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Some people were talking about keeping their earnings below $250,000 to avoid increased taxes.
If the rates are changed as proposed, the rate on your first $250,000 of income will be taxed the same as now.
It is only on earnings over $250,000 that there will be the 3% additional marginal tax.
Make $300,000 next year the additional tax would be $1,500. Not good but not earth ending. Let’s hope there are spending cuts.
courtesy of: http://www.DuaneGomer.com
San Diego County housing prices rose 13.7 percent over the last year to $358,000 as sales soared to their best November in seven years ....
It was the highest overall price since July 2008 as the market was skidding down and close to the $357,000 posted in March 2003 as prices were rocketing up.
Details by home type included:
Sales for November totaled 3,371, down 6.9 percent from October, a typical seasonal dropoff. But that was 22.4 percent higher than a year ago and the highest for any November since the local market peaked in November 2005. At that time, there were 4,232 sales and prices stood at an all-time median high of $517,500.
In brief, overall prices were 30.8 percent off the November 2005 peak but have risen 27.9 percent since the January 2009 low of $280,000.
For 19 southwestern Riverside County neighborhoods near the San Diego County line, the overall median stood at $243,000, up 3.6 percent from October and 10.5 percent from November 2011. The sales count was 1,139, up 12.7 percent from year-ago levels.
DataQuick attributed the increases in prices and sales to a greater demand for higher-priced homes and reduction in low-cost foreclosure properties.
"Investor activity and cash purchases remain unusually high," said DataQuick President John Walsh in a statement, "and more buyers feel confident about their jobs, the economy and the likelihood housing prices have bottomed and are likely to rise. We're also seeing non-distressed sales, where people sell at a profit and buy another house, triggering more move-up activity."
San Diego State University economist Michael Lea said the decline of distressed property as a market factor bodes well for other housing to be bought and sold.
"All signals are pretty favorable for next year to continue the recent pace," Lea said.
The San Diego Association of Realtors pinpointed one of the factors in the market upswing -- falling inventory of homes for sale.
As of Dec. 5, there were 4,636 homes for sale on the local multiple listing service. That was down 50.2 percent from December 2011's active listing total of 9,303. The current low inventory level is comparable to the go-go days of spring 2004.
courtesy of: http://www.utsandiego.com/news
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Are you now thinking of buying a first home or a move-up home? While you are thinking, there is one important thing to do now: Get a Pre-Approval from a professional Mortgage Loan Originator. Why?
courtesy of: http://www.DuaneGomer.com
The housing market is changing, creating a “new playing field for home owners, who are finally able to sell, as well as would-be buyers who've been delaying a purchase in anticipation that prices would keep falling,” Money Magazine reports.
Mortgages for home purchases are expected to soar 55 percent in 2013, according to forecasts by the Mortgage Bankers Association.
“The days of buyers sticking it to sellers are over," says Tracie Peay, a Salt Lake City real estate practitioner.
Still, home sellers should keep their expectations in line: Price increases are to be modest and gradual. Fiserv forecasts home prices will rise 3.3 percent a year in value between now and 2017.
As for buyers, they may need to have a better understanding of the increased competition they may face.
"If you want to buy, you have to be ready to make an offer," says David Howell, chief information officer at McEnearney Associates, a real estate agency in the Washington, D.C., metro area. He says the first offer should be close to the home buyer’s best offer.
Lowball bids will get ignored, adds Fran Bailey, a Chicago real estate professional.
According to Money Magazine, home sellers may have the most bargaining power in the West, while home buyers may be more in control in the Midwest and Northeast.
courtesy of: http://realtormag.realtor.org/
For months, consumers have powered spending, while businesses pulled back ahead of the looming fiscal impasse in Washington. Now, as doubts grow about whether the president and Congress can reach a compromise before a year-end deadline, evidence has emerged that consumers, too, are becoming more pessimistic about the economy.
Consumer confidence in the first half of December took a sharper-than-expected dip, falling to its lowest level since August, according to a new survey released Thursday by the Conference Board. Wall Street also registered its frustration with the stalemate in Washington on Thursday, sending stocks sharply lower before recovering late in the day.
The gloom comes despite signs the economy has been holding up recently during the rising worries — other data released Thursday showed a healthy gain in new-home sales and a slight drop in new jobless claims. Indeed, the Conference Board’s data show consumer anxiety is centered on the outlook ahead for the economy, rather than on current conditions.
“People are realizing that we may not get a compromise and they’re getting nervous,” said Guy Berger, United States economist with RBS Securities. “It’s a precarious situation. So far consumers are worried about the future. Once they start worrying about the present, we’re in trouble.”
If Congress and President Obama cannot agree on a deal to cut the deficit by Jan. 1, more than $500 billion in tax increases and spending cuts are set to take effect.
Taxes have been the main sticking point — while the president favors eliminating Bush-era tax cuts on incomes over $250,000 and preserving current rates for lower incomes, many Republicans have been wary of supporting any tax increase. Republicans have been pushing for deeper spending cuts, something many Democrats have resisted.
Both sides remained dug in, and at midday Thursday Senator Harry Reid of Nevada, the Democratic majority leader, said he thought it was unlikely a compromise would be reached before Jan. 1.
With Wall Street tracking every turn of negotiations in Washington, shares tumbled after Mr. Reid’s remarks but recovered later in the day after reports the House would reconvene Sunday and take up the issue. The Standard & Poor’s 500-stock index fell 1.73 points, to 1,418.10, while the Dow Jones industrial average sank 18.28 points, to 13,096.31
While an eventual deal that blunts part of the effect is expected in the coming weeks, some fallout from missing the Tuesday deadline will be felt right away — including a two percentage point increase in payroll taxes as well as the end of unemployment benefits for more than two million Americans. All that has increased the uncertainty for individuals, who until recently had shrugged off the fiscal standoff in Washington ...... read more ===>
courtesy of: http://www.nytimes.com
Florida ranks as the state with the highest foreclosure rate in the nation for the third-consecutive month, according to the latest report from RealtyTrac with November foreclosure data.
In Florida, one in every 304 homes received a foreclosure filing in November — more than double the national average.
Nevada, the previous leader, has been coming in second over the past three months, but it also has seen a 54 percent drop in foreclosures year-over-year.
The following are the top 10 states with the highest foreclosure rates in November:
1. Florida: 1 in every 304 homes received a foreclosure filing in November
2. Nevada: 1 in every 390 homes
3. Illinois: 1 in every 392 homes
4. California: 1 in every 430 homes
5. South Carolina: 1 in every 455 homes
6. Ohio: 1 in every 458 homes
7. Arizona: 1 in every 468 homes
8. Georgia: 1 in every 494 homes
9. Michigan: 1 in every 621 homes
10. Indiana: 1 in every 684 homes
courtesy of: http://realtormag.realtor.org/
1) Phoenix, 13 months
2) San Diego, 9 months
3) Las Vegas, 8 months
4) Los Angeles, 8 months
5) San Francisco, 8 months
6) Denver, 7 months
7) Detroit, 6 months
Ranked by most consecutive months of home-price increases.
Source: S&P/Case-Shiller Home Price Index
Home prices in San Diego County have risen nine straight months, ranking the local market second nationally for most consecutive months of price increases in 2012, said a leading housing report released Wednesday.
Phoenix, where prices rose 13 straight months and foreclosures have waned, beat out San Diego for the top spot, based on data from the S&P/Case-Shiller Home Price Index, which tracks 20 major areas in the country.
"Phoenix went through a real difficult time where their values really, really went down, but it's certainly been rebounding" said Donna Sanfilippo, president of the San Diego Association of Realtors. "San Diego, being a steadier market, placing No. 2 in rebounding shows that we're leading our area after what has been a couple of rough years."
San Diego home prices rose 1.3 percent from September to October, marking the ninth straight month of increases, based on the report, which has a two-month lag. When comparing October to the same time last year, prices went up 6 percent, the biggest year-over-year increase for an October in seven years.
Phoenix and Detroit saw the largest year-over-year jumps in home prices in October, 21.7 percent and 10 percent, respectively.
David M. Blitzer, who chairs the index committee at S&P Dow Jones Indices, said we're continuing to see encouraging signs in the housing market, especially in certain parts of the nation.
“Looking over this report, and considering other data on housing starts and sales, it is clear that the housing recovery is gathering strength," Blitzer said.
"Higher year-over-year price gains plus strong performances in the southwest and California, regions that suffered during the housing bust, confirm that housing is now contributing to the economy," Blitzer added. "Last week’s final revision to third quarter GDP growth showed that housing represented 10% of the growth while accounting for less than 3% of GDP."
The report showed areas like Detroit, among the worst price performers in 2011, saw the biggest price rebound this year from its recession-time trough, at 24 percent. San Diego prices have risen about 12 percent since its lowest point, recorded in April 2009, Case-Shiller numbers show.
Twelve of the 20 areas in the index saw price drops from September to October but that's expected, Blitzer said, because historically prices tend to fall during the autumn. On a year-ago basis, only two of the 20 cities posted a price drop.
courtesy of: http://www.utsandiego.com/news
California foreclosure inventory – the total number of pre-foreclosures, properties in foreclosure that are scheduled for sale, and bank owned properties (REO)—declined 7.6 percent in November from October and is down 31.8 percent compared with last year, according to ForeclosureRadar. While the November decline in inventory is not an unusual event, the significant decline in foreclosure inventory over the past year has contributed to what some are calling an “inventory crisis” of total homes for sale.
The November foreclosure inventory shortage is partially due to the jump in California foreclosure cancellations. Cancellations in November rose 4.7 percent from October, up 69.9 percent in the past two months and up 34.7 percent compared with last year. In taking a closer look at the reason for cancellations, it did not appear the majority were due to statutory time frames or filing errors, but were more likely due to short sales or successful loan modifications, according to the report.
California notices of default were down 19.9 percent from the prior month and down 51.5 percent compared with last year. November 2012 California foreclosure sales were down 14.8 percent from the prior month and down 30.3 percent compared with last year.
courtesy of: http://www.car.org
As the statewide median price continued to register double-digit gains from year-ago levels, strong sales of higher-priced homes led to a year-over-year increase in sales in California during November, C.A.R. reported Tuesday.
“Housing markets with higher-priced homes performed better in November compared with lower-priced areas. The negative impact of a lean housing supply on home sales is becoming more apparent, especially in markets with more distressed properties,” said C.A.R. President Don Faught. “In lower-priced markets, home sales declined, whereas sales of mid- to higher-priced homes posted strong increases because there is a greater supply.”
Sales in November were down 4.9 percent from October but up 2.7 percent from November 2011.
The statewide median price of an existing, single-family detached home increased 2.3 percent from October’s $341,370 median price to $349,300 in November. November’s price was up 24.8 percent from a revised $279,910 recorded in November 2011, marking the ninth consecutive month of annual price increases and the fifth consecutive month of double-digit annual gains. The year-to-year percentage increase was the largest since June 2004.
courtesy of: http://www.car.org/
Here’s how to light up your Christmas light display safely and economically
Despite lower expectations for the economy's progress as a whole this quarter, home sale and price trends suggest housing finally represents "a tailwind to growth," according to a monthly economic outlook released today by Fannie Mae's Economic & Strategic Research Group.
"The housing market has turned the corner and a sustained recovery is under way," the report said, despite some significant challenges that remain ahead, including tight lending conditions, uncertainty surrounding mortgage regulations, and the fiscal cliff.
Home prices have seen strengthening year-over-year gains over the last several months and prices are expected to end the year on a positive note for the first time in six years, Fannie Mae economists said.
They projected the median price of an existing home would rise 4.2 percent on an annual basis in 2012, to $173,000. They expected the median price of a new home to increase 4 percent, to $236,000. Fannie Mae is projecting that median prices of both new and existing homes will rise an additional 1.7 percent in 2013.
Existing-home sales, new-home sales and single-family housing starts are expected to see substantial increases from last year. Fannie Mae predicts each will rise 9.6 percent, 19.5 percent and 25.7 percent, respectively, in 2012 compared to 2011. The mortgage giant expects further improvement next year with increases of 6.4 percent, 21.9 percent and 22.4 percent, respectively.
After falling to record lows this year, mortgage rates are expected to fall even further next year, boosting housing demand. Rates for a 30-year fixed-rate mortgage are projected to average 3.7 percent this year and decline to 3.4 percent in 2013 as a result of the Federal Reserve's continued efforts to keep a lid on interest rates.
Mortgage originations are expected to rise 25.2 percent this year to $1.87 trillion, but decline by 17.1 percent in 2013, largely due to a drop in refinance loans.
Purchase loans remained virtually flat this year, at $518 billion, but are projected to rise by nearly 15 percent next year to $595 billion. Refinance loans, on the other hand, saw an estimated 27.5 percent increase this year to $1.35 trillion and are expected to decrease by 29.3 percent in 2013, to $956 billion. Fannie Mae anticipates refinancings will drop to 62 percent of mortgage originations, down from 72 percent in 2012.
Homebuilder confidence rose for the seventh straight month in November, to a six-year high, the report noted.
"Residential investment has been a positive, albeit small, contributor to economic growth during the past several quarters and will add to growth on an annual basis this year for the first time since 2005," Fannie Mae economists said. "While the current contribution of housing to the economy is small, it is growing."
The mortgage giant anticipates an average 8.1 percent unemployment rate this year, followed by an average 7.5 percent rate in 2013.
While real gross domestic product grew 2.7 percent in the third quarter, Fannie Mae economists predict much weaker 1.5 percent growth in the fourth quarter, culminating in 1.9 percent growth for the year. That's a slight decrease from 2 percent in 2011. Economists anticipate a slight increase to 2.2 percent in 2013.
courtesy of: http://www.inman.com/news
Mortgage rates remained at or near record lows this week as the Federal Reserve signaled that measures designed to keep a lid on interest rates will remain in place for some time to come.
Rates on 30-year fixed-rate mortgages averaged 3.32 percent with an average 0.7 point for the week ending Dec. 13, down from 3.34 percent last week and 3.94 percent a year ago, Freddie Mac said in releasing the results of its latest Primary Mortgage Market Survey. Rates on 30-year fixed-rate loans hit a low in Freddie Mac records dating to 1971 of 3.31 percent during the week ending Nov. 21.
For 15-year fixed-rate mortgages, rates averaged 2.66 percent with an average 0.6 point, down from 2.67 percent last week and 3.21 percent a year ago. Rates on 15-year fixed-rate loans hit a low in Freddie Mac records dating to 1991 of 2.63 percent during the week ending Nov. 21.
Rates on five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans averaged 2.7 percent with an average 0.6 point, up from 2.69 percent last week but down from 2.86 percent a year ago. Rates on five-year ARM loans hit a low in records dating to 2005 of 2.69 percent during the week ending Dec. 6.
For one-year Treasury-indexed ARM loans, rates averaged 2.53 percent with an average 0.5 point, down from 2.55 percent last week and 2.81 percent a year ago. That's a new low in Freddie Mac records dating to 1984.
Looking back a week, a separate survey by the Mortgage Bankers Association showed demand for purchase loans increasing for a fifth week in a row, to a level 9 percent greater than a year ago. But applications to refinance still accounted for 84 percent of all mortgage applications.
Mortgage rates are expected to stay at historically low levels for some time, as the Federal Reserve continues to buy up $40 billion in mortgage-backed securities issued by Fannie Mae and Freddie Mac each month.
Wrapping up a two-day meeting Wednesday, the Federal Open Market Committee issued a statement saying it will continue those purchases, and keep buying $45 billion in long-term Treasury bonds each month.
The committee said the Fed will continue purchasing mortgage-backed securities and Treasurys as long as the outlook for the labor market "does not improve substantially," although the size, pace and composition of the purchases will "take appropriate account of the likely efficacy and costs of such purchases."
The Fed is projecting that unemployment will average 7.4 to 7.7 percent in the fourth quarter of 2013, which would represent only a small improvement from the 7.8 to 7.9 percent projection for the same quarter this year.
The committee said the Fed intends to keep the federal funds short-term rate in the "exceptionally low range" of 0 to 0.25 percent for as long as the unemployment rate remains above 6.5 percent, and inflation projections for the next year or two ahead are no more than 2.5 percent.
courtesy of: http://www.inman.com/news
