Preceding the President’s State of the Union address this week, the “State of the Housing Union” released by realtor.com is characterized by strong but unsatisfied buyer demand, tight inventory in a robust and growing economy.
The new tax law – which caps the mortgage interest deduction for primary and secondary residences at $750,000 and limits state and local tax deductions – is expected to impact the upper end of the market in 2018.
The outlook for the general economy is upbeat; buoyant consumer confidence is anchored by unemployment reaching historic lows and the current strength of the U.S. stock market, but projections for the housing market were less rosy with sales growth of existing homes cooling in 2017, rising 1.1% last year compared to 3.8% in 2016.
Hampered sales were of course the result of low inventory rather than a lack of demand. Inventory fell 8.8% nationally in 2017, compared with 10.7% the previous year despite solid increases in new construction of single-family homes over the past two years.
Wallingford PA Real Estate – Wallingford, PA 19086
