Bay Area real estate analyst Carole Rodoni couldn't say enough good things about the U.S. economy when she spoke at a recent luncheon meeting hosted by the Chinese American Real Estate Association and attended by Realtors and affiliate professionals from the Silicon Valley Association of Realtors and members of other neighboring real estate associations. Stocks have magnified across the board, unemployment is at 4 percent, an additional one million people are employed, and consumer confidence is high. Whether you like the president or not, Rodoni said businesses like him and the economy is holding steady.
The county currently has a "Goldilocks economy" and performing just right, and Silicon Valley is "the magic" of the Goldilocks economy, according to Rodoni. With a GDP of 8.6 percent in 2017 and now on scale to grow 9 percent, the region has the best growing economy in the world and its housing market reflects that.
"We've had a pretty good market with an average appreciation of 7 percent," said the former president and COO of Alain Pinel Realtors and president of Bamboo Consulting.
Rodoni indicated the market is changing as millennials, a generation of over 85 million people, are ready to have families and buy homes. Unlike baby boomers who like big yards, millennials prefer trendy walkable neighborhoods close to parks, restaurants, and other amenities.
Given these preferences, homes in trendy neighborhoods are selling fast, are on market an average of 17 days and selling between 10 to 23 percent over list price. It won't change, she said.
The mid-trendy neighborhoods are on market between 25 to 30 days and selling between three and 10 percent over list price. Homes in the high end, however, will continue to hurt, said Rodoni, with many staying on the market for as long as long 30 to 40 days.
Rodoni does not seem worried about the housing shortage or affordability hurting the region's housing market, remarking, "There will always be a supply and demand problem in the Bay Area."
The real estate guru went on to stress to Realtors in the audience that the business of real estate is changing; it is no longer just buying and selling. She said Realtors need to know about other facets of the businesses, including bitcoins, taxes, and have a general knowledge of what is going on around them.
"Real estate has expanded to be an asset that is very multifaceted. It's no longer a seasonal business. It's a 365-day, all-year business," remarked Rodoni.
Equipped with knowledge and a team of affiliated professionals that support them, Realtors still have the edge over online marketing real estate sites. "You can't know an area like you have living in it every day, why one side is better than another," she told the Realtors.
The real estate analyst also allayed fears that some in the industry have about the impact the new tax reform plan may have on real estate, especially in high cost areas like Silicon Valley. She noted whatever people see as a loss as a result of the tax plan will only be for six years and may not be enough to drive them away from the Bay Area.
"Many people may think of leaving, but 90 percent will want to come back," said Rodoni.
Rodoni sees the market growing, at least for the next couple of years. 2020 could be the tell-tale year and may see the balancing of the market, she said.
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