There may be some positive things for potential homebuyers during 2025, especially more properties for sale. Shopping's always less stressful when you have more choices, and homes are no different. Lastly, when you're finished unwrapping gifts, you may want to spend an hour or two making a list and checking it twice...especially one for your 2024 taxes. If you need help, scroll down to check out our links to free tax guides and checklists.
In November, pending home sales increased slightly...but so did mortgage rates. If you're wondering why this happened, here are some insights into the factors that affect the market.
If you've been following the real estate news in your area, chances are the headlines were almost always about the costs of buying a home. Reports about the latest mortgage interest rates are popular, with average home prices another popular topic. But when making a major purchasing decision, many home buyers consider their choices equally important.
Since the number of homes for sale has been increasing over the past few months, this has encouraged buyers who were on the sidelines to reconsider a purchase. Considering the perceived permanency of a home purchase, this translates into an improved housing market, even if interest rates are slow to recede or even stay the same.
From an affordability perspective, the First American Real House Price Index shows that nominal house price appreciation has slowed alongside higher inventory levels. This is welcome news for potential buyers and existing homeowners alike.
Source: blog.firstam.com
Generative artificial intelligence (AI) has become part of our everyday lives, and our healthcare is no exception. As you've probably already guessed, one reason AI has been adopted by health insurance companies is that it saves money; another is that it delivers quicker results.
While AI tools use complex algorithms to process claims, it's often difficult for a data-driven system to consider patients' individual needs. This may result in a delayed or denied claim or request for authorization.
A possible solution is being introduced soon, when a new California law will regulate how insurers use artificial intelligence when granting prior authorization for medical treatments. However, since the tools that are making decisions are machines, and they're making decisions about intensely personal situations, the nuances that are essential to effective care are often absent.
Source: marketplace.org
Members of Generation X aged 44 to 59 have been nicknamed the "sandwich generation" as they're often responsible for caring for their parents and children at the same time. This is causing considerable stress. A recent survey found that 53% of Gen X parents fear that their kids will need financial support into adulthood, which is considerably higher than all other parents, with only 37% sharing their worries.
Generation Xers are already facing plenty of challenges, so these results aren't surprising. Rising education, housing and healthcare costs have already created economic challenges. One 45-year-old parent commented:
"It's uniquely hard for kids now. Seeing how hard it is for my son's generation has motivated me to do what I can."
In addition to concerns about their children, Gen Xers are coping with having grown up amid less-than-ideal economic conditions. They've witnessed four of the five largest stock market crashes in history within their lifetimes, and also saw retirement pensions replaced with 401(k) plans. However, wealth advisors have noticed that this has contributed to a mindset among Gen X of being ready to roll with any unexpected punches.
Setting limits for financial support can be difficult, though. Gen Z offspring who receive financial support from the Bank of Mom and Dad are getting over $1,500 a month on average. Financial advisors suggest that these parents develop a healthy dialogue with their children regarding money matters, including an explanation of fund limits.
Source: cnbc.com
Even though you have several months to complete your 2024 federal tax return, it's never too early to take stock of your current and future savings and investments. Thankfully, several tax advisors are offering complimentary tax guides and checklists online. Just choose one or more and download or copy/paste your choices.
Cherry Bekaert Tax Advisors offers a checklist of action steps and considerations, plus a look ahead to 2025.
If you're a business owner, check out BDO's Tax Planning Guide. This firm also offers services to those managing nonprofits.
Want a personal touch? Visit Kindness Financial Planning online and check out their Year-End Tax Learning Guide and Checklist.
Don't miss our blog on the Top 5 Tax Breaks for Homeowners as well!