Here’s what home sellers need to know about the Tax Cuts and Jobs Act that was signed into law
Home Price Impact
- California’s median home price is projected to increase 3.2 percent in 2018, which is good news for home sellers.
- Properties priced below $500,000 may see an approximate 4 percent increase in price.
- Properties valued at $750,000 may see a price increase of 2.4 percent, while properties at the higher end could inch up 1.5 percent.
- Properties priced between $1 million and $1.5 million could still see some appreciation overall, but will likely be at a growth rate of less than 1.5 percent.
Home Sales Impact
- Taking into account the impact of tax reform, home sales in California are expected to increase 0.3
percent in 2018.
- Demand for homes priced $600,000 and below will remain strong, due to limited housing inventory.
- Homes priced $750,000 – $1 million could experience a decline in sales of up to 0.9 percent.
Housing Supply Impact
- The supply of available homes for sale also will be slightly impacted, as homeowners may delay trading up/down to their next home.
- Overall, the California housing market is expected to see a decline of 0.3 percent in active listings in 2018
Download the Info Sheet Here