Currently set to expire in fourteen week on November 30, the first-time homebuyer’s credit is looking likely to be extended. The Washington Post reports that multiple bills are being presented in Congress that will not only extend the first-time homebuyers credit, but also one that will increase it to $15,000.
Check out the story here: First-Time Home Buyers in Limbo As Congress Weighs Credit Extension
Speaking of extending government programs today I heard on NPR that the very popular Cash for Clunkers program, scheduled to terminate at 8:00 PM this evening has now been extend to 12:00 PM tomorrow. Apparently the government’s C.A.R.S systems are overloaded due to all the rebate forms being filed today.
Doug B. Cooper
Wow, a $16k credit would get my ball rolling. They have to extend it at best…
bob
Doug B. Cooper don’t do it!!!!!!
DownButNot Out
The cash for clunkers program is another government shell game designed to distract us from the real issues. How many people will be buying cars after the program stops? None – that’s right. It’s predicted at the end of the year the exact same amount of car sales will happen that would have without this program.
Did anyone get the email going around that if we just cut our congress in half – that’s right half, we’d save 8 billion per year. Not to mention the ones working would actually have to be productive and very possibly work together to solve our problems. Anybody else think we could get by with half of Congress?
kamble
Now if that were a $75,000 credit, That might be do-able, Still would be risky with all the coming foreclosures..But that would certainly bring the medium home price down to where it belongs with medium wages..
Back2Basics
. . . Now if only there were any houses in Reno worth buying (that weren’t short sales). . . maybe, just maybe a tax credit would help.
Sully
Down, we’re already getting by with half a congress, oops maybe that’s a half ass congress! 🙂
Real Estate Fan
A helpful credit and a good dose of knowledge about what makes the real estate market tick is just what a first time homebuyer needs to grab a good deal. Check out this book for help:
http://www.lawlessinvesting.com
SkrapGuy
Yea right, RE Fan, except that the only way this program works is for the gov’t to employ an Orwelian definition of what constitues a ‘first time homebuyer’. If this program was really limited to people buying their first house ever, it would be of little consequence. Nearly all, if not all, real first time homebuyers would come from the bottom 43% of the population (tens of millions of people) which just happens to be that portion of the population that pays NO income tax. So a tax credit for these people is meaningless. 15% off of nothing is nothing.
So what the govt does is define a first time homebuyer as anybody who has not bought a house in the past three years. Now you are into that segment of the population that actually earns enough to have to pay taxes, and in all likelihood already owns a house. So this program has damn little to do with helping real first time homebuyers, and has a lot to do with stimulating the market by enchanting existing homebuyers to go out and buy a new house. Thus you end up with guys like Smarten making well into six figures a year buying a $1.5 million house and taking the tax credit.
No jab at Smarten here…they opened the door and he walked through it. But let’s not delude ourselves into thinking this has anything to do with helping people buy their first house ever.
FutureRenoHomebuyer
SkrapGuy,
Respectfully, there are a few errors in your information:
1) It is a tax credit. You currently get $8k from the govt, regardless of what taxes you pay.
2) If you currently own a home (whether you rent it out or live in it) you are not eligible. You (or your spouse) must not have owned a home at any time in the last few years.
FWIW.
Carole
“You currently get $8k from the govt, regardless of what taxes you pay”.
You mean if a person currently pays no taxes, and buys a house, the govt sends him a check for $8,000? Really?
Somehow, I don’t think so.
DownButNotOut
I have absolutely no problem with people taking advantage of government programs that are being offered – CARS, first time buyers credit, etc. It’s just prudent to try to take advantage of what we’re given, such as minimizing our taxes, which is the same thing.
It’s the uselessness of the programs, written in a way that we’re supposed to believe our elective representatives are helping us, when instead they’re spending our tax money like it’s some kind of social experiment using monopoly money.
Growing up the term stimulating was used in context prior to performing a different exercise. Or maybe it’s not so different.
Ralph
I believe that the cash for clunkers program ended tonight as scheduled. What was extended was the deadlne for the car dealers to get the appropriate documentation to the gov’t to get their money.
Reno Ignoramus
The US Tax Code is already a testament to special interests. Most of its provisions,however, are so arcane and convoluted as to be beyond even passing interest of the average citizen. The only thing really notable about a tax credit for a homebuyer is that it is a relatively simple concept to grasp, it is something the media thinks it can understand and thus reports on, and it may impact more people than ,say, the depreciation schedule for railroad tank cars.
homebuyer2009
“You mean if a person currently pays no taxes, and buys a house, the govt sends him a check for $8,000? Really?
Somehow, I don’t think so.”
This is directly from irs.gov FAQ:
Q. I don’t owe taxes and/or my income is exempt from tax and I do not have a filing requirement. Do I qualify for the credit?
A. The credit is fully refundable and, if you qualify as a first-time homebuyer, having tax-exempt income will not preclude eligibility. Although there are maximum income limits for qualifying first-time homebuyers, there are no minimum income criteria. Thus, someone with no taxable income who qualifies as a first-time homebuyer may file for the sole purpose of claiming the credit for a refund.
http://www.irs.gov/newsroom/article/0,,id=206291,00.html
From my own experience. The Washington Post is spot on regarding the trickle down effect. I purchased a house in June. I used the $8000. to buy and have installed new flooring, window treatments, and frig. I also went to the local home improvement and bought a ton of paint and paint supplies, yard tools, locks… etc. I would have not done half of this had it not been for the credit. The credit not only stimulated my interest to buy, but kept local people working and getting paid to get the house move in ready. (Did you know there is a profession just to shave cement?)
DownButNot Out
Homebuyer2009 – where do you think the credit came from? That’s right, the government. Now where do they get their money? See anything wrong with this picture?
Your example isn’t as much trickle down as government subsidy, similar to the CARS debacle. Is it stimulating the economy? I’d suggest at the end of the day, no. Is it helping first time home buyers? Definitely, and that’s a plus.
I’d just like the government call it what it is.
Zen
“I’d just like the government call it what it is.”
It’s a takeyoursgivethem program. No no, it’s a letourgrandchildrenpayforit program. Wait, it’s a letsnotlearnourlessoniamgoingintomoredebt program. Yes that is it!
WorriedGuy
Can you do a post on the property tax situation in Washoe County? It looks like a big mess, especially in the Southwest Reno area and Caughlin Ranch?..Thank you.
Sully
Worried, the property tax is a mess in all areas that have newer houses. I mentioned before that a house built in 2005 pays almost double the taxes a similar sized house built in 99 or 2000 does.
WorriedGuy
Well some of these homes in Southwest Reno were built in the 80’s and 90’s. For example, one home I know went out at $350,000 this last March and the County Assessor is claiming a taxable value of around $550,000 still. How can this be? So the property tax due for 09-10′ is around $6,500 still on a home that sold for $350,000 in early 09′ Doesn’t make sense.
Nate
If the home buyers credit program is extended, would that mean people who already bought this year and got the 8k would be increased to 15k? (That’s me!)
I would like to see a post on tax value and how one gets it adjusted (if you can even do that). I pay $4,600 on a house I got for 284k (this year). It’s probably worth even less now. This is in south Reno.
Sully
Worried, you didn’t give an address so I can’t look it up, but in a nutshell – the recent purchase price won’t even be considered until next years taxes are calculated. Even then it will only effect a portion of the valuation.
In a state that has a deficit comparable to California’s (per capita) I wouldn’t expect taxes to be lowered voluntarily. The state just took a portion of the property taxes away from the county, so they are in more of a bind.
I suppose it will take a lot more than an appeal, maybe public outcry, to reverse the current assessment practice!
WorriedGuy
Sully,
The property I was referring to is 1836 Three Mile Dr. up in Southwest Reno near Skyline Blvd Let me know what you think. Looks like the guy is stuck with the same prop taxes as last year as they assessed hundreds of thousands over his purchase price.
Sully
Worried, in this particular case I don’t think the buyer will argue much over the taxes. He got a 4880 sq ft for 72.7 per ft., which I think is way below average price per foot in this area. All surrounding houses are valued (zillow) at around 600K, so he got in at a 45 – 50% discount. As I said the purchase price is only part of the formula, I’m sure that surrounding values will greatly affect this property’s taxes.
Unlike areas that have new and pre- 2005 houses, whereas the newer ones are assessed at peak market value and the older ones at 3% over previous years taxes, reqardless of current value. Hence, the newer house pays almost double the rate an older house does.
Guy Johnson
Just read this off another blog this morning…
http://activerain.com/blogsview/1210090/new-bill-seeks-to-extend-and-expand-the-home-buyer-tax-credit
Home Ownership Moves the Economy (HOME)Act of 2009. HR 2801 was introduced by Howard Coble (R-NC).
It would continue the current tax credit for first time homebuyers set to expire on December 1, 2009, with a couple of notable changes:
1. Income restrictions would be removed
2. Buyers do not need to be first time buyers
WorriedGuy
Well these homes in Spyglass Estates were built in the early 1990’s. Is that considered new? I don’t think so. But either way, I have to disagree with the argument that the owner on 1836 Three Mile Dr. got a great price at a 50% discount. Zestimates on Zillow are worthless. The homes are not valued in the 600’s. As a matter of fact, two home on the same block are on the market priced at $399,990 and $479,500 right now. Both larger models in the development with larger lot sizes. The price of those homes and all homes were in an artificially debt induced bubble to which the 2000-2005 prices should not be looked at as a rational benchmark of any sort. The owner of 1836 Three Mile Dr. probably got a fair price for the home at $350,000. However, if we go undervalued in the future, that owner could be looking at a principal loss. Wonder how the County Assessor will argue current assessments with these homes priced under their initial 1993 prices?
Sully
Worried, the same way he is arguing now. With both the state and county in dire need of money, its a given that property taxes won’t be lower any time soon!
As far as the value goes, I agree with you, but I’m not the assessor. I picked zillow just for a quick current comparison – which is probably what the assessor would use. As far as true market value goes, that’s another story.
Jonah
Interesting,
As someone interested in moving to the area and buying, I should be considering a pre 2005 build for tax reasons?
Also does anyone have insight on how a VA backed loan would play in the purchase of a short sale or foreclosure?
Guy Johnson
Jonah, I just bounced your question off a local loan consultant with whom I work . Here is her response:
“I just closed a purchase of a home that was a VA foreclosure. The addendum that comes back from the VA is only 2 pages long and very difficult to decipher. There was a closing cost credit but it was not very much and the addendum was very unclear as to who was paying for what. As it turned out my client had to pay all the escrow fee and a couple of other fees that were unclear on the offer.
I don’t know how the VA would play into a short sale but we were dealing with a bank from what I could tell, and not the VA. I do not have any idea what happened to the person who originally took out the VA loan.”
WorriedGuy
Sully,
The fact that the Assessor can use some fictional mark to model methodology to base property tax collection within certain neighborhoods is quit discouraging for the future home buyer. I am well aware of the goons down in Carson that meet every two years, but the Assessor getting in on the take is quite interesting. Does the Assessor understand that this prop tax issue can force the price of homes down further with sellers trying to attract buyers by compensating for the problem? The use of fantasy mark to model vs. mark to market pricing is the same game being played by insolvent banks right now in this country. The end result will be just as ugly for county assessors.
WorriedGuy
Sully,
Forgot to mention in my post. Has Gvt.-politicans ever thought about cutting spending for a few moments in their career? Probably not, but that is what is coming whether they like it or not. Everybody is going to have to tighten their belts. It’s a good thing. This country need a diet from debt assumption.
Drive by Poster
The calculation of property taxes in Nevada has almost nothing to do with “fair market price” of the home. Ignoring for the moment the abatement issue (the 3% “cap” most people thoroughly misunderstand), property taxes are calculated on the FMV of the land plus the cost of replacement on the improvements minus depreciation on the improvements. The fundamental reason why two hypothetical $300,000 houses, one built in 1965 and one built in 2007, have widely different property tax bills is that the improvements of the house built in 1965 have had 34 years of depreciation factored into determining taxable value verus 2 years.
Thus, it’s not that the assessor is “on the take” (in fact, Josh was extremely proactive the last assessment round and I believe reduced the FMV of land across the board in Washoe by 10%) but that reductions in FMV have a relatively small effect on taxable value. A 10% reduction in FMV of land might only impact taxable value by 3 or 4%, because FMV is only a small part of the equation. And, if the cost of building materials goes UP, even though FMV goes down, you may have an increase in taxable value.
Now, this is a VERY summarized version of property taxes in Nevada, there are many factors and exclusions and exceptions and whatnot that affect property taxes.
DownButNot Out
Worried Guy – I just heard we will be at 9 Trillion in debt. I don’t think they’re going on a diet anytime soon.
BTW – For perspective 1 million seconds ago was 12 days ago, 1 billion seconds ago – 50 years ago! I trillion seconds – 32,000 years ago! 9 trillion?
smarten
Sully, I believe Drive By is correct.
I went through the methodology with the Assessor before I made my purchase. In order to determine the replacement cost of improvements the Assessor uses a complicated means of rating the quality of improvements unrelated to purchase price or price paid/square foot. But in my limited experience it usually ends up being less than the actual cost to replace.
And FWIW, I am not against the cash for clunkers program nor the first time homebuyers’ tax credit [naturally]. Although the naming may be a misnomer, I generally agree that both programs are good ways to stimulate the economy in sectors that are hurting. The ripple effect of the tax savings, IMO, should more than pay for itself.
WorriedGuy
DownButNotOut,
You’ll see….The game does not have an unlimited capacity. The Treasury markets will be roiled and that will put an end to further debt spending. Unfortunately, the panacea of unlimited debt spending has its limits. It will be a good day when even the U.S. Gvt. will have to borrow at double digits. I’m not buying the Fed printing machine argument to bail them out. That is not an option that this Gvt. nor the nation can afford in the long-term.
WorriedGuy
For example, here is an explanation of the appraisal process by the Assessor in Hillsborough County-Tampa. At least they do mention that the Florida Constitution is requiring them to assess the property based on its market value. However, they mention other metrics are used such as cost and income approach. Sounds like Washoe Assessor is using some of these same metrics. Anyone?
http://www.hcpafl.org/downloads/appraisal_process.aspx
Sully
smarten, I have no argument with the explanation Drive By gave. In your own words, the assessor uses a complicated means of rating the quality of improvements unrelated to purchase price.
Unlike in California where the purchase price carries more weight. Here, it has little or no impact.
But, Worried Guy did make a point about gov’t cutting expenses. Although, I’m not sure how much more Nevada can cut, but it seems whenever we have a boom the tax increase (income) becomes the next minimum.
It’s as if the gov’t (politicians) have no clue as to normal business cycles which produce the new tax windfall. This country has been through the boom and bust cycles so many times – it should be a minimum requirement to run for public office to know what the hell that means.
Instead, they all want to do what California did and pay gov’t employees more, more and then some more. I wonder how much longer it will be before California’s budget shows a larger figure for retirees than it does for current active employees.
I see Arnold is trying to limit new hires in this area, as he can surely see the writing on the wall, unlike the bleeding heart nanny liberals that make up the majority of the legislature.
DownButNotOut
WGuy- “That is not an option that this Gvt. nor the nation can afford in the long-term”
Wouldn’t that be the same argument you could have used 5 trillion dollars ago? They’re out of control, and if you think that it’s coming to a halt,well, we’ll see. But I hope you’re right, and will be happy to commend you if it happens.
Smarten – “I generally agree that both programs are good ways to stimulate the economy in sectors that are hurting”
I don’t agree – it didn’t cost the tax payers 3BILLION DOLLARS to get the clunkers program funded, for a stimulus that isn’t happening by most accounts.
Doesn’t anyone get it? We’re spending money we don’t have to try in an unproven way to stimulate an economy the isn’t responding – both in housing and cars.
For FWIW, I don’t begrudge anyone taking advantage of these programs. That is just smart
consumerism.
WorriedGuy
These ‘programs’ are complete nonsense. The entire point of the Cash for Clunkers or Cash for Homes charade is to try and keep the debt bubble elevated (to avoid the necessary markdown of prior false pricing). You want people to buy cars, then mark them down to where demand meets supply. You want to sell your homes, then mark them down to where real demand meets supply. Let’s cut the pseudo Post-1933 Keynesian crap and get back to some real market economics. It is what this country needs to instill confidence in the laborer, and once the Gvt. gets its rear end taken out on interest rates, that will be the defining moment to return the nation to its roots: production and savings. I don’t have to point out that both of these stalwarts have been under attack for decades by a fraudulent tax code in conjunction with failed monetary policy. The time had come to right the wrong. As I said, debt diet time and a fundamentally sound and strong home currency: the United States Dollar.
Zen
Smarten: “I am not against the cash for clunkers program nor the first time homebuyers’ tax credit [naturally]. Although the naming may be a misnomer, I generally agree that both programs are good ways to stimulate the economy in sectors that are hurting.”
Really? Have you spoken to an architect lately, anyone that owns a retail store, a contractor, an accountant, or just about anyone in business? Just about everyone is hurting. So where are there stimulus packages? I guess we should just right them folks some checks at the expense of the next generation. Yours is a broken philosophy that is doomed to fail. Unfortunately by the time you figure that out, China and other economies who we are indebted to will be calling all the shots and we’ll be sending them checks.
buygold empireindecline
Hate to say it folks, because I do love this country. But we are an empire in decline. Might take a few more decades, but the jig is up. Did the Brits turn it around? Did the French? Did the Romans? There’s no free lunch, and money printing has ruined every country that ever tried it, as has massive debt.
We have been corrupted by easy money and lack of work ethic. Saving and hard work — that’s what made the “greatest generation.” That’s what’s making the Chinese. Where is it now? What really chaps my hide is the 1% of the population making 90% of the money. Stealing from shareholders, stealing from the hard workers still out there, stealing from this country.
Cheaters. They cheated in high school and college. They cheat all of us now, with alacrity.
Now, those in Washington making the rules and their patrons on Wall Street will continue their self enrichment and national destruction until every crumb is stripped from the crumbling rock known as our national economy.
Meanwhile, as long as they have their SUVs and Costco, the public sits idly by, as if in a trance. And don’t rebut with talk of birthers and townhallers displaying their anger. Those nutjobs don’t even know what they’re mad at, and they defend the corporate robber barons (who could care less about them) with righteous indignation. “But we love our insurance companies, where the CEO’s take down $50M per year…”
And, please, no snide remarks questioning my patriotism. After 25yrs in the military, including 5 deployments of 6-12 months away from my family each time, in harm’s way in the Persian Gulf, I don’t need to hear it. Show me your DD214 before you even think of going there.
Sorry boys, but your irrelevant drivel about cash for clunkers and housing subsidies aren’t even a drop in the bucket to what’s been paid to Goldman Sachs, AIG, and the Chinese via FNM and Freddie Mac. Those are just crumbs for the pigeons, to keep ’em nice and quiet.
CommercialLender
Buygold,
You make some good points, and I agree with some. Regardless of how strong your position arguments may or may not be, you ‘goldbugs’ have predicted 1,500 of the last 2 inflationary cycles. I agree in theory that we are in a sad Roman-type decline and generally other ‘goldbug’ type arguments, but they are very hard to take seriously, right or wrong. No offense, just observation, and thank you for your military service.
Smarten,
Could you be a bit influenced by your own recent purchase to make such a claim the “cash for X” programs are in the aggregate good ways to stimulate the economy? At a high level, these stimuli programs take taxpayer money and give it to a few, or borrow public debt and give it to a few. In either case, the govmt takes its overhead share first or pays cost of this magic capital before any remaining money is distributed. Given they are temporary programs, they hardly stimulate anything including consumer behaviour past the limited period of their existence. (For example, look at the massive drop-off in car sales since clunkers ended.)
No, a true stimulating economic force would be a direct-to-all, and a lasting reduction of consumer or business expense levels, namely taxes and exessive regulatory burdens. This puts immediate money in the hand of those willing to spend it, save it, or invest it, without a gov’t overhead or capital cost to pay first. Now, if only our gov’t would simultaneously recognize it needs to reduce its overhead/burden…
That said, at least your $8K was a tax credit that went directly into your hand to make a buying decision that likely will lead to other buying decisions (window treatments, mortgage loan, furniture, etc.) so that part of the theory is nice. Let’s hope you (the proverbial buyer with a credit) don’t now default on your new debt at some point putting a bank or the taxpayer on the hook for a whole lot more than the original $8K, otherwise its not so stimulating to the economy. Sadly, I think there will be a decently high percentage of future defaults and losses caused directly by this $8K buyer carrot. If so, the $8K credit may in fact temporarily delay the pain that needs to be felt in the housing market before a market-driven correction can take shape, which serves to lengthen the housing crunch cycle. It may also lead to future defaults with banks or the govt losing money, ironically also serving to lengthen not shorten the housing crunch cycle. I see this as a fairly high future nationwide economic risk for only the small upside of temporarily pumping $8K into local window treatment, mortgage loan, and furniture vendors.
Quick note, notice the cash for clunker program does a few unintended things: takes decent but older cars out of the stock of used cars for moderate and lower economic families to use, and replaces many cars in need of repairs with cars needing no repairs for a few years to come. There goes the ‘economy’ of the local auto repair shop, the same guys who might could use a older, cheaper used car to get to work.
Good for you to happen to buy and get this credit, but I’m not sure its good for the rest of us. Again, no offense, just observation!
John Newell
I had planned to write something later, but CL said it all for me. Thanks!
Driveby Poster
For example, here is an explanation of the appraisal process by the Assessor in Hillsborough County-Tampa
I’m not sure why you are looking at an appraisal document from an Assessor in a different state to understand the Nevada assessment process.
In your own words, the assessor uses a complicated means of rating the quality of improvements unrelated to purchase price.
It’s not really “complicated” but it is completely unrelated to purchase price. This is how the Nevada statutes for appraisal are set up. To rage against the Nevada appraisal process for not appraising the value as the FMV, would, for me, be like raging against the sun for being yellow and not blue. Of course taxable value is not FMV – it’s not suppose to be, just like the sun is not blue, it’s yellow.
WorriedGuy
The market for real estate valuations is moving too fast now to base 09′-10’s assessment for property taxes from a valuation made in the year prior-2008. Properties in Washoe have lost around 20% of value in just the last 12 month period. An individual who purchases a home in Q1-2009 certainly deserves an annual reappraisal in this environment vs. a reappraisal every five years. With such losses on real estate ongoing in Washoe County, the abatement could be below zero in no time. Once the abatement is negated from the tax cap from 2005, these properties should see a good sized reduction in total tax due in conjunction with that annual reappraisal by the County Assessor. Unfortunately, the process for reappraisal needs to be more real-time based on market value transactions. The real estate market was a debt bubble along with the entire world economy for that matter. You can’t cry spilt milk for something that was a falsehood and should have never come to fruition in the first place. Falling asset valuations are just a natural course to return to the mean. It’s time for the taxes to reflect that reconciliation the same.
GreenNV
I will agree that the Nevada valuation model is a bit arcane, but it is what it is. In my experience, the Washoe Assessor is one of the most open, helpful agencies I have ever dealt with. If you have any questions, give them a call. They are very open about their methodology and assumptions, and have amazing backup to validate their valuations. Josh really doesn’t answer to the political hierarchy, so expect him to continue to assess based on the mandated formulas, and not the need to maintain property tax income.
Now if we could only get those slackers in Incline to quit whining and suing about their ridiculously low assessments vs. market value…
DonC
CL – Forget the tax cuts as stimulus. They have never worked in the past and they haven’t worked this time. The people getting the cuts have just saved the money. Good for them but completely a bad idea from an economic point of view if what you’re trying to do is fill the void of reduced demand. In retrospect the tax cuts should have been avoided and the money moved to programs with a more stimulative nature — like CARS.
smarten – I’m not with you on the CARS but for a completely different reason than most. The money for CARS came from grants which would have had a much higher ROI though over a longer term. But as a stimulus it obviously worked.
Also unlike most people I thought the program was fairly well run. It was a large one off program, the popularity of which was greatly underestimated. That is always a recipe for problems. Plus you had car dealers and car salespeople, not exactly geniuses who pay much attention to detail, submitting the forms. Has this been a program for accountants things would have moved more smoothly!
Congrats again on the house. Hope you’re enjoying it.
/OT: What happened to BB?
smarten
GreenNV –
Property owners in Incline are not “slackers” and from what I’ve seen, acted correctly in suing versus whining.
We’ve already discussed that there are two components to assessed valuations – land and improvements. The process the Assessor uses for Incline Village is the same as the rest of the County and to my knowledge has NOT been challenged by Incline “slackers.” Thus, they are paying their fair share.
It’s the valuation of Incline Village land that was attacked because of the Assessor’s non-uniformity in taxation. The Assessor had a complicated process for adding valuation to Incline Village land based upon proximity to golf courses, beaches and of course, views of the Lake. Yet the Assessor of Douglas County had no such augmentation process in place. Thus the lack of uniformity between A/V for land in Washoe versus Douglas County, and the unconstitutionality.
I’m out of the country right now so I can’t tell you if Washoe County is going to appeal the latest Board of Equalization decision that went against it [unanimously]. Hopefully it won’t and that will be the end of the story but for refunds [the majority of which won’t be coming from the County but rather, the Fire Protection District and the General Improvement District (both of which have set aside reserves for this very possibility)].
Thereafter Washoe County will assess the land portion of Incline Village properties the way it assesses the same portion of other county properties which will be the same as the Assessor of every other county assesses – in other words, true uniformity which is what the Constitution mandates.
Not to change topics but remember several months ago I shared that I sensed there had been a change in Incline Village real estate sales? Well I think it has become a reality. Last week there were more properties that went into escrow than new listings. And just as many multi-million dollar properties seem to be going into escrow as those priced at under $750K. Not a big change, but a change nonetheless.
Cheers to all.
RubiconDream
“last week there were more properties that went into escrow than new listings”.
That is true only if you leave out of the new listings category properties that had previously been on the market and came back on. In other words, if you cherry pick the data. This is just a Don Kanare spin job.
Funny you didn’t mention the IV house that had a $450K haircut off its asking price yesterday. Price reductions in IV are swamping the MLS.
CommercialLender
IV educated posters,
In the 3rd week of August there were more homes going into contract than being listed? That’s a news story? I was under the understanding that the IV market is strongly seasonal, so homes languishing for months on the MLS might take an end-of-summer offer to close the deal and move on, while first time listings of homes in late summer are fewer than in the spring/early summer.
Am I wrong? If so, correct me. If not, you are simply experiencing normal end of season data which will soon be reversed as we head into the fall/winter.
****
The fact you state strength in the above $1M market is of interest. Maybe when Smarten is back in the area he could expand with some actual data? IJJ have any? Am I correct in guessing the typical $1M+ IV home is not that dependant on mortgage loans, so the conversion of pending to actual sales might be a higher ratio there than in other, less affluent areas? Obtaining jumbo loans on $1M+ homes is still a nightmare, I understand.
DownButNotOut
DonC ‘Forget the tax cuts as stimulus. They have never worked in the past and they haven’t worked this time’
Too much generalization in that statement. Certain tax cuts do work, they just need to be geared towards creating jobs to work properly. The CARS program doesn’t do it, and although there seems to be a consensus that the first time home buyers are using their 8K to pump into their homes, I don’t buy it. Neither of these get to the fundamental turnaround needed which is we need to create more jobs. Therefore to me, as an employer of 50 plus people, I am constantly looking at tax implications regarding my business. Give me a tax cut in the employees I hire and I expand business – tax me more and I downsize. Simple as that. Give me a credit on a new car that I will be paying more on registration, insurance, and have car payments doesn’t stimulate anything in the long run, it just puts me in debt.
I do agree with your inflation analogy.