Buyers and sellers of homes in the South Bay will face a new decision matrix in 2018. Prepare for big changes in the market due to new tax regulations and predicted increases in interest rates.
It is a seller’s market but it won’t last forever. The mean selling price of a home in the South Bay in May 2017 was approximately $1,011,000, an unprecedented high. Today, the mean selling price is $934,000. The tide is turning so now is the time to act.
In December of 2007, there were approximately 5500 homes for sale in the South Bay. As of February 2018, there are 877 homes for sale…..an 84% decrease in supply.
Recent legislation has reduced the [state] individual income and property tax deduction to $10,000, effectively increasing the total operating cost of homeownership.
Call the Chamberlain Team for a free market evaluation of your house in the current conditions.
- Money is still cheap, but……the historically low interest rate environment we have seen for the last 10 years is coming to an end. Goldman Sachs predicted that the Federal Reserve will raise interest rates 4 times in 2018. It is better to buy a home now before the rates go up
Rising interest rates will likely lower home prices, but increase the carrying cost of a home.
Housing inventory will increase. Due to historically high prices and the recent Tax reform bill (which has limited the deductions available to home owners) sellers are motivated.
Call the Chamberlain Team to find out how much house you can afford in what neighborhood.
The Chamberlain Team
Wayne Chamberlain (310) 809-5458 • Heather Chamberlain-Smith (310) 283-9614