Baby-boomer , Mortgage interest tax deductions, college loans and the housing industry...we are all in this together.

By
Managing Real Estate Broker with Alpine Lakes Real Estate Inc., NHRE# 02863

 

For the fifth year in a row home prices have slumped in New Hampshire (and the Nation). The first quarter home sales of 2011 show pretty clearly, that median selling price is lower than they were in the first quarter of 2010.

One of the biggest issues is sellers are in a negative funk, they own a home and they’re quite upset that it won’t sell for anywhere near what they think it’s worth , which makes it hard for them to see buying a replacement home when they lack equity in the home they wish to sell.  Buyers on the other hand have read about all the bank foreclosures nationally and may be expecting to buy at an unrealistically low price. These situations are holding back both buyers and sellers from pulling the trigger on a sale.

The baby-boomer generation is a blessing and a curse to the real estate industry. As they approach retirement age they start making decisions to sell the nest and look for smaller or recreational style housing to accommodate the new life-style. These potential sales are good for the economic growth cycle in the housing sector. But what of the First time home buyer who we need to purchase the retirees empty nest? Will they, Can they, are they – going to step up and acquire these homes allowing the natural progression of a new generation of home ownership? This replacement buyer is the fuel we appear to be lacking in our housing industry’s engine.

The Baby Boomers are my clients and we rely on them buying second homes and retirement homes as well. This sector of the population may be getting older, but they still control most of the assets in our country. In a recent NAR publication it was noted sales in my direct market place (Grafton county New Hampshire) where one quarter of all homes sold were second homes. This means the buyers don’t have to sell something before they buy…this has been a blessing in the second home and resort business as many sales are being acquired as cash purchases.

This is not rocket science, in order to stimulate growth in future home sales, New Hampshire and the Nation needs more young people who will become first-time home buyers. Young People must be able to afford a good education, that allows them to become our future home owners and we need to preserve the Mortgage interest tax deduction to continue to see real estate investment at all price levels. These two factors can either keep our children as life long tenants (paying rent) or allow quality home ownership in the future. Note to the U.S. Government: Make a college education affordable and preserve the mortgage interest deduction – or else!

 

 

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                                                                                                                                                                              Your-White Mountain New Hampshire real Estate Expert

                    steve@alpinelakes.com toll free 800-926-5653 /cell 603-381-7898

                        MLS search and Realtor web site: www.alpinelakes.com

                         My outside Blog: www.steveswhitemountainblog.com

                    Lincoln NH &  Local interest site: www.localism.com/nh/lincoln

    Grafton County NH MLS search

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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Steve there is a lot of food for thought in this blog.  Lets hope that the answers to the questions you in your blog are all positive ones.

Apr 21, 2011 09:15 AM #1
Rainmaker
1,051,721
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

George, I'm afraid when I get on a roll I do tend to touch on too many topics for one post. I hope people who read this get the two main items out of the blog, Preserve the tax deductions for mortgage interest (for all people buying homes) and make sure our youth doesn't become second class citizens due to a lack of affordable higher education. We the people of this nation make up this nation - not the Bureaucrats that we elect to "serve us".

Apr 21, 2011 09:30 AM #2
Rainmaker
3,980,731
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Steve, why do our ideas make the most sense but the powers to be can't figure it out.

Apr 21, 2011 11:53 AM #3
Rainmaker
1,051,721
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Bill, Did you know less than 50% of all the U.S. population doesn't pay taxes, and 80% of the ones that do own homes?

Apr 21, 2011 12:23 PM #4
Rainmaker
565,518
Mike Saunders
Lanier Partners - Athens, GA

Steve - but just today that question was asked of the president, by a young potential first time home buyer. His response "Some people should just be renters"

Apr 21, 2011 01:43 PM #5
Rainmaker
1,051,721
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Mike...But not renters Forever! that is what scares me. My son could be a brilliant scientist if we can figure out how to get him through 6 or 8 years of higher education. People that own homes support more of our economy than any other portion of the population - simple as that. Keep mortgage interest deductable- that is one of the very few tax code items that make sense.

Apr 21, 2011 02:14 PM #6
Rainmaker
165,815
John McCarthy
Bean Group Portsmouth NH - North Hampton, NH
Realtor - Seacoast NH

Hi Steve,

The mortgage interest deduction must not be eliminated. A sudden devaluing of our homes on top of devaluing already caused by the economic meltdown may put an end to the dream of home ownership ih this country altogether. I'm very afraid of the social consequences this may cause.

Apr 22, 2011 12:32 AM #7
Rainmaker
1,051,721
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

John, We have to fight for this particular piece of legislation.

Apr 22, 2011 01:44 AM #8
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Steve Loynd

800-926-5653, White Mountains NH
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