Homes Selling Faster Than A Year Ago…What Does 2018 Hold For All Of Us?
Houses may be selling at a faster pace, but it is not a reflection on improving market conditions…there is still a massive shortage in inventory, resulting in fewer sales, escrows, and listings. According to the latest “Reports On Housing”, as of December 14th, there are 4,023 listings in OC, down 766 or 16% from the same period of 2016, and inventory was considered tight even then. New escrows were 1,984, down 120 or 6%. Days on market, the average time it takes a home to sell dipped 12 days to 75 from 87 a year ago.
AND WHAT ABOUT ALL THOSE TAX CHANGES?? It is too early to tell what the long term impact will be regarding interest rate deductions and property tax deduction limits; it’s probably safe to say it could have some impact, but should it? This author believes that for most homebuyers, those deductions are not the most compelling reasons to buy a home, and probably haven’t been for some time. The statistical differences between the net worth of individuals at retirement age who own a home, versus those who have rented all their lives, is staggering. Especially in the OC marketplace with appreciation and equity building, even if an individual did nothing else but pay their mortgage for 30 years, to the point where they own their home free and clear; take the average home in OC of $600,000 and figure appreciation over 30 years, and that number could surely be staggering with which to begin retirement. However, paying a mortgage generally stimulates a habit of saving and learning to invest in other opportunities. So tax advantages dwindling or not, people should not stray from owning their own home.