California proved naysayers wrong by putting in a pretty solid economic performance in 2018, but the state’s momentum has slowed down, according to a new report from Beacon Economics. (Click here)
The question everyone loves asking: Is there another recession coming our way, and how soon?
Maybe? What goes up must come down? Historically speaking? But, not anytime soon. The slowdown doesn’t signal a pending recession in 2019-2020, but the slowdown does reflect weakening labor growth I'm keeping an eye out for. Either way, Real Estate is a long term play.
"We simply do not see the kinds of imbalances or rapid shifts that would be forceful enough or deep enough to push the economy into recession" - the report says, and from a Real Estate Advisor's perspective, boots on the ground, covering Orange County and surrounding areas, I can feel this statement reflects accuracy.
Let's talk job gains; Job gains through the first four months of 2019 averaged 1.5% compared to 2.4% during the same period in 2018. Although slowed, still, California “continues on an impressive growth path despite the slowdown in job growth”, the report said.
Regarding gross state product, California’s total value of its goods and services rose 3.5% in 2018, among the fastest growing states in this sector. Trade got off to a slower start this year because of ongoing uncertainty surrounding tariffs and other trade-related issues. The turbulence isn’t a threat to the nation’s broader economic expansion yet, but that could change if the disputes escalate, the report said.
With the banking reforms put in place in 2010-2012 – most banking analysists have little fear of a housing market meltdown anytime soon. However, we are all trying to predict our future economy, but at the moment things continue to feel strong in our local Real Estate sector. And as always, Real Estate value strength varies from county to county, city to city, from SFR to Townhome/Condo, price ranges, and other factors. If you're looking for a deal, or if you're looking to sell, you must be specific as to what and where you are buying or selling, and how you plan on doing so, to position yourself for a win.
We are happy to say that our clients, this year, have made (and are in the progress of making now) great long term Real Estate investment decisions in Orange County and surrounding counties.
Disclaimer: This article is provided for informational purposes and should not be relied upon as legal advice. If you would like to work with The Skyworks Group, please contact us directly.