Tag Archives: Real Estate

The Top 10 Real Estate Tax Deductions for Homeowners

popular tax time apps verizon wireless midwest area image by vzwmidwestarea.com
popular tax time apps verizon wireless midwest area image by vzwmidwestarea.com

As the time to file income taxes approaches, we need to take a new look at the changing tax landscape for homeowners. The dynamic atmosphere in Washington, D.C. has a different effect each year on which tax breaks are proposed, rescinded, changed, and extended for taxpayers who own a home.

Thanks to the efforts of many real estate industry groups including the National Association of Realtors, many of the  tax benefits that homeowners enjoy–which were on the chopping block over the past few months–have been protected and extended through the 2013 tax season.

Disclaimer – This is only an informational summary of current tax issues in the news. If you need tax advice, please contact a tax attorney or CPA

 

READ MORE

For all your real estate needs
Email or call today:

John J. O’Dell Realtor® GRI
Civil Engineer
General Contractor
(530) 263-1091
Email jodell@nevadacounty.com

DRE#00669941

Enhanced by Zemanta

Best Season For Home Buying

Photo Credit: icanhascheeseburger.com
Photo Credit: icanhascheeseburger.com

After the holidays, buyers tend to start getting more aggressive with their house hunting. Search activity usually peaks around March or April in most states, according to a new study of home searches from 2007 to 2012 conducted by Trulia.

In September, searches slow down. By December buyer searches ebb to their lowest point of the year.

“Home-search activity swings with the seasons in every state,” says Jed Kolko, chief economist of Trulia. “Buyers and sellers can use these ups and downs to their advantage. Sellers looking for the most buyers should list when real estate search traffic peaks. Buyers, however, should think about searching off-season, when there is less competition from other searchers.”

The study revealed seasonal patterns of search activity state to state. Here are the months when online real estate searches peak in every U.S. state:

  • January: Hawaii
  • February: Florida
  • March: Arizona, California, Delaware, Georgia, Idaho, Iowa, Kentucky, Maryland, Massachusetts, Michigan, Missouri, Nebraska, Nevada, Ohio, Oklahoma, Pennsylvania, Virginia, Washington
  • April: Colorado, Connecticut, District of Columbia, Illinois, Indiana, Kansas, Minnesota, New York, North Dakota, South Dakota, Utah, West Virginia, Wisconsin
  • May: Real estate activity does not peak in any state
  • June: Mississippi
  • July: Alabama, Alaska, Arkansas, Louisiana, Maine, New Hampshire, New Jersey, New Mexico, North Carolina, Rhode Island, South Carolina, Tennessee, Texas, Vermont, Wyoming
  • August: Montana and Oregon
  • September-December: Real estate activity does not peak in any state

Source: “Trulia Reveals Best Home-Searching Season,” HousingWire (Jan. 29, 2013)

For all your real estate needs
Email or call today:

John J. O’Dell Realtor® GRI
Civil Engineer
General Contractor
(530) 263-1091
Email jodell@nevadacounty.com

DRE#00669941

Enhanced by Zemanta

What Will the New ‘Normal’ for Housing Be?

house-on-roof-side

Mortgage giant Fannie Mae recently offered some predictions of what the housing market’s “normal” will look like in the next two years.

In its report, “Transition to ‘Normal’?”, Fannie says while the housing market has shown improvement, uncertainty remains over both the economy and the real estate market.

“Our forecast is that 2013 and 2014 will exhibit below-potential economic growth,” according to the white paper. “This is despite the fact that we expect the housing rebound will continue and that the economy will benefit from the gradual increased growth of U.S.-based manufacturing, as well as the expansion of domestic energy production.”

The following are some of the projections Fannie made in its report:

  • Mortgage rates to stay low: Fannie Mae expects mortgage rates to remain low over the next few years. The mortgage giant expects rates will increase to no more than 4.2 percent by the end of 2014.
  • FHA loans may get more expensive: More costs may be assigned to Federal Housing Administration loans.
  • Refinancing drops: The boom in refinancing may have peaked last year with slower activity projected this year. “We expect 2012 to be seen as the high watermark for refinances and 2013 as the first of several transition years as the housing finance market transitions back to a more normal balance between purchase and refinance activity.”
  • Foreclosures continue to fall: Fannie expects foreclosures to continue to decline from their peaks as more alternatives to foreclosure are pursued.
  • Housing starts to rise: Fannie Mae predicts that housing starts will increase 23 percent in 2013 — which would be 60 percent more than the record low in 2010. Fannie expects housing starts won’t reach sustainable levels until 2016.
  • Mortgage originations grow: “Given our expectations of continued improvement in housing starts, home sales, and home prices in 2013,” Fannie Mae writes, “we project that purchase mortgage originations will rise to $642 billion from a forecast of $518 billion in 2012.”

Source: “‘Normal’ Housing Market May Not be What it Used to Be,” Realty Times (Jan. 30, 2013)

For all your real estate needs
Email or call today:

John J. O’Dell Realtor® GRI
Civil Engineer
General Contractor
(530) 263-1091
Email jodell@nevadacounty.com

DRE#00669941

Enhanced by Zemanta

Housing Inventories Are Falling

Photo Credit: http://www.shakesville.com/2008/06/my-former-landlord.html
Photo Credit: http://www.shakesville.com/2008/06/my-former-landlord.html

Home prices are increasing across the country as the number of homes for-sale continues to fall. But at a time when buyer demand is picking up, why is inventory still so low?

Inventories fell to 1.82 million at the end of last year, a 21.6 percent drop from one year earlier, the National Association of REALTORS® reports.

The Wall Street Journal recently highlighted several reasons behind the dropping inventories, including:

  • Sellers hesitant to sell: About 22 percent of home owners with a mortgage are still underwater, owing more than their home is currently worth. Home owners don’t tend to sell unless a life-changing event occurs when they’re underwater because they don’t want to take a loss on the sale of their house. CoreLogic data shows that inventories are the most constrained in areas with the highest number of underwater borrowers.
  • Not enough equity to trade up: Often times, home owners rely on the equity from their home to make a down payment on their next home. With fewer home owners seeing equity in their houses, they may not have enough money to move into a pricier home, which is constraining the would-be “trade up” buyer from moving.
  • Investors continue to snatch up properties: Investors are snapping up properties, but they’ve changed their strategy from past years, which is also constraining inventories. Now they’re holding onto properties and turning them into rentals instead of rehabbing properties and flipping them for profit. This is keeping fewer homes on the market.
  • Banks are slowing down foreclosures: Banks have new rules to meet with the foreclosure process, and it’s causing them to move at a slower pace in foreclosing on homes. Banks also are showing a preference for short sales and loan modifications, which are curbing the number of foreclosed homes on the market.
  • Builders are doing less building: Housing starts were at record lows from 2009 through 2011 so there’s less inventory being added to the market. A rebound in the new-home market has only recently started to occur.

Source: “Six Reasons Housing Inventory Keeps Declining,” The Wall Street Journal (Jan. 22, 2013)

 

For all your real estate needs
Email or call today:

John J. O’Dell Realtor® GRI
Civil Engineer
General Contractor
(530) 263-1091
Email jodell@nevadacounty.com

DRE#00669941

Enhanced by Zemanta

Buying a Home During the Holiday?


Once Thanksgiving is over, the real estate world typically starts to wind down for the holidays and doesn’t usually reawaken until after New Year’s.  But potential home buyers who are prepared to close in today’s competitive market may want to keep house hunting while everyone else is waiting for spring.

 

  • REALTORS® especially recommend that serious home buyers continue shopping if they have repeatedly lost out on deals because of a limited and continually decreasing supply of homes.  Buying intensity typically cools down at the start of fall through early January, which could increase the odds for those with more patience.
  • Would-be buyers historically have bowed out during the winter season because they are overwhelmed by holiday spending and commitments.  There’s also the aversion of moving in the middle of a school year.  Consumer interest typically picks back up again in the New Year and peaks in the spring.
  • Certain buyers may be well-served to buy during the winter because of sellers who must move for various reasons including a job change or transfer or the possible sunsetting of the Mortgage Forgiveness Debt Relief Act, which lets certain home sellers get tax relief on mortgage debt forgiven by lenders.  The possible expiration has pushed home sellers to list and short sell their homes before year’s end.

Read the full story

 

For all your real estate needs
Email or call today:

John J. O’Dell Realtor® GRI
Civil Engineer
General Contractor
(530) 263-1091
Email jodell@nevadacounty.com

DRE#00669941

Enhanced by Zemanta

Homes Are Selling Faster

Photo credit: future-dreamhome.blogspot.com
Photo credit:  future-dreamhome.blogspot.com

Inventories of for-sale homes aren’t the only thing that is dropping. The amount of time homes are staying on the market is growing shorter as well—down 11 percent in the last year—according to the latest Realtor.com data.

Homes were listed on average 95 days, according to September housing data. That is down from 107 days a year earlier.

Homes are selling the fastest in Oakland, Calif., in which the median age of the inventory averages 21 days, which is 57 percent below what it was a year ago. Denver, Colo. boasts a median age of inventory of only 38 days, followed by fast-selling markets of Stockton-Lodi, Calif., with 43 days, and San Francisco with 44 days.

As the median age of the inventory is falling, inventories of for-sale homes continue to hover at record lows too, dropping 18 percent last month compared to a year ago.

“There’s a recovery,” Curt Beardsley, vice president of Realtor.com, told BusinessWeek. “Our market times are low and there’s actually a compression of inventory.”

Home buyer demand is increasing, with housing affordability still high and ultra low mortgage rates that have pushed home buyers’ purchasing power higher. The rise in demand has caused asking prices to also rise. Last month, the median asking price was $191,500, which is up 0.8 percent compared to a year earlier, Realtor.com reports.

Source: “Listings of Homes for Sale Drop as U.S. Housing Recovers,” BusinessWeek (Oct. 15, 2012) and REALTOR® Magazine Daily News

 

For all your real estate needs
Email or call today:

John J. O’Dell Realtor® GRI
Civil Engineer
General Contractor
(530) 263-1091
Email jodell@nevadacounty.com

DRE#00669941

Enhanced by Zemanta

Home Buyers Grow Frustrated by Low Inventories

Photo Credit:  http://www.chriahcorp.com/
Photo Credit: http://www.chriahcorp.com/

Low inventories of homes for-sale are becoming troubling to home buyers, Inman News reports. Almost every major market in the U.S. has posted double-digit decreases in for-sale listings.

“The buyers tend to become a little frustrated as they are seeing homes that they want to ‘think about’ and before they can even get home to discuss it there are already multiple offers on the property,” Sheri Moritz, a real estate broker with Keller Williams’ Wake Home Team in Raleigh, N.C., told Inman News. In Raleigh, inventories have fallen 21 percent in the past year, according to Realtor.com data.

“I counsel buyers to be patient, and not get discouraged, that it may take extra time to find the suitable property,” adds Tom Avent, broker-owner at Tom Avent Real Estate in Fresno, Calif., which has posted a 43.1 percent drop in inventories in the past year. “I have also seen some buyers give up looking, frustrated with low inventory and losing out in multiple-offer bidding.”

Multiple bid situations are a common occurrence in many markets. But surveys show that home buyers lose their enthusiasm when faced with competition for a property, according to a recent survey by Redfin. Seven in 10 of home buyers surveyed reported that they’ve faced competition on at least one of their offers recently, but  31 percent say they would back off when faced with a multiple offer situation for a home, according to the Redfin survey.

Charles Roberts, a director at the Denver Board of REALTORS® and co-owner of Your Castle Real Estate, says that “urgency” is the new landscape greeting home buyers.

“Gone are the days of looking at 50 homes and taking months to make a decision,” Roberts told Inman News. “If there’s a good property on the market, buyers need to act quickly, and yes, sometimes bid above asking price. The educated, thoughtful clients are getting great deals with astoundingly low interest rates. The clients that are still insisting on putting offers at 80 cents on the dollar are getting shut out of the market. They either learn that that strategy doesn’t work anymore or they keep on renting. Our job as real estate agents is to teach them what the market looks like and guide them in their decision-making.”

Source: “Low Inventories Thwarting Buyers,” Inman News (Oct. 1, 2012)

For all your real estate needs
Email or call today:

John J. O’Dell Realtor® GRI
Civil Engineer
General Contractor
(530) 263-1091
Email jodell@nevadacounty.com

DRE#00669941

Enhanced by Zemanta

New-Home Prices Soar to 5-Year High

Photo credit: www.community.joejet.com/
Photo credit: www.community.joejet.com/

The median price of a new home rose a record-breaking 11.2 percent in August, reaching $256,000. That marks the highest level since March 2007, the U.S. Census Bureau reported Wednesday.

The price of new homes in August soared 17 percent compared to last year at this time.

The number of new-homes that sold in higher price ranges — $400,000 or more — rose significantly in August.

“This reflects the fact that people who are able to buy homes right now are those in higher-income ranges who have cash and equity on hand, while first-time buyers are having a tougher time getting qualified for a mortgage,” says David Crowe, the National Association of Home Builders’ chief economist.

As prices rose, inventories of new homes in August remained at record lows. It would take 4.5 months to clear the houses on the market at August’s sales pace, the Census Bureau reported.

Single-family home sales mostly held steady in August, remaining at two-year highs. Sales slipped 0.3 percent to a seasonally adjusted annual rate of 373,000.

On a regional basis, new-home sales in August soared 20 percent in the Northeast, 1.8 percent in the Midwest, and 0.9 percent in the West. New-home sales declined 4.9 percent in the South in August.

“New-home sales in August effectively tied the pace they set in the previous month, when they were the strongest we’ve seen in more than two years — so this is really a continuation of the good news we’ve been getting on the housing front,” says Barry Rutenberg, NAHB chairman. “Looking at the big picture, sales have been trending gradually upward since the middle of last year as favorable interest rates and prices have driven more consumers to get back in the market for a newly built home.”

Source: “New Home Sales Ease, But Prices Hit 5-Year High,” Reuters (Sept. 26, 2012) and the National Association of Home Builders

For all your real estate needs
Email or call today:

John J. O’Dell Realtor® GRI
Civil Engineer
General Contractor
(530) 263-1091
Email jodell@nevadacounty.com

DRE#00669941

Enhanced by Zemanta

Home Prices Continue to Rise Over Last Year’s Levels

 
More housing reports released on Tuesday showed home prices on the rise. The Federal Housing Finance Agency reported that U.S. home prices increased 3.7 percent from a year ago in the 12-month period ending in July.

FHFA’s home price index is now at about the same level it was in June 2004. However, it’s 16.4 percent below the peak reached in April 2007. To calculate its housing index, the FHFA uses purchase price data on mortgages owned or guaranteed by Freddie Mac and Fannie Mae.

Also on Tuesday, S&P/Case-Shiller released a report also showing home prices on the rise for the fourth consecutive month and at their highest level in nearly two years. S&P/Case-Shiller report measures home prices in 10-city and 20-city composite indices. In its 20-city index, S&P/Case-Shiller reported home prices up 1.2 percent compared to a year earlier.

“The news on home prices in this report confirm recent good news about housing,” David M. Blitzer, chairman of the index committee at S&P Dow Jones Indices, told The Wall Street Journal. “Single family housing starts are well ahead of last year’s pace, existing home sales are up, the inventory of homes for sale is down and foreclosure activity is slowing. All in all, we are more optimistic about housing.”

Last week, NAR reported that the median price on existing-homes rose 9.5 percent over year ago levels. The median home price in August is $187,400.

The increase to the sales price in August was the strongest since January 2006 when median home prices had risen 10.2 percent higher than what they were a year ago.

The National Association of REALTORS® will release its pending home sales report on Thursday.

Source: “FHFA Home Price Index Now Equals 2004 Levels,” HousingWire (Sept. 25, 2012) and “Case-Shiller Shows Home Prices Rise Sharply Again,” The Wall Street Journal (Sept. 25, 2012)

For all your real estate needs
Email or call today:

John J. O’Dell Realtor® GRI
Civil Engineer
General Contractor
(530) 263-1091
Email jodell@nevadacounty.com

DRE#00669941

Enhanced by Zemanta

Arrests of Four Individuals in Nevada County Real Estate Scheme

Pyramid Scheme Diagram
pyramid scheme diagram

Friday, September 21, 2012

Contact: (415) 703-5837

SACRAMENTO — Attorney General Kamala D. Harris announced the arrest Thursday of four suspects who have been charged with securities fraud, conspiracy and elder abuse for operating a Ponzi scheme that bilked dozens of investors of over $2.3 million.

The arrest declaration alleges that Gold Country Lenders, a real estate company in Grass Valley, engaged in a pattern of theft and fraud-related crimes for more than eight years. Investor funds were used to make interest payments to earlier investors or for projects in which the company’s owner had a financial interest.

“These defendants exploited their personal relationships with these victims and emptied their bank accounts,” Attorney General Harris said. “Schemes that target the elderly are especially heinous, which is why prosecuting fraud and elder abuse needs to remain priorities for law enforcement.”

Philip Lester, 65, and Ellen Lester, 65, who are married, surrendered to custody, and Susan Laferte, 58, and Jonathan Blinder, 58, were arrested on Thursday in Nevada County.

Philip Lester, CEO of Gold Country Lenders, and Laferte, the firm’s CFO, are being charged with 66 felony counts of elder abuse, securities fraud and conspiracy. Laferte is Philip Lester’s sister. They were booked at the the Nevada County Jail, with bail set at $600,000 each.

Ellen Lester is being charged with two felony counts of conspiracy and securities fraud and was booked at the Nevada County Jail with bail set at $50,000. Blinder is charged with four felony counts of securities fraud and was booked at the Nevada County Jail and released on bail.

From January 2003 to June 2011, Gold Country Lenders sold securities on specific real estate development projects, promising investors annual returns of 8 to 12 percent. These investments were supposedly secured by a first or second deed of trust on the property. In fact, some of the promised deeds of trust were never recorded, while others were recorded but subordinate to other loans, or were diluted by the repackaging and overselling of shares.

In October 2010, the Attorney General’s Office launched an investigation in response to complaints filed by numerous investors.

The arrest affidavit alleges that investors were not told that Philip Lester had a partnership interest in some of the development projects he sold to investors, or that some of the land targeted for development had significant toxic waste issues. Many of the victims are elderly and had known and trusted the defendants for many years.

Unbeknownst to investors, their investment funds were used to make interest payments to earlier investors or for purposes other than the development project they had invested in. For example, victims’ funds were diverted to purchase and operate the Auburn Valley Country Club, a prestigious golf course and clubhouse where the Lesters resided.

Agencies that assisted in serving today’s arrest warrants include the Grass Valley Police Department, the Nevada County Sheriff’s Office, the Riverside County Sheriff’s Office and the Department of Corporations.

“Protecting consumers and investors is at the forefront of the Department of Corporation’s mission,” said California Corporations Commissioner Jan Lynn Owen. “The Department of Corporations works diligently to strongly enforce and uphold California’s financial laws to the fullest extent.”

The Attorney General Office’s Special Crimes Unit conducted the investigation. The case will be prosecuted by the Attorney General’s Mortgage Fraud Strike Force, which was formed in May 2011 to investigate and prosecute crimes related to mortgage, foreclosure and real estate fraud.

Copies of the complaint and arrest declaration are attached to the electronic version of this release atwww.oag.ca.gov

Source: Attorney General’s Office

Related article in the Sacramento Bee – Hard money lending has sordid past in Nevada County

 

For all your real estate needs
Email or call today:

John J. O’Dell Realtor® GRI
Civil Engineer
General Contractor
(530) 263-1091
Email jodell@nevadacounty.com

DRE#00669941

Enhanced by Zemanta