The summer is upon us and I am sending this note from my ‘original home town’ Prague. It’s been a very fun getaway and celebrating. My parent’s 40th wedding anniversary was a highlight. In the market report below what stands out for me is the stark demographic shift that has happened in San Francisco over the past couple of years. According to this data, we have seen the largest decline in population of the most productive segment of individuals between the age of 25 – 39, followed by 40 – 50 year-olds. It will be an interesting challenge for San Francisco to rebuild its brand in light of the negative media cycle in order to attract some new talent. Despite this, I continue to be impressed by the resilience of our real estate market (most all of my recent listings have traded within 15 days and received multiple offers) and I look forward to launching several great properties in the coming weeks.
Underlying market and economic dynamics in 2023 have been a mixed bag of often contrary and volatile factors – including downward-trending inflation; interest rates bouncing between 6% and 7%; unceasing uncertainty regarding what the Fed will do next; substantial rebounds in stock markets; bank, commercial real estate and debt-default crises; international political, economic and military conflicts; high-tech layoffs amid generally strong employment statistics; and a recovery in buyer demand, sales activity and home prices, but all 3 remaining significantly lower than the peak of the market in spring 2022.