Existing Home Sales Dip Again
For the fourth month in a row, sales of existing homes have dropped according to a report from the National Association of Realtors. The main factor behind the volume of existing home sales dropping is that the inventory of homes for sale continues to dwindle. This low inventory is causing median existing-home prices to rise (23.6% from May 2020 to May 2021) pricing some buyers out of the market. Region by region. the Midwest saw an increase in existing home sales month-over-month, but the Northeast, South, and West fell by 1.4%, .4%, and 4.1% respectively. Year-over-year each of these regions saw a double digit rise in existing home sales. As home builders rush to build on already purchased lots and materials to build remain tough to find, existing home sales may see a bounce back in the next few...VA-like Housing Bill Proposed for First Responders and Teachers
New legislation would offer a benefit similar to VA loans to first responders and teachers looking to buy homes. This new bill called the Homes for Every Local Protector Educator and Responder Act was introduced on May 13th. This bill would allow first responders and teachers to finance up to 100% of the price of their home purchase subject to FHA loan limits. Similar to an FHA loan, borrowers would pay an up-front mortgage insurance premium which could also be financed. This would replace the monthly insurance premium. The new program, if passed, would be administered by the Federal Housing Administration. Under this proposed bill public/private school teachers, prison guards, police officers, firefighters, paramedics, and emergency medical technicians would all be eligible for this...Save Money on Future Real Estate Taxes When Selling Your FL Home
Starting in 1995, if you own a primary residence in the state of Florida, you can apply for a tax benefit called Save Our Homes. This benefit can be applied to all primary residences in the state of Florida and limits the increase in a property’s assessed value to 3% per year. As market values rise, this can help limit the increase in your real estate tax bill. When selling a primary residence, this benefit can be transferred to your new home through a process called portability. If your new residence has a market value higher than your former residence, the portability amount is determined by finding the difference in the assessed value of your former home from its market value. Assume your previous residence has a market value of $500,000 but the assessed value is $300,000. That means that the assessed value of your new home can be reduced by $200,000 for tax purposes due to portability – which can result in big real estate tax savings. The maximum amount that can be ported is $500,000. If you’ve sold a home and did not transfer your prior benefit, you have two years from the time of your sale. For more information on Save our Homes and portability, check with your local property...Mortgage Applications Dip Once Again
Mortgage application volume once again experienced a dip, falling 0.9% last week. In a week marked by a slight rise in mortgage rates, refinance application volume remained unaffected, while purchase applications saw a minor fall. This marks the second straight week of decreases in purchase mortgage application volume. The lack of inventory remains a problem with purchase mortgages as the amount of people applying is outweighing the amount of homes available discouraging prospective buyers. The FHA’s share of mortgage applications decreased to 10.1% from 10.7%. The VA share of mortgage applications decreased from 12.2% to...Things to Consider When Buying a Second Home
As more and more people begin buying second homes in eventual retirement destinations, there are a few things you should consider to make this decision as easy as possible. Find the best location: Does the location of your eventual retirement residence coincide with your lifestyle? Do you enjoy activities the area provides? Know what is most important to you: Is it close to family? Is it near airports/trains for easy travel? What factors matter the most to you? Consider medical care facilities: Is it near hospitals, doctors, and specialists? Does the home meet current and future needs: Will you want stairs when you’re retired? Is the house too large to keep clean by yourself? Think about rental income the property can bring: Can you rent in this neighborhood? Do the seasons change drastically: Make sure you want to live in this area year round. Weather that becomes drastic during specific seasons may be a deterring...Connect With Us
