I suspect a high pct of the Investment homes were bought with ARMs. If you only plan to hold a home for a short period of time, getting a low rate intro rate ARM makes more sense than a fixed rate.
With interests rates rapidly going up, I think will be a strong incentive to quickly inload those properties.
It's time to get rid of that tax deduction for second homes. Some of us might be better able to afford first homes if people weren't being rewarded for buying more than their fair share. It's never made sense to me that people should get to deduct more than one house.
Holly makes such a sensible suggestion. We subsidize their multiple home purchases which sustains the high prices which shut out important new buyers. Likewise, we could implement incentives to get people off our oil dependencies by excluding tax write-offs pertaining to oil/gas consumption.
No, instead we plunge on with incremental 25bp increases in the prime rate, hoping to gently let the air out of the housing balloon while maintaining a growing economy. I used to think this was just because our politicians were short-sighted and stupid.
With mortgage interest deductions limited to the 1st $1 million and HELOC interest being a AMT preference item -- guess what -- many people don't get the benefit of interest deductions anyway.
I missed that. Very keen observation. Primary residences fell! That's not one that the NAR is going to draw any attention to. Good catch!
Cole @ The Boy in the Big Housing Bubble
Great chart CR, THANKS!
CR, This chart is BETTER than great, it's phenomenal! Do have the stats handy for prior years?
Bailey, These are the only years I have the stats for ... '03 to '05. If find some more, I'll post them.
Unfortunately the key data is from NAR - and they are a difficult source for historical data.
Best Wishes.
I suspect a high pct of the Investment homes were bought with ARMs. If you only plan to hold a home for a short period of time, getting a low rate intro rate ARM makes more sense than a fixed rate.
With interests rates rapidly going up, I think will be a strong incentive to quickly inload those properties.
It's time to get rid of that tax deduction for second homes. Some of us might be better able to afford first homes if people weren't being rewarded for buying more than their fair share. It's never made sense to me that people should get to deduct more than one house.
You think everyone that could buy is in now?
I know a person still charging ahead full steam buying a 3rd house. a drive by purchase. Amazing!
Looking forward to the day the real estate industry is sacked and exposed for its manipulation and greed.
That's right these BS decustions on HELOCs and second homes should not be allowed. Speculators should not be rewarded for taking obscene risks.
Bad news for new home sales numbers once people start loosing money on their re investments.
get rid of that tax deduction for second homes
Holly makes such a sensible suggestion. We subsidize their multiple home purchases which sustains the high prices which shut out important new buyers. Likewise, we could implement incentives to get people off our oil dependencies by excluding tax write-offs pertaining to oil/gas consumption.
No, instead we plunge on with incremental 25bp increases in the prime rate, hoping to gently let the air out of the housing balloon while maintaining a growing economy. I used to think this was just because our politicians were short-sighted and stupid.
With mortgage interest deductions limited to the 1st $1 million and HELOC interest being a AMT preference item -- guess what -- many people don't get the benefit of interest deductions anyway.