Brought to you by: Donna Kaye Mauldin, your Personal Home Consultant.
Happy Holidays & Merry Christmas! Real estate news is good – prices are rising and homes are selling.
Several of the factors that have led to an increase in home sales so far this year include the following:
- Affordability conditions
- Rent increases
- Lower levels of inventory
- Some job creation
The National Association of Realtors reported that existing home sales increased by 2.1% in November over the previous month. Homes over $500,000 are showing the most in price gains. One-third of all homes coming on the market are in escrow within 30 days, and the average days on market is just 71 days.
According to the Federal Reserve, this year’s housing equity has risen by a cumulative $760 billion. By year-end, it is anticipated that the rising equity will reach 5% or $1 trillion. It’s looking like 2013 is going to come in with a Boom!
Q: Will new taxes affect the sale of our home in 2013? A: Yes. Starting in 2013, the Health Care and Education Reconciliation Act will add a new 3.8% Medicare tax on all your investment income. These are sources of income the IRS defines as “unearned income.” This includes interest from the bank, royalties, dividends, capital gains and rental income.
The new rate on long-term capital gains earned from selling a home will also be raised from 15% to 20%. The 20% rate plus the added 3.8% for the new healthcare tax combines for a total of 23.8% tax. You can search the web for “tax changes for 2013” to learn more. Better still, it is recommended that you talk to your accountant about the tax changes coming in 2013.
Category: Donna Mauldin-Real Estate At Its Best