December 2019

In September, home prices rose 0.9%, declining 7.6% year over year, First American said in its Real House Price Index. According to the company, unadjusted house prices sit 8.1% above the housing boom peak.

Consumer buying power, which measures the influence of income and interest rate changes on house-hold spending, increased by 0.2% between August and September, rising 15.8% year over year.

When consumer house-buying power is factored in, home prices are actually 42.2% below their 2006 peak and 18.8% below prices from January 2000.

Although housing affordability improved during the month, Mark Fleming, First American’s chief economist said the growth just wasn’t enough.

“Two of the three key drivers of the Real House Price Index,

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Beginning in January, homeowners in Washington state will soon pay a real estate tax that increases based on the sale price of their home.

 Under the new provision, the tax rate on properties that sell above $1.5 million will more than double, rising from 1.28% to 2.75%. Homes that sell for more than $3 million will be taxed at 3%.   And Washington isn't the only state changing the way it taxes real estate. New York also recently expanded its "mansion tax" -- an additional tax that targets higher-end home sales.    Most real estate deals in the US trigger what is known as a transfer tax. But certain states -- including Connecticut, Hawaii, New…