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People aren't moving because the rich would rather pay a little extra and do what they want. What I find interesting is that, in following the California real
by joshuaheard 8y ago
People aren't moving because the rich would rather pay a little extra and do what they want.
What I find interesting is that, in following the California real estate market for the last two years in preparation to moving there, there is a drop in demand for high-end housing since the tax law took effect. The combination of higher taxes and lower mortgage deductions has kept a lot of people from buying bigger houses. I've also seen a lot of empty-nesters downsizing.
- gamblor956 8y agoInteresting. From the perspective of someone already living in California, there has been an increase in demand for high-end houses in SoCal despite the tax law changes. Pricing trends plateaued briefly the first half of the year but half resumed their upward climb, especially in the nice parts of LA.
- lscore720 8y agoJust replied above to OP with today's news report on SoCal home prices - thought you might find interesting!
- gamblor956 8y agoPretty interesting. I happen to live in one of those areas where demand has not only held steady but somehow increased since last year--I've received multiple (cash!) offers on my place in the past 3 months and many of my fellow condo owners have had the same experience, but I can definitely see interest rates reducing demand in less desirable neighborhoods.
- lscore720 8y agoNew report released today "Southern California home sales crash, a warning sign to the nation": https://www.cnbc.com/2018/07/24/southern-california-home-sales-crash-a-warning-sign-to-the-nation.html https://www.cnbc.com/2018/07/24/southern-california-home-sal... Interestingly enough, the higher priced homes are the only ones somewhat holding up. "Sales below $500,000 dropped 21 percent on a year-over-year basis, while deals of $500,000 or more fell about 3 percent, marking the first annual decline for that price category in nearly two years,” said LePage. “Home sales of $1 million or more last month rose just a tad – less than 1 percent – from a year earlier following annual gains of between 5 percent and 21 percent over the prior year.”
- joshuaheard 8y agoThe article cited higher interest rates. I've talked to other people who say we are in the tenth year of an average 8 year real estate cycle. I think the market is peaking now and will downturn in the near future. But, I think it will be short and shallow consistent with national economic growth.
- joshuaheard 8y agoChinese investors realize the market has topped out. https://www.wsj.com/articles/chinese-real-estate-investors-retreat-from-u-s-as-political-pressure-mounts-1532437934 https://www.wsj.com/articles/chinese-real-estate-investors-r...