Jim Valentine on Real Estate
No single second of the year has as much impact on real estate as does the tick between midnight and Dec. 31 and 00:01 hours. Jan. 1 of the ensuing year.
The new year tick means out with the old and in with the new. It can be new laws taking effect, starting over for record keeping, tax consequences, a symbolic closing out of a sequence of events, or a symbolism for hope. The real estate industry in Northern Nevada had an interesting year in 2022 presenting a year of many questions for buyers and sellers.
Interest rates began 2022 low but proceeded to climb during the second half of the year causing the market to hiccup a few times. Interest rates are now where they were just a few short years ago. Some borrowers have lost some of their buying power, others are questioning whether to go forward even though they can qualify to do so. Find out what it is and see if it matches your desire to buy. If it does, then you will be a property owner in 2023.
The hiccups we are experiencing in the market today are nothing like the disaster of 2008, and we believe that they won’t get close to replicating that financial disaster for many reasons. Some folks are having to offer credits to the buyer to buy rates down or use as they see fit. The prices are dropping, but not drastically except for those that were excessively priced forward, or the seller has a strong urge/need to sell fast. These changes are not the sky falling and buyers can buy with confidence. Trends may continue downward, but things will change, and you aren’t buying for a quick flip in most cases. Real estate is a long-term hold with many benefits. Enjoy them during your ownership for that is the objective.
The new year has a large effect on our taxes and real estate can play a big part in that. One reason is the numbers. For most people real estate is their greatest asset. Income and expenses related to our real estate is calculated in an annual time frame beginning Jan. 1 for most people. It is important to plan your expenses accordingly. It is important, too, to plan your property disposal with tax considerations in mind. If you are going to have a cut in income, i.e.- retirement, this year then you might want to plan to liquidate your property next year when it will have a smaller impact on your tax liability.
You have a year to get your real estate business done in 2023. What will you get done? Are you buying? Selling? Both? Are you looking for a primary residence, or investment properties to help the kids or grandkids to attend college? A year may seem like a long time, but in real estate timing it is not that long. Remember, you are dealing long term with your real estate investments. That is a lot of time for new legislation to be conceived and implemented and have an impact on real property. Keep an eye on things in 2023 to make sure your real estate holdings are safe.
We don’t know what 2023 will bring weather-wise, or marketwise, but it will be identified as the market of 2023 because of the New Year ticks that start and end it. What happens in between is up to you. If you are looking to make a real estate move in 2023, identify your wants and needs, make a plan with your agent, and work your plan. You will then remember 2023 as a positive real estate year for you and yours for this is a good recipe for success the details of which will be provided by you and your agent.
New Year is special – it follows the joyful celebration of Christmas with a definite moment in time, the new year tick, when the future begins. It is a time for all to enjoy for one reason or another as the clock goes tick and the year starts with the following tock.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, RE/MAX Realty Affiliates, 775-781-3704. dpwtigers@hotmail.com.