091918 Market Update by Wilson Leung

I know you may have heard some conflicting news recently of the market slowing down – which it definitely has (since July) and I wanted to give you a personal update on the outlook.

Overall, prices have come down slightly and inventory has increased in the last two months. News outlets are reporting the same:

https://www.mercurynews.com/2018/09/16/bay-areas-runaway-housing-market-is-pumping-the-brakes-will-the-lull-last/

Based on available information and expert opinions, I want to provide the following forecast outlook: expect this trend to change – the market is and will still be strong:

1. The new tax law is based on 2018 taxes. This suggests that there will be a ‘stimulus-like’ influence for 2019. “People may not notice the tax cut until April of 2019 when they file their 2018 taxes.”

2. Unemployment is still at an all time low and has stayed consistent. We do not see foreseeable unemployment layoffs.

3. Financing is still very difficult to obtain, which is a good thing – lending guidelines have been similarly strict since 2007 when the market crashed.

4. The tech industry has only continued to expand and larger companies (such as Facebook, Google and Apple) have only been in the news for their continued efforts to acquire more space.

Overall, this is a great time to consider buying with increased inventory before continued looming interest rate increases.

I hope this is helpful and please chime in on your feedback.

If you have questions, please reach out below!

Wilson Leung Real Estate Associates

650.852.1400

wilson@leungre.com

 

 

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