The latest
The big news is that if you need to do a short sale, the time is NOW! After 31 December this year the tax implications for the Homewoner trying to short sell their home will return and there could be a very unpleasant surprise come April 2014 when filing for 2013. If you know someone considering a short sale right now, please call me so I can be sure they get the information they need to make the decision that's right for them. Loan modifications are still a way to go if you are underwater but want to continue to keep the home you live in. This is when the bank and home owner work out an agreement to defer the payment of some of the amount due on the property and reduce the interest rate for a period of time. This can be crucial for some in keeping their home and not trashing their credit in the process.
With no change in the President elect there is no less uncertainty than before the election and if Washington continues to behave as they have in the last four years, the "Fiscal Cliff" could become a reality. Until the policies of this administration are truly eveident, your guess is as good as mine. What I do know is everybody needs a place to live and with taxes structured as they are right now, owning a home looks like a pretty good option versus renting and never knowing if the landlord will raise the rent or decide to sell the property you are helping them pay off.
There is a lot of uncertainty about the market and inventory is VERY low right now. The fact is interest rates are the lowest in over 40 years so there is no time like now for Buyers; and with the low inventory, the same could be said for Sellers! In Santa Cruz County (and many others) it is in most cases cheaper to buy than to rent! With so few properties on the market and so mayy buyers the sales prices are starting to creep up. In the rental market the same can be said. Many folks are looking for a place to live and with so many homes being held off the market, there is a huge demand for housing which has pushed rents through the ceiling. For those of us who remember when interest rates were 18%, the going rate between 3.25% and 3.75% is unbelievable! Interest rates continue to be held artificially low by the fed through 2013. The stock market has recently taken a tumble so it is still an excellent time to buy! Once the cap comes off, inflation will spike and the amount of money you will be able to borrow will decrease as the interest portion of your payment increases. If you remember the Carter years, this will seem all too familiar to you. If you are considering your first home, an investment property or a vacation getaway, NOW is a great time to act before the interest rates reduce the amount of mortgage you can afford to get into.
With no change in the President elect there is no less uncertainty than before the election and if Washington continues to behave as they have in the last four years, the "Fiscal Cliff" could become a reality. Until the policies of this administration are truly eveident, your guess is as good as mine. What I do know is everybody needs a place to live and with taxes structured as they are right now, owning a home looks like a pretty good option versus renting and never knowing if the landlord will raise the rent or decide to sell the property you are helping them pay off.
There is a lot of uncertainty about the market and inventory is VERY low right now. The fact is interest rates are the lowest in over 40 years so there is no time like now for Buyers; and with the low inventory, the same could be said for Sellers! In Santa Cruz County (and many others) it is in most cases cheaper to buy than to rent! With so few properties on the market and so mayy buyers the sales prices are starting to creep up. In the rental market the same can be said. Many folks are looking for a place to live and with so many homes being held off the market, there is a huge demand for housing which has pushed rents through the ceiling. For those of us who remember when interest rates were 18%, the going rate between 3.25% and 3.75% is unbelievable! Interest rates continue to be held artificially low by the fed through 2013. The stock market has recently taken a tumble so it is still an excellent time to buy! Once the cap comes off, inflation will spike and the amount of money you will be able to borrow will decrease as the interest portion of your payment increases. If you remember the Carter years, this will seem all too familiar to you. If you are considering your first home, an investment property or a vacation getaway, NOW is a great time to act before the interest rates reduce the amount of mortgage you can afford to get into.
Concerned about selling or moving up in this market? While favoring Buyers, the key to selling quickly is pricing the home correctly. Many Sellers are disappointed and even angry that their home has lost much of its value in the last few years. The reality is any loss (or gain for that matter) isn't realized until a transaction occurs. It is true that while you may not receive the price for your home you might have in 2006, the home you purchase will realize a lower price as well. We live with the payment not the price so bear this in mind as you consider your options. This will benefit your payments and your tax base as well! If there is anything here you don't understand and would like clarification on I'll be happy to help, please give me a call or send me an email and we can work it out.
