This is about the best time to make a positive move in real estate. Buyers are looking for homes and sellers have a chance to move up or sell and avoid a foreclosure. Call, Text or Email for help while interest rates are incredibly low!]
Your Friend & Realtor,
Tony Lewis * RE/MAX of Valencai 661-702-4750
Here is what we know.
Taxes are going up
Starting January cap rate will change from present 15%
What does this mean?
There is an opportunity for those that can afford one.
For many sellers capital gain will mean the difference between selling or not. For many it will be more advantageous to hold on than to pay taxes to Uncle Sam
This will reduce active residential income properties from the market.
With the slow but steady reduction of foreclosures the inventory depletes and demand rises for affordable housing. For some builders it may open opportunities who are willing to take the risk of hoping that banks will cooperate and lend. Most of them will concentrate on building rental properties knowing that the demand is there.
For buyers it means means prices are on the rise.
Not to be distracted from facts the economy still moves slowly and pre housing highs will need at least 10 years to reset .
According to reliable sources some cities will do better than others.
Cities and States that were hard hit and lost more than 30% of their values will recover slower.
Positive emphasis is on areas where the population is offered job growth.
With population not expanding there are more seniors than our young . Many of our citizens reaching senior status will be compelled to move to affordable cities and sates that offer good medical services. With them will move the care givers and job opportunities.
Some of these states are Arizona, Texas, Florida just to mention a few.
These states will also offer potential savings on the high cost of heating: oil , natural gas and coal. These citizens will take advantage of the savings of the many green energy options like wind, solar and thermal of which there is plenty in supply.
There is the constant question we ask . Does ownership offer advantages over renting? For many this question remains, if their earnings provide opportunities to save. With banks offering practically nothing and if this trend is to continue. More people will be planning less to the future and spending on the here and now. If mortgage rate which are not predicted to go up in the next few years it is a great time to borrow for all those that can. If rates do go up due to unpredictable situation in Europe or glooming wars on the rise it will have a definite negative effect on the purchasing power for our citizens. It however opens the door for foreign investors that find America a safer than their own.
Presently there is a great concentration of investors that are streaming in for South America, Canada and on a commercial opportunities from China, and even from Russia.
Housing meets with the general nemesis that reminds all those with right intentions of keeping up with the age old question is it wort to have a house?
For all those that have met the challenge of the past four years and took the hit on the chin in loosing their equities and still made good on their debts and maintained their good credit ask to what avail? All the support is for those that have not. All the sympathy are for those than never gave a second thought and walked away from their responsibilities are getting more attention and support.
This should be the time to act responsibly to these citizens and provide tax credit for their loss while all those that quit were given a pass and got way with it and reaping the benefits Is this the time to be faire? I think so . I would hope so. Would I predict it . No what pleasure does that give anyone especially to banks who are still hanging to their guns when it comes to principal reductions.
If housing is to reset it is not on values alone but on all matters that have to deal with fairness in housing. There is not a better time to start but right here. As far as hoping that politicians will ever deal with this why? Who is there to remind them? We realtors are the one source that has dealt with realities of these facts. Our associations need to take a proactive stance to reset the fairness in our housing industry and in out approach to work within those principals. .
The main point is: I don't think that the outcome of the elections will have any effect on the real estate market.
Hope that helps.
The housing market is directly tied to the economy and jobs market. If the economy and jobs improve, so too will the housing market.