12/23/2025
Good Day,
It tis the season to gather, relax and reflect. The days will be getting longer. I hope this letter finds you well while you plan for bright and shiny New Year!
DID YOU KNOW?
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While California's economy is outpacing the nation’s in artificial intelligence, aerospace and advanced manufacturing, its construction, nondurable goods manufacturing, retail, and leisure and hospitality sectors face headwinds. The December 2025 UCLA Anderson Forecast predicts that the state will “muddle through” the start of 2026 before seeing stronger growth through the rest of the year and into 2027. Both California and the U.S. reflect “two economic trends currently working in opposition,” (SFBTimes)
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The country’s largest real estate listings site, Zillow, has quietly removed a feature that showed the risks from extreme weather for more than one million home sale listings on its site. (NYT)
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73 million Americans are 65 years old and older....over 21%. Living without an income in a paycheck-to-paycheck world (at many income levels!) has placed affordability as a primary concern....Based on data from the Federal Reserve's 2022 Survey of Consumer Finances, the median American household aged 65–74 has saved just $200,000 for retirement. (CBSN)
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ChatGPT - almost exactly 3 years old since launch - already has around 800 million weekly users and 1 million enterprise customers, including Spotify, Canva and Zillow..... Instagram took about 7 years from its launch to reach 800 million users, more than twice as long..... (FT)
Interest Rates:
Purchase activity continues to show limited momentum. The Mortgage Bankers Association, nationally reported that purchase applications are now up, end of November, 20% year over year.
Rates have elevated slightly, but remain around a 4 year low.
Jumbo 30YR Fixed Purchase: 6.125% or 5.875% with 1% in point
Jumbo Purchase ARM: 5.75% - No Points
Conforming 30YR Fixed Purchase: 6.125% - No Points
FHA 30YR Fixed Purchase: 5.625% - No Points
Down Payment Assistance Programs: 5.875% for 100% financing
Mortgage Ally as of 11.29.25. Qualifications must be verified for eligibility. Ms. Micah Ascarrunz (510)520-2612. NMLS 447762
Give a Little, Help a lot
Giving back is a great way to show thanks for the good in our lives.
Our Build-A-Box event had a little turkey delay, but in the end, by noon, about 30 of us volunteers were able to package and deliver 541 Thanksgiving boxes to many grateful recipients!
There is still time and much need across the bay area.
Other local charities in need:
San Francisco-Marin Food Bank (Tax ID 94-3041517): Provides meals to local families in need. Every $1 donated = 2 meals.
Second Harvest Food Bank (Tax ID 94-2614101): Welcomes families and kids to help sort and pack food for distribution.
Humane Society Silicon Valley (Tax ID 94-1196215): Participate in animal care roles, send funds or donate clean items.
Home Sweet Home
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Sustainability in the bathroom; With all the advancements in energy saving technology, the bathroom is the easiest place in the home to accomplish a sustainable environment and, in many cases, the most economical,” says Sheryl McLean, president and creative director of McLean and Tircuit.
Green bathrooms offer a lot of value:
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They reduce water and energy costs with heated floors and low-flow fixtures.
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They attract today’s sustainability-minded buyers.
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They are healthier for homeowners with less toxic building materials.
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What might we learn from some great hotels to apply to home design?
1. Monogramming things - napkins, towels, etc can personalize things.
2. Books. Yes, hotels use books wisely as accessories, but often those books are actually used and are great sources of useful information.
3. Mix patterns: wallpapers, bed linens,pillows, upholstery with a mix of patterns can make a hotel room feel more like a home.....and a home feel more like a home too!
4. A monotone color palette.
Other things many love about luxe hotels: amazing bathrobes and slippers, super-comfy 'ultra' beds, reading lights next to beds, a sofa in a bedroom..... (FT)
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The most expensive home to list in Atherton (see below) has hit this market on the same street where Google's former CEO recently sold his home. The just-finished new build at 349 Walsh Rd. in the wealthy Silicon Valley enclave — often known as the most expensive ZIP code in the nation — is asking a lofty $57.5 million. Compass, Gullixson DRE 70001879
Bay Area Market Reports
Around the World
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In Sweden 45% of new homes and more than 80% of single-family homes are fabricated off-site. In the US it is closer to 3%. (Mordor Intelligence)
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Between January and June of 2025, 29.8% of rooms listed in the UK were in properties without a living room, rising to 41.2% in London. Almost half (49%) of all renters surveyed reported that the living room in their home is now being used as a bedroom. (GUARDIAN)
COMPASS Catch- View Luxury Listings
May your home and heart be full of joy this season.
Happy travels and happy holidays.
My best wishes to you and yours,
Katherine
