What is the impact of losing the Mortgage Deduction?

With all the talk about limiting tax loopholes and simplifying our income tax system, ther eis bi-partisen support for elimination of the home interest tax credit. Few in the real estate or lending industry want the government to do away with the mortgage interest tax deduction. It is interesting to note , the deduction a) is rare in other countries, b) has a much larger perceived benefit than actual benefit. Besides, a move will probably be gradual. They'll probably go from $1 million down to $500k, making it politically acceptable. Lastly, "The Mortgage Interest Deduction is of limited value because of low rates and low house prices. A $300,000 house with a 30-year mortgage at 3.25% pays just $7,800 in mortgage interest, yet the 2012 standard deduction is $11,900 if married filing jointly. If the MID is nixed, placing your house into a corporation and having the corporation rent the home to you, allows you to continue deducting all mortgage interest." (So wrote economist Elliot F. Eisenberg - if you want to receive his free 70 word updates shoot him an e-mail at elliot@graphsandlaughs.net.)

Experts Expect Mortgage Rates Will Rise in 2013

With mortgage rates hitting record lows in 2012 it is expected in 2013 rates will inevitably rise in 2013. The Mortgage Bankers Association expects that they'll gradually increase over coming 12 months, with rates for 30-year fixed loans averaging 3.8% in Q4 of 2012, 3.9% in Q1 of 2013, and eventually climbing to 4.4% by this time next year. It is a safe bet that rates, at some point, will move higher, but the MBA has been incorrect for the last several years. For example, the MBA forecast that the average rate for 2012 would be 4.4%, and the annual average is estimated to be closer to 3.8%.

Coastal Residential Real Estate is Now a Sellers' Market

A sellers' market appears to be emerging in some areas in California. The California Association of Realtors® (C.A.R.) said Thursday that favorable home prices and record-low interest rates are making the market competitive to the point that nearly six of ten houses are receiving multiple offers. C.A.R. made the comments as it released results of its 2012 Annual Housing Market Survey.
Fifty-seven percent of home sales featured multiple offers in 2012, the highest in at least the past 12 years. Each home that received a multiple officer received an average of 4.2 compared to 3.5 offers in 2011. Lower priced homes and distressed properties -bank-owned real estate (REO) and short sales - had more multiple offers than market sales, seven out of ten compared to one-half.

http://www.mortgagenewsdaily.com/11012012_house_prices.asp

Do you think you NOW qualify (again) to buy a home after short selling your home?

It's time for families who were forced to short sale their homes two or more years ago to come back into the home buying market and forego throwing their money away on rent. Are you unsure if you qualify? Call me at 714-478-3153.
http://blogs.wsj.com/developments/2012/10/31/scared-americans-still-skipping-homeownership/?blog_id=36&post_id=21428

Carbon Monoxide Detectors Are Required in All CA Homes

Prior to having your home appraised for a home refinance or sale make sure you have working carbon monoxide detectors installed. I found them at Costco for $19. Best to have one on each floor of your home; ie. Laundry room or wherever there may be gas outlets. It’s now the law and appraisers will be looking for them. Call me at 714-478-3153 if you have any questions.

http://casafehomes.org/law.html

                    

Social Media - Be careful - can hurt your Net Worth

Social media can be very dangerous to your pocketbook. This video hits home on what IT and hackers are doing with your 'available' personal information.
Scary

Low Inventories Lift Sellers' Prices

 

Click for interactive

This has been a common theme the last nine months, particulary across Coastal areas in California. The question remains; where is the so called 'shadow' inventory analysts have been talking about that will keep home values low for some time to come. That may be the case in Inland areas across the State, but there is no sign of price errosion in desireable coastal communities. Today building starts were announced to be up 15% this past quarter.

Housing inventory continues to move in one direction: down.
The number of homes for sale in September dropped by 2.2% from August, by 17.8% from last year, and by 34.3% from two years ago, according to data from Realtor.com, a listings website.
Slightly more than 1.8 million homes were listed for sale in September, the third lowest level of the year, behind January and February, which are traditionally the slowest months of the year for home sales.

Inventories have been falling amid stronger demand from home buyers, which is helping to firm up prices. Median asking prices rose by 0.8% in September from August. Inventories are also low because many would-be sellers don’t have enough equity in their homes or aren’t willing to sell at prices that are still down by nearly 30% from their peak six years ago.