Jan. 2018 Market Tracker
Here’s the skinny on the new taxes: * Property tax deduction will be capped at $10,000 on 2019 filings. * Taxpayers may only deduct the interest they pay on the first $750,000 of debt they carry on their primary residence.” However, “the lower cap will not apply to loans existing on or before December 14, 2017. * Interest on debt owed for new home equity loans and second mortgages is, generally speaking, no longer deductible. Prices are up! The median sales price (MSP) of single family homes has gone up 13.3% from last year. The MSP of condos is up 12% (not including large construction projects, which do not appear in the multiple listing service). The driving force behind these high prices is a lack of inventory. Inventory has been dropping for years now. (2018 has begun the same way.) San Francisco is a desirable place to live, especially with continued tech hiring. No one is moving out, and it sure feels like everyone is moving in. The months supply of inventory, or amount of time it would take to sell all existing inventory, is 1.1 months! Six months supply is considered an equilibrium, and more than that is a buyer's market. We are in a clear, strong seller's market. It is impossible to time the market, but it’s hard to envision better market conditions for the savvy seller.