A Let-Up On Real Estate Prices? Some Trends To Watch

Will housing market prices continue to increase or will we start to see them level out? 2017 was an exciting year for real estate and many are wondering if the top dollar buzz is going to continue.

According to a recent RISMedia article, new research from HouseCanary, indicates the markets are now stabilizing.

“Although the housing market is still strong, with home prices still increasing in many markets, there is clear evidence of a considerable deceleration in the pace of those price increases,” says Alex Villacorta, executive vice president of Analytics for HouseCanary. “The rapid price growth in high-end and luxury markets seems to have stagnated as affordability continues to put downward pressure on home price appreciation.”

What factors are fueling the trend? The demand/supply dynamic, for one. Buyers are out in droves, but inventory is lacking. The imbalance is pressuring prices—and affordability is suffering, in turn.

Affordability is also impacted by mortgage rates, which is anticipated to land in the neighborhood of 4.75 percent by this time next year—a change that could deter homeowners with lower rates from selling, exacerbating inventory issues. The average 30-year, fixed mortgage rate has been on an uptick since the start of 2018.

Price Recently Reduced Charming Bigfork Log Home on 10+ Acres.

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The Tax Cuts and Jobs Act could have an effect on housing, as well, though how it could help or hurt the market is unclear.

The ever-changing mortgage rates & tax reforms buyers & sellers are faced with are just a few reasons why individuals should utilize an experienced Real Estate Professional. Please contact us today to schedule your complimentary consultation so you can be certain you are making the best decision for you and your family.

To read the complete RISMedia article please click here.

Need a trusted Real Estate Professional? Click here to be connected to our Glacier Sotheby’s International Realty team!

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Income Tax and Donald Duck

Income tax time is fast approaching and there’s a good story behind it. It’s a story of two wars, a dying Supreme Court justice and Donald Duck!

During the Civil War, Congress decided to try an income tax and they made it public. Prior to that, money was collected from tariffs. Each neighbor could see what the other was paying. Abraham Lincoln paid $1296 in 1864.

By the late 1800’s, income tax was almost only paid by the rich and they had some talented lawyers. In 1895, the case went all the way to the Supreme Court. One justice was on his death bed, and the remaining eight split evenly. The dying justice came back and by a vote of 5-4, the court found income tax unconstitutional.

In 1913, Congress and the State brought it back by amending the Constitution. Again, the tax was only being paid by the rich people.

When World War II came along, the government needed more money and middle class were being asked to pay, too. Legislators thought ordinary Americans just wouldn’t do it. They wanted someone credible and easy to understand. So the government got Donald Duck. He marched around the house listening to the radio and filling out his tax form. Occupation: actor. Dependents: Huey, Dewey and Louie.

It worked. Donald Duck got ordinary Americans to pay their income tax. And here we are now.

Here’s the 1943 cartoon produced by Disney Studios showing Donald doing his fair share of taxpaying: https://www.youtube.com/watch?v=99zmpod_zbE

Here’s the full story from Planet Money: