The issue on the high end, according to Realtors, is the change in state and local tax deductions, or so-called SALT, implemented via the Trump administration’s 2017 tax reform bill.
“We just filed our taxes, and I think everyone is nervous about what’s happening right now with SALT,” said Jessica Lautz, vice president of research at the NAR. “We are just going to have to wait and see how much of an impact that is going to have to the high end of the market.”
The impact is already pretty clear in New York City and in much of California, some of the priciest markets in the nation. Los Angeles home sales fell 12% annually in March, according to the California Association of Realtors, even as the supply of listings increased. Sales in the San Francisco Bay Area were down nearly 11%.
No need to tell us. We know. In a bear trend, first to drop are the 3rd tier, then 2nd tier and finally 1st tier. The screwed up location houses e.g. near busy roads, and poor layout houses would drop first.
The bullish stock market and IPOs won’t help if that is what you are looking for. People are leaving or at least not investing in BA. Put your money in Austin, Atlanta or RTP.
That’s like saying don’t put your money in some proven names like Amazon, instead put it in some unknown startup…
Nope. Two words: network effect. The rich will get richer, and that’s true for people, companies and metros. Wake me up when a tech company in Austin IPO.
