From what I read, a factor driving the current stock market rally is the spike since the first of the year in home sales- both new and existing. One pundit was quoted as saying that more homes turned over because of ‘aggressive’ (his term) seller pricing.
Well, gee…given how explosively housing prices had appreciated between 2001 and 2007, is it any wonder that some significant moderation has occurred? Simplistic, of course, but we’ve all seen bull real estate markets that are then followed by some correction. I’ve seen four- 1982, 1990, 2001, and now. With all that, within sight of San Francisco- still a strong market- the desirable, close-in, built-out areas are holding steady or appreciating. The remote areas- by which I mean green-field developments, beyond public transportation, services, and anything other than basic infrastructure- are still suffering, but not as much as they were. Granted, the median home price locally is declining, but this has more to do with the fact that it is mostly relatively inexpensive homes that are on the market, naturally skewing the median price downward. My good friend and San Francisco residential real estate guru Greg Normart tells me that, for better residential properties he has many more buyers than he has sellers. The why of this, too, is simple- those better heeled sellers in the 7 and 8 figure properties are not, in the main, of a mind to sell possibly for less than they might wish in what is touted as a slow market.
When expensive homes are either being built or trading hands in fairly large numbers, we see our business, if not burgeon, at least expand. The first thing that starts to move in our regular stock of English antiques is dining room furniture- dining tables, sets of dining chairs, and sideboards. Although our craftspeople have told us that their clients tend to ease into projects with an increasing number of small orders, ours go what appears whole hog. Conversely, when fewer large houses are trading hands, it is the accent pieces- small tables, mirrors, object d’art- that sell.
Stay tuned, then- we’ll alert you to the running of the dining tables.