Here’s what home sellers need to know about the Tax Cuts and Jobs Act that was signed into law December 2017.

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

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