I. Client offered $500,000 over list and came in 9th out of 10 offers. Here is concrete proof that real estate is local (and sometimes out of control). Our borrowers made an offer in Berkeley, CA, $500,000 over list, and they came in 9th place. We then had two Oakland borrowers say, " Hold my beer,” and then offer $600,000 over list – only to lose out to a $2 million ALL CASH offer. Publisher Steve Forbes repeatedly explained that “real estate is local” before 2008, as he was convinced we would not see a nationwide meltdown, only a softening in pockets. And… he was wrong. A lot wrong, as the entire world melted down. Well, we are back to the old days – and real estate is again very “local.” We will not see a nationwide meltdown again, too – until we see mass-inventory build-ups in every market, as we saw prior to 2008 (and inventory remains very tight in many markets). AI and tech are driving the Bay Area market (along with a San Francisco revival thanks to a good mayor), as I mentioned in previous blogs, with both IPOs and private funding infusing cash and fueling the feeding frenzy. Meanwhile, back at the ranch, grandma is beating off the Indians while also trying to sell her Florida home for $100,000 less than she paid in 2022… The Bay Area is also a huge reminder that markets can turn on a dime. San Francisco was left for dead only a few years ago – with out-of-control crime, drug use, homelessness, and office vacancy rates – along with a tech downturn, tourists avoiding the city, conventions bailing, and businesses fleeing.Read More