Happy 2012 Holidays and Warm Season’s Greetings!

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To all our cherished friends, neighbors, family and clients – we are so proud to have been able to work with you and be a part of your lives! As we end this year and turn to the exciting time and events that 2013 holds, we just wanted to take a moment to thank you for all that you bring to our lives.

We have some really great plans in the coming year to bring more success to all your real estate endeavors. And with each transaction that makes it to the closing table in the coming months and years ahead – we know that there will continue to be new and exciting things to follow for all of us.

On behalf of the entire group – Happy Holidays, Season’s Greetings, Peace and Joy!

Market Update December 2012

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As we approach the end of the year, it is a good idea to take a snapshot view of our marketplace and see the progress we have been building in our local real estate market. There is some big news when it comes to inventory levels and the number of homes sold is also increasing steadily.

Low Inventory Points to a Strong Market
The number of active listings in our marketplace is declining. To help illustrate the stark change in just two years, consider that in November 2010 we had about 6,906 homes on the market for sale. At the same time in 2011 the number of listings on the market was 5,900. But this year in October we reported just 1900 active listings! This indicates a continued dwindling inventory, which coupled with increased sales definitely points to a stronger market.

Selling Activity Is On the Rise
Our sold properties are also increasing year over year. Once again looking at October last year we had 1421 sold homes versus the same time this year with 1715 properties that sold. With half the inventory as just a year ago combined with an increase in sales, despite the winter months we are seeing some very positive things happening.

Interest Rates Continue to Be at Record Lows
Just as we are seeing dramatic changes in inventory levels and steady upward trends in sales, interest rates also keep at their record setting lows. At this point, we are reporting interest rates as low as 3.25% for a 30-year fixed rate loan and even lower for shorter termed loans.

Great Time for Sellers
A year ago – low inventory and strong interest for new homes was definitely there but today we are in an even better position. In fact, we need more inventory to sustain the number of buyers out there looking to lock in today’s amazing rates. Fewer homes on the market usually translates to the ability to negotiate better terms for sellers plus of course multiple offers and high list-to-sale price ratios.
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If you would like to explore your options in today’s real estate market whether that means buying, selling, investing or just browsing the marketplace – contact us today. We are happy to help!

The Mortgage Forgiveness Debt Relief Act Set to Expire on December 31, 2012

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As we are on the cusp of a changing market, many homeowners continue to struggle with underwater mortgages as a result of the housing market crash back in 2007. In fact, the impact was so great that the government instituted a program called the Mortgage Forgiveness Debt Relief Act in 2009 to help offset some of the hardships faced by millions of Americans. Today, that program is set to expire just two short months from now. That’s why it is critical to list your home and successfully short sale it prior to the Act’s deadline so you can save from being taxed on the forgiven or discharged debt.

If you are considering a short sale – it is important to keep this in mind. A short sale entails the bank receiving less money for the property than what is owed on it due to property devaluation and the discharged (or forgiven) debt is considered “income” by the IRS. With the Mortgage Forgiveness Debt Relief Act, homeowners are able to write off this discharged debt and avoid paying taxes altogether on this amount. In some cases, this can amount to a very significant number, forcing the homeowner into an even deeper situation of hardship.

It is important to keep in mind that the tax relief only applies to your primary residence and as long as the short sale is completed prior to the Act’s expiration date, you will not receive a 1099 from the government, nor you will not be required to pay taxes on the amount of forgiven debt.

Since this act is set to expire on December 31^st unless the government extends this yet again, you only have two months within which you need to list the home, find a buyer, receive an offer, have the bank accept the offer and make it to the closing table – all before December 31, 2012. The National Association of Realtors is working hard to extend the deadline for the Act but until there is some concrete action, the December 31^st date stands.

That means you need to start the process now.

For more information about the Mortgage Forgiveness Debt Relief Act, to learn more about short sales or anything else real estate related, I invite you to contact us today! We look forward to helping.