Tax Reform Versus the Rate of Home Ownership
Pending tax reform plans threaten to wipe out the tax benefits of owning a home for 95% of American families. This represents the elimination of almost $580 million in tax savings in Nevada alone! Act now to make sure Congress implements a tax reform that lowers rates in a way that’s fiscally responsible and makes sense – without saddling homeowners with a larger tax bill.
This is a most important piece of legislation and we are compelled to advocate for the protection of the Mortgage Interest Deduction for home owners. However, this is merely a good first step! We simply must find a way to improve the rate of home ownership while creating a way to loosen credit without compromising the integrity of the loan underwriting process. Why? Here is what has happened to the rate of home ownership over the past 50 years:
More than twelve years of legislation has not made much of an impact on the ability of one to purchase a home. Clearly the rate of home ownership has plummeted. What about Nevada?
So much for legislation or any other programs having helped Clark County, Nevada. And the root cause is?
Credit has been tightened every year for the past eight years! What one could purchase with a 680 FICO score eight years ago now takes a 740 FICO score. And that’s with some of the lowest interest rates ever. Credit is tighter now that when interest rates were 18-21%! Perhaps there should be less emphasis on FICO scores and more analysis of a borrowers risk profile and overall credit worthiness?
Greater Las Vegas Real Estate Market Overview
October 2017 Single Family Residential (SFR) closed sales were up 1.6% from September and up 13.2% compared to October 2016. Year to date 2017 closed sales are still up 9.8% over 2016. The median closed sales price of a SFR dipped to $263,000 while the average closed sales price of an SFR jumped to $313,032 for a modest 1.2% increase. Residential resale activity continues to be brisk – leaving us with approximately 1.8 months of inventory. Year-to-Date luxury sales closings are on the verge of surpassing both 2013 and 2015 results and are up nearly 42% over last year.
It’s Open House Weather!
Available inventory declined a bit more this past month. My strong recommendation is to take advantage of the fall weather and the increase in new home inventory. Simply find an open house near one or more new home communities so that you have inventory options for your buyers. Also, take the time to get to know those new home communities, their offerings and the tract agents. They often have standing inventory with incentives that may not be advertised.
Coming Next Month – Property Management Pre-Licensing Class