2013... How do things look?
It’s been an eventful end of 2012 hasn’t it? With Capitol Hill bustling about to avoid the “fiscal cliff” and reports of an improving housing market, 2013 has had an interesting start.
I was very interested to read the results of hours of negotiations and closed meetings at the White House between President Obama, the Senate, and the House of Representatives. The “Cliff” Bill did a few things for the Housing Market that we should be aware of. Most importantly, for many, the bill extends mortgage cancellation relief for those who have had a portion of their mortgage debt forgiven. This will continue the practice of forgiven debt being exempt from taxation.
The ‘Cliff’ Bill does increase tax rates for a small percentage of home sellers. For those who have an annual income that is less than $450,000 and the gain on the sale of their home is less than $500,000 the tax rates will remain the same. In a recovering but still fragile economy we should be thankful for the stabilization this bill continues to offer. When considering the individual families who have struggled for years and the relief that has been offered to them by the government I certainly feel more kindly to the leaders of our country. We voted for our leaders and they seem to be trying to do their best for the people.
On a different note, Steve Storti, a Senior Vice President of Marketing at Prudential Fox & Roach REALTORS® addresses the overall impact of 2012 on the housing market. Storti states, “Hopefully, we’ll look back at 2012 as a transition year. Just as you can only declare a recession after the fact, maybe we’ll be able to say this is when it changed over.” I think we all hope for the same thing. The reports of recovery are there, however small. In December 2012 NAR reported that housing sales were at their highest since November 2009. Sales in November 2012 were up 14.5 percent from November 2011. In November 2012 the national median existing house price for all housing types was $180,600 which was 10.1 percent higher than November 2011. November 2012 was the ninth month consecutive price gain, which hadn’t occurred since September 2005 - May2006.
As we reported in a blog post a few weeks ago, Forbes Magazine voted Utah as the front runner for the best state for businesses in 2012 for the third consecutive year. In the same post we looked at many of the comments made by the leaders of our state expressing a positive outlook for our increasing jobs and wages for 2013. When the people have jobs they can pay bills and own homes.
Although national and state recovery in the housing market appears slow, there is an anticipated continuation of improvement. The government is helping countless individuals and families out of incapacitating situations and giving them an opportunity for a fresh start. The statistics throughout 2012 have showed a consistent improvement in nationwide housing. Utah has one of the strongest reasons for a positive outlook as our job market is well-built and our housing market is continuing to see growth.
Armstrong, Mike. “Housing prices show signs of strengthening.” The Inquirer, https://articles.philly.com/2012-12-29/news/36038456_1_market-and-low-mortgage-steve-storti-patrick-newport
Freedman, Robert. “House Passes Senate ‘Cliff’ Bill.” National Association of Realtors. https://speakingofrealestate.blogs.realtor.org/2013/01/02/house-passes-senate-cliff-bill/
Glink, Ilyce & Tamkin, Samuel. “A recap on residential real estate in 2012.” Chicago Tribune, https://www.chicagotribune.com/classified/realestate/sns-201212211230--tms--realestmctnig-a20121228-20121228,0,3820766.column
“Housing Recovery to Make a Transition in 2013.” Realtor Mag, https://realtormag.realtor.org/daily-news/2012/12/31/housing-recovery-make-transition-in-2013?at_from=
National Association of Realtors. https://www.realtor.org/news-releases/2012/10/november-existing-home-sales-and-prices-maintain-uptrend
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