Where Is The Market Headed?

With the recent volatility in the stock market combined with rising interest rates and the lengthy bull market run since 2009, more of our clients are asking us, “Where is the market headed?” While none of us have eyes into the future and all markets are subject to short-term fluctuations, there are a few local market considerations that are important to keep in mind that bode well for the long-term value of Lamorinda real estate.

The Bay Area Council Economic Institute and McKinsey & Company recently released the 10th edition of their Bay Area Economic Profile. A few key conclusions included, “Even though these economic success trajectories have been almost unprecedented, the Bay Area economy is still currently on the upswing” and “In 2017, 45 percent of US venture capital investments were made in the Bay Area.” Almost half of US venture investments are in the Bay Area!

Recently, CNBC released the Upstart 100, its annual list of the 100 most promising start-ups around the world. There are 33 Bay Area companies on the list. Of these 33 companies, 22 are in San Francisco or the East Bay. This list is another example that the Silicon Valley is moving north to San Francisco and the East Bay making Lamorinda a viable commute option for today’s “new-tech” workforce. Fifteen years ago, you would have only seen one or two San Francisco based start-up companies on the list as most Bay Area companies would have been located on the Peninsula, which has historically been the heart of the Silicon Valley. Today 90% of “new-tech” is San Francisco based and moving east. While it is always very difficult to predict short-term market changes, there is not a more desirable location than the Bay Area, and specifically Lamorinda. History has proven that over the long run our real estate market will appreciate. Our unconditional commitment to our community, education and sense of place will continue to propel our market for years and generations to come. We look forward to hearing from you with your real estate questions.