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 email@example.com. I would be happy to answer your questions.
Placer County News HeadlinesPlacer County Sports Tourism Filling Hotels Memorial Day WeekendThe ASA Memorial Day Classic and Rocklin Pony Baseball Tournament, with support from Placer Valley Tourism, are hosting their annual Memorial Day weekend
$1.3 Million Savings in Placer Water Agency Refinance?Directors of the Placer County Water Agency on Thursday (May 16) approved a debt restructuring that is expected to save the agency $1.3 million
Woman Taunted as a TeenagerMy featured person this week agreed to be interviewed only under condition of anonymity. Janet" was born with
Bayside West Church Opens Registration for Breakaway 2013Bayside West Community Church's annual summer camp for kids that includes in-depth Bible stories, wet and wild games, awesome music, and
Roseville Students Awarded for Anti-Tobacco ArtworkAndrew Kurtz, a 17-year-old senior at Roseville's Woodcreek High School, was shocked to look up from his desk and see his parents and a group of photographers
Child Support Services Open House in Rocklin May 21Placer County's Department of Child Support Services is hosting a monthly "Open House" seminar to provide information to residents interested in learning more about the services it provides.
Deals: Thunder Valley Concert Ticket PackagesLINCOLN - Guests will have the chance to purchase a limited number of exclusive season ticket packages for Thunder Valley Casino Resort's much anticipated Summer Concert Series this Saturday, May 18.
Roseville Company Buys Huntington Park Complex for $11 Million USA Properties Fund Inc. has acquired Huntington Plaza Apartments, a 184-unit senior housing community in Huntington Park in central Los Angeles County.