Did You Know?
One great reminder before we dive into things, when you work with Compass agents (like us), you get access to all the Compass Private Exclusive listings. These listings are not available to the general public, and won't show up in the MLS, Zillow, Redfin, or Realtor.com. These are great listings, and the sellers often times want to keep the number of showings to a minimum knowing that another Compass agent probably has a great buyer. What could you be missing out on?
Mortgage rates have exceeded the 7% point for the 30-year fixed-rate average to their highest levels in at least 21 years. Now, according to Logan Mohtashami of Housing Wire, they could get close to 8%.
“Short-term, as long as the economy outperforms, 8% is in the works. However, you can see the limits of mortgage rates now because the Federal Reserve has told us they believe their policy stance is restrictive. They don’t want to push the lever too much because one of their goals is to keep the Fed funds rate higher for longer.”
20 years ago, in the third quarter of 2003, there were 83 million owner-occupied homes in the US, and they were changing hands at a rate of 6.5 million homes per year. Today, there are about 96 million homes, but the rate of existing-home sales has slumped to just 4 million homes per year, a fall from 7.8% of existing homes sold per year to just 4.2%. Americans are staying in their homes for many more years on average than they used to, and that's mainly for financial reasons — not because they particularly want to stay put. (AXIOS)
Parents who wish to gift their home (that has increased dramatically in value, thereby subjecting it to capital gains taxes) to kids should instead consider transferring the home into an irrevocable trust that names their children as beneficiaries. This way it will no longer be a part of the estate upon death, thereby avoiding any estate taxes and capital gains taxes. The house will also not be subject to Medicaid estate recovery. Once the house is in the irrevocable trust, it cannot be taken out again. If sold, the proceeds must remain in the trust. Similar to making a gift, if you apply for Medicaid within 5 years of transferring the house, you may be subject to a Medicaid penalty period.
Local Happenings
Now Through September 26th
Tropicana Movie Nights
"Plunge into the deep end while watching a slate of movies (sometimes ones filmed at the Hollywood Roosevelt) during this outdoor screening series at the Tropicana Pool & Cafe. You’re welcome to get wet (towels, blankets and heaters are available on a first-come, first-served basis) or stay dry. Tickets are available by the bed (two to four people comfortably)."
