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Emeryville Real Estate Market Report: November 2017

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With the Trump Administration signing their tax reform legislation just before Christmas, many current and future homeowners wonder what the impact on their tax bill and deductions will be.

In a nutshell: Emeryville has a median home price ranging between $500K – $600K in 2017. The tax reform will have the biggest impact on homeowners that carry a loan of $750K and higher. Most homes in Emeryville are of course condominiums and townhouses and tend to be below that threshold.

Here are the main changes and the effect on homeowners:

  1. Mortgage Interest Deduction
    The decrease of the mortgage interest deduction will affect all home owners with a mortgage higher than $750,000. Old deduction: Deduct interest against $1,000,000 in mortgage debt.
    New deduction: Deduct interest against $750,000 in mortgage debt.
  2. Home Equity Line Interest Deduction
    This change will affect everyone with a home equity line. Old: Interest on home equity lines are tax-deductible up to $100,000.
    New: Home equity lines are not deducible.
  3. State and Local Tax Deduction
    This will have a huge impact, since it includes real estate, personal property and state income tax.
    Old: No cap.
    New: Capped at $10,000.
  4. Standard deductions
    The amount for standard deductions doubled. This is potentially off-setting the loss in deductions for mortgage and interest rates.Old: Single filers $6,000 and married filers $12,000.
    New: Single filers $12,000 and married filers $24,000

Many ask: should I prepay my property taxes? Taxes can be prepaid, if assessed. I hear conflicting information on it. Ultimately, consult your CPA to get advice.

More reading:
National Association of Realtors Summary →

Nerdwallet Blog →

And now to the November market snapshot in Emeryville: the market slowed down significantly. It seems that, in addition to the holidays, people adopted a ‘wait and see’ approach.


By The Numbers:

 


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Types of Homes Sold:

The number of homes sold for November decreased from 20 to 8.

Studios & 1 Bedroom Homes:
The number of 1 bedroom and studios sold decreased from 11 to 6.

2 Bedroom Homes:
The number of 2 bedroom homes sold increased from 9 to 2.

3 Bedroom + Homes:
There were no single family homes sold in November.


Median Sales Price vs. Median List Price:

Both Median Sales price and Median List price decreased in November with the sales price dipping from $571K to $506K and the list price dropping from $536K to 496K.


Average Days on Market:

The Average Days on the Market for Emeryville homes increased from 24 to 33.


Sales By Location:

For purposes of identifying sales by location, we have divided Emeryville into four geographic areas.

North Emeryville: 6 Homes Sold.
South Emeryville: 2 Homes Sold.
East Emeryville: 0 Homes Sold
West Emeryville: 0 homes Sold


Further insights or shopping for an agent?

Email East Bay Modern REALTOR® Nicole Gruen→.

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Nicole Gruen

Nicole Gruen is a top real estate agent at Coldwell Banker who specializes in the East Bay—especially in Emeryville where she lives. After working for 15+ years in Silicon Valley for companies like IBM, NVDIA, and Nestle, she transitioned to pursue real estate, which was a true passion for her. With her extensive knowledge of the East Bay markets, Nicole is a unique agent who combines her data-driven approach and people-first philosophy to help you buy, sell, and market homes with ease.

For more information, visit her website: www.eastbayreal.com

1 Comment

  1. The increase in the standard deduction will have the most profound impact in Emeryville. A married buyer earning $100k putting 10% down on a $500k primary residence with a 4%, 30-year fixed loan would will pay ~1,500/mo in interest, and the marginal tax benefit of the deduction (at a 35% marginal tax rate) would be $520/mo. Increasing the standard deduction would moot this benefit. This reduces the rational willingness to pay by $109k assuming the prospective buyer was previously deducting more than the $12,700 standard deduction but less than $17,750.

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