Good Morning everyone, I hope you are having a wonderful holiday, today is December 28th, it is the last Friday of 2018. Hope you had a wonderful 2018 and a great plan on 2019. I wanted to dive into what has been talked about lately about what is going to happen in real estate market. It has been kind of slow in 2018, what is going to happen in 2019?? That is a national level, I had to look into my market, Rancho Etiwanda Estates, north of 210, Day Creek Blvd and Etiwanda Ave, that specific area, Rancho Etiwanda area. Since I am a specialist in that area, I wanted to jump in and dissect what is happening in that specific market. I had to look at my data that I have been collecting for the last 4 years. These are all trustable, MLS data. It looks great, its not bad! I am so excited about 2019 because if I look at it we have 102 homes sold in 2014, 111 sold in 2015, 123 homes sold in 2016, we have been seeing an increase. 2017 we had 131 homes sold and 2018 thru November, 128. So, we had 3 less, but if we look at the prices, we have had consistent increase in price. I won’t go all the way back to 2014, but if we look at 2018 average sold price is $867,000, average. In 2017, average price home sold was $806,889. we had quite a bit of increase in pricing. About $60,000 average increase in price. We have to also look at average Days on Market. Average days on market in 2017 & 2018 was 35 days, back in 2016 average days was 66 days it took to sell the home. 2015 – 55 average days on market. So it really wasn’t a bad year in 2018. We also have to look at how much inventory in the marketplace. In 2018 we have average of 5 months of inventory, in 2017 average of 4 months. It increased a little, but not high. In 2016, we have 6 months of supply. 2016 was pretty strong year but we still had 5.5 months of supply and 2015 5.58 all around 6% if you round up. So, it really isn’t bad. We have been sustaining the market, but the price were going upward, from 2014 to 2018 we had about 128% increase during the term of 4 years. So, real estate is great. Nationwide might be bad, I am hearing Los Angeles kind of dead, Orange County kind of the same compared to prior years. But in Rancho Cucamonga it really was active in 2018, I am so pumped up for 2019. However, we have to look at what is going to happen in more detail next year. My predicition is this, many buyers are concerned with interest rates so I had to look up the history of interest rates. I’ve got the data collected from 1971, if you remember back in the 1980’s interest rate was all the way up to 18%, that is tremendously high. If I average out from 1971 until today, average rate is 8.86%. Personally, I would like to see that 8%, because I’ve got some savings in my bank account. I want to see some income coming in from my interest rate. Personally, I think the interest rate should be at 8%. So it’s going to continuously go up gradually. I’m hearing .5% increase next year is what is expected. So, buyers, please, realize that it is still a good market. For the seller, we might have more increased inventory next year, I call it normalizing market. Up until now, past 3 or 4 years, its been way too hot. So, next year, we are turning into normal market. Crashing market not happening. If you look at all the data and statistics, the economy and GDP, back in 2010 we were at 12.2%! Now today, we are down, nationwide 3.8%, in CA 4.2%, somewhat lowest ever unemployment rate. Thing are looking great. I also like to look at GDP of US economy , it is still looking good. We have 3.4% increase in the 3rd quarter of 2018, and 4.2% GDP increase in 2nd quarter of 2018. Things are looking good, real estate is not going to crash. Get positive. Mr. & Mrs. Seller, what you need to do is, since we are going to have more competition in the market place, what we need to do is hire experts like my team, William Lim Real Estate Group, so you can get the top dollar for selling your home. Buyers, you will have more opportunity to negotiate, so you need a strong negotioating power of a team like William Lim Real Estate Group. I am excited and pumped up for 2019. Please give me a call for any real estate needs, services or questions, my phone number is 909-239-2006. Thank you so much, hope you have a wonderful 2019. Wishing you a happy, prosperous New Year. Have a great day! See you next time.
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