May 5, 2021
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The current housing market continues to spiral with few homes for sale and hungry buyers, pushing home prices up and buyer hopes down, but one economist believes capital tax reform could bring relief. Ralph McLaughlin, chief economist and senior vice president for real estate finance company Haus, says reforming the capital gains tax could lure more sellers into listing and directly benefit first-time buyers. With his suggestion, the capital gains tax would be exempt for property sellers if their home is sold to a first-time buyer, says MarketWatch. It could be most attractive to investors who may have purchased homes to convert into rental units as some rental markets across the country have struggled amid the pandemic.
May 5, 2021
Continue Reading
The current housing market continues to spiral with few homes for sale and hungry buyers, pushing home prices up and buyer hopes down, but one economist believes capital gains tax reform could bring relief. Ralph McLaughlin, chief economist and senior vice president for real estate finance company Haus, says reforming the capital gains tax could lure more sellers into listing and directly benefit first-time buyers. With his suggestion, the capital gains tax would be exempt for property sellers if their home is sold to a first-time buyer, says MarketWatch. It could be most attractive to investors who may have purchased homes to convert into rental units as some rental markets across the country have struggled amid the pandemic.
6 Reasons the Housing Market Isn’t About to Crash
Here s what real estate experts say.
Originally published by Jeff Ostrowski on Bankrate.com.
The U.S. housing market is on fire. Double-digit appreciation is the rule. Giddy sellers are sifting through multiple offers. Frantic buyers are forced to pay more than asking prices sometimes by $100,000 or more.
The real estate party is in full swing. The National Association of Realtors said last week that prices of existing homes soared a record 17 percent from March 2020 to March 2021 a pace that eclipsed even the eye-popping appreciation of the last boom.
The last time the U.S. housing market looked this frothy was back in 2005 to 2007. Then home values crashed, with disastrous consequences. When the real estate bubble burst, the global economy plunged into the deepest recession since the Great Depression.
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Housing isn’t a marquee part of the $2.5 trillion proposal Biden unveiled last week, dubbed the American Jobs Plan, as the next step of his economic recovery agenda.
The measure, however, would spend four times the entire Department of Housing and Urban Development’s 2020 budget on a range of programs meant to fight a housing shortage exacerbated by the pandemic.
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Biden is aiming to produce 2 million affordable houses and apartments with $213 billion in tax credits, federal spending and grants meant to encourage the construction of new buildings and the rehabilitation of existing ones to serve lower-income families.
The housing plan is still short on details and could change as Biden attempts to shepherd his infrastructure bill through Congress. Even so, affordable housing advocates, homebuilders, and housing economists say that Biden is on track to make a crucial dent in a pressing shortage.