December Existing-Home Sales Show Uptrend

Looks like a great time to buy !! Best Sindy

 

Daily Real Estate News | Friday, January 20, 2012

Existing-home sales continued on an uptrend in December, rising for three consecutive months and remaining above where they were a year ago, according to the National Association of REALTORS®.
The latest monthly data shows total existing-home salesrose 5.0 percent to a seasonally adjusted annual rate of 4.61 million in December from a downwardly revised 4.39 million in November, and are 3.6 percent higher than the 4.45 million-unit level in December 2010. The estimates are based on completed transactions from multiple listing services that include single-family homes, townhomes, condominiums and co-ops.
Lawrence Yun, NAR chief economist, said these are early signs of what may be a sustained recovery. “The pattern of home sales in recent months demonstrates a market in recovery,” he said. “Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market.”
For all of 2011, existing-home sales rose 1.7 percent to 4.26 million from 4.19 million in 2010.

Affordability Conditions

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to another record low of 3.96 percent in December from 3.99 percent in November; the rate was 4.71 percent in December 2010; recordkeeping began in 1971.
NAR President Moe Veissisaid more buyers are expected to take advantage of market conditions this year. “The American dream of homeownership is alive and well. We have a large pent-up demand, and household formation is likely to return to normal as the job market steadily improves,” he said. “More buyers coming into the market mean additional benefits for the overall economy. When people buy homes, they stimulate a lot of related goods and services.”
Total housing inventory at the end of December dropped 9.2 percent to 2.38 million existing homes available for sale, which represents a 6.2-month supply at the current sales pace, down from a 7.2-month supply in November.
Available inventory has trended down since setting a record of 4.04 million in July 2007, and is at the lowest level since March 2005 when there were 2.30 million homes on the market.
“The inventory supply suggests many markets will see prices stabilize or grow moderately in the near future,” Yun said.

Who’s Buying What

Foreclosures sold for an average discount of 22 percent in December, up from 20 percent a year ago, while short sales closed 13 percent below market value compared with a 16 percent discount in December 2010.
The national median existing-home price for all housing types was $164,500 in December, which is 2.5 percent below December 2010. Distressed homes — foreclosures and short sales — accounted for 32 percent of sales in December (19 percent were foreclosures and 13 percent were short sales), up from 29 percent in November; they were 36 percent in December 2010.
All-cash sales accounted for 31 percent of purchases in December, up from 28 percent in November and 29 percent in December 2010. Investors account for the bulk of cash transactions.
Investors purchased 21 percent of homes in December, up from 19 percent in November and 20 percent in December 2010. First-time buyers fell to 31 percent of transactions in December from 35 percent in November; they were 33 percent in December 2010.
Contract failures were reported by 33 percent of NAR members in December, unchanged from November; they were 9 percent in December 2010. Although closed sales are holding up better than this finding would suggest, contract cancellations are caused largely by declined mortgage applications and failures in loan underwriting from appraised values coming in below the negotiated price.
Single-family home sales increased 4.6 percent to a seasonally adjusted annual rate of 4.11 million in December from 3.93 million in November, and are 4.3 percent higher than the 3.94 million-unit pace a year ago. The median existing single-family home price was $165,100 in December, which is 2.5 percent below December 2010.
Existing condominium and co-op sales rose 8.7 percent to a seasonally adjusted annual rate of 500,000 in December from 460,000 in November but are 2.0 percent below the 510,000-unit level in December 2010. The median existing condo price was $160,000 inDecember, down 3.0 percent from a year ago.

Around the Country

Regionally, existing-home sales in the Northeast jumped 10.7 percent to an annual pace of 620,000 in December and are 3.3 percent above a year ago. The median price in the Northeast was $231,300, which is 2.7 percent below December 2010.
Existing-home sales in the Midwest rose 8.3 percent in December to a level of 1.04 million and are 9.5 percent above December 2010. The median price in the Midwest was $129,100, down 7.9 percent from a year ago.
In the South, existing-home sales increased 2.9 percent to an annual level of 1.76 million in Decemberand are 3.5 percent above a year ago. The median price in the South was $146,900, down 1.1 percent from December 2010.
Existing-home sales in the West rose 2.6 percent to an annual pace of 1.19 million in December but are 0.8 percent below December 2010. The median price in the West was $205,200, up 0.3 percent from a year ago.
Source: NAR

6 Tax Breaks Every Homeowner Should Know

Check it out, great info !! 

Have a great day, Sindy

By David Bakke, Money Crashers
Regardless of the current state of our economy and the housing market, buying a home is still a great investment. However, the resulting taxes that accompany owning a home can lead to confusion and uncertainty.
In most cases, you need to itemize your taxes in order to take advantage of all the tax breaks that accompany home ownership. This might seem overwhelming, but the benefits of completing this process make up for the inconvenience.

SOURCE: Money Crashers

Homeowner Tax Breaks:

1. Mortgage Interest Deduction

Mortgage Interest Deduction (MID) is a top tax break for homeowners, which can save you a significant amount of money. In the beginning, the majority of your monthly mortgage payments go toward loan interest, and you can deduct all the interest from your mortgage on your taxes. Keep Form 1098, issued by your lender, with your important records. This form explains exactly how much you can deduct and serves as proof if you are audited by the IRS.
2. Mortgage Insurance Premiums
Homeowners with new mortgages with a loan-to-value ratio higher than 80% must carry some form of private mortgage insurance (PMI). This insurance protects the lender against loan default. Typically, once you reach 20% equity in your home, you can avoid paying private mortgage insurance.

Until you reach that level of equity, if your adjusted gross income (AGI) is less than $100,000 (or $50,000, if married filing separately), you may be able to deduct the amount that you paid. If you surpass that income level, the deduction is either reduced or eliminated. If your AGI is $109,000 ($54,500, if married filing separately) then the deduction goes away altogether.

3. Energy Star
Installing energy-efficient windows, doors, and skylights can result in another tax deduction. In order to take advantage of this tax break, you must install the items by the end of the year. Additionally, they must be installed at your primary residence, and they need to meet Energy Star program requirements.
If you meet the necessary criteria, you can receive a tax credit equal to 10% of the cost of the products. The credit for windows and skylights is capped at $200, the limit for doors is $500, and you cannot deduct installation costs. The IRS does not state what documentation you need to prove that you paid for these costs. However, you should hold on to all receipts and Energy Star labels for any qualified improvements you make on your home. There are quite a few green energy tax deductions for home improvement.
4. Points
Points refer to charges or fees paid by a borrower to obtain a home mortgage. If you have your first mortgage, you can deduct these charges in the year that you paid them if the loan is for your primary residence and you didn’t pay excessive points. If you have refinanced your mortgage, you can deduct points over the life of the loan. Check the IRS rules for details.
5. Property Taxes
As long as they are based on the assessed value of the real property, you can deduct state and local property taxes. If you pay your property taxes out-of-pocket, you need to locate your bills to determine how much you paid. Most homeowners pay through an escrow account; if you do the same, the information also appears on Form 1098.
6. Construction Loan Interest
If you take out a construction loan to build a home, you may qualify to deduct the interest. You can only use this deduction for the first 24 months of the loan, even if the actual construction takes longer.
Final Thoughts
If you stay organized and focused and keep excellent records, you can take advantage of every tax break, deduction, and credit at your disposal. However, you should seriously consider consulting a tax professional when preparing your taxes for the first time after you buy your home.
You will likely encounter various technical restrictions and confusing guidelines, and you certainly don’t want any problems with the IRS. A professional can help you find more tax breaks, and you will get the best return on investment when you understand and take advantage of each and every one. Which tax breaks are you taking advantage of as a homeowners?

'Breakfast at Tiffany's' brownstone for sale

If you love "breakfast at Tiffany's" keep reading, this is great...
Have a great day, Sindy

Building where Truman Capote wrote the novel also on the market
By Inman News

Editor's note: This article is reposted with permission of Zillow. View the original item: "Brownstone Jewel Showcased in 'Breakfast At Tiffany's' Listed For Sale."

By Laura Vecsey
In case it's possible that anyone in the world has not seen the classic "Breakfast At Tiffany's," we'll try not to blow the secret about Miss Holly Golightly, except to say that the famous character brought to life by Audrey Hepburn comes to New York City to escape her past.
In this way, the saga of the classic New York brownstone that was the stage for much of this iconic movie proves that life does imitate art.
It turns out that the current owner of the dapper, four-story building, Peter Bacanovic, recently listed the property at 169 E. 71st St. on the Upper East Side of Manhattan because he, too, wants to start a new chapter in his life.
As the former Merrill Lynch broker embroiled in the Martha Stewart insider trading case, Bacanovic has said he would like to move on from the incident and the city where it took place.
That puts the building from where Miss Golightly instigated some of the most endearingly mad-cap hijinks ever filmed up for grabs for $5.85 million. Bacanovic, who has spent most of his time in Los Angeles since being caught up in the trading case, bought the property in 2000 for $1.88 million.
Listing agent Robert Browne of the Corcoran Group called the brownstone elegant. It features a stoop that is divided into two units. Located just off Lexington Avenue, the building is in the prime Upper East Side real estate market.
The upper duplex consists of a sunny living room with wood-burning fireplace and sweeping staircase, powder room, dining room with another wood-burning fireplace and a renovated kitchen with laundry. Upstairs are two bedroom suites each with their own renovated bath, plus a library.
The garden apartment below has a separate entrance with living room that features a fireplace, full bath, kitchen and glass-enclosed solarium with a backyard that is perfect for entertaining.
This Greek Revival at 70 Willow St. in Brooklyn is where Truman Capote wrote his novel "Breakfast At Tiffany's." It is also for sale.
With many of "Breakfast At Tiffany's" scenes taking place inside the apartment, it's impossible for fans of the movie to not try to imagine the exact places where Holly entertained New York socialites in the famous party scene, or where she infuriated Mickey Rooney's Mr. Yunioshi, or lit a fire in the heart of George Peppard's Paul Varjak.
However, the interior shots for the movie were filmed on a sound stage in Hollywood.
But the exterior shots that illustrated the movie adaptation of Truman Capote's classic were made quintessentially New York swanky, with shots of Tiffany's and of the brownstone at 169 71st St.
It is an interesting coincidence that the Brooklyn Heights brownstone home where Capote wrote "Breakfast At Tiffany's" is also on the market.
Like the building that housed Miss Golightly, the one where Capote rented a garden apartment from 1955 until 1965 exudes style and grace. The five-story Greek Revival at 70 Willow St. started out on the market in November 2010 at $18 million, but is now listed for sale at $14 million.
A fitting end to the story of these two "Breakfast At Tiffany's"-related beauties would be for some movie buff to pick up the pair of brownstones as a matching set. Miss Golightly would not protest.

Top 5 tax breaks for homeowners

Check this out,,,,

REThink Real Estate By Tara-Nicholle Nelson
Inman News®

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CORRECTION: The original version of this article contained an error, and the article has been updated with a correction. The Internal Revenue Service reports, in Publication 530, "You cannot deduct transfer taxes and charges on the sale of a personal home."
Q: We bought a house this year! We put $33,000 down and the bank financed $28,000. Can I write this off on my 2011 taxes? How much of it?
A: First things first: Congratulations! You've become a homeowner, and seem to have done so using an enviable financial arrangement. But now that you own a home, you might need to shift the way you think and look at some things, including your taxes and other financial matters.
Owning a home is one of those landmarks that signify financial adulthood. And one of the things that responsible financial adults do is get professional help when the situation requires it. Taxes are one of those areas that often do warrant calling the pros in.
I'm not just shilling for the tax prep industry here, either: The ultimate aim of using a tax professional is to make sure you get every deduction, credit and other tax advantage for which you qualify, without jacking up your chances at triggering the universally dreaded Internal Revenue Service audit by claiming dubious deductions.
Your mortgage debt is fairly small, as was your home's purchase price, though I don't know whether they are large or small in the context of your overall financial picture (i.e., income, assets, investments, etc.).
The fact that you saved or somehow came up with such a sizable chunk of change to put down makes me hesitate to assume that your finances are as simple as your mortgage balance might otherwise lead me to believe.
So, it might be the case that you can easily handle your own taxes -- in fact, it's even possible that your real estate-related deductions won't even outweigh the standard deductions, so that filing a simple form without even itemizing your deductions is actually the financially advantageous move.
Whether that's the case cannot be determined in a vacuum -- you may have other financial and tax issues going on. But with software and tax preparation services as inexpensive as they are, starting at under $20 for simple returns, I think it behooves you to get some professional advice and ensure you get the deductions you need.
Hiring a tax preparer might be a worthwhile investment to make, even if just this year, so he or she can brief you on what records you should keep and strategies you should do moving forward, like home repair and improvement receipts, or documentation of your use of an area of the home as a home office.
Now, let's talk more substantively about the deductions that are available to you, in the event you do decide to itemize your taxes (IRS Publication 530 offers a more nuanced view into Tax Information for Homeowners):
1. Mortgage interest deduction. Assuming this home is your personal residence, 100 percent of the mortgage interest you owe and pay before Dec. 31, 2011, is deductible on your 2011 taxes. In January, your mortgage lender will send you a form documenting the precise amount of interest you paid, although most lenders also now make this form immediately available to borrowers online.
Chances are good that you paid some amount of advance interest on your home loan at closing -- expect to see that on your statement from your lender, but you should also be able to find it on the HUD-1 settlement statement you received from your escrow agent at closing.
2. Property tax deductions. Again, assuming that this is the home you live in most of the time, you should be able to deduct 100 percent of the property taxes you've paid to your state and/or local taxing agency this year.
3. Closing-cost deductions. Discount points and origination fees paid to your mortgage lender and/or broker at closing are frequently deductible, but there are rules around this, which tax software and/or professionals can help you make sure you meet. Note that, according to Internal Revenue Service Publication 530, "You cannot deduct transfer taxes and similar taxes and charges on the sale of a personal home."
There are various home improvements (especially those that increase your home's energy efficiency), state and local tax credits for buying a foreclosure, and other tax advantages that might be available to you.
My advice is to work with an experienced, local tax preparer or, at the very least, use reputable tax preparation software to ensure that you get the maximum tax advantages available to you as a result of your new role as a homeowner.
Tara-Nicholle Nelson is author of "The Savvy Woman's Homebuying Handbook" and "Trillion Dollar Women: Use Your Power to Make Buying and Remodeling Decisions." Tara is also the Consumer Ambassador and Educator for real estate listings search site Trulia.com. Ask her a real estate question online or visit her website, www.rethinkrealestate.com.