The second of a series of three reports on the housing market analyzes how economic factors such as the expected mortgage rate hikes, and newly-passed tax reform have affected homebuyer and seller sentiments.
High taxes were cited in Redfin's survey as respondents' biggest economic concern at 38 percent. Residents in California, who pay some of the highest state, local, and property taxes, were more likely to say high taxes was the top economic concern, with 43 percent of San Francisco residents and 45 percent of San Diego residents. Affordable housing, at 33 percent, was the next highest economic concern.
“Tight credit, lack of inventory and high demand are the major factors that tell us there’s no housing bubble, despite rapid price increases,” said Redfin chief economist Nela Richardson. “There are still many more buyers than the current housing supply can support, with no major relief in sight. Strict lending regulations make it much harder to buy a house you can’t afford than during the housing boom a decade ago."