Residential Real Estate Blog


HELOCs and Tax Deductibility

A clarification has been issued by the Internal Revenue Service about the deductibility of interest that is paid on home-equity and junior-lien products. The Tax Cuts and Jobs Act of 2017 was approved by Congress and signed into law last year by President Donald Trump and enacted on Dec. 22. Under the law, joint taxpayers can deduct interest on home loans up to $750,000. Married taxpayers filing separately can each deduct interest on loans up to $375,000. Among the provisions of the legislation is a suspension of the interest deduction for home-equity loans, home-equity lines of credit and second mortgages from 2018 until 2026. But an exception exists, according to IR-2018-32 issued by the agency. The clarification comes in response to many questions submitted to the IRS by taxpayers and tax professionals. When HELs & HELOCs are utilized to buy, build or substantially improve the residential properties used as security for the loans, the interest is deductible. An example of a deductible expense is when the proceeds from the loan are used to build an addition to an existing home. But if the proceeds are utilized to pay off personal expenses like credit cards, no deduction is allowed. As was the case under the prior law, the loan must be secured by a primary residence or second home, not exceed the cost of the home and meet other requirements.

2017 Boulder County Real Estate Wrap-up

These numbers are 2017 over 2016.  For most of 2017 we saw a month over month increase in inventory which has led to slighter higher supply (still far below a balance market level) and loweing demand.  This trend has affected the Boulder condo market the most.

2017 Stats 1-2018 FB

2016 Boulder County Real Estate Stats

2016 held no surprises, inventory at record lows and appreciation was strong.  2017 will see higher interest rates (30yr fixed on Nov. 1 2016 was 3.65%, current rate as of Feb 17th 2017, 4.20%).  This could be the first step to a more balanced market.

BoulderValleyStats2015-2016

Data compiled from Boulder Area Realtors Association

2016 Year over Year Statistics

How did 2016 compare to 2015 in our Boulder County Communities.  2016 saw the average number of sales decrease by 14.1%, the average price jumped 14.2%, and the median price was up by 15.9%.

BoulderValleyStats2015-2016

Data compiled from Boulder Area Realtors Association

Boulder County Statistics - Nov. 2016

BoulderValleyStats Nov-16


Boulder County Statistics - August 2016

BoulderValleyStats Aug-16


Longmont Colorado Snapshot Sept. 8th.

City of Longmont Available Properties, Sept 8th.

Single Family Homes                    Change from July
Available Inventory:    61                       -33.70%
Average List Price:      $481,000             +1.48%
Median List Price:      $459,000             +6.25%

Condos and Town Homes
Available Inventory:     21*                    -4.55%
Average List Price:      $312,000            -3.41%
Median List Price:      $294,000             -13.53%

*8 of the 21 available attached homes are new builds and available for future occupancy
Data compiled from IRES MLS.

Lafayette Colorado Snapshot Sept 8th.

City of Lafayette Available Properties, Sept 8th.

Single Family Homes                    Change from July
Available Inventory:    26                       -10.34%
Average List Price:      $595,000             -8.46%
Median List Price:      $575,000             -2.38%

Condos and Town Homes
Available Inventory:     14*                    +600%
Average List Price:      $439,000            +25.14%
Median List Price:      $440,000             +25.71%

*7 of the 14 available attached homes are new builds and available for future occupancy
Data compiled from IRES MLS.

Louisville Snapshot Sept 8th

City of Louisville Available Properties, Sept 8th.

Single Family Homes                             Change from July
Available Inventory:     23                              -11.54%
Average List Price:      $876,000                    +12.74%
Median List Price:      $750,000                     +10.46

Condos and Town Homes
Available Inventory:     14*                             +250%
Average List Price:      $475,000                     +31.94%
Median List Price:      $414,000                     +10.40%

*12 of the 14 available attached homes are new builds and available for future occupancy
Data compiled from IRES MLS.

Boulder Snapshot Sept. 8th

City of Boulder Available Properties, Sept 8th.

Single Family Homes                         Change from July
Available Inventory:     70                         -17.65%
Average List Price:      $1,391,000           +15.24%
Median List Price:      $1,049,000           +10.42%

Condos and Town Homes
Available Inventory:     39                         -29.09%
Average List Price:      $767,000               -26.34%
Median List Price:      $475,000                -15.93%

Data compiled from IRES MLS.

© Kevin Schill 2018