March 17th: Economic Update with Carole Rodini

The 2017 Real Estate Economic Outlook by Carole Rodoni on March 17
The high tech economy of the Bay Area (San Jose-Sunnyvale-Santa Clara Metropolitan area) increased by 8.9 percent in gross domestic product between 2014 and 2015. Meanwhile San Francisco metro area increased in 4.1 percent. The average US metro area grew at a 2.5 percent rate in 2015.
Silicon Valley’s biggest firms have been some of the biggest beneficiaries – as well as the drivers of the long stock market valley since the last bear market ended in March 2009. On March 6, 2009 tech stocks valued at $1.27 trillion and represented 13.85 of the stock market. On Jan. 25, 2017 the tech stocks were valued at $4.71 trillion and was 14.5% of the stock market. It tripled in value over the eight years. The resilience of tech stock is its inherent quest for adaptation and change.
Despite all odds, the stock market has been on the upside and up it stays after Donald Trump took office and issuing orders.
The potentials here in Silicon Valley are enormous
Apple made $33 billion in Q4, $462 every minute everyday.
In addition to the spaceship campus, it is starting the new campus in San Jose.
38 IPOs all will be coming in the next 6 months

Good Economy ensures a good housing market
The Bay Area is expected to have population growth of 2 million people by 2040. Demand of housing will be 3 million housing units. There would be one million jobs created.

The tech companies are cash flow rich and are taking action to address housing issues for employees. Facebook is planning apartment community for their employees. Likewise, other tech firms are looking at similar options or at least have been busing employees from transportation hubs to work to ease their housing and driving issues.

The influx of high tech workers from out of state and out of the country pushes up the demand for housing. The geographical limitation of the area makes supply to be in shortage in proximity to work place and timely solution to home owners or renters. Supply and demand will keep price up.

Real Estate can guarantee you more wealth because of limited availability and extreme demand.
With an average 19 bidders for one house, the price will stay up. The market appreciation is your wealth builder. Let the money to work for you.

If you are interested in understanding more about the market or how you should take advantage of the market condition to help you build wealthy, call us at 408 799 2839 or e-mail to info@justglobal.net.