Did You Know? 10-23-2022

DID YOU KNOW? 

• One good thing from inflation? The IRS is introducing higher standard deductions and thresholds for tax codes to reflect higher inflation! The estate and lifetime gift tax exclusion will rise to $12.92 million from $12.06 million per person. The annual gift tax exclusion—the amount any person can give to any other without affecting lifetime limits—will climb to $17,000 from $16,000. (WSJ)
  
  
• UK inflation came in at 10.1% for September, up from 9.9% in August. High inflation may have peaked in the USA where inflation came down marginally to 8.2%, down 0.1% from the prior month, but notably lower than the UK and Germany where inflation is at 10.9%, mostly driven by notably higher energy costs due to the Russia-Ukraine War. (MARKETWATCH)
  
  
• According to an analysis from Allied Market Research, of the $11.4 trillion generated by the real estate market in 2021, North America alone held nearly two-fifths of the global market share. Many factors, including an increase in property values, a rise in urbanization, growing populations, and technological advances continue to drive growth in the real estate investment market. Allied projects the global market will nearly triple to $30.6 trillion by 2031. (YAHOO)
  
  
• I recently took note of the real estate taxes three $3 million properties in California featured in an article were paying, they were almost exactly $37,000 per year each. Then I searched properties in Manhattan, New York in the Chelsea area priced between $2.9 million and $3.1 million, all condos. Their real estate taxes ranged from around $20,000 per year to over $47,000 per year! And the most expensive taxes were being paid in a building with the least services and amenities in what many might agree is the less desirable part of Chelsea, so much for fair and equal treatment under the law?
  
  
• From March 2020 till now, housing was up about 40%. Housing CPI shows 11%. The CPI is very slow, outdated, and is not a real indicator of inflation. The impact of rates takes many months. Even with near-zero rates in 2020, that year showed an inflation rate of 1.2% while home prices were soaring, and housing is 40% of CPI, inflation figures only soared in 2021 many, many months after rates had been lowered.
  
  
• More than 40 million Americans are in debt for their education, owing a cumulative $1.7 trillion, a balance that far exceeds outstanding credit card or auto debt. Skyrocketing higher education costs coupled with stagnant wages have caused the amount of student debt people graduate with to soar. Today the average balance is more than $30,000, up from $12,000 in 1980. Many first-time home buyers are stifled by this debt. (CNBC)

Diablo Valley Real Estate September 2022 Report

Don’t miss out on our amazing properties!

Digital Booklet