Economic & Real Estate Update, San Francisco Bay Area 2017

Every year local realtors gather at the Computer History Museum in Mountain View for the annual Economic and Real Estate Update by Lawrence Yun, Chief Economist for National Association of Realtors. Below are my notes from the presentation:

1. Tax reform may harm the real estate, for more information, go to https://lnkd.in/gDh5JPD

2. Once the election ended the interest rates went up, mortgage rates are still low, expect interest rates increase in December 2017.

3. Housing shortage past 10 years across the United States, last time we had one after the World War Two. We are facing the same issue now. Reasons: too many regulations, shortage of lots, shortage of construction workers, domestic trade skill shortage.

4. Inventory, inventory, raise capital gain exemption at least for California.

5. We used to have Oversupply vs Loose lending rules, Today undersupply and Tight lending. Both are equally bad.

6. Fewer borrowers defaulting on mortgages in California due to 20% downpayment mandate.

7. Homeownership rate still near 50-year low  8. Student debt stops young generation to buy a house.

9. Solid jobs growth. 

10. Jobs opening skyrocketing.