Memorial Day 2022 – Newsletter

My esteemed colleagues, clients and dear friends,

Happy Early Summer and Memorial Day Weekend! I hope this email finds you well and enjoying the splendor of normality again. Does anyone else feel like our country has become A.D.D. teenager? I sure do! As a real estate professional and advisor, I am finding myself constantly responding to these crazy bipolar positions and a constant focus on the daily chaos. We find ourselves interpreting the world through various facts and analysis, which these days seems to be constantly changing. This month’s headline “Recession is Coming” has created a slew of panic and fear within our clients. I have had several dialogues about the truth and or the misconceptions that are within it. And I have even had to check and balance my own fears about what this could possibly mean for my estate. 

The Facts: Inflation is at an all time high, interest rates are on the rise (5.5% conforming financing), buying power is being reduced, and inventory is still at records low.

The Truth: We are coming into a selling season and our market may be moving from a “Stellar Seller” market to a platform where buyers and sellers can actually have negotiations and set a trajectory for the market.

But let’s be honest… in all of the other tribulations over the past 3 years,  (there have been many) real estate seems to be the rock that many families, entities and trusts are building their wealth portfolios on.

Why is that? As goods increase in cost, having them parked in real assets and some personal property secures against market losses. As financing increases in cost, your rates hedge the future cost of money. As the stock market and crypto market goes all over the map, real assets are the slow and steady grandfather bringing peace to this A.D.D. teenage behavior. And as things start to cool (which honestly they need to) that also provides more opportunities in all sectors of the market for which buyer and seller can dictate a price that is still 25% above our last market high of 2007 and that is still reasonably cheap to finance (4.5%-5.5%.) Thereby, they can position themselves to ride the next wave of public sentiment removed from the world in gorgeous Lake Tahoe. That does not seem like anything to fear.

For our Sellers: This is your summer! If you have been planning on moving and or liquidating some assets, this is a fantastic time. See our Seller Video Here…

For our Buyers: We are seeing many sellers overpricing with optimism. These properties are now sitting on the market. The well priced properties will still have multiple offers. But as demand is consumed this summer we should start to see inventory climb and more opportunities present themselves. See our Buyer Videos Here…

We are looking forward to continuing a great year. We welcome the opportunity of helping you or someone you love and hope to see you on the lake this summer.

Kind Regards,

David Gemme (Gem)