Newport Beach Market Insight

Mortgage rates have stabilized and even come down slightly after spiking again in April and May. The treasury market is also supportive of less rate volatility in coming weeks, and both trends should help to bolster housing demand. Rising inventory has helped to relieve some competitive pressure on transactions, which should come as welcome news for would-be homebuyers—particularly as it comes paired with an improvement in rates. 

As always, please reach out if you have any questions or comments with your local market.
 

DID YOU KNOW?
Learning from the past is wise!  Economists who are evaluating what caused the recent inflation spike put the blame on multiple factors, including - lots of government stimulus, pent up demand and FOMO spending, price-gouging, etc.. All agree that it was the combination of the Covid-19 pandemic, Russia’s war in Ukraine and Federal Reserve policy mishaps that fueled most of it. (CNBC)
 
DID YOU KNOW?
High interest rates have had an unexpected impact on U.S. housing. Instead of triggering a fall in home prices, as happened with commercial real estate, costlier mortgages have pushed residential values higher. The value of the median existing home rose to a record $419,300 in May. Before the pandemic, it was $270,000, a 55% jump in 5 years. (WSJ)
 
DID YOU KNOW?  
Italy a tax-haven?  Yup!  Italy offers one of the most attractive tax incentives in the world with a fixed €100,000 tax on any foreign income for anyone who moves to the country. It also offers a tax-free allowance of up to 50% on income capped at $650k for anyone, Italians or foreigners, who move to Italy from abroad. The wealthy population in Italy is soaring. The owners of Sant Ambroeus are now opening a club - The Wilde - in Milan to compete with Soho House.  (FT)
 
DID YOU KNOW?
Where are all the buyers? Traveling! The TSA screened a staggering 2.99 million passengers at airports across the country on Sunday, June 23,  the highest number in a single day!

DID YOU KNOW?
The U.S.’s hottest job market in 2023 was Utah’s tech sector, nicknamed Silicon Slopes for its proximity to the Wasatch Mountain Range. Heavily concentrated in the state’s north region, startup and established tech companies run about 80 miles from Ogden to Provo, with Salt Lake City in the middle. Roughly halfway between Salt Lake City and Provo is Draper, a city that 30 years ago had a population around 8,500, according to census data. Today, with a population closer to 50,000.  (WSJ) 

DID YOU KNOW?
The maximum amount that can be gifted each year tax-free is $18,000 for an individual or $36,000 for a couple. Wealthy people are transferring money to kids much sooner while they are younger and probably need more aid than when they are older...due in part because the current estate tax exemption put in place by the Tax Cuts and Jobs Act of 2017 is set to expire at the end of 2025.  Reducing the size of an estate now could avoid estate taxes later. (Smart Asset)