Will the new tax laws slow Seattle’s housing market? (Part 2: New deduction limits)

Let’s finish off our discussion of how the Seattle-area real estate market may be affected next year by the changes to the tax code. In yesterday’s post we discussed the doubling of the standard deduction, and concluded that it is likely to have very little effect. Today let’s look at the other two big changes: The reduction of the mortgage interest deduction cap from $1M to $750k and the capping of local sales, income, and property tax deductions at $10k…

Income Taxes Paid by Home Price

Will the new tax laws slow Seattle’s housing market? (Part 1: Doubled Standard Deduction)

Now that the big GOP tax plan has passed, let’s have a look at how it may affect the Seattle-area real estate market next year when it goes into effect.

There are two major changes to the tax code that will matter to home buyers and home owners: the doubling of the standard deduction (from $12,700 for a married couple in 2017 to $24,000 in 2018) and the reduction of the mortgage interest deduction cap from $1 million to $750k.

First up let’s look at the doubling of the standard deduction…

Matthew Gardner: “It’s not a housing bubble”

I’m still not really sure whether or not we’re in the midst of another housing bubble in the Seattle area, but here’s a strong sign that we might be: Local real estate cheerleader and permabull Matthew Gardner is loudly proclaiming that “No, it’s not a housing bubble.” No, we’re not in a housing bubble. Now […]

Amazon, Go

Okay, okay, let’s talk about Amazon HQ2

Everybody is talking about it, and it’s definitely going to have some kind of effect on the local economy in Seattle, so even though it’s a bit late, let’s talk about Amazon’s HQ2.

Unless you’ve been living under a rock, you’ve no doubt seen the news that Amazon is seeking to build a second headquarters somewhere “in North America” that “will be a full equal to our current campus in Seattle.” GeekWire has been covering the story extensively (including a data-based city analysis by yours truly), so if you need to catch up on the facts, head over there. For the discussion here, let’s focus on the possible impact this development will have on the Seattle-area real estate market.

Cool: $140k “Micro-Home” packed with smart home features

The video is packed with quite a few obnoxious buzzwords (and some NSFW language) but I do appreciate the concept of this 352-square-foot home. It’s produced on an assembly line and can be “installed” in a wide variety of locations and configurations, plus it’s loaded with smart home tech and modular designs…

Redfin IPO Raises $138 Million, Share Prices Climb

Redfin’s long-awaited IPO went well for the Seattle-based technology-powered real estate brokerage this morning. They priced the IPO at $15 per share last night, raising $138 million for the company. When shares started trading on the open market this morning under the ticker symbol RDFN they opened at $19.56.

City of Seattle Population Growth

NWMLS Falsely Inflates Seattle’s Population Growth

It’s time once again for a reporting roundup, where you can read my wry commentary about the news instead of subjecting yourself to boring rehashes of the NWMLS press release (or in addition to, if that’s what floats your boat).

For a month that saw home prices shoot up to insane new all-time highs, the quotes from home salesmen in this month’s release are surprisingly calm.

I do want to address one glaring error in the release, though:

Seattle’s growing population is another likely factor. Recent U.S. Census Bureau data shows Seattle is gaining about 1,100 residents per week, an “astounding” figure, said MLS director Diedre Haines.

That number is false. The most recent data available shows a growth rate of less than half that level…