Legislators Try to Jump-Start Michigan Housing Market

The Michigan housing market has seen better days.

As a result, some state lawmakers want to give would-be home buyers a new incentive. House democrats unveiled their plan to put a temporary stop to what is known as the pop-up real estate tax.

You see them all across mid-Michigan: for sale signs.

In some cases, they’ve decorated the same lawn for years. The prices will not draw offers as Michigan mortgage costs remain too steep for potential buyers. Democrats have an offer they say will help remove some of those signs and jump start Michigan’s economy.

Rep. Mark Meadows, (D-East Lansing), says that under a new plan, “If you purchase a house, you’ll get the taxable value that the seller has at the time of the purchase of the house.”

Every time a home changes hands, the buyer pays a higher property tax rate. It’s called the pop-up tax, because it jumps on every sale.

“We think it will spur home sales that will help spur the economy, puts money into people’s pockets so that consumers can spend that money in our local businesses,” Meadows added.

Right now there are thousands of for sale signs on lawns in mid-Michigan, and real estate agent associations say they’re not sure how many of them will come down if the pop up tax is eliminated.

Jeff Thornton of Briarwood Realty is optimistic.

“It’s going to have an impact,” he said, although “It’s going to vary from community to community.”

Agents say communities that already have low taxes and low prices may not see a jump in home loan activity, while other more expensive homes with traditionally higher taxes may move quicker.

“It’s a step in the right direction,” Thornton said.

A step democrats hope will recharge the sagging housing market.

Lawmakers are holding hearings on the bill this week. If it’s passed, it will be retroactive to March 1, and hopefully, give Michigan home sellers some long-awaited good news. Here’s hoping.

SOURCE: WLNS News