NAHB rethinks strong stance on the mortgage interest tax deduction

The National Association of Home Builders changed its stance on one of the most highly debated homeownership conversations: the importance of the mortgage interest tax deduction.

“This is the first time in NAHB’s 75-year history that we have been open to the idea of broader options regarding housing tax incentives,” said Granger MacDonald, NAHB chairman and a builder and developer from Kerrville, Texas. “Now is the time to reform tax policy, and housing will not be left behind in this process.”

As one of the top lobbyists on Capitol Hill, for NAHB to put out an announcement on what it thinks about the MID is a big deal.

One of the only other housing groups that’s as vocal on the importance of the MID is the National Association of Realtors.

And to put in perspective exactly how much NAHB supported the MID, back in June, NAHB kicked off National Homeownership month by voicing its concerns over the House Republicans’ tax plan, which threatened the future of the MID. NAHB stressed that the mortgage interest deduction has been a cornerstone of American housing policy since the inception of the tax code.

Read the rest HERE.

Does the mortgage interest deduction help or hurt homeownership?

NAR and other experts fear that by raising the standard deduction, less people will itemize, and the mortgage interest deduction will have less value. This could, in turn, discourage homeownership, according to these experts.

“I think people buy homes because it represents security and a way to build wealth and a sense of stability,” said Laurie Goodman, Urban Institute co-director of the housing finance policy center. “I don’t think the mortgage interest deduction plays a large role in that decision.”

Dan Gilbert, Quicken Loans founder and chairman also agreed with Cohn, saying people buy homes because they are excited about the economy, not because of the mortgage interest deduction.

In fact, one expert says that while she would prefer to revise it, if she had to choose between keeping the deduction or getting rid of it, she would rid of the mortgage interest rate deduction.

“The mortgage interest rate deduction is not increasing the pipeline of working and middle-class homeowners,” Redfin Chief Economist Nela Richardson said in an interview with HousingWire. “It is a subsidy incentive that is given to people who itemize, and itemizes tend to be for high-income earners.”

A study the company expects to release latest this week shows households making over $100,000 receive 77% of the benefit from the mortgage interest deduction, while those making over $200,000 receive one third of the benefit.

Read the rest HERE. 

Monthly Market Overview North San Diego County

Every market is unique, yet the national sentiment has given rise to the notion that housing markets are stalling. Although desirous buyers are out on an increasing number of showings, there remains a limited number of desirable listings. And although mortgage rates have remained enticingly low, home prices have reached unaffordable levels for many new entrants into the housing pool at exactly the same time that established owners are proving to be less interested in moving.

  • Closed Sales decreased 13.8 percent for Detached homes and 9.8 percent for Attached homes.
  • Pending Sales decreased 11.0 percent for Detached homes but increased 1.0 percent for Attached homes.
  • The Median Sales Price was up 7.0 percent to $679,000 for Detached homes and 11.1 percent to $439,000 for Attached homes.
  • Days on Market decreased 10.8 percent for Detached homes and 14.8 percent for Attached homes.
  • Supply decreased 30.0 percent for Detached homes and 18.8 percent for Attached homes.

Last year at this time, the national storyline was about how high demand was propping up sales and prices despite low inventory and months of supply. That has actually continued to be a familiar refrain for many months in 2017 and now for the past couple of years. But with the likes of Hurricanes Harvey
and Irma, different employment outlooks, disparate incomes, varying new construction expectations and potential housing policy shifts, regional differences are becoming more prevalent and pronounced.

Download (Sep-2017-Monthly.pdf)

Report: San Diego needs to triple annual housing production

San Diego needs to roughly triple the number of homes it builds each year to keep up with demand and keep prices down, said a San Diego Housing Commission report released Thursday.

The commission, which is the city’s housing authority, produced the report with other government agencies to address rising rent and home costs. It said the city needs to take steps to increase the supply of homes — seen as the biggest reason for rising costs — such as eliminating required parking spots and increasing density in some areas.

The report argued the city would need an additional 150,000 to 220,000 housing units — that’s apartments, condos and single-family homes — by 2028, or 17,000 to 24,000 a year. It’s a tall order because the city’s top annual production rate in the last five years was 6,400 units.

“Whether you are working a minimum wage job or have a college degree and working a full-time job making a decent amount of money, you still can’t afford to rent or buy in San Diego,” said Councilman David Alvarez at a press conference Thursday at City Hall. “That is alarming.”

Read the rest HERE.

Columbus Day

First Landing of Columbus on the Shores of the New World; painting by Dióscoro Puebla (1862)

Columbus Day first became an official state holiday in Colorado in 1906, and became a federal holiday in the United States in 1937, though people have celebrated Columbus’s voyage since the colonial period. In 1792, New York City and other U.S. cities celebrated the 300th anniversary of his landing in the New World. President Benjamin Harrison called upon the people of the United States to celebrate Columbus Day on the 400th anniversary of the event. During the four hundredth anniversary in 1892, teachers, preachers, poets and politicians used Columbus Day rituals to teach ideals of patriotism. These patriotic rituals were framed around themes such as citizenship boundaries, the importance of loyalty to the nation, and celebrating social progress.

Columbus Day is a national holiday in many countries in the Americas and elsewhere which officially celebrates the anniversary of Christopher Columbus‘ arrival and Discovery of America, which happened on October 12, 1492. The landing is celebrated as Columbus Day in the United States, as Día de la Raza (“Day of the Race”) in many countries in Latin America and as Día de la Hispanidad and Fiesta Nacional in Spain, where it is also the religious festivity of La Virgen del Pilar. It is also celebrated as Día de las Américas (Day of the Americas) in Belize and Uruguay, as Discovery Day in the Bahamas, as Día del Respeto a la Diversidad Cultural (Day of Respect for Cultural Diversity) in Argentina and as Giornata Nazionale di Cristoforo Colomboor Festa Nazionale di Cristoforo Colombo in Italy and in the Little Italys around the world. These holidays have been celebrated unofficially since the late 18th century and officially in various countries since the early 20th century.