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Two Headlines, One Market Shift

  • Wen Guo
  • 07/28/25

This week brought two big headlines in real estate—one finalized, one proposed—but both pointing to major shifts ahead.

 

✅ First, what’s official:

San Jose just became the first city in California to allow ADUs to be sold separately, like condominiums.

This opens up a second resale path for homeowners: if you have a large lot, you may one day be able to sell off your backyard unit.

This isn’t just rental income—it’s potential capital gain.

And if other cities follow suit, as they did with ADU construction laws, your backyard could soon become your biggest asset.

 

🏛️ Second, what’s proposed:

President Trump this week announced he wants to eliminate capital gains tax on real estate sales.

If this passes, it could unlock a huge wave of inventory as longtime owners finally sell without tax penalties.

More inventory = more options for buyers.

It could lean the market toward a buyer’s market, especially if sellers rush in.

 

💸 On the other hand, if the focus shifts toward lowering interest rates, buyer power will surge—and we may once again see a strong seller’s market, with higher prices and bidding wars.

 

Either way, market conditions will shift—possibly fast.

 

What can you do now?

▶️ If you’re a buyer, keep an eye on where things are headed.

▶️ If you’re a homeowner, think long-term: does your lot have room for an ADU? Could that become your future exit plan?

 

📣 Let’s open the conversation:

What do you think about ADUs becoming sellable?

How would removing capital gains tax affect your plans to buy or sell?

 

I’d love to hear your thoughts— Just say WEN!

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