Housing market

cyfan92

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Sep 20, 2011
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Just wait until everyones property taxes jump up in the next six-twelve months. Even if you did not buy or sell a home in the last couple of years you will be affected by the housing market of the last few years. Your home is likely to be assessed at a higher value because of recent comparable sales meaning a higher tax bill. Property taxes in Iowa are in arrears so higher bills are still coming. The amount of your total payment on your home does matter and is used to determine any amount of financing you qualify for. So two components of your PITI calculation (principal, interest, insurance and taxes) will go up without any control by you. Doesn’t affect those that already have a loan, but will drive down the amount of a loan that new buyers will be able to achieve going forward.

They lowered the property tax rate to pass an increase in sales tax. Of course they are going to jack up your valuation. Was a great slight of hand trick to increase taxes on everyone....
 

BCClone

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Not exactly sure.
They lowered the property tax rate to pass an increase in sales tax. Of course they are going to jack up your valuation. Was a great slight of hand trick to increase taxes on everyone....
Property taxes are set by the counties, sales tax by the state.
 

Stormin

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Apr 11, 2006
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Won’t for a bit. $7-8 corn means A LOT cash in peoples pockets. Commodity prices matter more than interest rates.

Those that ignore the rising input costs will fail to realize their net income is lower than they thought even though gross income remains high, until it is too late. Then will come the reality of high input costs and lower commodity prices leading to negative income. And payment due on the financed machinery purchases that have already been used for tax deduction. Happens every time. Deja Vu.
 
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BCClone

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Not exactly sure.
Those that ignore the rising input costs will fail to realize their net income is lower than they thought even though gross income remains high, until it is too late. Then will come the reality of high input costs and lower commodity prices leading to negative income. And payment due on the financed machinery purchases that have already been used for tax deduction. Happens every time. Deja Vu.
Loan to value is very low. Line of credits are basically non existent for a large amount. Loan volumes are dropping. Yields are increasing and offsetting rising costs. Land and equipment loans were locked in at 2-4% rates now. We are nowhere near the 80s or even the late 90s.
 

KnappShack

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Yeah did the same. Nagged my coworker until he did it too and he’s been super grateful as of late. Makes me chuckle a bit.

Have a cousin who locked in a great rate and his wife flipped him **** about doing the refi

I told him that his wife will be thanking him someday. Had no idea it would be this soon. We're on a ride
 
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erikbj

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Aug 31, 2006
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This reading is based on closings during the month, therefore representing contracts likely signed in March and April. During that time the average rate on the 30-year fixed mortgage rose from right around 4% to 5.5%. It is currently right around 6%, according to Mortgage News Daily. Rising rates, along with rapid home price appreciation and continued low supply, have given affordability a triple punch.

“I do anticipate a further decline in home sales,” said Lawrence Yun, chief economist at the National Association of Realtors. “The impact of higher mortgage rates are not yet fully reflected in the data.”
 

Spam

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The predictions for a housing crash seem to be getting louder. Things seem to be stabilizing. But crash? No sure about that.
 

KnappShack

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Cities have their own levy and some can add sales tax also.

It would be super cool if the counties and states and every other goddam government agency that wets their beak with property tax cash could cut our rate a little.

Who needs a budget when taxes are calculated using property values in an inflationary environment?

Please, Illinois, bend me over some more. The 5 months of average weather is well worth it.
 

simply1

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Crazy dynamics

“Production bottlenecks, rising home building costs and high inflation are causing many builders to halt construction because the cost of land, construction and financing exceeds the market value of the home,” Konter said.
 

Cyclone06

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Crazy the amount of people who work in new mortgages, realtors, and homebuilders/construction. As hot as Central Iowa has been since the early 2000s, save for the 2008 blip, its well past due for a swing in the other direction. The lack workforce will eventually take care of itself.
 

ClonesFTW

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Crazy the amount of people who work in new mortgages, realtors, and homebuilders/construction. As hot as Central Iowa has been since the early 2000s, save for the 2008 blip, its well past due for a swing in the other direction. The lack workforce will eventually take care of itself.
Des Moines is a massive mortgage hub, mostly due to being Wells Fargo's home base. There are easily 500+ active mortgage lenders in Des Moines when combining local institutions with various consumer direct platforms that have teams here.
 
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