Final Real Estate Marketing Data for 2017
The books are closed for 2017 and we do not see much of a change comparing December data to that of November. Data shows a decrease from last year.
We are in the midst of the seasonal slump as it was last year at this time. Pricing has taken a slight downturn, with demand still strong. You will notice last year’s data shows February marked the beginning of the increased activity.
Prepare now for selling your home this year
If you are considering selling your property this year I suggest you begin preparation. Buyers will begin actively searching in the next couple months. Perform all the deferred maintenance that you neglected. I would be happy to assist you in identifying issues that would be of most concern to buyers.
Looks like a steady market for 2018
I don’t foresee significant changes to the real estate market in 2018 compared to 2017. Mortgage interest rates are still stable with an increased probability of a slight uptick in the coming year as the Federal Reserve begins to divest their mortgage-backed securities portfolio.
As rents continue to climb home purchases will become more attractive.
Tax reform impact
We don’t know the full extent tax reform will have on the housing market. My real estate experience tells me that very few people purchase a home for the tax break. The incentive is owning something instead of paying someone else to own and realize some appreciation for use in a future purchase.
I listened to a webinar this morning quoting the IRS that the doubling of the standard deduction will result in only 10% of the households in the US itemizing deductions. I would think that this holds true in our community.
The Bay Area and real estate investors
The one caveat, as always, is what happens in the Bay Area. High property tax bills and mortgage interest, all based on home prices, may spur a migration towards the valley. That’s a future I can’t predict.
Then there is the real estate investor and allowable deductions. Reminds me of the tax reform of 1987 when depreciation rules changed. The investor world, as we knew it, was going to implode. Investors figured out how to live with the rules and continued to flourish. The same will happen again. Trust me; many words will cover the subject in the future.
Here are the individual county charts.