Saw an article on Msn/Yahoo News yesterday talking about “Declining Home Sales!,” was a danger to the economy.
Buried in the article was that High-end sales above $4 million dollars are down in places like New York, California, and the Hampton’s because of “Uncertainties” about Trump’s new tax laws (High tax Dem States no longer get to deduct high state taxes from Fed Taxes).
Meanwhile, home prices for average working folks are rising because more people have more money to spend, and are buying homes instead of renting. That is BAD to the Socialists.
Two factors go into this decline story.
1. Rising interest rates. It’s scared a few folks into ‘waiting’.
2. Back about six months ago, a number of regions were talking about a limited inventory existing, in terms of homes for sale.
In general, if you bring up anything in California....it’s in somewhat of a spin. Fair number of people packing up and moving....lesser number interested in moving to California. I think you have to subtract that region from the numbers.
“Buried in the article was that High-end sales above $4 million dollars are down in places like New York, California, and the Hampton’s because of “Uncertainties” about Trump’s new tax law”
Well, I would venture a guess that homes in the $4 million range would not be a problem because the owners/ new buyers have other means to lay off their tax burden elsewhere. We had the home across the road from us (Central Contra Costa County, CA) sell to a young couple from San Jose for $2.2 million a little over a year ago. They are pouring money into new landscaping, and making other improvements. Both adults work, they have a nanny/housekeeper, and they go off on weekends to their place up in the Tahoe area. So I don’t think the Trump Tax Plan is going to deter people here from buying up. The only thing that might change the picture would be if the RATs figure out a way to overturn Proposition 13, which would cause a doubling of property taxes. That action would collapse housing prices here in short order.