With the lack of affordability and the inventory being short, many first-time buyers would have to sit out from the market for the year and possibly next year if the trend continues. The reason is due to how the numbers aren’t as favorable to their side of things.
Even homeowners have tried to sell their homes are to stay put as well. With rising mortgage rates and the overall increase in prices, it’s bound to be a trap laid out for the seller. As stated from a report done by Black Knight, since many of them have an already low mortgage, more than what is being given currently, there would really be no reason to move away from the house considering how hot the market has been. To them, it would be more expensive to simply buy back their homes.
For the first few months or so of the 2019 year, there will be some tax changes that can affect the homeowners and the marketplace. One of these changes involves a mortgage deduction in its interest. Before this happened, many homeowners would deduct the interest themselves and would pay at least around a million dollars in their debts, which included interest on their home equity loans and credits, reducing the amount of income that would be taxed.
Rana Khanjani, MBA
San Fernando Valley Iranian-American Real Estate Agent
Providing Services in English and Farsi
Address: 22020 Clarendon St. 200, Woodland Hills, CA 91367