Southern California Home Sales Hit 7-Year High

California Home Sales:
May Numbers Post A 7 Year High

California Home Sales | Costa Real Estate Digest

Southern California home sales held at a seven-year high last month thanks to a stronger economy, pent-up demand, low mortgage rates and the widening perception that a home is a good investment. A home for sale along the 2000 block of Brockport St. on Tuesday, June 11, 2013 in Covina, Calif.
(Keith Birmingham/Pasadena Star-News)

Prices & Activity Hold High Numbers As Several Influences Bolster California Home Sales

The California home sales market is still posting impressive numbers. Buyers poured lots of cash into the market in May and activity posted a 7 year high while prices held a 9 year high.

There are many things bolstering the market right now. The economy is generally stronger than it was last year, mortgage rates are still relatively low, prospective buyers have built up a lot of demand over the last few years, and many folks are looking at the California home sales market and seeing a home as a good investment. There are those who feel that some or even all of these influences might be changing soon, but for right now they are contributing to a very strong market.

Here's an article by Gregory J. Wilcox in the San Bernardino Sun that will give you all the numbers:

Southern California home sales hit 7-year high

"We're deep into uncharted territory: Amazingly low mortgage rates, a razor-thin inventory of homes for sale, and the release of years' worth of pent-up demand. Plus there's a seemingly endless stream of investors and non-investors who pay cash and thereby avoid the loan-qualification process. How this all plays out is educated guesswork at this point," John Walsh, DataQuick president, said in a statement." …


What's The Future For California Home Sales?

There is agreement right now between most analysts that the California home sales market is finally healing. However, there is also uncertainty. There are those who foresee sunny days ahead and those who forecast outright doom. As usual, the reality will most probably lie somewhere in the middle of those two extremes. The market has sustained a long upward push from the depths at this point and a "resting" period, or even a compensating "pull-back" is certainly not out of the question. Only time will tell when this period begins and how long it will last. 

California Home Sales.

California Home Sales: Eliminating The Mortgage Deduction

California Home Sales:
Eliminating The Mortgage Deduction Could Have A Domino Effect

California Home Sales | Costa Real Estate Digest

A home, for sale by Realty Executives of Valencia, on Galbreth Court in the Hasley Hills area of Castaic. If the mortgage interest deduction is axed, experts disagree on just how serious an effect there would be on the recovering housing market. Photo courtesy of Realty Executives.

California Home Sales Could Slow & Tax Revenues Fall If Deduction Is Eliminated Completely

California home sales, their rate and prices, can be effected by many things. The market is a complex and ever changing “animal” with many interlocking parts. One of those parts is the mortgage interest tax deduction. Its size … and even its continued existence … are both being discussed in Congress right now.

Opinions vary, but all seem to agree that elimination of this popular incentive to home ownership would have at least some effect on the California home sales market. The disagreement stems from just how much of an effect we would actually feel. Some say that it would force prices down as Sellers would need to compensate. Others say it would slow activity to a crawl as buyers decided to forgo home ownership entirely. Still others say it would have some effect, but not nearly as much as the “doomsayers” predict.

Here’s an article from Jana Adkins in the Santa Clarita Valley Signal that runs through a lot of varying opinions. Jana … or the headline writers at least … seem to be of the opinion that removal of the deduction would have a huge impact. However, if you read through the article you’ll find that the “experts” are really all over the map in their opinions.

California Home Sales: Eliminating The Mortgage Deduction Could Have A Domino Effect

Repealing the deduction would be bad for homeowners and it would be bad for cities and school districts that rely on property tax revenue,” Hernandez said. Such a change could potentially drive down home ownership rates, drive up the cost of financing, and push down the value of real estate, he said … “

  Does The Federal Tax Structure Control
The California Home Sales Market?

Wiith all this talk about the mortgage interest tax deduction and how it’s elimination might effect the California home sales market, there is very little talk about what is more likely to occur: a compromise focusing on adjustment rather than elimination. Most of the talk is about what might happen should the deduction be removed entirely. However, it seems much more likely that complete elimination stands only an outside chance. A reduction in the deduction seems much more likely, and if this happens then it’s also more likely that the less extreme predictions of how this will effect California home sales will probably be more accurate than those of the “sky is falling” variety.

California Home Sales.