April 2021 Letter From My Heart, with the Good Bad n’ Ugly

Good morning to Springtime and April flowers,

April Unfolds – New Expectations 

Expected News: Many rapid changes and outcomes many did not seek. 

With a change in DC, we have a massive new debt deal, an ending of US energy independence, and rising gas prices. This brings new fears of inflation and with it, a swift and significant bump in rates.  Seems a strange hope of boosting the economy, while at the same time hurting the American consumer – gas prices, food costs, and new taxes and regulations.

Clearly, there is a wrestle in restarting our economy and restoring the widespread damages of the CoVid panic. Sadly, in the flux of such competing needs, rising interest rates, and inflation fears, the favored headlines will continue to be fear, doubt, and chaos. Keep in mind: It sells because we buy. Yet the one proven Key in the midst of the ups-and-downs – Don’t Panic.  Instead be prepared – Today. Let’s talk,

Bottom Line: This Spring Buying Season is for those best prepared today. Good News: We are ready to help, now. Please, call Today. Be sure to take full advantage of today’s still great rates. 

Don’t Wait – Let’s Talk – Be Prepared

Hoping to buy this Spring? Early Preparation is key and now is a good time to call. 

While we continue busy many parts are still overworked, as the last of the refi mania boom abates. Yet, within a month, I believe better times for refinances will return. Yet the role and advantages of refinancing continues, despite higher rates. One in particular is the massive savings when paying off built-up credit card debt. Call today and let’s check first, then plan, and finally take action, as prudent and appropriate. 

Housing Stats:

First: Inventory and Sales. One word – crazy. 

Used-homes inventory continues historical lows. Except in certain markets and property types. Locally condo’s seem to have a longer marketing time. Otherwise we have a very active market, with Sellers becoming more selective. Be prepared today. 

New home building is on fire. The number of contracts on homes yet built Current numbers suggest a 10% appreciation potential in home values. This is unheard of historically and speaks to the break in the market. Those with jobs vs those without. More on that below. 

Second: Real estate is rocking. This includes the rehabbing of existing properties, in need of restoration And what is KEY To SUCCES in the active fast moving market, with low rates:

Being ready today, with a strong loan application in hand.

It strengthens your Realtor’s efforts in selling you and being sure 

your offer becomes the winning offer. Being best prepared is critical. 

Third: ProspectsAny way you cut it real estate remains a good and solid investment – low rates, slim inventory, and strong builder demand.  Call today. Prepare Now. Don’t miss out. 

Bottom Line:

Call today and let’s prepare for Spring Buying Now.

What’s new for Real Estate 2021:

1) Conforming loan limits take a nice bump upwards. Conventional to $ 548,250 and Hi-cost up to $ 822,375, depending upon County limits.

2) Rates: In spite of the current upward pressure, VA / FHA are now in the high 2’s. Conventional running low 3’s, and Jumbo loans running mid 3’s, and up for 30 year fixed rates.

3) Inflation remains manageable: Rising oil costs and wage pressure being offset by increasing productivity. Yet, the question: If we add a substantial tax burden upon corporations, will it will be passed onto the consumer in higher prices.  This is a significant decision, if you truly want to grow the US economy and restore full-employment.

4) New construction demand – entry level housing – holds strong and is good news.

5) Inflation: There are several predictive models, yet most lack key assumptions. Yet even the hint of inflation has hit the bond market and with it stocks and retirement accounts.

Key will be: 1) oil prices and its wide-spread impacts, 2) cost of re-regulation, 3) corporate taxes, 4) stimulus debt deal, and 5) possible massive infrastructure / massive debt deal. And with all this, watch the strength of the US dollar.  We are here for you. 

Good News: Data suggests a favorable 2021 for Bay area Real Estate – the global heartland. 

The Good, the Bad n the Ugly

The Good: CoVid Vaccines – with more on the way we are beginning to reach the ‘not at risk’ category of people. My second shot was last week. Vaccines and herd immunity are winning. 

The Bad: Uncertainties of Federal policy – fiscal and monetary. With this comes the expectation of even more people facing rising income taxes. Add to this, an increase in capital gains taxation, both corporate and personal. No stone left unturned. Yet what are the real Tax Burden numbers? 1) the top 1 %, pay 40 % of IRS tax revenues; 2) top 5 %, pay 60 %; 3) the top 10 % (AGI over $ 150,000), paid 70 %.  And if it helps, the top 10 %, collected 48 % of wages for the year.  

The Ugly: Broken Presidential promises. How about the best of them: ‘bringing both sides back together’? As expected, it didn’t happen and instead, worsened. How about Country-to-Country negotiations? Most are already pushing to redo all the pro-American deals negotiated the past 4 years. Consider Ford. They promised a new plant in the US. Under Biden, they broke faith with Ohio and US workers. They are building in Mexico. It’s just the beginning. Included is Canada, N Korea, China, and Russia. They openly challenge the integrity of Jumpin Joe. My bet – he folds, just to snub Trump. Who stood for America – its Small Business and worker.

Closing Thoughts: 

Consider Proposition 19 and its impacts – this year. This is a planning must and Key if in a higher tax bracket. Few understand Prop 19 is new tax on owning real estate. Now is a good time to consider this coming tax and how it impacts you – when selling your property. 

Together we can discuss helpful changes for your estate planning. We can even 

consider any potential Capital Gains tax liability that may occur – State and Fed. 

Good News: We have good tools and many options to help minimize – even avoid – paying tax on your appreciated properties – this year or in the immediate future. There is even a golden handshake – built into the real estate tax code. This benefit is not available to stocks. With stocks, you must pay taxes the year you sell. With real estate, we have options and choices. Call us, we would love to share this conversation and opportunity with you. Call today. 

Thank you again. And when considering real estate – today or tomorrow – call us.

– We help you explore the many options and see which are safe and feasible for you. 

 – For Small Business – whom we love – we provide loans offering a full array of financing.

– Residential and Commercial with a full package of lending options.

– Tax-advantage real estate. For those seeking tax-advantage real estate, we are proud to offer several proven tools and alternative, designed especially for highly appreciated real estate and helping you keep your cash working for your future. 

And thank you for being a regular reader and we love your input and thoughts. My goal is bringing the words of varied experts – their perspectives and reasonings – to our conversation. These are the ones I trust and have trusted. It helps keep us active listeners and learners, and keeps me accountable to you. With this, we need to keep our politicians aware and accountable, to us – the voters and taxpayers. This is especially true in regards to real estate and its importance. 

And for those – like myself – maturing older, real estate becomes evermore personal. If true for you, let’s talk. Together, we can help find answers and solutions to questions about our too soon, tomorrow – today. We can address a range of questions, from working at home, to a multitude of retirement options. We can bring clarity to important real estate planning issues.

Our Goal:

Be insightful and practical. 

Working together in finding best answers and solutions. 

No short cuts. 

Success begins with strong preparation and with me – as your professional – you have a proven advocate with the insight and experience needed for success. And I do love success and I know the ropes. Call us – the professional team who loves your success. Call us. We are ready.

Thank you and continued blessings.