Good Morning… Compass California President, Mark McLaughlin, shared an economic update yesterday. Here are the pertinent details: 

From Mark’s perspective we have several basic positive indicators: 

• $900 Billion stimulus, via $600 direct payments, has made its way into the economy very quickly.
• Retail sales jumped 5.3% in January - well ahead of expectations @ 1.2%. Every major category of spending, including food and drinking establishments, saw gains.
• Goldman Sachs recently projected a third federal stimulus bill in the amount of $1.5 trillion which will be approved by end of Q1 ’21 and a year-end ’21 unemployment rate of sub 5% - near record lows! 

These are impressive! In addition, he shared that inflation is creeping into focus as an issue and reminded us that real estate is an exceptional hedge on inflation. From Mark’s vantage point, we have a solid nine to twelve-month glide path with low interest rates, another huge stimulus package, exceptional consumer demand, and the dreaded limited inventory. I absolutely agree with this. After that, it gets much harder to predict. For now, space is at the forefront of people’s mind as they continue to move around the Bay Area in record speed. Is your seatbelt fastened? 

Call or email anytime with questions. 

Dana Green