America's Housing Shortage

Longest standing sponsor for Kim’s show, Karen Levine (303-877-7516), realtor with RE/MAX Alliance, and show sponsor Lorne Levy, mortgage specialist with Polygon Financial, join Kim in studio to discuss the current housing shortage and interest rates.  This weekend listeners will have the opportunity to hear three separate America’s Veterans Stories interviews.  Sunday at 3pm Kim will interview Nellie Paler, a Vietnam Marine pilot veteran.  Saturday and Sunday evenings at 10pm the show will feature veterans from previously recorded interviews.  All shows are on KLZ 560 AM and KLZ 1007 FM.  Kim’s quote from John Maynard Keynes leads to a robust conversation on Keynesian economic theory.  Keynes was a supporter of government intervention, including deficit spending, during periods of economic instability.  Kim, Karen and Lorne look at Keynesian theory during 2008 and now.

Economist Dr. Murray Sabrin analyzes inflation as seen today.  We are seeing monetary inflation because of the infusion of trillions of dollars by the government in the money supply.  The biggest scandal today is that inflation is running at 6.2% annually while interest rates have not increased for savings accounts.  Dr. Sabrin is advocating for a tax deduction on the loss of interest for those savers with Congressional members.  Housing prices continue to rise with income increases lagging behind.  The government is working to micromanage the economy with central planning.  We need a free market focused on lower taxes, less regulation and no infusion of government money so that the economy will run effectively.

Karen, on the heels of her returning from the National Association of Realtors convention, reports that the 1031 Exchange has not been dissolved in the infrastructure bill signed by Biden on Monday.  This is good news for middle class investors.  Additionally, the tax on unrealized gains was not included in the bill.  The “Social Infrastructure” bill is yet to be determined.  There is limited housing inventory.  This has led to the average price of homes in the Denver metro area increasing by 15% over the past year.  Refinancing, reverse mortgages and home equity loans have helped many homeowners in various investments.  Fannie Mae and Freddie Mac, federal government agencies that back home mortgages, will increase their loan limit to almost $1 million due to home appreciation prices in some areas of the nation.  Karen and Lorne agree that this is good for home buyers; without the increase in loan limit, people would not be able to afford homes.  Zillow spent big in buying homes at an inflated prices.  They realized their mistake and are withdrawing from their program of buying and flipping homes.  Karen invites listeners to give her a call at 303-877-7516 if you would like your family to visit Santa with all the trimmings on Saturday, December 11^th.  Karen stresses that not all realtors are members of the National Association of Realtors.  Karen is the person to help you buy or sell your home.  Lorne advises potential buyers or those who want to leverage the equity in their home to call him at 303-880-8881.