Tax bill will slash by half the number of homeowners using the mortgage deduction

This shouldn’t be a surprise given median home price in the US, and the increase in the standard deduction. I think the bigger surprise is only 20% of tax returns claim a mortgage interest deduction. We’re constantly bombarded with the story of how it helps increase home ownership. Yet, most home owners don’t even take the deduction.

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Bay Area/Higher cost areas probably much more than 20%?

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I would think yes, but remember all the crying about how bay area RE was going to crash? People were only going to be able to deduct $750k of mortgage interest instead of $1M? Also, the SALT limit of $10k would prevent property tax from being deductible, since bay area house buyers hit the $10k max on state income tax. Bay area RE was supposed to tank.

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Cost of Buying & maintaining a home in the Bay Area is higher now.

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It is fomo. I started noticing some slow down in menlopark, i expect lower cost areas (svl included) will still get some heat but higher price areas will take longer to sell.

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Yet prices are going up even faster than they were before. I suspect that for the vast majority their net take home pay is better than before. It’s really high-income people that are single without kids that suffer the most. They aren’t a big enough voting block for politicians to care, and they don’t make a sympathetic story for other voters to care. The changing of the child tax credit is huge for bay area families.

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Truth or see what you want to see? I’m still waiting for the right moment to strike. We are not looking at the same neighborhoods, right?

No, it is truth. I am not buying menlopark. A number of good houses spend a bit longer on the market.

What I am trying to understand is if that is as a result of the tax bill or was it there in 2016(when Bay Area house prices were already up by a lot) too?

Yeah that i cannot tell.

I saw a sunnyvale price drop just now, caught my attention. I dont watch svl a lot since not planning to buy there, but i watch menlo because that is where i see the best houses :slight_smile:

Also i wont lie, mtv is/was still selling like hotcakes and significant jumps in prices happened both in svl and mtv in january.

Spending a bit longer doesn’t mean it will or it went for cheap. This one had two open houses and was setting up to sell at a “discount” relative to size.

https://www.redfin.com/CA/Menlo-Park/1143-Woodland-Ave-94025/home/1060803

This was set up to go for less with the non-standard house, large size, and easement access. I would think this was far more than the seller thought they would get. It went pending 4/17 so it’s a very recent transaction.

If true, that house had: 11,040 sft. That demands premium, and seems like sold for cash. i remember this wood house :slight_smile:

The lot size is a premium, but the lot set up is not. It’s not a real flag lot. You are getting access via someone else’s land.

No street frontage, thus curb appeal is non-existent.

This house went for lot value: 2M (i think it should have been more, not sure).
https://www.redfin.com/CA/Menlo-Park/119-Baywood-Ave-94025/home/1667963

This house got a price cut, after spending some time on market:
https://www.redfin.com/CA/Menlo-Park/10-Trudy-Ln-94025/home/1816931#property-history

This house, brand new and i feel like similar houses sold for much more:
https://www.redfin.com/CA/Menlo-Park/1180-Cloud-Ave-94025/home/1542549#property-history

Good part of the town (as far as i can tell, good condition house, still on market at 3.x m.)
https://www.redfin.com/CA/Menlo-Park/2000-Cedar-Ave-94025/home/1343168

This got a price cut - weird layout house, probably selling for near-lot value, near train.
https://www.redfin.com/CA/Menlo-Park/378-Felton-Dr-94025/home/852308

I’m sure you can find examples to fill the side you want to see

:grin:

Baywood was lot value. People weren’t allowed access. Close to Middlefield and potential impact via development on Middlefield and the grocery store - loading and unloading.

Trudy looks like someone got decent value there. This transaction is older. I think it’s one of those narrow streets like Croner.

1180 was asking a premium above other new builds @ 4.7.

Cedar is another house that looks like you can get decent value.

Felton appears to be a good value, but you have to take into account the backyard being opposite of the park and the proximity to the railroad. Let’s see what it goes for.

Do you have comps?

I am not seeing what i want to see :slight_smile: I am seeing mountain view, and feeling sad :slight_smile:

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I guess this oculd be one:
https://www.redfin.com/CA/Menlo-Park/253-University-Dr-94025/home/1222155
https://www.redfin.com/CA/Menlo-Park/264-Leland-Ave-94025/home/896244

older but larger home(first) and similar sized home (Second).

Aren’t these MP homes more expensive than MV?