Except for San Francisco and San Mateo Counties, home prices in the Bay Area remained relatively flat according to data provided by local Multiple Listing Services. Year-over-year prices flatlined across the Bay Area, except in Santa Clara and Sonoma Counties where prices retracted. All four of these counties, however, have reached historically high real estate values.
It appears that the latest tax reform has put the brakes on the market by curtailing sales of homes priced between $1 million and $2 million. 84% of the decline in sales was found to be in this dollar range. Homes below $1 million remained flat compared to last year. The gains that were reported happened in Alameda, Santa Clara, Sonoma and Napa Counties. These increases would have been greater if the inventory had been available.
It is not surprising that California has felt the impact of the last tax reform. The cost of owning a home in California has significantly increased. We have only to look to the cap on state and local deductions to $10,000 and reduced mortgage interest deduction of a loan up to $750,000 to determine a key reason for the slow down in real estate sales.
Going forward, home buyers could be facing an easier time. Mortgage interest rates have eased and seem to be trending downward so potential Home Buyers find your local, trusted Lender and find out what you qualify for! For anyone not quite qualified for traditional or conventional financing, you have alternative financing options such as short-term Hard Money loans. Sun Pacific Mortgage has rolled out a new program for those borrowers who fall just below the “Qualified Borrower” classification for conventional lenders, called Alt-A Hard Money. This will enable borrowers with both good credit and suitable property, but who just don’t quite meet the qualifying criteria for a standard loan, to obtain a real estate loan for purchase of refinance.
Take advantage of the decreasing rates and increasing real estate value. Call us and get qualified to buy a home today! (707) 523-2099