Future sellers are saying, "property values are going up so why make plans for my future now?" Complacency is a dangerously thoughtless business. It's true that too many buyers are chasing too few listings and paying a dear price at higher interest rates. Meanwhile entry level buyers find almost all housing purchases to be unaffordable. Tax breaks for home owners, mortgages and property taxes as well as income are not meeting the rise in costs of owning a home. Trepidation is the "soup du Jour," for many who have not been able to take advantage of stock benefits and high salaries.

But have a look Santa Clara counties assessor Larry Stone's, annual report. The details there bode the future and the disparity between richer and poorer.

Ultimately interest rates will decline, but will that decrease the cost of homes in the target sectors of school and proximity to jobs? - NO. Expect pent up demands due to low inventory and people now accustomed to higher rates rushing to the market in the spring in favored areas. Compare that to the decline in value in areas less favored by school scores and proximity to jobs. Although it's easier to add an ADU at your home, building and remodeling costs are up 24% meaning if you can move and improve without repairing that may be the best option particularly if you have good equity. The real estate tax laws are all here in a nice package.

Consider WHERE your home currently sits in value compared to where it will be next year and ask me to have a look at the value of the home(s) you own or would like to buy to determine whether this is a good time to start planning a move to increase cash flow and decrease overhead. I have a great tool to show how appreciation has now slowed dramatically compared to areas outside Silicon valley where returns on capital investment may be better.