Experts see even better days ahead as inventory returns in spring
For the second consecutive month, existing home sales rose, as January’s numbers were up 0.6% from December.
According to Lawrence Yun, chief economist for the National Association of Realtors, home sales continue to ascend in the first month of the year, as buyers quickly snatched up virtually every new listing coming in the market.
To him, sales easily could have been 20% higher if there had been more inventory and more choices.
Low inventory remains an enormous problem for the industry, especially with mortgage rates hanging below 3%. But experts agree better days are ahead, with more homeowners expected to move during the warmer months.
Yun also said the continued COVID-19 vaccine rollout and financial stimulus from President Joseph Biden’s American Rescue Plan will only aid in more home sales – which will in turn prop up the economy even more.
Younger-aged homebuyers are expected to continue to pack the market this year, especially with the possible passage of Biden’s $15,000 tax credit for first-time homebuyers.
First-time homebuyers were responsible for 33% of home sales in January, up from 31% in December 2020 and from 32% in January 2020.
Nicholas Family Vineyards will now be the new name of the estate, Bella Vida Vineyards, after being sold last January 21st for an undisclosed price.
Its new owner, Blair Nicholas, a resident of Olivenhain in San Diego County, settled on Bella Vida after touring multiple properties in the region. A retired attorney, living with his wife LJ, and four children, Blair is looking forward to experiencing the lifestyle and the community of the Dundee Hills.
The sale entailed a residence, which includes a tasting room on the first floor, a barn and farm equipment. However, Blair plans to design a new stand-alone tasting room and a wine cave. The family is also considering building a winery.
On the other hand, the seller, Steven Whiteside, bought the estate in 1996 and planted the vineyard in 1998. Until a few years ago, Whiteside split his time between Arizona, where he made pediatric orthotics and prosthetics, and the Willamette Valley.
Now 70, Whiteside, who loves his community, is now renting a property nearby. He looks forward to seeing the changes the Nicholas family plans to make to the Bella Vida property.
New owners of this vineyard estate were represented by Cascade Sotheby’s International Realty’s very own, Tina Jacobsen and Laura Piccard.
In today’s housing market, there are clear financial benefits to owning a home: increasing equity, the chance to build your net worth, and appreciating home values, just to name a few. If you’re a renter, it’s never too early to think about how homeownership can propel you toward a stronger future. Here’s a dive into three often-overlooked financial benefits of homeownership and how preparing for them now can steer you in the direction of greater financial security and savings
1. You Won’t Always Have a Monthly Housing Payment
Personal finance advisor Dave Ramsey explains, “Every payment brings you closer to owning the house. When you pay your rent, that money is spent. Gone. Bye. Not returning. But when you pay your mortgage, you work toward full ownership.”
As a homeowner, you can eventually eliminate the monthly payment you make on your house. That’s a huge win and a big factor in how homeownership can drive stability and savings in your life. As soon as you buy a home, your monthly housing costs begin to work for you as forced savings in the form of equity. When you build equity and grow your net worth, you can continue to reinvest those savings into your future, maybe even by buying that next dream home. The possibilities are truly endless.
2. Homeownership Is a Tax Break
One thing people who have never owned a home don’t always think about are the tax advantages of homeownership. The same article states, “You have tax advantages. Many of the costs of owning a home—like property taxes—are tax deductible. And if you’re paying off a mortgage, you’ll get to count your mortgage interest as a deduction when you file your tax return.”
Whether you’re living in your first home or your fifth, it’s a huge financial advantage to have some tax relief tied to the interest you pay each year. It’s one thing you definitely don’t get when you’re renting. Be sure to work with a tax professional to get the best possible benefits on your annual return.
3. Monthly Housing Costs Are Predictable
A third benefit is the fact that monthly costs start to become more predictable with homeownership, something that doesn’t happen if you’re renting. Ramsey also notes, “Rent rates will go up. Even if you found a killer deal in a hot area, inflation, competition, and rising property values will cause your rent to go up year after year.”
With a mortgage, you can keep your monthly housing costs relatively steady and predictable. Your monthly costs are most likely based on a fixed-rate mortgage, which allows you to budget your finances over a longer period of time. Rental prices have been skyrocketing since 2012, and with today’s low mortgage rates, it’s a great time to get more for your money when purchasing a home. If you want to lock-in your monthly payment at a low rate and have a solid understanding of what you’re going to spend in your mortgage payment each month, buying a home may be your best bet.