John Wu

08/31/2024

04/26/2024

Due to an imbalance in housing supply and demand and low housing inventory in California, house prices remain high. Recently, some cities, including San Gabriel, which has a large Chinese community, have joined the "million-dollar" housing list, where the median house price has exceeded one million dollars. Experts analyze that the rise in house prices in San Gabriel is not only due to the general increase in housing prices but also related to some characteristics of the city.

According to the real estate analysis website “Rocket Homes”, house prices in San Gabriel have steadily increased. Based on the records of houses sold over the past 12 months, the median selling price is $1.14 million, which is an increase of $189,500 or 19.9% compared to March last year. Additionally, the speed at which houses are sold after listing has significantly increased, indicating a high demand for real estate in the city. In March 2024, the average listing duration for houses was 23 days, compared to 36 days in March 2023.

The Mayor of City of San Gabriel, who is also a certified Instructor at the National Association of Realtors (NAR), John Wu, has lived in San Gabriel for about 23 years and has witnessed the rapid changes in the city's real estate market. In the 1980s, a decent townhouse could be purchased for $180,000. By 2002, when he started working as a real estate broker, about $350,000 was needed to buy one. Now, such townhouses in the city cost around $800,000. This growth in house prices is evident.

John Wu analyzed the characteristics of the real estate market development in the city. He noted that City of San Gabriel's recent development trends cater to the preferences of the new generation of immigrants, including several mixed-use property developments. Young people, compared to the older generation, are less concerned about privacy in living spaces; apartments or condos close to commercial areas suit their preferences well. The development of San Gabriel has attracted continuous new business opportunities, making the city not only historically and culturally rich but also attractive to many young people. The ratio of renters to homeowners in San Gabriel is approximately 1:1.

John Wu stated that the rise in house prices is a general trend in California. There are also many reasons on a macro level, such as a shortage of housing supply, increased costs of building materials, scarcity of land, fewer new houses, and in some Asian-majority cities, Asians prefer to buy property as a hedge against inflation.

The rise in house prices has various impacts on local residents. John Wu explained that on one hand, it reflects the potential and vitality of a city's development; on the other hand, it undoubtedly increases the difficulty for the middle class to purchase homes. Even if a person works hard, they might still not be able to afford a house in these areas. Although the government cannot interfere with real estate market prices, it can somewhat balance the housing market through policies. For example, in San Gabriel, new housing developments are required to include a certain proportion of affordable housing; the government also provides convenience and support for homeowners who want to add ADUs. He said that the city's development has driven up house prices and the popularity of San Gabriel, becoming an unstoppable trend.

Source: World Journal 世界日報

02/09/2022

Interest rate bullish does not cool down, buyers line up overnight to grab houses

Mortgage rates have been on the rise in recent days, and the Fed has made it clear that interest rates will rise this year. In view of the high housing prices, many people plan to wait for the housing price to cool down before entering the Real Estate market. However, the housing market is currently showing a different picture, no signs of cooling. When a new building in Menifee, Riverside County, opened for sale recently, people lined up overnight to buy the house, just like a Black Friday Sale.

John Wu, the CIPS instructor of the National Association of Realtors (NAR) analyzed that the housing market is hot, in addition to investors' concerns about the news of interest rate hikes, the speedy inflation, rising of building materials and construction costs, and short supply of housing etc all make investors want to step in the Real Estate market as soon as possible.

"The continuous rise in housing prices has also led to an increase in property tax” Wu said. Timing is essential and later the investors step in the market, the heavier property tax will also become a long-term burden for homeowners. During pandemic the increase in vaccination rates has reduced uncertainties and made investors are optimistic about the future economic prospects, and under the mindset of investing early is better than late, it has contributed waves of heat to the real estate market.”

Wu also said that when the stock market tumbled, investors pay more attention to real estate market, where an assets with high value preservation, which also prompts some investors to transfer funds from the stock market to the real estate market.

Source: World Journal
Read More: https://www.worldjournal.com/wj/story/121360/6086029?from=wj_maintab_cate

08/18/2021

John Wu, the Instructor at the National Association of Realtors (NAR) in Southern California said that California is a major town for immigrants and the degree of real estate enthusiasm is amazing. On the premise that the epidemic has not increased further, he estimated that the over-heated housing market will probably last until the end of the year.

According to the latest forecast by the National Association of Realtors, the average mortgage interest rate for 30 years fixed in 2021 is 3.2%. John Wu analyzed the four major indicators for judging the popularity of real estate are Employment Rate, Mortgage interest trend, supply and demand of housing Market, and circumstance of Covid pandemic management.

Many people try to invest their funds in real estate with high return while the prices have not yet risen across the board. Wu believes that getting a good mortgage interest at this time, whether it is for owner-occupied or investment, now is considered a good timing to enter the market. Wu said the housing market is still in short of supply, many investors are prepared for the Fed to raise interest rates and the inflation in the future.

Source: WorldJournal
Read more: https://www.worldjournal.com/wj/story/121362/5617275


Group: NAR CIPS Designees

11/16/2020

John Wu, Instructor at the Real Estate Business Institute (REBI) believes the number of people who voted down on Proposition 15 in the California referendum proves that the timing of this bill is ridiculous. California is facing natural disasters and pandemic , however if commercial and industrial real estate to be taxed based on the current market value, which would be killing the goose that lays the golden egg.

Wu said that as the retail and restaurant business are going suffer the cold winter, landlord is also under the pressure of a decrease in income, and sooner or later the pressure of tax increases will be passed on to the tenants. The rejection of Proposition 15 preserves California's economic chain. It also bought more time for commercial and industrial real estate to get recovered and prepared. It also attracts more foreign investors to continue their investments in California.

In additions, many companies are now leaving California. Increasing business industry taxes will cause companies to have a heavier burden, definitely not a good timing for tax increase.

Wu revealed that most of those who are worried about the passage of this bill, are current property owners, the proposition will directly inflate their property tax, and the property price in the future. Many others are waiting and to see how the pandemic triggers the market tends to collapse. He described "vultures are watching."

11/03/2020

John Wu, the Senior Commercial Real Estate Broker said in response to the "new economic model" after Pandemic, demand for warehouses has continued increase for many businesses. The online-shopping has significantly improved, distribution of food, fresh fruit and vegetable storage industries with freezing-equip requirements have also actively deployed ahead of the changes in people’s shopping pattern.

John Wu believes that pandemic has caused many restaurants, tourism industries that require “physical-contact with people” to get in trouble. However, the delivery industry developed from the "ride-sharing economy" has unexpectedly become the star of tomorrow.

For distancing requirements, service and delivery fees have become more acceptable for consumers. To ensure the Online purchase for food and fresh produce punctually delivered, distribution warehouse has become major industrial investment.

Warehouse Robotics and Automation in the technology industry and manufacturing industry are no longer just patents of major manufacturers, many small and medium-sized enterprises are gradually using automation equipment by adding intelligent production lines and logistics systems, Wu said. Increase production capacity and reduce the chance of personnel contacting during pandemic. Wu predicted that in the era of vigorous and diversified internet commerce, the demand for warehousing will become a new battlefield for industrial real estate.

News Source: Worldjournal

https://www.worldjournal.com/wj/story/121362/4970574

10/26/2020

NO on Prop 21 - Government should not over intervene the Rental Housing Market
John Wu, the Real Estate Professional and the Certified instructor indicates that Prop 21 is not the answers to California’s raising Homeless issue, nor the solution to home affordability.
Prop 21 is another Rent Control to regulate how much homeowners can increase the rent while homeowners are obligated keep paying property tax on time and keep property maintained with inflated expenses.
https://youtu.be/yA0ETC7sf_k

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08/25/2020

Chinese Daily News / By Reporter Agnes Bao

John Wu, the Instructor of REBI said that as long as a house listed at a reasonable price, it can usually receive multiple offers or even higher than the asking price. Especially when the interest rate drops and it is more cost-effective, buying is better than renting.

Wu said that although the pandemic has caused the unemployment rate raised, it shows no significant effect on buyers as homeowner-occupied. Banks have tightened loan process, for those who continue to have stable income taking advantage when applying for loans.

Continue reading below: http://www.chinesedaily.com/community_read.asp?no=c299994.txt&lanmu=T06&readdate=8-25-2020

08/21/2020

John Wu, the Instructor of Real Estate Business Institute (REBI) believes during pandemic the housing market in many southern California cities including Los Angeles is in short supply, the California Association of Realtors (C.A.R.) quickly responded to the Covid by launching the Form PEAD to provide legal protection for REALTORS(R) during the epidemic. In addition, lower interest rates increased house purchases.

Many real estate professionals took advantage of the gap to study and obtained certification after completing certified courses, Wu said, local Associations /Boards and Real Estate firms have also continued video conferences and legal training. This also shows that the industry is optimistic about the housing market, and although interest rates have repeatedly hit record lows, the conservative manners of bank loan review conditions is equivalent to keep the financial housing financial market healthy.




News link (In Chinese):
https://www.worldjournal.com/7106833/article-%E5%88%A9%E7%8E%87%E4%BD%8E%E3%80%81%E4%BF%A1%E5%BF%83%E5%A2%9E-%E5%8D%97%E5%8A%A0%E7%96%AB%E6%83%85%E6%9C%AA%E6%AD%A2-%E6%88%BF%E5%B8%82%E5%8D%BB%E5%B7%B2%E3%80%8C%E5%85%8D%E7%96%AB%E3%80%8D/

08/07/2020

One of the top reasons that people buy and sell their homes is Children’s Education, school reopening uncertainty has made families sitting on the fence, but according to the sales report in June, the Southern California’s housing market rebounds and Fed interest rate cut brings more First Time Homebuyers to the market.