NAR Endorses Bill to Increase Home Gain Exclusion
Before the House of Representatives left Washington on October 1 for the pre-election campaign season, a bipartisan bill of key importance to millions of homeowners was introduced by Representatives Jimmy Panetta (D-CA) and Mike Kelly (R-PA). Titled the “More Homes on the Market Act,” (bill number pending) the legislation would double the capital gains exclusion for sales of principal residences from $250,000 to $500,000 for single filers and from $500,000 to $1 million for married couples filing a joint tax return, and also index these amounts for future inflation. While this bill is unlikely to move in 2022, it is a great first step upon which we can build next year. Read More…
NAR’s Letter to U.S. Representatives Kelly and Panetta
NAR Advocates on Behalf of Affordable Housing and Supply
NAR recently wrote a letter to the National Economic Council in support of proposals that will spur federal action and incentivize state and local governments, and private actors, to boost housing supply and affordability, particularly for first-time and first-generation buyers, and middle-income Americans. The letter is in response to a recent roundtable discussion NAR President Leslie Rouda Smith attended with other housing leaders to ensure that finding solutions to the historic supply shortage affecting Americans’ affordability remains a top priority of the Administration. Read More…
Department of Labor Proposes New Independent Contractor Rule
On October 11, 2022, the U.S. Department of Labor released a proposed rule interpreting how a worker is classified under the Fair Labor Standards Act (FLSA).The proposed rule ultimately does not impact the classification of real estate professionals as independent contractors. Read More…
National Flood Insurance Program Extended
On September 30, 2022, the President signed a continuing government funding resolution that extends the National Flood Insurance Program (NFIP) until December 16, 2022 among other measures. The resolution provides continuing appropriations for federal agencies and extends several expiring programs and authorities. Its passage prevented a government shutdown that would otherwise occur. NAR has prepared a Frequently Asked Questions (FAQ) sheet about what NFIP reauthorization means for real estate transactions. Please find the latest NFIP updates at https://www.nar.realtor/flood-insurance.
NAR Economist Corner: Decade High Rates Cut Into Contract Signings
House hunters are backing away from the housing market as mortgage rates continue to rise sharply. The National Association of REALTORS®’ newly released Pending Home Sales Index—a forward-looking indicator of home sales based on contract signings—fell 2% in August compared to July and is down 24.2% compared to a year ago. This marks the third consecutive month that pending home sales have fallen.
“The direction of mortgage rates—upward or downward—is the prime mover for home buying, and decade-high rates have deeply cut into contract signings,” says Lawrence Yun, NAR’s chief economist. “If mortgage rates moderate and the economy continues adding jobs, then home buying should also stabilize.” Yun has said the real estate market has fallen into a “housing recession.” He expects the economy to remain sluggish throughout the remainder of the year. “Only when inflation calms down will we see mortgage rates begin to steady,” Yun says. Read More…