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Mortgage-Housing and Real Estate News for Tuesday January 21st 2025
Mortgage-Housing and Real Estate News for Tuesday January 21st 2025:
Mortgage-Housing and Real Estate News for Tuesday January 21st 2025: GCA Mortgage Forums NEWS UPDATE for Monday January 15th 2025 on the Daily Mortgage, Housing, and Real Estate News four our viewers and members of our online community: GCA Mortgage Forums Mortgage and Housing News: Daily National Comprehensive Overview of Mortgage and Real Estate News with special emphasis on interest rates, forecast of mortgage rates, housing forecasts, states with mass exodus of residents and businesses, consumer confidence, consumer price index, employment numbers and job forecast, national economy, bankruptcy, foreclosure, and investment news. Seems Donald Trump is acting fast with pardons, executive orders, turning Tik Tok back on, and suspending top secret clearances for those who betrayed the U.S. Constitution. What benefit has President Trump done to the Real Estate and Mortgage sector? Viewers and members of GCA Mortgage Forums are welcomed to view GCA Mortgage Forums NEWS National Daily News Summary and participate asking questions and volunteer news information that may interest viewers for Tuesday January 21st, 2025.
GCA Mortgage Forums News Update: Mortgage, Housing, and Real Estate News for Tuesday, January 21, 2025 How Trump’s Policies Immediately Affected Real Estate & Mortgages
The first thing Trump did when taking office was issue a series of executive orders to address the economy and the housing crisis. For example, he also issued an executive order on inflation and housing that aims to relieve some of the restrictions placed on home construction and the building of affordable homes.
Mortgage Rates And Predictions
After President Trump’s orders, mortgage rates changed. Along with the new tariffs, mortgage rates, which had previously been at their highest levels, significantly dropped. This switch brought back hope for potential home buyers.
GCA Mortgage Forums Housing News
Some experts estimate that mortgage rates will remain above 6% for 2025. A report from Bright MLS suggests having a fixed 30-year mortgage rate of at least 6.4 % in the first 6 months of 2025 before declining to 6.25 % near the end of the year.
The National Associate of Home Builders is estimating the fixed 30-year mortgage rates will drop to 6.5 % by the end of Q4 2024 and below 6% by Q4 in 2025, making it more affordable for home buyers.
The Economic Outlook of the United States – January 2025
Consumer’s Break from Economic Grievances
The first of the primary economic concerns is consumer confidence, which deeply reflects how confidence and an economy are nurtured. Consumer confidence has improved more than expectations due to the recently enacted policies and emphasis on economic development.
Inflation Patterns and Impacts
While reviewing December 2024, the retail inflation rate was estimated to be around 0.3%. The December 2024 CPI report showcased a 0.3% growth impact, indicating a very minimal inflation balance.
Employment Sector Growth and Statistics
The December unemployment rate remained constant at 4.2%, and simultaneously, 150,000 new positions were distributed, further highlighting the stability and health of the country’s labor market.
State Migration Trends
Increased taxes coupled with a high cost of living have led to a significant outflow of residents and businesses in certain states. States such as California and New York have experienced a noticeable dip in their population, which has further depressed their local housing markets and overall economies.
Over the last few quarters, about the past years, this propensity not only escalated but reached the height of commercial Bangla bankruptcy. But eventually, while still attaining new heights, the economy as a whole still managed to maintain some semblance of stability and growth. The one area in which a considerable dent has been placed is the retail sector with the increasing popularity of online shopping.
Investment Opportunities and The Retail Shift
Real estate investments still hold a strong position in terms of diversifying portfolios. Now, while the mortgage rates are expected to reach tomato status, whereby a specific determination is set, people are looking towards the real estate market for new residential or commercial investments.
GCA Mortgage Forums NEWS: Real Estate and Mortgage Section
Here at GCA Mortgage Forums News, we invite our members to take part in conversations, pose questions, and post exciting news – everything that can be of value to the community. Your articles and other inputs are valued.
Note: This summary is derived from information from Tuesday January 21, 2025. For exhaustive discussions and updates, please check the relevant forums.
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11 Replies
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How many states are thinking about abolishing property taxes?
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According to new developments expected in January 2025, various states have aimed to eliminate or substantially lessen property taxes, although none have fully implemented this plan.
Here are some changes worth noting:
North Dakota:
Governor Kelly Armstrong proposed a plan that states the $11.5 billion legacy, alongside the substantial oil tax revenue received by the state, can be used to abolish property taxes on primary residences. The initiative plans to delete these taxes within a decade, but it does raise a certain amount of skepticism regarding its execution. As a first step, paying homeowners $1,550 in tax relief every year would commence. Local officials, however, question whether it can be utilized.
Florida:
Representative Ryan Chamberlin pitched a bill to eliminate property taxes. This, along with any discussions and overall tax reform in the state, is a more detailed analog of a long-term.
Kansas:
The lawmakers called for a special session to discuss the boundaries of property taxes, allowing a motion to safeguard against the ever-growing burdens related to property taxes of various homeowners.
Even with these efforts and attempts, final discussions about abolishing property taxes seem almost impossible, largely because they are one of the primary sources of funding in a locality and crucial services, ranging from education to infrastructure and public safety. Because of this, multiple states have brought forward this issue, but none have successfully abolished property taxes.
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Is that it? There are 50 states, and only three of them are considering abolishing property taxes?
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It is reasonable to doubt why only a few states consider abolishing property taxes. For instance, North Dakota, Florida, and Kansas are states that are actively considering abolishing property taxes. However, some other states have varying discussions about the idea. Here is a deeper analysis for you.
States That Are Trying to Modify Property Tax
Texas
- Texas has long debated replacing property taxes with increased sales taxes.
- Proposals have included a gradual phase-out of Texas property taxes.
- However, this idea has not caught on due to the expense and intricacy of replacing lost revenue.
Oklahoma
- Oklahoma lawmakers have examined a cap on property taxes or a shift in reliance on them, funding through the implementation of sales taxes and other sources.
- The complete abolition of property taxes has not been formally proposed; however, there are discussions about reforms.
Tennessee
- Tennessee is among the few states without a state income tax and a low property tax burden.
- Some lawmakers have proposed further reducing the latter, especially for senior citizens and veterans.
Nevada
- Even Nevada has one of the lowest property tax rates in the country.
- The state has been investigating changes to the local service structure to maintain affordability as the growing population increases demand for local services.
Wyoming
- Wyoming, which is fourth in rank by area, granted over $750 million in tax exemptions.
- Quite surprisingly, it has not eliminated property tax at any level.
Why Isn’t This More Widespread?
Property taxes mostly fund schooling systems, police, fire services, and local infrastructure. Completely removing these taxes would mean that states would have to find other ways to bring in revenue, such as increasing:
- Tax revenue from sales tends to be regressive toward the poorer population.
- State income tax has become a political taboo for most states.
- Shifting tax burdens away from residents to tourism and other state resources.
The Feasibility of Property Tax Abolition
Eliminating property taxes sounds all too appealing. However, there is much more that goes on beneath the surface, and this issue is far more tangled than it seems at first. The state’s responsibility to its citizens and the citizens’ responsibility to contribute revenue place this matter in a middle ground where many remain, perpetually, on a discussion or ‘in the gathering information stage.’
Let me know if you want me to explore the rest of the states and the amends made to their legislature.
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Yes, I would like to know more about other states.
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As of January 2025, several states in the U.S. are considering abolishing or significantly altering property taxes.
Let’s take a look at some of the more recent efforts undertaken in the country:
North Dakota
Governor Kelly Armstrong has suggested a plan to eliminate property taxes on primary residences by using the $11.5 billion legacy fund alongside the state’s oil tax revenues. This initiative seeks to remove the aforementioned taxes within ten years, beginning with a yearly cut of $1,550 on taxes owed in North Dakota. Unfortunately, local officials have raised concerns over how practical this solution is.
Florida
State Representative Ryan Chamberlin introduced a bill to analyze the viability of eliminating property taxes. This measure is described as the first step of many and emphasizes the state’s conversations around tax reform.
Kansas
Due to homeowners’ increasing woes due to climbing property taxes, lawmakers have started a special session to discuss the introduction of an annual ceiling on property taxes.
Michigan
A measure called “AxMiTax” has been proposed to eliminate property taxes on homeowners and businesses. Proponents of this argument state that drastic actions need to be taken to keep residents in the state given the sky-high cost of living and attract businesses.
Despite this, critics have concerns about financing public services without revenue from property taxes.
Colorado and Georgia Voters in these states have the authority to decide on other measures that seek to limit public revenue from property taxes to mitigate what has been termed “taxation without representation” regarding the burdens most homeowners suffer.
Challenges and Considerations
The other side of the coin of why homeowners want to remove property taxes is that it creates other gaping holes:
Revenue Replacement
Services such as education, infrastructure, and public safety that rely heavily on property taxes must be replaced with something else.
Economic Impact
Raising income or sales tax means lower living standards for those already struggling.
Political Feasibility
Stakeholders must agree that most tax change proposals will include cuts to public services. Many states consider lessening or removing property taxes, but each has economic and political issues. These strategies will succeed or fail depending on the balance between the need to reduce taxation and fulfill the essential public service obligations.
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These are the main arguments for and against the abolishing of property tax:
Reasons for the Removal of Property Tax:
Economic Growth:
- Supporters believe that eliminating the property tax would help boost the economy.
- This would encourage investment in real estate, which in turn leads to economic growth.
Homeownership Accessibility
Removing property taxes would make owning a home possible for those in the lower or middle classes.
Fairness:
- Some argue that fixed-income earners are disproportionately affected by property taxes, as increased taxes make owning a home increasingly onerous in the face of rising home prices.
Encouraging Mobility:
- People who do not pay property tax will feel more inclined to move to new areas for work or personal pursuits as there are no tax-related restrictions.
Opposing Reasons for the Removal of Property Tax
Loss of Revenue:
- The property tax collects significant revenue, serving as a budget for schools and local authorities.
- Removing this tax would result in a budget deficit.
Increased Other Taxes:
- The government will be required to raise other means of taxation, such as sales or income taxes, which will grossly affect lower-class families.
Funding for Essential Services
The removal of property will ruin basic services such as public security, education, and infrastructural facilities.
Market Distortion:
- Removing property taxes may encourage speculation in real estate investments, ultimately increasing the cost of housing and lowering its long-term affordability.
Equity Issues:
- Some argue that property taxes help guarantee compliance from wealthier members of society in providing social services, establishing a level of civic responsibility.
These arguments highlight the essence of a complex debate that has devastating consequences for local economies and communities.
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What alternative revenue streams could replace property taxes?
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Below are alternative revenue sources that could take the place of property taxes:
Sales Taxes
- Explanation: Raising the sales taxes on goods and services.
- Benefits: Residents and businesses can use it; therefore, value is not lost.
- Drawbacks: The low-income population may face additional burdens.
Income Taxes
- Explanation: State or local government collects income taxes.
- Benefits: Ideal for high-income earners as they have to pay higher taxes.
- Drawbacks: High-income earners and businesses may decline to move to higher-tax areas.
Corporate Taxes
- Explanation: Increasing taxes on the profits of corporations.
- Benefits: Large corporations that use the infrastructure will be taxed.
- Drawbacks: Businesses may move to regions with low taxes.
Consumption Taxes
Explanation: Something in which specific goods (tobacco, alcohol, luxury) have added tax.
Benefits: Spending is subjected to specific taxation, which can aid in promoting better health.
Drawbacks: Low-income people have to pay the same taxes, so targeted spending by income group does not work.
Fees and User Charges
- Explanation: Introducing fees for public services like waste management and water.
- Benefits: People who use the service pay for it fairly.
- Drawbacks: Not all public services may be adequately funded.
Land Value Taxes
- Explanation: Instead of buildings, charge for the value of the land.
- Benefits: This will reduce land speculation and promote healthy land use.
- Drawbacks: A change of attitude towards taxes is essential.
Tourism Taxes
- Description: Imposed charges on accommodation like hotels, car hire, and other activities like going to the zoo.
- Pros: Enables revenue capture from those who utilize local services.
- Cons: Revenue volatility is caused by seasonal shifts in tourism.
Carbon Taxes
- Description: Tax paid for the carbon released into the atmosphere to address global warming.
- Pros: Economically beneficial and tackles environmental problems.
- Cons: Political opposition and increased energy costs might be some consequences.
Sin Taxes
- Description: Tax levies are usually applied to illegal activities like gambling, drinking, and smoking.
- Pros: Generates cash in circulation while discouraging negative activities.
- Cons: In this case, revenue may be irregular and a consequence of the spending trend.
Given the area’s economic demographics and international relations in the years to come, all alternative strategies must be weighed against one another.
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Did they catch the Pacific Palisades Los Angeles County Wildfire arsonist? I heard the FBI and law enforcement caught a CEO of a land development company. Can you please give us the details?
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As of January 21, 2025, the Pacific Palisades wildfire case in Los Angeles County remains ongoing. There is no evidence supporting the arrest of a CEO from a land development company in connection with the blaze. Nonetheless, some people have been arrested for arson and other crimes during this time.
Arson-Related Arrests
Jose Gerardo Escobar:
- Currently facing charges of felony arson, arson during a state of emergency, and attempted arson.
- He is accused of trying to set fire to a big tree in Pioneer Park.
- Jose could serve a maximum of nine years in state prison if found guilty.
LA COUNTY DA’S OFFICE
Unidentified Suspect in Azusa:
- Another person was arrested after accepting the fact that he set a brush fire in Azusa.
- People in the area saw him using a big flamethrower to set multiple things on fire.
- The Los Angeles County Fire Department put out the fire.
Impersonation and looting incidents:
Dustin and Jennifer Nehl:
- This couple was arrested for pretending to be firefighters in Pacific Palisades.
- Using a firetruck acquired at auction, they attended restricted areas during raging wildfires.
- To gain further insight, Dustin Nehl also has a criminal record in Oregon for criminal mischief and arson.
Multiple Looting Arrests:
- Some people were charged with residential burglaries in areas under Pacific Palisades and Altadena evacuation, which are looted frequently.
- As reported, Los Angeles County District Attorney Nathan Hochman revealed that nine claimed suspects are under felony charges.
Ongoing Investigations
The cause of the Pacific Palisades wildfire remains unclear.
Officials are looking into multiple possibilities, including arson, electrical failures, or environmental causes. A viral clip of some people close to the start of the fire has caused public speculations, but nothing official has been established yet.
To summarize, there have been multiple arrests regarding arson, impersonation, and looting during the wildfire event, and there are no confirmed claims about a land development company’s CEO being arrested in relation to the Palisades fire. The investigation is still active, so all leads are followed to identify where the blame can be placed for the fire, designed to cover the trace of the crime.
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