https://onlineearning2021.blogspot.com/2018/03/california-housing-market-2018.html

1. California HousingMarket2018
The housing market of California is the hottest news right now and everybody is
looking for 2018’s forecast which truly to keep an eye on and is one of the top markets
this time. We might be able to see a side of local housing market like never before
because of its phenomenal performance, growing prices and the shortage of supply. So
are the prices falling? Will the homebuyers and sellers be affected by the tax reform
bill?
Let’s dig in and find out!
If the tax reform bill passes, the housing market of California, in particular, will face a
drastic effect indeed. Taxes with an already high rate like New York, Maryland, New
Jersey and California people might get a bit more worried if the state and local tax
(SALT) deductions are eliminated.
As the timeframe will be increased in which they must have lived before the sell it out,
of course, the home-sellers are to be affected. This is to take benefit from the tax
deductions on the capital gains. Currently, it is must that the home-seller has lived for
two out of the previous five in the property before selling it. $250,000 or $500,000 for
married couples can be excluded from this. However, with the new bill home-sellers are
asked to live five out of the previous eight years in the property they plan to sell. Hence,
it is hard for them to take benefit of the capital tax gains exclusion when selling.

2. Because of this, the homeowners will stay in their homes a few years longer which
would ultimately increase the shortage.
Homes in California being high in demand and shortage of supply will have a very fast
selling rate this year. 25% of homes were sold in 2 weeks in 2017 in the buying season’s
peak, however; even more, is expected this time!
The home buyers need to be cautious about the mortgage payments increased expenses
along with high point market prices. The reduction of size in Federal Reserve’s asset
portfolio ($4.5 trillion) included mortgage securities of about $1.7 trillion. Due to this
portfolio reduction, the mortgage rates are slowing increasing.
In the housing market of 2018, the mortgage payments will be higher for the same
house with higher home prices. Interest rates will go until 15-20% this time compared
to 13% in 2017.The overview being; $524,000- median home value, $495,000- median
listing price, $2,600- median rent price and $461,500 median sale price.
So what is the bottom line? The economy is expected to have increasingly high demand
being a boost for California’s market in 2018 with a challenge for affordability
constraints and available homes for sale. It sure is a better seller’s market this time with
shortage of supply. Hence; the gap between selling and buying is likely to increase but
good real estate services have got it all covered.
Name: Median ZHVI
San Francisco $1,104,000
San Jose $822,700

3. Oakland $619,800
Los Angeles $585,100
Anaheim $542,200
San Diego
$540,500
Long Beach $523,600
Sacramento $278,600
Fresno $197,100