As it's my first blog of 2016, can I take this opportunity to wish you a happy, healthy and wealthy New Year.
While it's only natural to positively approach the challenges ahead of all of us, I've recently read an intelligence report on the South Bay economy, and further afield, that should give us all extra reasons for optimism in the coming months.
We exited 2015 following a welcome recovery in the US economy. Confidence is very high at the moment, with a consequential rise in consumer spending, and this is, of course, having a knock-on effect on buyer sentiment in real estate.
Closer to home, the Californian economy continues to grow 50% quicker than the rest of the nation. A significant number of new jobs are being created, something we're seeing a lot of evidence of locally with the continued success of the tech industry.
Indeed the South Bay showed a 5.2% year on year growth in its overall workforce, including a massive 12.6% increase in the professional scientific and technical sector. This will naturally help to build momentum in home sales, especially when one considers that statewide nonfarm employment is projected to grow at a rate of 2% per year over the next five years.
It's also very interesting to track the progress of taxable sales in the South Bay, which have grown by over 42.5% in the past decade and by 3.9% last year alone. This is a great indication of the buying power and disposable income of so many people in this area. Spending growth is also a good indicator of financial security, with average wages on the rise in the professional scientific and technology sector by 6.5% last year.
Against this highly optimistic backcloth, home values, sales and apartment rents are continuing to rise, with low vacancies and high demand. A truly excellent scenario with which to begin 2016, whether you're selling your home, looking to increase your investment portfolio, or both.
The report concludes with a very rosy outlook for the Bay Area, which it says is nowhere near a level of unsustainable growth and can therefore look forward to growing prosperity. It goes on to say that we live in one of the most successful and resilient areas in the entire United States. The fact that the South Bay is home to key growth industries, with a highly qualified and skilled workforce, is seen as a major component in the success story.
With the continuance of low mortgage rates, there's no question that it's a great time to sell. Why not contact us right now and discuss your individual situation and needs with us in detail. We're always delighted to assist.