Like-Kind exchanges are good for the economy says NAR survey
A survey by the National Association of Realtors concludes that Like-Kind exchanges support the nation’s financial growth, job creation and economy. Between 2011 and 2015 63 per cent of realtors participated in the like-kind transactions and real estate investors and commercial property owners are in favor of the current tax rules. "Like-kind exchanges that allow investors and businesses to defer capital gains taxes on the exchange of similar properties bring great advantages to investors, real estate markets and the economy," said NAR Chief Economist Lawrence Yun. "Realtors and their clients often look for better economic use of existing properties that are underutilized, which helps promote local economic development and increase the nation's gross domestic product."
Eighty-six percent of respondents said the savings from tax deferment allowed them or their clients to invest additional capital and make improvement in their acquired properties; these investments are generally responsible for the creation of new jobs, such as in construction and property management.
Realtors report strength of New York market
The New York City residential sales market has seen a huge upswing in activity this year with all five boroughs seeing increases in total consideration, sales volume, and average sales prices in the second quarter of 2015. A new report from the New York Real Estate Board reveals that the total consideration for all residential home sales was $10.4 billion, up 17 per cent from the second quarter of last year. Manhattan saw a 20 per cent rise; Queens 15 per cent; Brooklyn 10 per cent. The average sales price of a home in New York City increased 12 per cent to $923,000 from $826,000 in the second quarter of 2014. This rise was driven by a substantial uptick in average prices in all boroughs and particularly large average price increases in Manhattan.
Mortgage rates lower on global uncertainty
Average mortgage rates were lower in the week to July 9 according to the Freddie Mac Primary Mortgage Market Survey. The average rate for a 30 year FRM fell from 4.08 per cent last week to 4.04 per cent this week; 15-year FRM’s averaged 3.20 per cent, down from 3.24 per cent; 5-year ARM’s dropped from 2.99 per cent to 2.93 per cent; and 1-year ARM’s were at 2.50 per cent, down from 2.52 per cent. Chief economist Sean Becketti said that economic concerns over Greece and China have played their part in reducing Treasury security yields and mortgage rates. He says that global uncertainty is likely to continue for some time.