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Well right now the threat -- the fiscal cliff having a major impact.
On the housing market.
It may not be directly with the fiscal cliff but just.
It being the end of the year is about buyers sellers and brokers are reportedly pushing to close on properties before the new year.
As all of beads and tax increase is down real estate and other capital gains that may take -- in January depending on what happens at these lawmakers in Washington DC -- -- and and the president chief economist and -- an economics and an adjunct professor at the Wharton school of business and your specialty being real estate yes what's the what's going on in the market today.
I think it's not a usual -- towards the end of the year we'll see an uptick in sales there are people who for over a variety of tax planning reasons will want to.
Sell their property whether it's an individual home whether it's commercial real state before we hit December 31.
It's a little bit more than that this -- you pointed out we have the fiscal cliff there's the potential for a meaningful rise in the capital gains tax.
And for some homeowners.
-- homeowners were they realize fairly significant gains they sell their home.
And the maker or a real profit on the sale are they will face.
The additional tax burden -- -- -- capital gains tax goes up -- Oh there's there's a rush for men in general for the markets though it is this a good thing to get some closings -- to have a lot of activity at the end of the year does that set a seven off for the year ahead.
Actually think -- it a little bit like the cash for clunkers program so we if you're thinking about buying a car.
-- maybe three months from now four months from now but you knew that if you bought it today -- be able to take advantage of this tax credit.
The flip side of that is that if you're thinking about selling your home in the next three months six months you know that -- doing it now before December 31.
The tax implications the tax bill that you'll face is potentially lower and so we're seeing that people might.
Accelerate their time -- -- they're selling now.
But that then means that there will very likely see a bit of a -- at the top end of the market come January.
What -- -- your head and housing lieutenant Mark -- on again I keep referencing his interview with -- yesterday because he says sending about.
The year ahead that surprised -- and that he felt like it ain't happy too bad and he plays the housing market as a reason landed the reasons that he had some optimism about twenty.
I think -- at you know six years after this downturn in housing really began.
We're starting to see some fairly broad signs that there's a recovery underway it's it's a slow recovery it's very early stage recovery.
But that we're benefiting from you know modest job creation.
At the same time we've got historically low mortgage costs.
And a smaller increase in the number of families were actually able to qualify for those mortgages.
You put those things together along with an expectation that you know what prices look like they're ticking up and so maybe now is the right time to buy.
And that starts to lead to some home sales critically we.
What about the banks out.
Because -- airlines giving the loans or are helping provide loans from you know new builders and all of that and we know that talking to small business that we have over the last several months said.
Credit is still very tight.
I think if you're an individual appear household you're looking for small business loan.
Credit does remain extremely tight in all of those areas.
If you're looking for mortgage financing -- -- -- has to do with.
Well what kinds of mortgages are Fannie Mae and Freddie Mac actually acquiring what -- they bring -- the books what are they securitize and and that's that's a critical thing we've gotta look at that's really gonna drive along the banks are doing and actually making mortgages.
You know if the professor standing if you are greeting -- had already -- give it right now preliminary grade as seen B minus the probably give it a B minus.
I got that added he would be I.
But if you're running ads there I'd write her looks fake you know what check back in with you in the quarter ahead and -- -- we have and thank you very much -- that -- the white.
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