Is low housing inventory bad for Texas?

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The logo for the 2015 Texas REALTORS® Conference in Forth Worth

09/04/2015 | Author: Editorial Staff

The last day of the 2015 Texas REALTORS® Conference included 12 CE sessions and the association’s Board of Directors meeting. Here are some items the board took action on:

  • Approved the 2016 budget recommended by the Budget and Finance Committee, which includes continuing the $5 Issues Mobilization Assessment and the $5 Legal Defense Fund Assessment.
  • Approved TAR support of two constitutional amendments on the November 3 ballot: Proposition 1, which would increase by $10,000 the statewide homestead exemption and ban real estate transfer taxes, and Proposition 7, which would secure a much-needed transportation-funding source.

National Association of REALTORS® President Chris Polychron, who spoke during the Board of Directors meeting, encouraged Texas REALTORS® to respond to NAR’s call for action against patent trolls. You can respond now at realtoractioncenter.com/stoppatenttrolls.

Why low inventory may hurt Texas homebuyers
“Texas is behind on supply—we’re going to have to build more houses or we’re going to have tight inventory for a while,” reported Harold Hunt, research economist at the Real Estate Center at Texas A&M University, during the association’s Board of Directors meeting. Hunt said Texas home values are up 7% overall due to low inventory—3.5 months’ worth—and high demand, but an under-supply of single-family housing markets in Texas may hurt affordability.

Training, technology, and treasures
On Wednesday, conference attendees enjoyed free admission to the Trade Expo and Technology Learning Center, where more than 130 vendors shared the latest innovations in technology, software, and marketing tools. Several winners took home valuable prizes in the treasure hunt drawing at the end of the day-long event. 

Categories: Meetings, Members
Tags: conference, texas realtors conference, research, board of directors, governmental affairs, proposition 1, proposition 7


Comments

Chris Rosprim on 09/10/2015

Proposition One addresses 2 issues.  Yes - bundled together.  The Texas Legislative Reps and Senators that wrote the legislation that was passed by the legislature would have to answer why they included the 2 on the same proposition as opposed to creating 2 separate propositions.  So Prop 1 takes care of increasing the Homestead Exemption from $15,000 to $25,000.  Will mean a savings of approx $125 to the “average” homeowner in Texas.  The savings will NOT take away any funds from schools.  2nd part of Prop One (sometimes referred to as a rider) will permanently ban sales transfer taxes on real estate sales.  Neither of these could possibly be considered pork as it does not attempt to make any expenditure of funds for any projects.  It is a tax SAVINGS to all homeowners by increasing their homestead exemption and it is a sales tax savings to all property owners and buyers who might suffer from a sales tax, if it were to come to be passed, on any and all sale of real property in Texas so not sure how it could be construed as “pork”.  The 2 parts of Prop One have nothing to do with each other - other than sharing the language of Prop One on the ballot and both being Good for Texans - one and all. 

Prop One takes care of 2 issues at once. 

Prop 7 is entirely separate.  Does not call for any new taxes - merely reassigning taxes already coming in to be designated to transportation / roadways / highways, etc. - new / improvements / repairs - but no toll roads.  A real need for Texas.  We really need 5 - 7 $Billion so this will not address all the need for Texas roadways but is a step in the right direction.

Debbie Russell on 09/10/2015

Chris,

Thank you for responding.  Please help me understand this part; your last sentence in your second paragraph you say ....“Proposition 1 will take care of both issues” I don’t understand how Proposition 1 will take care of both issues.  It’s not as if raising the homestead from $15,000 to $25,000 will take care of the second matter as if this would change funding - correct?  I think the only way it takes care of both issues is because they are bundled together like pork.  Is that correct?  I am NOT opposite to having a higher exemption nor am I opposed to killing the transfer tax on real property.  I think at the end of the day the way it was worded confused me and I am only trying to separate it all out in my mind.  To me it seems as if there would be 2 Propositions for the one that concerns homestead and transfer of taxes…. just does not seem like it should be bundled together unless of course it is just pork.  More comments are very appreciated, sometimes I am just a little slow.

chris rosprim on 09/10/2015

Correct in your assumption.  Proposition 1 and 7 have nothing at all to do with each other.  TAR supports both but for entirely different reasons. 

Proposition 1 increases the homestead exemption for all Texans from currently $15,000 to $25,000 and will represent an average savings of about $125.  Further - it bans real estate transfer taxes at the time a property is sold.  36 other states have such a transfer tax - varying amounts.  We want to ensure Texas does not become # 37 as a way to generate taxes that would be a burden on any property owner - or buyer - selling or buying a property.  Proposition 1 will take care of both issues.

Proposition 7 provides funding for transportation needs (with NO toll roads) to help keep up with our growing traffic needs due to aging roads and bridges and increased traffic due to continued influx of new residents to Texas (1,000 to 1,500 PER DAY).  Proposition 7 will earmark some $2.5 to $3 Billion towards TX DOT needs for highway construction and improvements and repairs.  Very much needed.  This is NOT a new tax - just shifting already existing funds to the needs of transportation issues. 

Please vote in support of Proposition 1 and 7.

Debbie Russell on 09/08/2015

I am confused!  Would someone help me understand this…. that attached article states ..........•Approved TAR support of two constitutional amendments on the November 3 ballot: Proposition 1, which would increase by $10,000 the statewide homestead exemption and ban real estate transfer taxes, and Proposition 7, which would secure a much-needed transportation-funding source…......• These two Propositions are not related are they?  In other words the approval of Proposition 1 has nothing to do with the much needed funding for transportation for Proposition 7- correct?


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