Half of La Canada home sales were over $1,620,000 (median selling price). Let’s take a look at the new tax plan: Assume a 20% down payment on the median selling price, that will give the median buyer a loan amount of $1,296,000 – allowing for a mortgage interest deduction of just $750,000. Property taxes will be approximately $18,000,000 – and the new law allows a maximum write off of $10,000.00. This is obviously going to impact the average La Canada home buyer but not the luxury high net worth buyers. Don’t expect a crash, but just starting to put the brakes on this rampant housing appreciation. It’s still all about supply and demand.
Last month, La Canada sales ranged from $850,000 for 1472 square feet on Hilldale to $3,600,000 for a six bedroom six bath home on Commonwealth. The extremely low absorption rate proves why smart home sellers don’t take their home off the market for the holidays. Listing inventory dries up while buyer demand remains high.
Three homes sold for under $1,000,000, four homes sold for over $2,000,000.
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