak of 9.06% in June 2022 from 4.16% in April 2021 took 14 months.......the fall from that high to 4% 11 months, was over 20% faster..... (BARRONS)

(Inflation numbers are rounded up.)

DID YOU KNOW?

About 4 million electric or plug-in electric cars will have been sold in the US since 2016. If each regular car consumes around 479 gallons of fuel per year, this equates to a reduction in gas consumption of about 1.91billion gallons of fuel per year. 32% of US homes used oil to heat in 1960 .....today that's around 5%.

DID YOU KNOW? 

Baby boomers and millennials are moving, but not to the same places. During the first three months of 2023, Las Vegas, Phoenix, Tampa and Orlando were among the most popular destinations for baby boomers. Austin also continued to attract inward migration, but at a much lower level than in previous years. The metro areas with the highest level of baby boomer outward migration in the first quarter were Washington, D.C., New York City, San Francisco, Seattle and San Jose. For millennials, Austin was overwhelmingly the most popular metro for inbound migration in the first quarter. Cleveland, Tampa, Dallas and Charlotte also attracted millennial arrivals, but with far fewer numbers than the Texas capital. Millennial outbound migration was most notable in Los Angeles, Boston, New York City, San Jose and Seattle.

DID YOU KNOW? 

When we pay lower taxes, we have more money to spend and invest. Could the massive migration in the past 3 years to low or no-tax states have fueled the spending power of millions of Americans....which maybe (inadvertently) also fueled inflation in these states, especially housing inflation? Florida, Texas, North Carolina, South Carolina, Tennessee, and Georgia had the highest number of in-migration and are amongst states with the lowest (or no) state taxes too. And some of the biggest home price/rental escalations too. About 35% of income on average is spent on housing

DID YOU KNOW? 

The vanishing cord? Yup, have you noticed how many things are fueled by batteries? Lawnmowers, lights, shades, drills, etc. The list keeps growing! (CNBC)

DID YOU KNOW? 

More evidence that inflation is slowing and the only REALLY effective solution is fueling supply, not just decimating demand: rents are coming down in many parts of the US after massive hikes over the past 2-3 years...fueled by high demand and UNDER-supply. 2023 will represent the biggest delivery of new apartments in nearly 40 years (about 500,000 units)! More evidence that developers may have concentrated their efforts on the wrong product when there is such a shortage of homes for sale? Maybe the tax incentives to be a landlord - combined with the allure of never-ending rent hikes - is the problem? Rent hikes at renewal could be met with new vacancies which already increased 2.6 percentage points over the course of 2022. Rents have dropped in 46% of the US' biggest markets. More RE-BALANCING coming..... (WSJ)

DID YOU KNOW? 

Nestled between San Francisco and San Jose, Fremont just signed a 210,000sf lease with TESLA to produce extended range truck batteries.

Let's Eat

Kitchen in the Canyon

I know I have said this before but Kitchen in the Canyon has the best Lox and Bagels and I don’t really even like Lox and Bagels. And have I told you about the BLT or the Cronut cinnamon rolls…..

Newsworthy

 Nevada Man Turns the Tables on Squatters 

by ‘Squatting’ Himself 

Squatter anyone….. check out clever the story of Flash Shelton who outsmarted the squatters in his mom’s house…..

Emerald Bay Market

For Sale

322 Emerald Bay

$14,900,000

6 Bedrooms | 7 Bathrooms | 5,493 Sq.Ft.

A highly desirable and rare luxury 6 bedroom Emerald Bay residence has come to market. Flawless custom construction seamlessly incorporates a clean contemporary style with affluent coastal living.

This home was designed with ultimate privacy in mind and to enjoy the ocean and Catalina views. Nearly 5500 square feet of spacious living surround an exquisite outdoor courtyard complete with a spa, covered dining loggia, outdoor fireplace, grilling station and lush landscaping. Nearly every room welcomes ocean breezes and ample natural sunlight through over-scaled windows and doors. Several balconies wrap the front exterior of the home extending the living area.

The chef's kitchen boasts high-end appliances, a large island and a dumb waiter to transport food items from the garage level. The three-car garage includes a space for a golf cart that will easily whisk you down to Emerald Bay’s pristine white sand beach. 

For Lease

For Lease

For Lease

For Lease

For Lease

For Lease

There are currently 4 active homes for sale in Emerald Bay

ranging in price from $7,149,000 to $14,900,000.