A look at 2017 – How It Went For Housing Markets
This article will assess the market from a holistic point of view and will certainly challenge the claim of the market being at its optimum performance level after all these years.
1. The Prices
The overall figures as far as the prices are concerned are absolutely splendid for the buyers because the low mortgage interest rate of 4% has resulted in an increase of roughly $80 million dollars in proceeds from people willing to get more properties at the better rate. Sources have argued that this rate is arguably historically low, and with the increase in number of constructions and better housing colonies it is a great convenience for the people to be able to afford them.
That being said, what these figures do not show are the 8 million people who have to reside in rented places simply because they cannot afford a place of their own, and that despite of these falling rates the houses are not exactly in the reach of those living in strained conditions. It could be, therefore, concluded that the prices may have lowered but only for those who could already afford the existing constructions.
2. The Taxation
Taxation amendments introduced by the Republican governors have not exactly been well received by people because it is just another instance where the rich people are able to maintain their financial stronghold. The taxations brackets have been lowered, and what that means is that people with low incomes are now part of these brackets.
These policies will also play a part in people not being able to own property simply for the sake of, for example, renting it on vacations to clients, which means that multiple properties will tend to become rare occurrences in the states.
3. The Ratios
The new constructions which the figures take pride in include only 2% of houses which were sold and were priced under $150,000, which clearly shows that even though prices were not allowed to rise there was not much the low-income earners could do about these properties prevailing in the market.
This was a major problem faced by the young, millennial buyers who would have looked for ways to capitalize on these better market conditions but found no ways to do so.
What can be traced from the facts and figures highlighted above is mentioned as follows:
The housing market has become more accommodating for middle and high-income earners.
The property tax that you will have to pay as an owner of these new houses will be lesser than what it would have been under the previous policies.
The changes have had no substantial impact on the people who could not afford these urban luxuries before because the apparatus has been designed to fall well beyond their financial reach.