IS NOW THE TIME FOR YOUR NEXT MOVE??

With the downturn in housing and the uncertainty of the economy in recent years many of you have visited with us about the timing of selling your home and investing in your next one.  Most of you would like to take advantage of the lowered prices and unprecedented low interest rates but worry about the potential loss in value on your current home.  The old adage for investing in anything has always been “buy low, sell high”; but there is always a tradeoff.  In real estate if you are “selling high” you will also “buy high”.  If you “buy low” you will also “sell low”.  A good rule of thumb is to decide which    benefits you the most in the long term. We think low rates plus low prices will benefit you most in the longer term.  Most of us have never, in our lifetimes, seen rates this low.  That will come to an end and we think we will see those rates begin to inch up this year. Community economies are strengthening, employment is improving (Utah’s unemployment rate is nearly 2% lower than the national rate), home inventories are decreasing, and we are seeing again, multiple offers on homes.  

On Jan. 1 both the Senate and House passed H.R. 8 legislation to avert the “fiscal cliff.” The bill was signed into law by President Barack Obama on Jan. 2.

Below is a summary of real estate related provisions in the bill:

Real Estate Tax Extenders

Mortgage Cancellation Relief is extended for one year to Jan. 1, 2014

Deduction for Mortgage Insurance Premiums for filers making  below $110,000 is extended through 2013 and made retroactive to cover 2012

15-year straight-line cost recovery for qualified leasehold           improvements on commercial properties is extended through 2013 and made retroactive to cover 2012

10 percent tax credit (up to $500) for homeowners for energy     improvements to existing homes is extended through 2013 and made retroactive to cover 2012.

 

All of these factors show a steady housing market recovery with 2012 showing steady increases in sales, in pricing, and in demand.

 

January is the perfect time to put a strategy in place to take         advantage of the spring selling season (traditionally the best time to get the highest price for your home).  If you would like to discuss your options or get information to decide if now is the time,   CALL TODAY.