Future Housing Affordability
Thursday, April 26, 2018
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Mt. Hood March Sales for 2018
Tuesday, April 24, 2018
Low inventory has reduced our monthly sales for March. With only 44 homes and condos currently available for sale as active there is not a lot of choices for buyers in this market. Many buyers are frustrated with the current status of the process with multiple offers on nearly every high demand home that hits the market. It's frustrating, but active buyers in this market are up against the odds. We have only 2.7 months of inventory for sale which is a total seller's market. Only eleven sales closed in March. See below.
Mt. Hood Seller's Market!!!!
Tuesday, April 24, 2018
The lowest inventory in years has produced one of the greatest seller's market we've seen in decades! When looking at every pricing point in our area, there is only a 2.7 month of inventory for sale. There couldn't be a better time to have your home for sale than today.
Mt. Hood Market Stats for March 2018
Sunday, April 15, 2018
Mt. Hood Sales numbers for March have been released from RMLS. March sales hit a total of eleven. Average sales price of $360,800 for the month of March! This reflects the lack of inventory we have on the market. New listings are starting to emerge but not many on the lower end of the pricing scale. The break down of active single family homes falls this way:
A third of homes are under $300,000
A third of homes are $300,000-$400,000
A third of homes are over $400,000
There's ten Condo units currently for sale with the majority up in Government Camp.
Mt Hood Thirteen Sales for Februray 2018
Wednesday, March 21, 2018
The sales for February 2018 hit thirteen closings. We saw four fixer-uppers, two Timberline Rim homes, two Government Camp condos and one Mt. Hood National Forest cabin close. Inventory under $200,000 sits at five properties at the moment. As we head into spring we are seeing a few new home entering the inventory. Nearly a third of our inventory for sale is over $400,000!
Mt. Hood Real Estate Sales for Februaruy 2018
Sunday, March 18, 2018
Recently released stats for February by RMLS show only 43 active listings for sale. Inventory is the word of the day for the mountain. This is the greatest seller's market I've seen in over 10 years. Priced right and in demand properties usually have multiple offers within a day. If you're a seller and on the fence, now is the time to have your property on the market.
Average Sale Price increases in 2018 on Mt. Hood
Monday, February 26, 2018
A lack of inventory has driven sales prices up over the past year and here are the current numbers for January. Active listings sit at 44. Pending sales comparing this January to last January are up 40%! Of course, that could have been due to the crazy January deep freeze we experienced.
As inventory decreases our median and average pricing points have gone up. Medium price currently sits at $312,000. Last year we sat at $264,800 and in 2016 it was a lowly $235,300.
Once spring hits we'll know how this will play out and if we'll have some homes to sell. Many buyers are making their land purchases for future development with such a low home supply. If we had some new homes to sell they would fly off the shelf.
We have a major need for any and all types of homes and cabins so if you're thinking about it, now is the time to get things going!
December Sales on Mt. Hood
Saturday, January 13, 2018
Numbers are in for December 2017 totaling 17 sales for the month!
Mt Hood National Forest cabins totaled four sales and condos did well with three closed. The balance of closed sales were spread throughout the area. You can tell inventory is down when the Government Camp house on Round Mountain Loop finally sold after four years of being on the market!
Tax Reform and Housing: A Reference Guide
Sunday, January 7, 2018
Tax Reform & Housing: A Reference Guide
- Disclaimer: This guide is not meant to be a resource for tax advice but instead a resource for basic information concerning only certain aspects of the new tax code and how they may impact the real estate market. You should get tax advice from your accountant or tax preparer who will explain how the entire tax code will affect your personal return.
This information comes immediately after the new tax code became law. Some of the information may be revised as the analysis of the new law evolves.
When the tax code was originally being overhauled by the House and the Senate, there were three major proposals being considered that would have substantially impacted the residential real estate market:
- Changing the requirements for the exclusion of gain on the sale of a principal residence
- The reduction on the limit of the Mortgage Interest Deduction (MID)
- The elimination of the State and Local Tax deduction (SALT) which includes property taxes
Let’s look how the tax code has evolved from the original proposal, and decipher what impact experts believe it may have on the housing market.
1. Exclusion of gain on sale of a principal residence
Original Proposal: Owners would need to live in their house for at least 5 out of the last 8 years to claim this exemption. Under the former tax framework, a typical owner, who has lived in their house for at least 2 years out of the last 5 years, would pay nothing in capital gain taxes if they sell the house.
The New Tax Code: No change. The “at least 2 years out of the last 5 years” requirement is unchanged.
Impact on the Market: None.
2. Mortgage Interest Deduction
Original Proposal: Reduce the limit on the mortgage interest deduction (MID) amount from $1,000,000 to $500,000.
The New Tax Code: Reduces limit on deductible mortgage debt to $750,000 for new loans taken out after 12/14/17. Current loans up to $1 million are grandfathered.
Impact on the Market: Assuming a 20% down payment, this reduction in the MID will impact buyers that are purchasing a home between the prices of $938,000 and $1,250,000. Any home under the lower price is still covered and any home over the higher price was not covered under the former tax code either.
What does that mean to the market? Experts disagree. Calculated Risk’s Bill McBride:
“I think the impact of reducing the MID from a maximum of $1 million in mortgage debt to $750 thousand in mortgage debt will have very little impact on the housing market.”
On the other hand, Capital Economics claims:
“The impact on expensive homes could be detrimental, with a limit on the mortgage interest deduction raising taxes for those that itemize.”
3. State and Local Taxes (SALT)
Original Proposal: The elimination of the state and local tax deduction (which includes property taxes).
The New Tax Code: Allows an itemized deduction of up to $10,000 for the total of state and local property taxes and income or sales taxes.
Impact on the Market: Most experts agree that higher taxed regions will be impacted as homeowners in those communities now have a cap on these deductions.
Calculated Risk’s Bill McBride stated:
“SALT will have an impact on housing in some areas. Some people might choose to live in one state over another (if they have a choice), based on taxation. This could impact demand in certain states – especially for the middle and upper-middle class homeowners.”
Mark Zandi of Moody’s Analytics said:
“The impact on house prices is much greater for higher-priced homes, especially in parts of the country where incomes are higher and there are thus a disproportionate number of itemizers, and where homeowners have big mortgages and property tax bills.”
What will be the overall impact on the housing market?
For most of the country, the new tax code will not have a negative impact on the market. As Capital Economics reports:
“Given most households will see an overall tax cut, and potential buyers are likely to put that saving towards their home, we doubt it will have a significant detrimental impact on the housing market.”
There is also no doubt that some higher priced, higher taxed regions will be affected more than others. However, most experts agree that other portions of the tax code will favor the high-end buyer and seller, and this might mitigate many concerns. McBride explains:
“The corporate tax cuts (and other tax cuts) will mostly benefit the wealthy, and this will be a positive for high end real estate.”
What does this all mean to you?
To know for sure, you should sit with your accountant or financial planner and explore how all the aspects of the new code will impact your family.
Most families consider homeownership an essential part of the American Dream, and don’t purchase a home based solely on the tax advantages. The main reasons they buy a home are personal (they just got married, they are looking for a good place to raise children, they want to be near friends and family, they want to better enjoy their retirement, etc.). This will never change.
Looking at the new tax code, Mr. McBride’s opinion makes the most sense:
“There will be some negative impact based on SALT, but overall the impact of these policy changes on housing will be minimal.”
November Real Estate Sales for Mt. Hood area in 2017
Friday, December 15, 2017
Mt. Hood sale numbers have surged this year and the minimal inventory has caused prices to continue to climb. As seen with this November 2017 report from multiple listing, compared to 2016 our prices have climbed nearly 19% over last year. The average sales price has bumped up to $309,400!
Oregon seems to be fairing very well in the scheme of things. Take a look at this map showing price appreciation of the whole state over the past year compared to the rest of the country. There's nearly a 9% difference from last year!
Here's another interesting map of home affordability, or should I say unaffordable as compared to late 1990's. Oregon ranks right up there with California, Hawaii, and Washington DC. This shows how much Oregon's prices have gone up recently. It actually shows that the state was probably at dirt cheap prices in late 1990 but we've really escalated over the past two decades!
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