Nick Vertucci is a well-known real estate investor who feels that the growth in home sales is going to slow down this year. He feels that many states are going to see these declines right away. The is a first because the past five years have seen a steady gain of home sales. Since 2012, the median sale of a home has gone up by almost 40 percent. Over the same amount of time, the median wage rate had also rose by around 12 percent as well.
Much of these changes since 2012 have been because of the improvement of the economy and consistent gains in the job market, says Mr. Vertucci. All of the changes have resulted in more demands for housing while there is not enough home builders to adequately satisfy that rise in demand. The housing starts were under a historic and long-term average of just around 1.5 million each year for more than a decade. However, in 2017, there were only 1.2 million new apartment units and homes built. This did, essentially, mark the best performance in new homes and apartments since the recession back in 2008.
Additionally, homeowners are starting to stay in their homes longer than they used to. The mismatch between supply and demand has lead to this happening, according to Nick Vertucci. He is a renowned expert in single family homes. He has many years experience and knowledge on home sales and how the economy affects the supply and demand of them. Before being a real estate investor, he had served as the CEO and President of Coastline Micro. The company was a leader in the industry that offered help to businesses with their computer systems. He now dedicates is life to helping veteran and novice real estate investors in real estate.
Many market changes are coming up this year in 2018. The positive changes will include some that come with the new tax reform. This is going to put an additional couple of thousand dollars in most average American’s pockets. This will greatly boost the economy and give it a push in the right direction. For some, that extra money can help with a down payment on a new home. The falling employment can help to bump up the growth of wages across the country. Also, the stock market is going to boom as it reflects the new tax law and adds extra cuts to the corporate tax rates.
There is a new high for the aggregate wealth of the entire country. The total wealth of all households across the country is rising by more than $2 trillion each and every quarter. It is with hope that many Americans are going to let some of that wealth flow into the purchase of property and home sales, says Vertucci.
On the other side of the spectrum, the new tax reform could also put some unfortunate constraints on home purchases. These new tax cuts are not like free lunch. The country’s debt is also expected to grow by another $1.5 trillion over the next ten years alone. This large amount of accumulated federal debt, on top of the monetary policy from the recent ten years, didn’t really affect the interest rates too much. The backdrop of the economy is extremely different this decade.
There happens to be another reason why many are opting out of buying a new home amid the new tax reform. There are less incentives these days to being a homeowner. When you used to purchase a home in the past, the full deductions of both property taxes and the mortgage interest were put into the purchase price of a home’s cost. Now, many people lose out on these deductions because they are forced to take the standard deduction instead of the itemized deductions when they file their taxes.