Tag Archives: Sellers

Minneapolis Housing is a Home Sellers Marketplace in Higher Gear for 2013

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Minneapolis, Minnesota (PRWEB) February 05, 2013

The Minneapolis Association of Realtors released their Annual Report on the Twin Cities Housing Marketplace. Hunting back, the numbers are beautiful and reveal just how robust real estate is driving our economy upwards. Searching ahead, the Minneapolis housing industry in 2013 commands center stage for an even stronger performance. The report says Minneapolis “ended 2012 with an 11.9 % median cost obtain compared to 2011. At $ 167,900, rates have come down 26.6 % from their bubbly apex in 2006. They have recovered from the air ball lows of 2011”.

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“Minneapolis is a home seller’s industry right now. It is a great time to sell your residence, simply because true estate purchasers are out there searching for properties,” says Jenna Thuening, owner of House Destination.

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The S&ampP / Case-Shiller index of property home values in 20 U.S. cities enhanced five.5 percent in 2012 by way of November, the most significant obtain since August 2006, according to information released on Jan. 29. Minneapolis house costs have elevated more rapidly than any individual anticipated even a year ago, delivering an important cushion for homeowners.

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Minneapolis Case-Shiller Residence Cost Index: &#13

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Minneapolis, MN is at a present level of 123.73&#13
Up from 121.44 last month &#13
Up from 111.36 1 year ago&#13
A change of 1.89% from final month and 11.11% from one year ago.

1) Residence Purchasers With Low Down Payment – Homebuyers with low down payments will pay greater mortgage insurance premiums when they get a Federal Housing Administration mortgage.

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two) Low Mortgage Rates Continue To Spur Residence Purchases- Mortgage prices continuing close to a record low could produce a third consecutive advance in house sales this year, and spur additional homeowner house worth increases. The newly accrued gains in home equity should increase consumer sentiment and spending, softening the news of house tax and residence insurance premium increases.

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3) Property Purchasers And Home owners Will Have Higher Insurance coverage Premiums – The FHA says it will boost homeowner’s annual insurance coverage premium will enhance says FHA. Added to a borrower’s monthly mortgage payments, it will go up by .1 %. It could sound like a modest improve, but this hike is on leading of several insurance coverage premium raises the FHA has implemented considering that 2008 as element of its ongoing efforts to shore up the FHA’s reserves. Business observers say there’s great potential for much higher increases this year.

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Currently genuine estate purchasers who seek FHA financing are charged about 1.25 % of the total balance of their loans per year. Prior to the U.S. housing crisis of 2008, the charge was about .five percent.

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4) Rental Residences – In several parts of the nation, rents will continue to climb as the housing provide of available rental apartments shrinks and demand rises. U.S. apartment vacancies dropped to an 11-year low of 4.five % last year’s fourth quarter, according to real estate analysis firm Reis. Foreclosures, nevertheless-tight mortgage lending specifications and a weak jobs marketplace are contributing to the surge in demand and rental prices.

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five) New Prices For Luxury House Purchasers – The FHA to announced a proposal to increase down payment specifications for luxury residence buyers that seek to carry mortgages with original principal balances more than $ 625,500. The minimum down payment for higher prices home mortgages will boost from 3.5 to five %. “This modify, coupled with the statutory maximum premiums charged for these loans, will aid shield FHA and additional facilitate its efforts to encourage higher levels of private industry participation in the housing finance market”, says HUD.

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“Luxury property buyers who buy their residence with money will acquire one particular a lot more benefit”, says Thuening. “According to the July 12, 2011 Coldwell Banker Luxury Homeowner Profile, nearly 31 % are money buyers.”

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With mortgage prices at exceptional lows, the difference in greater insurance premium expenses may possibly not add up sufficient right now to demand residence borrower’s notice. As rates are subject to rise, that deserves maintaining an eye on. “Whether or not a homeowner is seeking a house loan modification, or considering a significant property renovation, property owners and house buyers who have not taken benefit of the historically low rates should not waste time,” urges House Destination.

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If you are in search of to get or sell a property in Minneapolis or the Twin Cities metro in 2013, contact House Location at 612-396-7832. It is an opportune time for property owners and investors to take advantage of Minneapolis Housing’s fabulous residence sellers’ marketplace.

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Texas CPAs Offer Advice for Home Buyers and Sellers

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Dallas, Texas (PRWEB) May 09, 2013

If youve been waiting on the sidelines to purchase a home, or to put yours on the market, has the time for action finally arrived? The American Taxpayer Relief Act of 2012, the law that addressed fiscal cliff issues, helped clarify some of the answers to that question. The Texas Society of CPAs offers perspective on provisions of the act that relate to the real estate market and on other things to consider when making your decision.

The Mortgage Deduction Endures

The final negotiations in Congress at the end of last year answered several important questions, including whether home owners would continue to be allowed to deduct mortgage interest from their taxable income. The new law does not eliminate that deduction, and thats a positive development for home owners because their tax bite could have expanded significantly otherwise. At the same time, many aspiring first-time homeowners might have found it harder to afford mortgage costs without this deduction. In addition, the final deal also preserved the deduction for the cost of private mortgage insurance, which is used by buyers who are making less than a twenty percent down payment. Loss of either of these deductions could have made some waves in the market for both buyers and sellers.

Short Sales Are Still on the Table

The new law gave a one-year reprieve to homeowners whose homes are underwater, those whose mortgage is greater than the current value of their home. Under a previous tax rule, homeowners who received loan modifications or engaged in short sales did not have to pay taxes on that debt relief, but that provision expired at the end of 2012. The new law extended that relief for one year, adding some stability to the real estate market and potentially making it easier for struggling homeowners to hold on to their properties and avoid going directly into foreclosure.

Uncertainty Remains

Both buyers and sellers should keep in mind that there is still a great deal of uncertainty about the economy, which can have a major impact on the home market. When contemplating any significant financial step, remember that its always a good idea to review your financial position to determine if its the right thing to do. Be sure to turn to your CPA for help with this process.

Have Your Finances in Order

When it comes to home ownership, knowing youre taking the right step involves ensuring that you have the right budget for the property youre considering. As a general rule, mortgage costsincluding not only your mortgage principal and interest but also taxes, insurance and related monthly feesshouldnt add up to more than 30% of your income. You should also determine if there are any problems with your credit score or history that might prevent you from getting a loan. As part of the process, you may also want to contact a lender and get pre-qualified for a mortgage amount so that you have a realistic sense of what you will be able to borrow. When you research neighborhoods, remember that good school systems can help keep home prices strong, so find out about the quality of the school district even if you dont have kids.

Talk to Your Local CPA

The decision to buy or sell a home is a significant one. Before you take this big step, consult your local CPA. He or she can offer advice on the tax and other issues related to home ownership and provide information and insights on all your financial concerns.

About TSCPA

TSCPA (http://www.tscpa.org) is a nonprofit, voluntary, professional organization representing Texas CPAs. The society has 20 local chapters statewide and has more than 28,000 members, one of the largest in-state memberships of any state CPA society in the United States. TSCPA is committed to serving the public interest with programs that advance the highest standards of ethics and practice within the CPA profession.