January Letter From My Heart

Good morning and Happy New Year,

How about a look into the new year. It should prove most interesting with the potential and possibilities seem promising. And even though we have enjoyed six years of growth, the promises of change: 1) pro small business lending, 2) changes in lending regulations, and 3) pro-growth tax policies, may present an even brighter tomorrow.

But let’s not forget:

Promises and politics are not always on the same page or timetable.

Data points of interest:

  • US exports managed a 3% increase, year-over-year
  • Rates of home ownership, appears to have stabilized with a slight move higher
  • Stock values are moving upward, based on future expectations

Predictions: Change is coming, but too little is yet known. As our election made clear – not enough data leads to poor guessing. Hence any meaningful predictions are months away. However we will continue to provide you with helpful information each month.

Good, Bad, and the Ugly: We will keep a careful watch on Europe, Russia, the Mid-East and China. Troubles or major shifts there can and do impact our jobs markets, prices, and real estate investments. Thus for the next few months, our focus will be on the facts, fundamentals, and financing data critical to you. No Good, Bad, and the Ugly until then.

Housing: As we begin to turn our eyes towards spring, the housing numbers should prove fun to watch. It is typical to see increases in listings and activity. In the past years, annual appreciation is highest during first 6 months of the year, slowing a bit in the second half.

The question often asked: Will there be an election year bounce? A good question as Consumer Sentiment is at a high point not seen since 2001. Yet rising rates may cause buyers not to engage. Ultimately, buyer perceptions of the future are critical.

How about residential construction in the Bay Area? Currently the pace is a bit lower than 2016. Why? Most likely because the growth in labor costs is rising faster than what the market is willing to pay. Combined with “high-end” rents cooling during the 2nd half of 2016, we may see this market taking a breather. Job growth in 2017, along with domestic politics, will be the primary determinant as we move ahead.

Sound Numbers – Sound Analysis – Sound Results

Our lending process continues to produce great success stories for our clients and friends. We begin with the initial conversation concerning you and how we can help. From here we seek available alternatives and customized solutions, finding smiling faces of success.

Give a call, email, or text. Let us help you continue moving forward by preparing today.

Gratefully yours,

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