Digestible Real Estate News
We’re keeping this recurring piece to do a bit more for those genuinely interested in New York real estate and give my LinkedIn designation a little luster. Taking a note from the easy to absorb nuggets of information in Robinhood Snacks‘ newsletter, here are your RealEstateSnacks so I can make this newsletter tax deductible.
1. New York, New Jersey, Connecticut and Maryland faced skeptical questioning from a panel of federal judges considering whether to revive a lawsuit that challenges a U.S. cap on individual deductions for state and local (SALT) taxes. A tax overhaul passed by Congress in 2017 set the maximum deduction at $10,000 on individual returns, decimating the value of many homes in high tax states where cost of living is notably higher than most parts of the country. The states most impacted by this are DONOR states….states that pay more to the Federal Government than the Federal government spends on their state. Watch for a developing conversation in 2021 as to whether or not the creation of SALT taxes is a kosher legislative power of Congress or a violation of the Constitution due to it serving as a weapon of political warfare.
2. The 30-year fixed mortgage rate, the most popular loan product, sank to its lowest level on record to close out 2020. The average rate for a 30-year, fixed-rate mortgage fell to 2.67% with an average 0.7 point. For context, it was 3.73% a year ago. To put things in further context, at the start of 2000, the 30-year average was 8.15%. Mortgage rate dynamics over the past several months have been less dependent on economic data and more on policy-related matters as well as epidemiological developments. While there are a whole hosts of factors to consider, mortgage rates should remain low and stable unless a blockbuster spending package is passed by the new administration.
Great article about the current state of rates, where they’re predicted to be headed, and the factors at play influencing what they may do the next 12- months. Click here.
3. Weddings in the New York metropolitan area plummeted 56% in 2020 to 58,522, the fewest recorded going back 12 years. Couples who went ahead with planned parties spent considerably less on them: The average cost this year was $32,743, also the lowest since 2008. New York City couples who called off wedding festivities during the pandemic are finding comfort – and opportunity – in real estate in lieu of postponing or cancelling expensive weddings. The extra liquidity is helping increase the power couples have with down-payments and closing costs. For many, the article jokes, having a mortgage together is more of a commitment than marriage itself.
And for the two homes I’m ogling this month…
…Steve from Blue’s Clues home is listed for $3,500,000 at 19 Powers Street in Williamsburg…
…this one-of-a-kind and darling carriage house at 313 West 20th Street in Chelsea…
