During the early 80’s households headed by someone under 35 was $15,260, while households headed by someone over 65  was $120,500.  10-to-l difference, but now it is 20 to l.  The typical older houses has $210,500 in wealth compared to $10,500 for a younger household.  Nearly  80% of older folks own their home, but those under 35  just 34% & down from 43%.  First-time home buyer % is at its lowest point in 30 years, according to Lawrence Yun the NAR chief economist.  MORE TO COME IN NEXT BLOG.

Since many buyers are “credit challenged” or cannot qualify for a mortgage, CONTRACT FOR DEED, can be a way to go.  Sellers can charge any interest rate they want to & can foreclose quickly if one payment is missed,  This can be risky + the buyers loose their equity.  Look for a local non-profit that deals with these & they will give the buyers credit counseling & help with terms on the contract for deed that are more reasonable, IF the seller will accept that.  Contracts for Deed are inherently troublesome;  it’s that people don’t always use them appropriately, according to Graham Wood.  Get a COMPETENT REALTOR TO HELP YOU!

A hazardous flavoring chemical linked to an acute respiratory illness has been found in many flavored electronic cigarettes.  The chemical is known as diacetyl.   This bronchiolitis is an irreversible lung disease.  Flavors such as “Cupcake”, “Fruit Squirts” & more.  E-Cigarettes are NOT regulated by the Food and Drug  Administration, meaning health risks are unknown at this time.  Bearing this in mind, how SAFE is the “HARMLESS”  ALTERNATIVE  to cigarette smoking?  This according to the Harvard T.H. Chan School of Public Health.

The Senate passes the HOUSING OPPORTUNITY THROUGH MODERNIZATION ACT of 2016.  This bill contains reforms to increase & facilitate homeownership and affordable rental housing by providing assistant to low-income renters.  Some changes include the Rural Housing Service Single Family Guaranteed Loan Program to be current with other government loan programs.  Also reduce current FHA regulations surrounding existing condo projects.  More in the bill which was approved by the House earlier, but still needs its final approval.

Tax values increased as median home value in 2016 is $175,496 as compared to 2015 at $168,260.  Houses on the market for an average of 32 days in 2015.  Much shorter than years before.  A few property values are down due to lower oil revenues.  It does not appear that the recession from oil prices has caused many housing problems with jobs cut.  Gladewater and Winona are seeing declines in taxable values of properties.  For instance, Winona had $5.3 million in new construction, BUT $20 million in taxable mineral values.  JUST CHANGES!

Of course TEXAS is one of the top ones where properties sell in up to 30 days.  11 other states fall in this category:  California, Oregon, Washington, Utah, Colorado, Kansas, Nebraska, Iowa, Minnesota and the only one on the East Coast is Massachusetts.  11 had market times of 31 to 45 days and 11 more sold in 46 to 60 days.  4 states took longer than 90 days to sell, leaving 13 states taking 61 to 90 days to get a sale.  NICE WE LIVE IN A STATE WHAT HOMES SELL QUICKLY.    That way we can all move on!

Reasons companies move to Texas are many, but 1st or 2nd are adequate roads.  We are NOT maintaining roads as we should.  We pay more to drive on poorly maintained roads – $516 per year in the U. S., $815 in San Antonio, $772 in Houston & on and on.  Tourism has a major impact for us, which is another reason we need good roads with 54% from out-of-state.   Transportation investment is a great way to stimulate economic development.  More jobs are created.  Poor roads costs us money in “beating” up our cars, lives lost, extra fuel, etc.

First time home buyers in Texas make an average income of $60,000 & a credit score of 710, just lower than the national average.  Texans shell out a down payment of $12,000, just $3,000 less than the national average.  Buyers across the country plan to stay in the house for around 9 years.  The low inventory of homes is affecting 1st-time buyers the most, but millennials are still gaining traction as the largest group of homebuyers in the nation.

Some tax advisors refer to client situations as having either “good facts” or “bad facts”.  Good facts lead to favorable tax returns, but the opposite is true for bad facts.  In real estate scenarios, good facts pertain to adequate documentation of  business activities as well as the activities themselves.  Real estate holdings lead to favorable tax treatment because of the taxpayers’ good facts.  Also need expert tax advice from a CPA and/or financial advisor.  MORE COMING FROM Dr. Jerrold Stern from the Texas A&M Real Estate Center & Indiana University.

161 projects, 9,053 new jobs, 11,831 retained jobs & $794,038,149 in new investment according to Tom Mullins, CEO Tyler Chamber of Commerce.  Tyler’s business-friendly approach, low taxes and city services are helping attract new business to our region & in turn more jobs.  “Business needs to be taken care of rather than taxed into oblivion”  according Dr. Mark Dotzour, real estate economist at Texas A&M Real Estate Center.  Even with a recession with our  low unemployment rates & increased population growth we SHOULD BE OK.