A Crazy Weekend in California Real Estate: Buyer Demand is Furious

May 28, 2020 — Source: Mark McLaughlin Compass California President

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"On the Street" news from our Compass California President Mark McLaughlin in a daily 5:30 AM email: WFH Day 70:

 

“This was likely the craziest busy weekend of real estate I can remember [established 2006]. Buyer demand is furious and coming to your community from every vantage point. Buyers seem to be:

  • Fleeing rentals, trading up, seeking yards, pools and solitude.
  • Seeking quality schools, sense of smaller communities, resort-like properties and pools [again].
  • The migration from urban areas:
    • Los Angeles to beach communities on west-side and Santa Barbara.
    • San Francisco to East Bay, Marin, Wine Country and Silicon Valley communities with amazing school districts.
  • Anything “done” under $2 million is seeing multiple offers.
  • The high-end is seeing multiple offers at $3M, $5M and +$10M throughout CA. Not so much at “list price” but we predicted this softness.
  • The activity in the City of San Francisco over $5M seems to be move up buyers. If you love San Francisco get a better home and love San Francisco more.
  • In Beverley Hills & Brentwood it seems to be the same “love it more” over $5M.
  • The Entertainment and production industries are negotiating with Unions to get back to work. This could unleash another wave of buyers.
  • Births, engagements, divorce, death and downsizing are all happening as well.

The demand is ferocious in every aspect of the business. It seems every real estate season and every buyer demand all on a weekend.
In our second home markets, the conversations have gone from “I’d love to rent a high-end home” and check the area out to “I need a home / buying a home” for the quality of my life. This is where I want to live!”