Affordable Health Care & Rising Rates

Who would have thought that the Affordable Health Care Act could impact the real estate sales market? The uncertainty over cost of medical care is resulting in a slowdown of sales. Also, the 3.8% tax that was rumored to apply to all real estate sales is not true. There is a 3.8% tax on investments, including real estate, but it is a complicated formula and is based on your income, among other things. Click on the link to view the flyer from the National Association of Realtors, “The Top Ten Things You Need to Know about the 3.8 Tax”. NAR top 10 things about 3.8% tax in healthcare act
Interest rates are still hovering around the 4% rate, down from the about 3% a year ago, and that’s for a conventional 30 year fixed rate mortgage. Processing and underwriting still continues to be a challenge, even for A+ borrowers. There is a big fear today of approving a “bad” loan, so the process has gotten a lot more stringent.
Now to the real estate market here in Kingsburg. As you can see from the CMA (comparable market analysis) numbers to the left, we currently have 23 homes for sale within the city limits and 9 sales that closed in the month of October. PSF (price per square foot) and DOM (days on the market) have been pretty much the same for the past several months. That little surge of value that we experienced earlier this year has flatten out somewhat, but at least values are not decreasing. As we head into the holidays, the market will probably remain flat.
The staff at our real estate company, The Housing Connection, and mortgage company, New Era Financial, sincerely wish you and your family a wonderful Thanksgiving.
thanksgiving 1
And as always, thank you for reading our monthly blog.

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