We’ve been doing the COVID dance for what seems like an eternity ~ one step forward, two steps back, circle around, and repeat! Will it ever end?? I don’t know!
I do know that early market predictions for 2022 show a seller’s market. Buyers will still need a fierce negotiator on their side before they hit the closing table; however, there are a few silver linings for buyers in Texas!
Buyers
While the market is still competitive, there are perks on the back end of becoming a new homeowner this year. Let’s talk taxes! Stay with me – this will be easy to follow, and it’s good news! I’m referring to the Homestead Exemption filing changes that went into effect on January 1st.
- What is a homestead exemption?
In its most simple definition, a homestead exemption reduces the taxable value of your property – so it lowers your taxes.
- So what’s new? We’ve always had this!
In effect, the new law allows you to apply for the exemption as soon as you close on your new home. Before January 1 of this year, a homeowner had to wait until the following year to apply.
- We’re talking about taxes – what’s the catch?
You can file this exemption anytime within the year that you buy a property – IF that property does not already have the exemption filed under the previous owner – which is why buying in the first quarter of this year will be the best way to take advantage of this new policy!
- How much savings will I see from the homestead exemption?
That’s outside of my area of expertise. The savings will be determined by the tax levels adopted by your local governments.
- How do I apply for this exemption after I purchase my new home?
For more homeowner tax exemption information, please refer to the RESIDENCE HOMESTEAD EXEMPTION FREQUENTLY ASKED QUESTIONS from Comptroller.Texas.gov.
Sellers
Realtor.com released its annual forecast report ranking housing markets in the largest cities in the US. San Antonio-New Braunfels area outranked Austin-Round Rock and Houston Metro areas by coming in at #66 among the top 100 most prominent cities. Austin-Round Rock came in at #72, and Houston metro ranked #80.
Another first for San Antonio-New Braunfels, the median home price has surpassed $300K coming in at around $305,000. According to Realtor.com, this market change is related to the growth of the tech industry and the rise of remote workers. Employees have the freedom to relocate to areas where they can get more space now that they’re not confined to brick and mortar, making suburbs a prime target for first-time buyers.
The report noted that Millennials who just hit “typical first-time buying age” and “Baby Boomer” retirees make up the buyers heading into the market. These demographics will likely keep the market competitive, but they will have differing borrowing potential and very different wants and needs lists.
Whether you’re looking for someone to help you sell while the market is still hot or for favorable tax exemptions from buying a new home, I’d love to hear from you, and I’m always happy to answer any questions you may have!
Krista Moreno | Bloom Realty | krista@bloomrealtytx.com | (830) 305-5248
