Orange County Home Sales:
The So Called "Fiscal Cliff" Should Be No Hurdle To The Market
What Could Cool The Market For Orange County Home Sales? Maybe The Market Itself ...
The so called "Fiscal Cliff" certainly has some features we all want to avoid. The universal tax increases and the draconian cuts involved aren't things anyone wants to see. However, unless they eliminate the home mortgage deduction (which is unlikely ... look for an income cap instead), the "cliff" is likely to be simply a bit of minor turbulence in the bay.
At any rate, that's the view of Jonathan Lansner in this article from the Orange County Register ...
"Certainly, the cliff's looming tax hikes and federal spending cuts might slow the overall economy. That might take a dash off the growing demand for housing. But I don't think it'll be enough of a dent to chill the expanding interest in Orange County homebuying." ... Jonathan Lansner
DeptofNumbers.com Has Interesting Numbers That Show Orange County Home Sales Might Cool As Part Of Normal Market Action
According to Lansner's article ... and DeptofNumbers.com ... the Orange County Home Sales numbers show that many Sellers are in a waiting mode ... pricing at the "what I want" level, and believing prices will continue to rise at these rates, and will end up giving them what they want.
However, that presupposes that there are Orange County home sales buyers out there prepared, comfortable, and qualified to be buying at these price levels. That might not be the case. The numbers of such buyers might just be being outstripped by the rate at which prices have risen. This means a "normal market adjustment" would consist of ... guess what ... prices adjusting lower, or at least slowing the rate at which they're rising, leaving those sellers sitting on the market with no one willing or qualified to pay their price.
Orange County Home Sales.