A couple of days ago I shared with you some life wisdom gathered at the LeadingRE Annual Conference 2018, attended by representatives from our company recently. Today I’ll share some points folks made about global and national real estate markets.
Celeste Headlee, Radio/television host, NPR, PBS World, PRI, CNN, BBC
U.S. Home Sales were up by 1% in 2017. The median price was up 5.8%.
2018 U.S. Home Sale predictions:
- An Increase in sales of 2.5%
- Median home price up 3.2%
- Interest rates 4.6% but possibly 5% by the end of the year.
Emotional reactions are most likely to influence decisions.
Impact of emotions vs reason: 24 to 1.
In one survey, 88% of consumers favored an attentive agent over a top producer.
Leslie Appleton Young, VP and Chief Economist, California Association of Realtors
Normal inventory used to be six months, but the new normal is three months. A six-month supply is considered a balanced market, in which neither seller nor buyer has an advantage. A three month supply gives a seller a tremendous advantage.
We should watch inventory and investors – we are becoming a city of renters.
Buying may be cheaper than renting, but if you don’t have that down payment or good credit, it is not an option.
Marci Rossell, Chief Economist, LeadingRE
2017 saw synchronized global growth since the recession.
Europe growth: quantitative easing (pumping money) takes a few years to show effects.
Brexit effects will take years to be felt.
More people in an economy are better for economy.
Oil prices are $50-$60 per barrel – it’s a price that everyone can live with.
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Global growth will be faster in 2018 because of massive U.S. tax cuts (corporate and individual ones).
Stocks will go up, so people will spend more money.
Stock portfolios have to be re-balanced so they sell stock and buy real estate.
Millennials have delayed buying a house because they got hit hard by the recession.
Millennials are expected to be moving to low-tax areas, so a reshuffling of real estate markets is expected.