As the summer comes to an end, we’re seeing the real estate market continue to move steadily along. We don’t anticipate any drop off in sales as we enter the fall selling season. We have buyers looking to enter the home buying market – especially first-time buyers. Interest rates remain low, new loan programs are becoming available to help cash strapped purchasers and these opportunities are available in all price points. As I see it, our challenge will continue to be inventory levels, as many home owners are staying in their homes. They are doing so because they are not able to find homes to fit their needs in available move up price points. We are also seeing an increase in the amount of people that are renting their houses since they are gaining equity and have low interest rates/payments which allow them to have positive cash flow.
We also have three types of sellers – those who want to sell, those who need to sell and those who have to sell. Those who want to sell typically take their houses off the market as we head into the holidays, therefore reducing inventory. As long as we have houses to sell, the market will stay steady. Let me know if you have any questions or concerns if you are considering selling – the market conditions just might be in your favor.
Lastly, please keep an eye on what is happening with the President’s Tax Reform – doubling the standard deduction, eliminating state and local tax deductions and only having three tax brackets. Industry professionals predict these may all affect home values by 10%. Again, if these changes occur, it could affect housing as tax payers who claim mortgage interest deductions may no longer be able to claim this deduction, thereby eliminating the need to buy as a tax plan. Housing is critical to our economy so implementing this plan could put damper on the economic recovery. Let’s hope this reform doesn’t pass in its current form.
Have a happy and safe Halloween!