11/20/2025
Good Day,
Stories from the field -
I received a distressed call the other day.
Buyer: "We are going from house to house, neighborhood to neighborhood and can't make sense of anything at this point. How do we determine value with all the different floorplans, lot sizes and other variables? Plus there are the reports and how do we figure out the extent and cost of the work? We are exhausted. I'm an attorney and I really don't have time to learn all of this."
"Yes, I said, that's my job, and I love it!"
I hope you find the following info & insights interesting, including the new addition - Interest Rates. Enjoy!
DID YOU KNOW?
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Interest Rates: YOY, November 11, 2024 7.10% to today 6.63%, Jumbo loans, zero points. Locally Jumbo Loan amounts range form $806,860-1,209,750 depending on the county. Interest rates vary depending on many factors, including credit score, down-payment percent, and more.
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Notable Nationwide value movement: Carlsbad CA recorded a +36% YOY av. gain and Pennsylvania had 4 of the Top 10 appreciating zip codes, recording +14 to +18%, while Houston depreciated by about -16%. In addition, CA had 9 of the 10 highest priced zip codes 4 locally. (HE-US)
See below for our local appreciation figures listed.
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Major landlords in San Francisco are coming to grips with the skyrocketing but specific demand for office space created by young artificial intelligence companies. An example, Together AI Inc. started in 2023 with 3,000 sq feet, about 1.5 years later moved to a 30,000 sublet and is now looking for up to 100,000 sq ft of space. (SFBT)
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One in three six-figure earners described themselves in the poll as financially distressed. Two in three said six-figure pay is not a sign of wealth. (The Harris Poll survey, Nov. 14, polling 2,109 Americans, including 728 who earn at least $100,000 a year.)
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Instagram Reels is now making $50 billion a year. By comparison, the entire US TV ad industry makes $65 billion. So give it a couple years, and Instagram Reels is going to be bigger than the entire ad industry in the US for television. (CNBC)
Give a Little, Move a Lot - Join In!
An Invitation to Help Out
Giving back is a great way to show thanks for the good in our lives.
Join me at our annual Build-A-Box event Monday morning, Nov. 24th, 8:00-10:00am. Help create Thanksgiving meal boxes, which are then delivered to families throughout the South Bay. 100% of donations go to supplies. Register above and/or call me! :-)
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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Remodel ROI per NAR - Ranking from Best to Worst:
Minor Kitchen remodel at $40,000 - 129% ROI
New Roof at $7,500 - 109% ROI
Refinish Floors at $2500 - 100% ROI
Replace floors at $5,500 - 91% ROI
New Garage Door at $2,300 - 87% ROI
Major, upscale kitchen remodel at $150,000 - 52% ROI
*return can vary based on level of customization
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A Perfect 10 - NAR calculated a "Joy Score" for home projects based on the happiness level homeowners reported. Here are the 3 that homeowners rated a 10: Bathroom Suite, Roof replacement and a Kitchen update - Joy/10!
More Bay Area Market Reports
Around the World
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More luxury homes were sold in Dubai in recent quarters than any other city, including New York or London, attracting ultra wealthy consumers from around the globe via super-low taxation and super-low crime rates. Luxe home prices in Dubai are still about a third of that in New York and London. (Bloomberg)
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China has constructed an enormous solar farm complex on the Tibetan Plateau which is currently around seven times the size of Manhattan. The facility is intended to reach about 10 times the size of Manhattan in three years as Beijing makes a concerted push for green energy. The current Tibetan plateau project, energy costs about 40% less than coal-fired power and has a capacity of 16,930 megawatts of power, which could run every household in Chicago. (NYT)
COMPASS Catch - View Luxury Listings
The Rising Tide
The National Association of Realtors is projecting a 14% uptick in transactions from our recent historic low. They also forecast slightly declining interest rates in 2026. In the Bay Area, we anticipate an average of a 4% increased in valuations as we close out 2025. But as always, there is nuance in location:
Portola Valley+6, Palo Alto+5, San Carlos+3, HMB+3, Belmont, Redwood City, Santa Clara, San Jose and EPA all +1 to -1%, Fremont-5
This includes SFR and Condo/townhome appreciation. (HE-US)
We are also seeing the AI boom earners fuel our market for single family homes in the high price ranges above 5MM. San Francisco continues to experience increasing demand from buyers with Castro/Noe Valley and the upper Marina at +3%. While R.E. investors add confidence to the market, in CA paying 23.3% above the median price, +19.9% in LA and +6.8% in SF.
Contact me now for planning 2026.
Homeowners, moving? Get the cost-free funds you need with Compass Concierge*
Grateful
"This is a wonderful day. I have never seen this one before".
Maya Angelou
Happy travels and happy holidays.
My best wishes to you and yours,
Katherine
*Property and clients must quality and agree to the terms of the Compass Concierge Program.
