Our market continues to show signs of future progress, but we still are hovering right at the number of sales of last year. While you will read reports that our median sales prices is rising, that does not mean that our values are rising. The main reason this number is getting higher, is the number of more expensive homes are starting to sell. If you look at the number of properties sold in the higher price brackets and compare that to months past, you will see how this makes sense that the median price is rising.
Below is an excerpt from a recent article:
As the housing market continues its slow improvement, state Realtors are concerned with the impact of legislation recently signed by NC Governor Pat McCrory which limits deductions used by many homeowners.
Part of a comprehensive report of state tax laws, the legislation caps at $20,000 itemized deductions for mortgage interest and property taxes. According to the Charlotte Business Journal, "Some legislators wanted to eliminate the deduction all together. The state Realtors group worries that next year the cap may be lowered to $15,000 or $10,000 – or be cut completely."
Mark Zimmerman, legislative chairman for the North Carolina Association of Realtors, told WRAL-TV that a variety of factors – including home value, mortgage interest rate and property tax rate – could impact how much this will cost homeowners.
In general, those who owe about $300,000 or less on their mortgage will be able to take their full deductions, while those with more expensive homes and mortgages would start losing out on the tax break.
"You can buy a little more home because you can deduct this," Zimmerman said, referring to mortgage interest. "Once you take that away, you're going to see pressure – downward pressure – on home values."
*For a copy of the most recent Market Update (Market Absorption Rate 2013-09-03), please don't hesitate to call or email me at anytime.
Regards,
Marc White
Broker In Charge/REALTOR, Cash Realty & Cash Custom Homes
Call/Text 828-406-2134
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