Housing’s Happy New Year!

Nef Cortez

By Nef Cortez

The Real Estate market has seen a continuing upward price increase in the last twelve months, closing out 2017 with a gain of approximately 6% across the US.  The prices have been increasing similarly here in Diamond Bar for the same period. The major concerns for the housing market over the last couple of months was the expected impacts of the Tax Reform and Jobs Act that was just passed last week by Congress and signed into law by President Trump.

There were fears that the mortgage interest deduction was going to be cut in half, from a level of  $1million dollar loan down to $500,000.  The reconciliation was arrived at a $750,000.00 level, which benefited the housing market in most states except for California, New Jersey, and New York. This change will negatively impact those markets more so than it will the major portion of the country.

Locally, the expected decrease in the mortgage interest deduction will have an impact, but not as much, and not as soon, as it would have if the cap had been reduced to the $500,000 level. Median Home Sales Prices are expected to increase here in Diamond Bar as well, but not as much as the 6% expected nationally. On the lower end of the price range, we will probably see a larger increase in the prices, as the mortgage interest deduction is still a great benefit for the buyers of homes at prices below the $750,000. That allows for ½ of the market to benefit from this tax incentive.

2018 should see a continuing increase in prices, primarily because the interest rates remain low, the inventory of homes for sale is extremely tight, and employment continues to increase. These are all the economic factors that influence market prices, and into the near future, they all indicate solid strength.

Have a Happy and Prosperous New Year Everyone!

This article was written by Nef Cortez, a licensed Real Estate Broker, Cal BRE # 00560181 since 1976. He can be reached via e-mail at nefcortez@gmail.com. Please feel free to email any questions regarding real estate.

Broker CalBRE # 00560181
Certified REO Broker
Certified Distress Property Expert

ReMax Realty 100

1411 S. Diamond Bar Blvd.,

Diamond Bar, CA 91765

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