Given all the changes in regulation, taxation and mortgage rules – not to mention the normal cyclical nature of this business – the real estate market is undergoing changes.
On the one hand, we have several supply and demand factors indicating continued strength in the market: still low interest rates, a strong economy, steady population growth, limited land for development, max’ed out building trades, and growing lead times for development permits. And of course we are a desirable place to live in the world, with an attractive dollar in world economic terms.
On the other hand, several factors are conspiring to limit the market in different ways: exceptionally high prices, a number of new taxes and rules designed to slow the market, capital controls restricting money leaving China, and mortgage rules designed to limit the borrowing power of buyers.
The direction and magnitude of the changes to our market are next to impossible to predict with any certainty, and some sectors and regions will go one way, some another. We are already experiencing this as more affordable housing options in the Valley are still seeing price rises, while high end home sales in the city are quite soft.
There are always buyers and sellers – the world does not stop when a market changes. If this is the year you’d like to make a move, give me a call for the best experience-based advice.