For any Democrat acquaintances
Posted on 11/21/2023 12:11:55 PM PST by ChicagoConservative27
The sale of previously owned homes fell to an annualized rate of 3.79 million in October, marking a 13-year low, according to data released by the National Association of Realtors (NAR) on Tuesday.
Existing home sales, which fell 4.1 percent from September and 14.6 percent from last year, reached its lowest point since August 2010, the data showed.
“Prospective home buyers experienced another difficult month due to the persistent lack of housing inventory and the highest mortgage rates in a generation,” Lawrence Yun, NAR’s chief economist, said in a press release.
(Excerpt) Read more at thehill.com ...
Unless there is a yuge crash along with the rest of the economy in general going down, the Dems will push their media lapdogs to have stories on “gas went down again this week” and “consumers feeling good despite inflation which is now rising much more slowly than six months ago.”
And the dimwitted American people will say “I’m voting for Newsom and Michelle.” 🤪😜
Naw, we’ll focus on the ONE SUBJECT that motivates democrats to vote. Killing babies. And we will lose another election.
Say hello to
GAVIN NEWSOM, PRESIDENT OF THE UNITED STATES
Probably not a crash, since the problem is lack of inventory. The other problem is that people are disincentivized to move from a 3% mortgage at X cost basis and take on an 8% mortgage at X+++ cost basis. These problems will persist for quite a while, I suspect. But I do agree something has to give, and maybe if there are greater problems in the overall economy that will force people out of homes, sending prices lower with more inventory. But it’s not like 2009 all over again so I have no idea what will cause things to change anytime soon. It’s very difficult for young families to get into any property.
The durable goods crash won’t be far behind.
Sure glad I’m where I want to be, with no desire to sell.
Must be tough for those who want to sell and bail out from wherever they are.
You’re telling me?
That demonic witch Gov.Gretchen Whitmer just proudly signed a bill to smooth the way for any babykilling abortion plan that comes into the minds of the electorate.
The Michigan Constitution amendment last year was rushed onto the ballot at record speed from an overwhelming petition signature drive and voted into law. The women (and males) could barely stop themselves from getting into line to vote for it. Energized as I have never seen here.
I’m just wondering what the Biden Administration is cooking up now to kick us all in the collective nuts again.
Disposable income has been destroyed by inflation and high interest rates. The Fed will do absolutely whatever it can to avoid a crash, so I don’t think there will be one per se, but we may well get a painfully deep recession. JMHO
Dayton, Ohio Realtors report
October Sales
$330M in total sales
10% more than October 2022
Prices 5.5% higher than 10/2022
YTD sales down 14%
Also property tax increases. Florida has an annual 3% cap on assessment increases for as long as you own your home. Buying a new home causes you to reset and lose much of that savings.
Indeed. I was trying to allude to that. California has a max of about 1.5% increase per year but it also resets however there are some exemptions if you sell and purchase a new home in a certain period of time you can keep your original cost basis. I am not 100% on the details or intricacies of that but I don’t know if you can take a $200k cost basis and move it over to a $3 million home. Which if you owned a home for 30-40 years is entirely plausible in California.
“$200k cost basis and move it over to a $3 million home. “
That is for income tax calcs. Only $500k per couple is exempt’
If you sell your $200k home for $1 million, you will immediately owe taxes on $300k.
There is Prop 19.
Current laws allow seniors over 55 years old and severly disabled persons to transfer the taxable value of their existing home to their new replacement home, so long as the market value of the new home is equal to or less than the existing home’s value.
That’s capital gains. I’m talking about transferring your cost basis from your old home to a new residence. It is possible here in CA but again I am not familiar with the particular fine print terms and conditions.
I also know people who went severely underwater in 2009-2010. They asked for a re-assessment. They got it, with the caveat that their home is subject to reassessment every 2 years. Again, not familiar with those particulars either.
There ya go
“That’s capital gains. I’m talking about transferring your cost basis from your old home to a new residence. It is possible here in CA but again I am not familiar with the particular fine print terms and conditions.”
Cost basis is for income taxes. If you buy a home for $200k and sell it for $400k five years later your cost basis is $200k.
In CA, if your $200k home is assessed for $200k, your base year value is $221k. Prop 19 allows ELIGIBLE people to carryover $221k value for property tax concerns,
Most people are NOT eligible, Seniors, handicapped and in-family heritances are eligible.
-——————CA.GOV———————
Since property taxes are based on the assessed value of a property at the time of acquisition, a current market value that is higher than the previously assessed Proposition 13 adjusted base year value will increase the property taxes. Conversely, if the current market value is lower than the previously assessed Proposition 13 adjusted base year value, then the property taxes on that property will decrease.
On November 3, 2020, California voters approved Proposition 19, The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act.
There is also Prop 13 in CA, which assesses the property at the value of when it was acquired, and the assessment cannot increase more than 1% per year regardless of what the fair market value may be. Which goes to what you were saying - if you buy a new home you likely also have new mortgage principle and interest payments and a re-assessment of the property for the new owner, and for the seller a new property tax assessment on the new house. Which goes to what I was saying - no incentive to move unless you have to; especially for people in their homes a long time. Better to stay in it, remodel it, put a chair lift or elevator if you need to, or just rent it out or bequeath it to your family.
Hence, lack of inventory and that situation is likely to continue. It’s still very much a sellers market, but buyers are drying up.
This will probably lead to greater out-migration from places like New York and California before you see any major correction in housing prices.
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