|
THE BUZZ
The question remains: Is it a good time to buy? To sell? Existing-home sales headed up in August for the first time in several months as the economy continued to post solid growth, creating jobs, pushing up wages, and boosting confidence according to NAR Chief Economist Lawrence Yun. His Home Survey from Q3 2018 showed:
- In the third quarter of 2018, 63 percent of people believe that now is a good time to buy a home.
- Only 37 percent of people believe that now is not a good time to buy a home.
- Seventy-seven percent of people believe that now is a good time to sell a home, which is the highest percent recorded, since the collection started in 2015.
This is over a 10 percentage point increase from 63 percent in Q3 2016.
For sellers, serious consideration should be taken now. For buyers, the Fall and Winter offers more possibility to low competition.
Let's talk.
JUST ASK
Many homeowners are adding a rental suite to their home or an ADU (Accessory Dwelling Unit).
In California (statewide) there have been a lot of updates with current laws.
#Two Doors has become a national discussion recently. It's common to require legal rental suites to have their own separate entrances.
And don't think that you have to live in a resort area for your home to be desirable. Being close to a college or university, a hospital, a big employer or even living in a city with a tight rental market can make your property a place someone would like to rent.
Be sure to research the regulations for legal suites in your area before you renovate or build.
Also, research how much income your suite will bring in before you create one. Calculate how long it will take you to get back the money you have to spend on your renovation before you will start making money as a landlord. Rentometer is a handy tool for checking rental prices in your location.
MY TOWN
Per the National Association of Realtors, 2018 is the first tax year you can take advantage of the new 20 percent business income deduction. Congress passed that provision last year as part of its big tax reform bill. It applies to your net business income —that's your qualified business income minus your business expenses.
But there are limits. First, if you file as a single taxpayer the deduction starts to phase out when your net business income hits $157,500. And if you file a joint return, it starts to phase out after your joint net business income reaches $315,000. There are other limitations, also, including what the IRS will count as qualified business income.
NAR will be coming out with guidance on this and other aspects of the tax law shortly. But right now? Start talking with your accountant about the new deduction. Ask about the new Section 199A business income deduction.
FYI
Sales slow because of a lack of inventory. Buyers simply can't find a home to meet their needs.
As the weather cools, all that could change. Recent market shifts will give buyers a leg up in the next few months and into next year.
At the same time home sales were slowing in July, NAR® reported the median existing-home price for all housing types was $269,600, up 4.5 percent from July 2017 ($258,100). July's price increase marked the 77th straight month of year-over-year gains.
But this winter, things will change. Buyers will be able to pick and choose with less competition from other buyers. The added pressure of selling before the holidays often gives buyers even more of a leg up.
That makes for a great scenario. Good time to sell. Good time to buy.
|
