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.
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
Placer County News HeadlinesFood for 400,000 Meals Raised for Placer Food BankThunder Valley Casino Resort and Whitney Oaks Golf Club have collected over 50,000 pounds of food for Placer Food Bank food drive.
Rocklin Man Victim of Elder Abuse and ID TheftLaura Kirkwood, 23 years old of Sacramento, was arrested and booked at the Placer County Jail on suspicion of elder abuse and ID theft of a 74 year old Rocklin man.
Shocking Find in Colfax Storage Unit: Human RemainsA woman called the Placer County Sheriff's Office to report a foul odor coming from an abandoned storage unit that she had just purchased through an auction
Napa Valley's New Year's Eve Bash in CalistogaCome celebrate the New Year with the return of Celebrate! Napa Valley's New Year's Eve Bash on Dec. 31, 2014 at 10 p.m. in Calistoga, Calif.
Murders by Guns Continue Declining, Suicides On RiseWhile the overall death rate from firearm violence has remained unchanged for more than a decade, the patterns for suicide and homicide have changed dramatically
Sutter Health Donates to Placer Food Bank Roseville, Calif., - One in six people in California go hungry, including many in Placer County. To help provide meals for those in need, Sutter Health provided a donation
Nobel Prize Winner to Speak at MIND InstituteThomas C. Sdhof, recipient of the 2013 Nobel Prize in Physiology and Medicine, will address his research on how defects in a 'glue' that binds together proteins at the neuronal synapses may play a role in the etiology of autism spectrum disorder
New Low Down Payment Mortgages: As Low As 3 PercentRoseville Realtor, Julie Jalone of MagnumOne Realty, writes about new low down payment loans being backed by Fannie Mae and Freddie Mac.
Top 10 Measures Likely for 2016 California BallotThe General Election ballot in 2016 is likely to have more statewide ballot measures on it than California voters have seen in a long time.
Roseville Police Make Arrests in Date Rape Drug InvestigationDetectives from Roseville's Vice and Narcotics Enforcement Team (VNET) are investigating regional sales of a synthetic narcotic drug similar to GHB, better known as the "date-rape drug
Placer Ranch Collaboration for Higher EducationRoseville, CA - Sacramento State, Sierra College and Westpark Communities, the developer of the proposed Placer Ranch, announced today an agreement to collaborate on higher education offerings at Placer Ranch.
Treehouse Masters Christmas Episode Filmed in Placer CountyThe Christmas episode of the very popular TV series "Treehouse Masters" was shot entirely in Placer County.