Fast Facts About the Housing Market: November 2017
Was the U.S. housing market something you said you were thankful for at the Thanksgiving table? If not, it should have been! According to Realtor.com, sales in November were 3.8% higher than a year ago and were at their strongest pace since December 2006.
The regions with the lowest median home prices also saw the most sales—the South accounted for 40% of existing home sales at a median price of $216,200, and the Midwest was right behind with 24% of existing home sales and a median price of $196,100.
Realtor.com’s top 5 “hottest” markets, though, could all be found on the west coast of the nation, where the median existing home price was $375,100—the highest in November and $126,300 higher than the median existing single-family home price in the country. How are these “hot” markets chosen? It’s based on how many days a typical listing spends on the market, and homebuyer demand (Realtor.com listing views). The 5 hottest markets in November 2017 were:
- San Jose-Sunnyvale-Santa Clara, CA
- Vallejo-Fairfield, CA
- San Francisco-Oakland-Hayward, CA
- San Diego-Carlsbad, CA
- Stockton-Lodi, CA
As the new tax reform laws take effect in 2018, it will be important to keep an eye on how changes to mortgage deductions, property tax deductions, and more impact the housing market.
For example, in the past, the cap for mortgage deductions was $1 million—a seemingly large amount for less expensive markets, but fairly common in hotter markets, like those in California. Starting in 2018, the mortgage deduction will be capped at $750,000. Will this change alter home buyer behaviors? Or will they just opt for the increased standard deductions instead of itemizing? It’s impossible to predict, but crucial to watch in the months and years ahead.