10 Apr Today’s Economic/Market Update
This is a California COVID=19 Economic/Market Update from a webinar I attended today held by Chief Economist Jordan G. Levine. Deputy Chief Economist, California Association of Realtors.
According to Levine, there is a lot of uncertainty of what is coming down the pike.
The low interest rates are not going to offset the declines in the labor market and consumer spending.
Pre-crisis, California was slowly growing at 2%. Job growth in February was at 1.6%. Californians had seen the highest of highs for the longest level of employment in the 50 years.
Pre-crisis, California consumer spending was strong and there was 2.1 million more jobs than the last recession.
Consumers balance sheets were relatively good. Unfortunately, the virus immediately effected the financial markets, consumer wealth and confidence and jobs.
When household become poor the economy slows down.
However, according to Levine once things flush out we are poised for a strong recovery. The low interest rate could eventually drop below 3% he says.
Stay safe #flatten the curve #socialdistance
The Agency Calabasas