Valentine's Day Dreams, The Ultra-Luxury Report and the Market Update

But what about these two yummy faces above? And what about your husband, family, friends, etc.?  

For years and years and years (some of you may remember), I dreamt about finding the love of my life and starting a family.  I had a clear vision of the kind of love I wanted, what that relationship looked like, and how we would raise children together.  And let me tell you, I had a lot of mis-steps a long the way before Matt finally found me.  

But through all those mis-steps, what kept me going was the dream - a future-trip to some remote part of the universe that didn't exist yet in my reality, but was most definitely in the works in my heart. 

With every dream come true, big or small, it's hard not reflect on the BIG LOVE that got me here, from love and support from my family and friends to even just acknowledgement from acquaintances. 

So, on this Valentine's Day, 

P.S. And if your dream has anything to do with buying or selling a home, I'm here to help you! 

Check out the Compass Luxury Division’s 2021 Ultra-Luxury Report - a year-end market snapshot of $10 million-plus sales nationwide, as well as insights, trends, and lifestyles from coast to coast.

As of 2/3/22, mortgage interest rates have risen 14% in 2022, putting them 34% above the low 1 year ago. Inflation is at a 40-year high, and the Fed plans to make major changes to its interest rate policies, creating an intervention in the economy in general. Consumer confidence has been dropping, and financial markets have seen considerable turbulence in the new year. 

On the other hand, employment, GDP, and household-wealth indicators are quite positive. By historical standards, interest rates remain very low, stock markets very high, and COVID infections are falling. The Bay Area is home to many of the world's most innovative and successful companies with an enormous concentration of local wealth and a staggering amount of money sloshing around the economy looking for somewhere to invest. Many believe real estate to be an excellent hedge against inflation, and an excellent long-term investment in general (heightened by tax advantages).

As for Bay Area real estate, market indicators remain very strong with demand for homes still very high and inventory still low. So far, buyers do not seem to be significantly rattled by stock market gyrations, and increasing interest rates may be motivating some to buy sooner than later. Interestingly, compared to the general market, luxury home buyers tend to be less sensitive to interest rate movements, but more sensitive to turbulence and uncertainty in financial markets.

As the new year wakes up, a common dynamic in heated markets is for buyers to jump back in much faster than sellers. Demand tends to outpace supply right from the start with all the usual results (multiple offers, overbidding, and fast sales), even as the number of new listings starts climbing. This describes 2022 to date, but more will be known once the spring selling season - typically the biggest of the year - really gets underway. (In the Bay Area, the "spring" market can begin in February.)