Tuesday, December 31, 2013
Monday, September 30, 2013
Monday, July 29, 2013
Friday, July 12, 2013
Tuesday, May 21, 2013
Wednesday, April 17, 2013
Friday, April 12, 2013
Wednesday, March 6, 2013
Friday, March 1, 2013
Thursday, February 28, 2013
Rental Incomes Continue to Outpace Other Sources of Income
Rental Incomes Continue to Outpace Other Sources of Income
The economic recession in 2009 was painful to most people. However, as wages and salaries, proprietors’ income, and income from assets (e.g., stocks, etc.) contracted that year, aggregate rental income rose as many homeowners turned into renters.
With the economy growing again, the aggregate levels for all types of income has been rising. Rental income continues to outpace all other types of income and has been growing much faster than the inflation rate, creating high positive real returns.
However, the forces of supply and demand are starting to move towards a balance, with rental income growth now decelerating. On the supply side, more rental units appear to be coming into the market as investors are reportedly converting foreclosed properties into rentals. On the demand side, foreclosures have started to ease; although the magnitude of past due and foreclosed properties is still large, having dropped from a peak of 6.7 million to 4.8 million as of Q3 2012.
The outlook is for the demand for rental properties to continue to grow substantially if current mortgage standards remain excessively stringent. Although sound credit practices are essential, most REALTORS® believe that the current lending standards have become excessively tight, even for credit-worthy borrowers.
We get a number of comments from REALTORS® in our monthly REALTORS® Confidence Index survey concerning potential first-time homebuyers who lose bids to investors because of a strong rental market. If there is any consolation, the situation shows that the existing home sales market is strong and upbeat. In this type of situation the old phrase “Try, try again.” applies. Both mortgage money and homes are “out there,” but in this market persistence may be necessary.
Tuesday, February 19, 2013
Tuesday, January 29, 2013
Tuesday, January 15, 2013
Real Estate Provisions in “Fiscal Cliff” Bill
Article was written by the National Association of Realtors
On Jan. 1 both the Senate and House passed H.R. 8 legislation to avert the “fiscal cliff.” The bill was signed into law by President Barack Obama on Jan. 2.
Below is a summary of real estate related provisions in the bill:
These limits were first enacted in 1990 (named for the Ohio Congressman Don Pease who came up with the idea) and continued throughout the Clinton years. They were gradually phased out as a result of the 2001 tax cuts and were completely eliminated in 2010-2012. Had we gone over the fiscal cliff, Pease limitations would have been reinstituted on all filers starting at $174,450 of adjusted gross income.
On Jan. 1 both the Senate and House passed H.R. 8 legislation to avert the “fiscal cliff.” The bill was signed into law by President Barack Obama on Jan. 2.
Below is a summary of real estate related provisions in the bill:
Real Estate Tax Extenders
- Mortgage Cancellation Relief is extended for one year to Jan. 1, 2014
- Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012
- 15-year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012
- 10 percent tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012
Permanent Repeal of Pease Limitations for 99% of Taxpayers
Under the agreement so called “Pease Limitations” that reduce the value of itemized deductions are permanently repealed for most taxpayers but will be reinstituted for high income filers. These limitations will only apply to individuals earning more than $250,000 and joint filers earning above $300,000. These thresholds have been increased and are indexed for inflation and will rise over time. Under the formula, the amount of adjusted gross income above the threshold is multiplied by 3 percent. That amount is then used to reduce the total value of the filer’s itemized deductions. The total amount of reduction cannot exceed 80 percent of the filer’s itemized deductions.These limits were first enacted in 1990 (named for the Ohio Congressman Don Pease who came up with the idea) and continued throughout the Clinton years. They were gradually phased out as a result of the 2001 tax cuts and were completely eliminated in 2010-2012. Had we gone over the fiscal cliff, Pease limitations would have been reinstituted on all filers starting at $174,450 of adjusted gross income.
Capital Gains
Capital Gains rate stays at 15 percent for those in the top rate of $400,000 (individual) and $450,000 (joint) return. After that, any gains above those amounts will be taxed at 20 percent. The $250,000/$500,000 exclusion for sale of principal residence remains in place.Estate Tax
The first $5 million dollars in individual estates and $10 million for family estates are now exempted from the estate tax. After that the rate will be 40 percent, up from 35 percent. The exemption amounts are indexed for inflation.Wednesday, January 9, 2013
Roseville & Rocklin 2012 Market Stats
Roseville & Rocklin 2012 Market Stats
The market in the Roseville and Rocklin area for 2012 is very good. We have seen the price per sqft increase 10.8% in Roseville and 12.2% in Rocklin. We saw the inventory remain low with the demand very high. We have a high demand coming from three areas, first time buyers, investors and those who did a short sale or lost their home 3-5 years ago and are back in the market. (supply and demand is pushing the prices up). We closed the year with 3193 units sold compared to 3057 units sold in 2011.
If you know someone who is in need of selling their home or if you have been thinking about it, feel free to contact me and I'll be happy to go over the stats with you. Neighborhood values.
Short Sale Information
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