Symmetry in the Supply Chain and San Francisco Real Estate
Whether you’re buying a car, an oven, a laptop or a house, supply is limited.
Flush with savings and little to do, many consumers are buying lots of stuff.
Specifically, we’re buying durable goods, the kind of stuff that lasts a while and doesn’t need to be purchased often, like vehicles, appliances and furniture.
But heightened demand has met material and logistical bottlenecks, those pesky supply chain issues everyone’s talking about. As of September, orders for durable goods were up 25% YTD while shipments rose only 14%.
The symmetry is striking between unstocked shelves and the real estate market. After all, real estate is a durable good too.
In the last 18 months, we’ve seen homebuyer tastes shift towards amenities once consigned to the outside world. Offices, gyms, yards, classrooms. Simultaneously, low mortgage rates have empowered buyers to pay more for the home they want. All this culminated in a record-breaking year for San Francisco real estate (as detailed in our October Market Report).
Whether 2022 is similar to 2021 or more like the “before times” depends on the factors that got us here. Namely: the pandemic, interest rates, and a dash of inflation for good measure.
In the coming days, I am recording a webinar with my friend and loanDepot mortgage expert, Noah Fierro. Stay tuned for our in-depth discussion on all the above, and how to navigate the next moves in the market.
And if you missed my webinar on San Francisco preschools and private schools, click here to watch!
As always, please don’t hesitate to reach out with any real estate questions. We are always happy (and grateful!) to help you and anyone you send our way!
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