Will there be a Real Estate Recovery in 2013? What about the potential National Real Estate Transfer/Sales Tax? What information are you hearing? Is this a myth or fact?
I recently read that Economists gathered for a National Association of Real Estate annual meeting to discuss the real estate economy and where it's heading. They said that the housing market likely will not recover until 2013. Zillow chief economist, Stan Humphries was quoted as saying that home prices continue to decrease and sees a enormous amount of "shadow inventory" which potentially could delay the recovery. He went on to say, "WE THINK THE MARKET WILL BE FLAT IN NOMINAL TERMS FOR 3 TO 5 YEARS", WE ARE NOT GOING TO HIT BOTTOM AND SEE A V-SHAPED RECOVERY".
Doug Duncan, Fannie Mae chief economist, was quoted as saying "it would be another 3 years before new household formation and housing starts pick up". He also believes that home prices will fall 1% - 3% before bottoming out in the third quarter.
And to top it off, it's rumored that under the new health care bill - there's a possibility that all real estate transactions will be subject to a 3.8% - 4% Sales Tax? The bulk of these new taxes don't kick in until 2013.
Inquiring minds want to know? What do you think? What have you heard about the economy and this potential Sales Tax? Reading materials pertaining to the Health Care Insurance Reform can be found on:http://www.realtor.org/small_business_health_coverage.nsf. You can also download NAR's Myth Busters Flyer.
Real Estate Recovery information - Source: Inman News, Glenn Roberts Jr.
National Association of Realtors - information on Health Care Tax Reform - Real Estate Sales Tax