Now with the election behind us...
Now with the election behind us, it is time to look to the end of this year and the year beyond.
As we prepare for 2013 one of the big issues in the Sacramento housing market remains distressed properties and if Congress will extend the Mortgage Debt Forgiveness Tax Relief law. This is this act which provides a tax exemption for forgiven debt related to the short sale of homes. The act and the exemption are set to expire at the end of the year and if not extended will virtually remove short sale as an option for homeowners who must sell a home with a value less than the mortgage balance. If the law is allowed to expire, homeowners who negotiate a short sale or lose their homes through foreclosure would have to pay federal taxes on the amount forgiven by their lender.
The NATIONAL ASSOCIATION OF REALTORS(r) has issued a nationwide Call-for-Action, urging members to contact their Members of Congress in support of extending the current Mortgage Debt Forgiveness Tax Relief law. Despite some positive signs of recovery, our nation's real estate market is still fragile. Over a quarter of all transactions still involve distressed properties. As part of this call I am urging you to contact your representatives and ask them to support an extension of the act.
As we move into 2013 the California housing market will continue to recover. The California Association of Realtors has forecast increased sales for the third consecutive year and the median price to rise for the second straight year. The C.A.R. forecast sees sales gaining 1.3 percent next year to reach 530,000 units, up from the projected 2012 sales figure of 523,300 homes sold. Sales in 2012 will be up 5.1 percent from the 497,900 existing, single-family homes sold in 2011.
C.A.R.'s forecasts the average for 30-year fixed mortgage interest rates will edge up to 4 percent after six consecutive years of declines, but will still remain historically low.
The statewide median home price is forecast to increase a moderate 5.7 percent to $335,000 in 2013. Following a decrease in 2011, the California median home price will climb a projected 10.9 percent in 2012 to $317,000.
The actions of homeowners who are upside down and what happens with the tax forgiveness act will be important in 2013. With prices moving up, some of these homeowners will stay in their homes while others will sell and move forward.
If you or someone you know is considering selling a home where the value is less than the mortgage balance, give me a call at the MagnumOne Realty office in Roseville (916-899-6571) or send an email to firstname.lastname@example.org. I would be happy to answer your questions.
Julie Jalone, wife and mother living in Rocklin, is an experienced professional Realtor ® serving
the Greater Sacramento area including Placer, El Dorado, Yolo and Yuba counties.
Julie may be reached online at www.jalone.com or by calling (916) 276-6883
Check out her daily web blog: Keep it Real in Sacramento
Pet Care | Real Estate | Restaurants | Tech | View All | * Add/Upgrade Business
Placer County News HeadlinesDowntown Roseville Oktoberfest this WeekendRoseville, CA- Get ready for Oktoberfest this Saturday October 22 at Downtown Roseville's Vernon Street Town Square.
Jack Reacher Opens at IMAX in SacramentoSacramento, Calif. - Set four years since the first film events, Jack Reacher is returning to the headquarters of his old military unit, but reveals that he is now
Genetic Testing Could Prevent DisabilityRecently, I had quite an experience trying to prevent a disability or two in myself. Several years ago, I found online a genetic testing service and later another similar service
Remodeling Your Kitchen - Think WhiteRoseville, CA- Sacramento Realtor, Julie Jalone of MagnumOne Realty in Roseville, writes about the basics of remodeling kitchens to get the most out of your investment when selling a home.
Desert Trip: You Just Might Find, You Get What Ya NeedIndio, CA- "Any more fun and we'd be in trouble". Perhaps it was the heat of the desert sun speaking, but
Toyota Tacoma TRD Off-Road provides good versatilityRoseville, CA- Toyota enjoys huge sales numbers in the U.S., where reportedly half the midsize trucks sold are Tacoma models
Placer Gives: Local Resident Leaves Lasting Gift for Disadvantaged YouthRoseville, CA - For Irmgard ("Else") Schichtel a childhood in Nazi Germany set in motion a circuitous path towards a permanent fund at Placer Community Foundation that
Salmon Advocate at Next Rooster Tails BreakfastThe Rooster Tails Fishing Club monthly breakfast will be held at the Auburn Elks Lodge on October 21.
Ridge Tahoe's Dan Garrison Retiring after 34 YearsDan Garrison, the Ridge Tahoe's senior vice president/general manager, will retire in December following a storied 34 years at the resort.
Citrus Tree Quarantine Now at 118 Square MilesAfter the discovery in September of an insect that can carry a disease fatal to citrus trees, the California Department of Food and Agriculture has placed trees in a 118-square-mile area near Lincoln
Mountain Mandarin Festival Seeks VolunteersAs the Mountain Mandarin Festival, slated for November 18-20, has grown from several hundred visitors to 30,000 visitors, the need for volunteers has multiplied.
Sierra College Press Release: King SequoiaRocklin, CA - Sierra College Press has published "King Sequoia" by author and retired national park ranger, William C. Tweed.
NEWS: In Case You Missed It