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Real Estate News
| 01/07/2007 |
Lender update, 7 Jan 2007
THE SAYING "WHATEVER GOES UP MUST COME DOWN" played out this week. We started off the week with rates in the 6.125% range on 30-year fixed. By Thursday morning rates were back to 5.875% but early Friday rates spiked up a smidge, then closed out the afternoon coming down again.
Note, these interest rate changes are in very small increments, certainly not enough to effect clients' ability to make a purchase. (An .125% point on a 30 year conforming rate on $300,000 means a payment differential of $24.00/month). We are still clearly in a fabulously affordable interest rate climate.
Today the 30-year conforming rate is back down to 5.875%. A $417,000 loan (just at the conforming loan maximum) would cost $2466.71/month.
submitted by Susan Costello, Home Sweet Home Loans
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| 12/28/2006 |
C.A.R. Reports Home Sales Decrease 22.2% in Nov.
The median price of an existing single-family home in California increased 1.4 percent in November and sales decreased 22.2 percent compared with the same period a year ago, C.A.R. recently reported. "After fairly steep declines in sales during the first half of the year, the market appears to have stabilized at about 450,000 sales on a seasonally adjusted annualized basis," said C.A.R. President Colleen Badagliacco. "The median price is holding steady in the $545,000 to $550,000 range, and increased just 1.4 percent last month compared with a year ago."
The median price of an existing single-family home in California increased 1.4 percent in November and sales decreased 22.2 percent compared with the same period a year ago, C.A.R. recently reported. "After fairly steep declines in sales during the first half of the year, the market appears to have stabilized at about 450,000 sales on a seasonally adjusted annualized basis," said C.A.R. President Colleen Badagliacco. "The median price is holding steady in the $545,000 to $550,000 range, and increased just 1.4 percent last month compared with a year ago."
submitted by Calif. Association of Realtors Newsline |
| 12/21/2006 |
Home Buying and Selling Guides
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National Association of Realtors Newsletter, 12/20/2006
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| 12/11/2006 |
Community Property, Joint Tenancy, or Tenants in Common?
Community Property:
Husband and wife or domestic partners. Ownership and management are equal. Upon death, 1/2 belongs to surviving souse/partner and 1/2 passes by will or, if no will, to surviving spouse or partner. Property is liable for the debts of either spouse made before or after marriage if principal residence.
Joint Tenancy:
Any number of persons, but cannot be artifical entity. Ownership interest must be equal. Each joint tenant has separate legal title to undivided interest, subject to right of survivorship. On co-owner's death, interest passes to surviving joint tenants. Interest may not be disposed of by will.
Tenancy in Common:
Any number of persons or entities. Ownership can be divided into any number of interests, equal or unequal. Each owner has a separate legal title to undivided interest which passes by will or, if no will, must be probated. |
| 10/18/2006 |
What if the Gain on your residences exceeds $250,000?
Yes, there is a way to defer taxes on the balance of the gain, but it takes planning. For instance, if a single personal sold a home for $500,000, that was originally purchased for $100,000, the remaining gain ($150,000) is subject to federal and state taxes. However, a personal residence can be turned into a rental for one-two years, then sold, and the property will still qualify for the personal residence exemption! Plus, the taxable gain can be used to acquire replacement investment property.
The values for the new investment property will change as a result of the exemption. Under traditional rules for purchasing replacement investment property, the investor must acquire property with a fair market value equal to or greater than the relinquished property and must invest all the equity from the relinquished property. But, when the gain has been excluded under Section 121, the replacement property purchase price and equity required is reduced by the amount of gain that was excluded, either $250,000 or, for a couple, $500,000. Advance planning is the key to this type of transaction, and a tax/1031 professional needs to be consulted early on.
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| 10/09/2006 |
Setting an Asking Price
The cooling housing market presents some challenges in valuing properties to sell. In the past, brokers established prices by comparing the property to comparable sales in the neighborhood. Now with the inventory of homes increasing and with selling prices edging lower, brokers are in danger of over estimating value if they look solely at past sales. Sellers must look more at the prices of competing homes and price their property to offer the best value for the dollar. Frequently, that means aggressively cutting their asking price if a home is not being shown. |
| 09/01/2006 |
Inherited Property -- Do Your Research!
There are significant legal and tax ramifications to selling an inherited home. Depending on the manner in which the property is transferred, it can take several weeks to several years for an heir to obtain clear title. Property held in a trust can usually be transferred the most expediently; if a will is involved or the owner dies without a will, the process can be quite lengthy and involve overseeing by the probate court. Consult a legal professional as soon as possible.
For tax purposes, it is important to establish current market value for the property as of the date of death. In some cases, the opinion of a real estate broker is sufficient; however, a full appraisal by a licensed appraiser is preferred. Consult a tax accountant prior to putting the property on the market. Know what you are getting into while you still have options.
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| 06/07/2006 |
Exchanging multiple properties
Real estate investors may take advantage of the tax code to exchange several properties into one. For instance, vacant land can be exchanged into a single-family residential income property, several single-family properties can turn into a multi-unit apartment building, and any of the above can exchange to commercial properties -- as long as it is real estate for real estate. |
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