Posted Feb 17, 2018 by Martin Armstrong: "This disparity among regions is tax-driven with a mass exodus beginning from California, New York, New Jersey, and Illinois to mention just a few."
See his 78 year real estate chart: https://www.armstrongeconomics.com/real-estate/real-estate-v-quantitative-easing/
Southern California home sales crash, a warning sign to the nation
CNBC:
Southern California home sales hit the brakes in June, falling to the lowest reading for the month in four years. Sales of both new and existing houses and condominiums dropped 11.8 percent year over year, as prices shot up to a record high, according to CoreLogic. LePage points to the rise in mortgage rates over the past six months, increasing significantly a borrower’s monthly payment. Rates haven’t moved much in the past month, but are suddenly going higher again this week, pointing to even further weakness in affordability.
Add the new tax mortgage laws to the mix of rising state taxes and rising interest rates:
800,000 people will leave New York and California over the next three years due to the new tax bill,
Prop. 30 raised the state’s top income tax rate by more than 29%, increasing it three percentage points from 10.3% to 13.3%, which is now the highest state income tax rate in the nation.
Edited by Rogerdodger, 24 July 2018 - 10:53 PM.