My New Blog

Has the tax stimulus worked? There is evidence that indeed it has worked well for stimulating values in California. According to the California Association of Realtors home prices on average increased in the nine bay area counties 16.9% for April and in Southern California 15.5%; in addition, Data-quick reported that home sale prices increased in the Bay Area by 21.7% and 15.4% in Southern California. The good news is that the values are up over all.

This is really great news for the state of California a large. The increase in values will provide serious benefits for homeowners, municipalities and California.

Why is the increase good for homeowners? This increase in value will help many home owners refinance their mortgage to a lower rate and payment they couldn’t do a year ago because their value was too low. This will help many homeowners save money and put those savings back into the economy. With these savings home owners can buy another meal out a week or purchase a few items to spruce up the house. All these little purchases add up and help to improve the economy. If stores and business have stronger demand, it creates jobs. (Email me if you would like to know how we can help you @ tim.kepler@pacbell.net) Jobs create growth in the economy and I don't think any one will object to more jobs.

Increased values and sales help the municipalities greatly. A large portion of local and state government revenue comes from real estate taxes. When values drop so does the property tax assessment and that means less government revenue. That government revenue is what funds our schools, police, fire, etc. These divisions of government services are all under very drastic budget cuts or to put it more bluntly reduction in workforce. The increase in values and sales leads to collecting delinquent tax payments local governments have not been able to collect on foreclosed properties. That is great news for local governments whose budgets are completely upside down.  Also, the increase in revenue will help the state with financing it's debt.   

The tax stimulus for first time homebuyers has helped increase home values over last year and this is good for homeowners and our state and local governments. There is still a question about the long term effects of the stimulus. Will prices continue this positive momentum? Will prices remain stable? Will the trickle out help with employment? Will the state and local budgets begin to get some relief? Stay tuned…

Tim Kepler,

Mortgage Loan Broker Agent

NMLS 224085, CA DRE 01126896