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Home Ownership Rate Stands at 65.5%
October 1, 2012 By Leave a Comment
Americans still favor home ownership. The U.S. homeownership rate continues to remain around 65.5 percent, the U.S. Census Bureau reported late last week. The home ownership rate is nearly the same as it was in the second quarter of 2011 at 65.9 percent.
The Census Bureau also reported that vacancy rates for housing were 2.1 percent and vacancy rates for renting were 8.6 percent in the second quarter.
The home ownership rate peaked at 69.2 percent in 2004. Home owners outnumber renters in nearly 100 percent of the nation’s 3,095 counties evaluated by the Census.
Keweenaw County, located in Michigan’s Upper Peninsula, posted one of the best home ownership rates: 89.8 percent.
Source: “National Home Ownership Rate Is Pegged at 65 Percent,” The Business Journals
Women & Homeownership
September 28, 2012 By Leave a Comment
As a Follow-up to my post, here is a visual representation of how women see home ownership.
Source: TDBank
Home Sale Stats
September 28, 2012 By Leave a Comment
2012 HOUSING TRENDS
September 28, 2012 By Leave a Comment
The National real estate market continues to maintain steady growth and appreciation, as evidenced by the latest Case-Shiller Index, which showed steady increases in month over month home prices, across 20 major metropolitan areas. Since the beginning of 2012, the indexes have risen 3.5%, a sign that the bottom of the market may indeed be behind us. What is even more encouraging is the year over year appreciation, as noted by the index, posting the first positive numbers since the end of the home buyer’s tax credit of 2010.
As the housing market gains strength, the inventory of both new and existing homes has dwindled. Motivated buyers are moving off the fence to take advantage of the historically low rates and adjusted prices. Because of this, multiple offer situations have become increasingly common and have intensified the market. The strong sales activity has triggered prices to rise in the more affordable and mid price ranges as well as the higher price ranges near job centers; signaling a flip in the market.
Initiated by the elevated number of residential investors and local home buyers gaining confidence and reentering the market, the Northwest housing market has seen a
Another market trend we have observed is the increase in the use of mobile technology among both buyers and sellers. The John L. Scott mobile app gives buyers an extra edge when searching for a home and gives sellers targeted exposure to quickly and successfully sell their home.surge of buyers.
These indicators show that moving into 2013 we will likely see a continuing of the fundamental strengthening of the local real estate market.
Home Prices Rebound to 2003 Levels
September 26, 2012 By Leave a Comment
More great market news came through yesterday: According to S&P/Case-Shiller, in July, the average home price rose to the same level as those seen during summer 2003, when the housing boom first started its journey toward the 2006 peak. While this may not signify that we are currently standing on the cusp of a market boom, it does show a significant turnaround, and perhaps hints at a definite end to real estate’s bleak streak.
The recent S&P/Case-Shiller national home price index showed that in July, prices increased by 1.5 percent for the 10-City Composite and by 1.6 percent for the 20-City Composite.
This improvement marks the third straight month that prices rose in all 20 major markets followed by the index—which covers more than 80 percent of the U.S. housing market. Additionally, numbers show that if not for a .06 decline in Detroit in April, there would have been a four month improvement streak.
When compared to a year earlier, the index proved to be up 1.2 percent, an improvement from the year-over-year change reported for June. This marked the first month that prices were higher than they were the previous year.
“The news on home prices in this report confirm recent good news about housing,” said David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, in a recent release.
“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. Upbeat trends continue. For the third time in a row, all 20 cities and both Composites had monthly gains. Stronger housing numbers are a positive factor for other measures including consumer confidence.”
Real estate professionals located outside of the top metros are seeing movement inside their markets, too.
“We’ve been seeing a strengthening market for some time now but August sales are evidence of a major turning point,” says Jamie Moore, president of the Rhode Island Association of REALTORS®. “We may still experience a step or two backward in the months ahead but the forward momentum has clearly become more evident. The market is much stronger than it has been.”
And Dorothy Martwick, Broker/Owner of Century 21 Action REALTORS® in Minot, N.D., comments on her unique market, which never saw much of a real estate recession due to the oil boom in western N.D. and their proximity to the Minot Air Force Base.
“My opinion of the future of real estate here in Western N.D. is that the market will level off and stabilize in the near future and, depending on the national election results and the oil pipeline, capabilities may either stay level or boom again next year and for the next several years. “
“Overall, we’re thrilled to see hard evidence that the market is recovering. Great pricing and low interest rates have really helped turn things around,” says Rhode Island’s Moore.
To view the complete home price index, click here
source: RISMedia
3.8% Tax on Housing? TOP 10 Answers & Resources
September 26, 2012 By Leave a Comment
There has bee so much confusion surrounding the existence of a 3.8% tax in the administration’s health care program. Here is an update in order to help further explain the issue.
Here are the 10 Things You Need to Know About the 3.8% Tax according to the National Association of Realtors (NAR):
1.) When you add up all of your income from every possible source, and that total is less than $200,000 ($250,000 on a joint tax return), you will NOT be subject to this tax.
2.) The 3.8% tax will NEVER be collected as a transfer tax on real estate of any type, so you’ll NEVER pay this tax at the time that you purchase a home or other investment property.
3.) You’ll NEVER pay this tax at settlement when you sell your home or investment property. Any capital gain you realize at settlement is just one component of that year’s gross income.
4.) If you sell your principal residence, you will still receive the full benefit of the $250,000 (single tax return)/$500,000 (married filing joint tax return) exclusion on the sale of that home. If your capital gain is greater than these amounts, then you will include any gain above these amounts as income on your Form 1040 tax return. Even then, if your total income (including this taxable portion of gain on your residence) is less than the $200,000/$250,000 amounts, you will NOT pay this tax. If your total income is more than these amounts, a formula will protect some portion of your investment.
5.) The tax applies to other types of investment income, not just real estate. If your income is more than the $200,000/$250,000 amount, then the tax formula will be applied to capital gains, interest income, dividend income and net rents (i.e., rents after expenses).
6.) The tax goes into effect in 2013. If you have investment income in 2013, you won’t pay the 3.8% tax until you file your 2013 Form 1040 tax return in 2014. The 3.8% tax for any later year will be paid in the following calendar year when the tax returns are filed.
7.) In any particular year, if you have NO income from capital gains, rents, interest or dividends, you’ll NEVER pay this tax, even if you have millions of dollars of other types of income.
8.) The formula that determines the amount of 3.8% tax due will ALWAYS protect $200,000 ($250,000 on a joint return) of your income from any burden of the 3.8% tax. For example, if you are single and have a total of $201,000 income, the 3.8% tax would NEVER be imposed on more than $1000.
9.) It’s true that investment income from rents on an investment property could be subject to the 3.8% tax. BUT: The only rental income that would be included in your gross income and therefore possibly subject to the tax is net rental income: gross rents minus expenses like depreciation, interest, property tax, maintenance and utilities.
10.) The tax was enacted along with the health care legislation in 2010. It was added to the package just hours before the final vote and without review. NAR strongly opposed the tax at the time, and remains hopeful that it will not go into effect. The tax will no doubt be debated during the upcoming tax reform debates in 2013.
If you have further questions, let me know.
Shadow Inventory Threat Lessens
September 25, 2012 By Leave a Comment
The shadow inventory of troubled mortgages and foreclosed homes saw a 1.2 million decrease in the first half of the year, according to research conducted by JPMorgan Chase.
Chase researchers expect that progress to double before the year’s end, too. That would then bring the shadow inventory to more than 4 million, which is down from the 6 million peak reached in 2010.
A rising number of short sales has allowed more banks to clear the shadow inventory that has threatened the housing market’s recovery, according to the research. Banks also have been increasing loan modifications.
Shadow inventory is known for creating uncertainty in the housing market. In calculating the shadow inventory, Chase researchers include trouble mortgages that haven’t been paid in at least 60 days.
"Although re-defaults and new delinquencies will continue to keep shadow inventory elevated, the rapid decline should prevent downward pressure on home prices going into 2013," according to Chase analysts. "Combined with better existing home sales, investors have reason to be optimistic about running recovery scenarios."
Chase analysts say that if home prices rise 10 percent, the current number of 10.8 underwater borrowers could then decrease to 9 million.
Source: “Shadow Inventory Declines by 1.2 Million in 2012,” HousingWire
Sizing Up The American Dream
September 24, 2012 By Leave a Comment
In a nation as diverse as the United States, the idea of "the American dream" means different things to different people. Many associate the dream with intangible ideals like freedom of expression, freedom of religion, optimism and family ties. But the American dream has also long been associated with attaining a higher standard of living, particularly one that surpasses that of the previous generation.
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source: NPR