September is flying by and Homes of Silicon Valley hopes that you are enjoying some cooler fall weather and planning some festive fun this season. This week we wanted to share 3 hot topics that have emerged this month, as we continue our commitment to keeping you updated on the market and the opportunities and changes within it. Please let us know if you have any questions, any time!
Office-To-Apartment Conversions
Realtor.com® just published an article titled ‘Could Empty Downtown Office Buildings Really Help Solve America’s Housing Crisis?’ while The Real Deal covered a similar topic related to senior housing last month. Ultimately, developers are eyeing offices that are now vacant as prospective housing in a post-pandemic environment. Over 8,000 units were converted in 2021 in Philadelphia & Washington DC, with Los Angeles and Cleveland following suit this year. While regulatory challenges such as zoning and approvals may take time, this piece of the housing puzzle is a trend to watch in the years to come. Extra Credit: Read the Pew Research data that indicates it could take nearly a decade for the housing shortage to resolve!
Buyers Are Back (Already)
While rising rates may have caused some buyers to pause, nearly 50% still plan to buy a home in the next 6 months according to a survey by Realtor.com®. Chief Economist Danielle Hale adds that “some home shoppers are finding silver linings in the form of cooling competition,” while rising inventory in smaller, rural markets is an affordability draw. Here is Silicon Valley, supply declined month-over-month, but has actually increased 63.4% year-over-year (think better options for buyers!). In addition, sales have jumped nearly 22% month-over-month, which is a positive sign that buyers are on the move.
Metro Migration
If you have ever heard someone say ‘everyone is leaving the area’, this read released yesterday is for you! The article ‘Stay or Go: The U.S. Metros Where Homeowners Stick Around—and the Ones They Can’t Wait To Leave’ lists which metro areas have the highest levels of homeowner retention vs. highest levels of homeowners leaving fast. You might be surprised to learn that not one California city is on the list of ‘Metros Where Homeowners Stay Put The Shortest’, while only one CA city made the list of ‘Metros Where Homeowners Stay Put The Longest’ (it’s Oxnard!). The real estate research department at Realtor.com® reports that in general – most people are staying in their homes longer. The bottom line is that in the Golden State, our individual situations and micromarket conditions are the biggest drivers of whether to stay or go; our metros are not record setting in that regard.
Do any of these market trends surprise you? Inspire you? Leave you with more questions than answers? Have you thinking about an action plan? If you would like to chat about buying, selling, or investment strategies in the current market – please do not hesitate to reach out! ~ Mark