What’s Really Happening in the Housing Market?

Source: Windermere Eastside

https://windermereeastside.com/2018/09/04/whats-really-happening-in-the-housing-market/

Our housing market is finally cooling a bit, from scorching hot to slightly-less-sweltering. While some alarmists are talking bubble or impending crisis, the statistics tell a different story. The market does appear to be shifting, and that’s good news! The steep price increases of the past few years are not sustainable, and also risk pricing buyers out of the market altogether.

Where The Market Is Today

  • Inventory is up, but still far short of demand. Despite a considerable increase in inventory, King County has just six weeks of supply. Four to six months of inventory is what is considered a balanced market, and we’re far short of that.
  • Homes are staying on the market a bit longer. New listings have increased in the past few months, but the increase in inventory is primarily due to homes staying on the market longer. With buyers accustomed to homes being snapped up in days, “longer” is a relative term. Homes in King County are taking an average of 15 days to sell.
  • Prices appear to be moderating. While home prices are up compared to a year ago, the rate of increase is in the single digits rather than the double-digit surges of past months. Prices are down 4 percent from the record high reached this spring.
Posted on October 4, 2018 at 2:01 am
Angelica Valdes | Category: Buyers, First-Time-Buyers, Sellers

How Tax Reform Affects Homeowners…What You Need to Know!

New tax legislation was signed into law at the end of 2017, and it included some significant changes for homeowners. These changes took effect in 2018 and do not influence your 2017 taxes.  Here’s a brief overview of this year’s tax changes and how they may affect you.
The amount of mortgage interest you can deduct has decreased.
 
Under the old law taxpayers could deduct the interest they paid on a mortgage of up to $1 million. The new law reduces the mortgage interest deduction from $1 million to $750,000.
These changes do not affect mortgages taken out before December 15, 2017.
The home equity loan deduction has been eliminated.
 
The prior law allowed homeowners to deduct the interest on a home equity loan if the value of the loan was $100,000 or less. The new law eliminates the deduction for interest on home equity loans.
The property tax deduction is capped at $10,000.
 
Previously taxpayers could deduct all the state, local and foreign real estate taxes they paid with no cap on the amount. The new law limits the deduction for all state and local taxes – including income, sales, real estate, and personal property taxes – to $10,000.
The casualty loss deduction has been repealed.
Previously, homeowners could deduct unreimbursed casualty, disaster and theft losses on their property. That deduction has been repealed, with an exception for losses on property located in a federally declared disaster area – an important victory!
The capital gains exclusion remains unchanged.
Homeowners can continue to exclude up to $500,000 for joint filers or $250,000 for single filers for capital gains when selling their primary residence as long as they have lived in the home for two of the past five years. An earlier proposal would have increased that requirement to five out of the last eight years and phase out the exclusion for high-income households, but it was struck down.
How does tax reform affect your plans for buying or selling a home?
The changes in real estate related taxes may change your strategy. Please contact me to go over your options and answer any questions you may have.
Posted on March 21, 2018 at 8:21 pm
Angelica Valdes | Category: Sellers

How Much Equity Do You Have in Your Home?

Now may be the right time to get top dollar for your home

According to Fannie Mae’s Home Purchase Sentiment Index (HPSI), more homeowners are beginning to realize that they may have more equity than they first thought.
78.8% of homeowners have significant equity (more than 20%) in their homes today!
Many homeowners with a mortgage have an opportunity to take advantage of today’s seller’s market.

Let’s get together to evaluate your situation and answer any questions you may have.

Posted on February 2, 2018 at 9:35 pm
Angelica Valdes | Category: Sellers