September Letter From My Heart

Good morning to Labor Day weekend,

I trust the weekend to celebrate our Labors, was a good one. What a great way to close Summer – BBQ’s and fun trips, along with finishing last minute projects. For me, my past-time joy of harvesting our honey comes to an end, as we prepare the bees for wintertime slowdown.

I do love the historical perspective when reviewing our local real estate markets. And when comparing 2018 to 2012, there were early signs this year could be quite slow. But the market knows better than history. This year is now showing itself to be in solid shape. Best insight: The good economic “feelings” has us hanging out, relaxing a bit more than usual. People regaining a confidence in their tomorrow.

With the Fall season fast approaching, we look forward to offering you our guidance on your next financing decision. As a broker, we offer you unique distinctions. We have 16 years of steady, uninterrupted years of service, wrestling through a great recession while sharing in many days of celebration – residential, commercial, small business, and construction. After working in real estate for 28 years, I have gained many trusted friends and clients. Call us.

Please hold to a steady discipline of planning,

and please do not let fear dominate your thoughts.

Points of Interest:

1) Economic number: Likely to be gyrating in the mix of tariffs, a strong dollar, uncertainties in Europe and China, and even mid-term elections. Some numbers indicate part of the jump in our last GDP reading was in anticipation of the tariffs – as much as +1/2 % to our GDP. On the business side, some companies maybe using tariffs as an excuse to raise rates, even before they happen. Regardless actual facts, normal markets will return and we will be here to keep you aware.

2) July’s net job growth: 157,000 was solid, especially after Toys “R” Us closed. This brought a loss of 32,000 jobs. With this, May and June numbers were substantially revised up, bringing the “broadest” measure of unemployment to its lowest level since May 2001 – 7.5%. As for headline unemployment, it fell to 3.9% – second best reading since Dec. 2000. Such numbers are true for Hispanics and Black unemployment. Wage growth shows positive signs.

3) Total household debt: It peaked in late 2008 at $12.68 trillion – 85.5% of GDP. Of this, $9.99 trillion was housing debt & $2.69 trillion non-housing debt. This debt then declined steadily, bottoming mid year 2013, at $11.15 trillion – 67% of GDP. Of this $8.38 was housing debt and $2.77 non-housing debt. Since then debt has risen steadily to a record $13.29 trillion – but only 65.1% of GDP. Of this 9.43 T is housing debt (less than in late 2008) & $3.86 T non-housing.

Our Monthly: The Good, Bad n’ Ugly:

The Good:

It’s the economy stupid.” Truer words have not been said, even if I cannot remembering the source. Truly, we are running on all cylinders – excellent jobs report, mortgage delinquencies at historical lows, and excellent mortgage rates – once considered good in even in bad times.

The Bad:

The disparaging disconnect of Washington D.C, that too often, overly influences some of our local communities. Why is it our elected officials – promoting a policy we voted – come to discover their staff is ignoring? How about more business owners listening to the constructive ideas of homeowners and consumers? Let’s begin to hear more good stories about both, please.

The Ugly:

Yet another election cycle where leadership caves to “polling” numbers. Haven’t we learned?

In Closing

Our initial conversations are usually in two phases. First is to gain a mutual understanding of your situation. This helps us determine possible options best fitting for you. From here, we initiate discussions with our lending partners. Phase Two is next. Here we review and share with you, solutions that address your needs, expectations, and situation. Then the Good news: You decide the next step. Sound like an approach that works for you? Please give us a call.

Preparation is key and our team is ready to help you achieve your dream, now.

Call today!

Have a blessed day as we remain gratefully yours.

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