Own a home, grab the tax breaks. The housing market may swell and ebb. But Uncle Sam keeps giving. The tax code backs up reverence for owning your abode with tax deductions for mortgage interest and property tax that in effect reduce your monthly bill. And some or all of your profit when you sell may face no tax at all. An analysis released in late June by economist Robert Dietz of the National Association of Home Builders calculated that about 35 million households claimed $338 billion in mortgage deductions on 2003 returns, an average of $9,650. About 39 million deducted $119 billion in real-estate tax, an average of $3,000. California led the nation in mortgage deductions with a statewide average of about $14,000 and a whopping $35,000 in the San Jose area. Source.
A cooling market is taking Toll. Developer says new home orders being canceled; Sotheby's closing local offices. Coachella Valley's once hot luxury-home market appears to be losing steam in line with the rest of the cooling local and national housing market, and some big-name companies have taken notice. After less than two years in the valley, Sotheby's International Realty plans to pull up stakes by the end of August and shut down its only two company-owned Coachella Valley offices. National luxury-home builder Toll Brothers Inc. - with its Mountain View Country Club and Muirfield at PGA West communities - is reporting a surge in local buyers having to cancel new-home orders. Local real estate agents said there's a definite slowdown in the high-end market, but they detect some good indicators as well. The downturn in what is typically seen as an almost bullet-proof segment of the real estate market is due to waning home-buyer confidence, an inventory glut of more than 7,000 resale homes in the valley, a normal winding down of the real estate cycle and other factors, area real estate agents and industry officials said. Source.
Most Expensive Rental Markets In America 2006. "With mortgages rising and home prices at such a high level, people who might have considered purchasing a home a few years ago may now be turning to the rental market, particularly in big cities like New York," says Richard Levy, a senior research analyst at the National Multi Housing Council, an industry association based in Washington, D.C. But much to renters' chagrin--and landlords' delight--greater demand has led to higher rents. In fact, NAR expects rents will rise an average of 4.1% this year, compared to a 2.9% increase last year. Source.
Southland Home Sales at 9-Year Low. In July, 22,712 homes closed escrow in the six-county region, according to La Jolla-based research firm DataQuick Information Systems. That was a 27% drop from the year before and was the fewest number of homes to close escrow in a July since 1997. Waning sales coupled with a rising supply of unsold homes is weighing on price appreciation. In July, the median price of a Southern California home rose 4.9% to $492,000 — the slowest rate of growth in more than six years. The price also edged down 0.2% from the record median of $493,000 set in June. Altogether, Southland home prices have risen just 5% since January, according to DataQuick, which assesses all closed residential transactions in the given period. A year ago, home prices had gained 13% during the same timeframe. Nationally, the slowdown is growing as well. The National Assn. of Realtors said today that in addition to California, 27 other states and the District of Columbia reported spring sales declines of existing homes. Sales nationwide were down 7% to a seasonally adjusted rate of 6.69 million in the April-June quarter this year compared to a year ago, the NAR said. Source.
~Tina Jan~
Coldwell Banker Kivett-Teeters
1655 E. Sixth St.
Beaumont, CA 92223
Work: 951-845-5520 Ext. 105
Fax: 951-845-4916
Cell: 909-446-2666
Toll-Free: 1-877-TINAJAN
tina.jan@coldwellbanker.com
www.tinajan.com
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