Looking ahead, home values are poised to advance further in 2019, albeit more modestly.
The state and local tax (SALT) deduction allows taxpayers to deduct state and local tax payments on their federal tax returns. The new tax law, called the Tax Cuts and Jobs Act, instituted a cap on the SALT deduction.
Housing wealth contributes positively to the homeowner’s and children’s economic condition, because home equity can be tapped for expenditures such as investing in another property, home renovation, a child’s college education, emergency or major life events, or expenses in retirement.
At the national level, housing affordability is up from last month but down from a year ago. Mortgage rates were up from last month at 4.76 percent this January, and up 11.5 percent compared to 4.27 percent a year ago.
Financial literacy is the “ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being.”
Financial literacy is an important determinant of homeownership because it affects savings behavior.
The U.S. rental vacancy rate edged slightly higher to 7.1 percent in 2018 Q3, but this is still below the 7.5 percent vacancy rate in 2017 Q3.
Let’s take a look at important financial literacy indicators and how a low level of financial literacy may be contributing to the current wealth gap, the variation in homeownership among ethnic groups, and the importance of financial literacy in addressing these issues.
REALTORS® reported that seller traffic weakened in January 2019 compared to conditions one year ago.
REALTORS® responding to a January 2019 survey expect home prices to typically appreciate in the next 12 months at modest pace of two percent on a national scale.