Predictions for 2008 – What I Think We Can Expect

Today is the second day of 2008, and as this year begins its infancy – we all have our hopes, dreams, and ideas of what it will bring.

In honor of the new year, I have compiled a list of what my predictions are – at the end of the year I plan to review them to see where they were on (or off) target!

Without further ado, here is my list:

1) We will see at least 3 more rate cuts by the Federal Reserve board before the situation starts to turn around, close to the end of 2008 after the election results are in.

2) The mortgage “bailout” plan will be recognized for the fiasco it is, and more helpful measures will be enacted. 

3) Hillary Clinton will get the Democratic nomination, and Mitt Romney the Republican nomination.   Hillary will be our next President.

4) The additional rate cuts enacted to help the mortgage crisis will further depress the value of the dollar – encouraging more European, Chinese, and Japanese real estate investment in the US. Off-shore companies with internationally drawn mortgages will then create offers as equity share deals to enable new homeowners.

5)  The median home price in East San Jose will dip to the $400,000s.

6) The come-back of high tech plus the advent of new biotech businesses will fuel a rapid uptake in condo purchases in the South Bay – but single family homes will continue to present a buyers market.  

7) Renters will band together to fight the rent increases seen due to the high numbers of new renters on the market.  New rental laws will be enacted to protect them from being taken advantage of.

San Jose’s new green building initiatives will pass, forcing many developers to use green building practices cost effectively. 

9) More cities in the Bay Area will limit the huge condo development projects planned, just as Cupertino did several years back.  This will also fuel a rise in condo prices compared to the single family home market.

10) 2008 will be a year of hope, as we look forward to new American leadership and a brighter future.  

Happy New Year everyone!!!!!