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RE MAX National Housing Report January 2016

by Elite Asset Management Team

Pete Veres wants to share the RE/MAX National Housing report. RE/MAX researches 53 major metropolitan markets every month & analyzes the data to get a pulse on the US housing market. Here are some highlights from this months report in the quick video. If you would like to get a copy of our Complete Albuquerque Real Estate Market report please call me at 505-362-2005, 505-362-2005 or email me at remax@nmelite.com. You can also click here to see the December Albuquerque Real Estate Market Update Summary.

 

Renovation Angel Leads A Revolution In Luxury Home Remodels

by Elite Asset Management Team

It’s no secret: renovating a luxury kitchen has historically been an outlandishly expensive endeavor. For owners of a high-end home, a kitchen update can cost anywhere from $50,000 to well over $100,000. These renovations, however, imply another hidden cost: the loss of the existing luxury kitchen, which in many cases includes valuable appliances, cabinets, and fixtures with plenty of life left in them. Not only is this bad for the homeowner who is dumping their valuable property, but it’s also an unsustainable building practice that is bad for the environment. Since 2005, however, a New Jersey-based non-profit has been working to reduce the high financial and environmental costs of luxury kitchen renovation.

 

Recycling Luxury Kitchens

 

Steve Feldman founded Recovery Unlimited, a 501(c)3 non-profit organization, after happening upon the renovation of a luxury mansion. Feldman explains, “The trucks, the piles of rubble, the ‘Demolition in Progress’ sign in the driveway all sparked an unexpected thought: Why did all this have to go to waste? Why couldn’t at least some of these luxury goods go to a worthy cause?” Thus began Renovation Angel, Feldman’s answer to the luxury renovation problem. Since 2005, Renovation Angel has recycled over 3,300 luxury kitchens and awarded over $1.9 million in proceeds to non-profit projects and charities. To date, Renovation Angel’s kitchen recycling program has diverted over 20 million pounds of waste from landfills.

It’s a great deal for homeowners, too: the individual incurs no cost for removing the old kitchen, receives a full tax deduction, and the premises are left clean and ready for renovation work to begin.

How Does It Work?

Luxury homeowners need only visit the Renovation Angel website to submit information and begin the appraisal process. If Renovation Angel specialists confirm that the items meet their benchmarks for quality and condition, the company offers free, insured, and professional “white glove” removal of all donated items. The organization accepts luxury items that are of high value and in good condition.

 

  • Kitchens: cabinetry, appliances, countertops, light fixtures, sinks, faucets.
  • Bathrooms: vanities, free-standing tubs, fixtures, mirrors, pedestal sinks.
  • Interiors: high-end and antique furniture, fine art, pianos.
  • Exteriors: generators, outdoor bars and kitchens, statues and fountains.
  • Showroom displays and inventory.

 

Renovation Angel is expanding quickly, although they are currently only available to appraise and remove luxury kitchens in New York, Chicago, Beverly Hills, Naples, East Hampton, Greenwich, Boston, San Francisco, West Palm Beach, and Aspen.

5 Tax Deductions Sellers Won’t Want To Miss

by Elite Asset Management Team

 

Team Leader and founder of the Elite Asset Management Team – Pete Veres, RE/MAX Elite would like to share the following information with you as tax time is approaching very soon. If you’re like most people, you assume the IRS wants as much information about your financial life as possible. And that’s typically true — except when you sell that Atlanta, GA real estate and make a profit of less than $250,000 (or less than $500,000 when you file a joint return with your spouse). If you meet those qualifications, and if you have lived in that home for two of the five years before you sell, the IRS doesn’t want to hear about your home sale, because the profit you make is excluded from being taxed under U.S. Code Section 121.

As if that weren’t enough, there’s more good news you should know: The IRS grants some tax deductions for home sellers. Getting the deductions requires that you itemize your taxes, admittedly a tedious job, but one that is probably worth your while. Here are five tax deductions you should take this year.

1. Selling costs

If you don’t qualify for the 121 exclusion, you will owe taxes on any profit, so make sure you deduct all your selling costs from your gain. Here are some of the items you may be able to deduct.

Your real estate agent’s commission

Legal fees

Title insurance

Inspection fees

Advertising costs

Escrow fees

Legal fees

And there’s another consideration. Vanessa Borges, an enrolled agent and tax preparation supervisor with the Tax Defense Network, notes, “You might qualify for a partial exclusion if you sell your home due to circumstances involving divorce, change in employment, change in health, or other unforeseen circumstances.”

2. Moving deduction

If you have to sell your house because you’re relocating for work, you might be able to deduct some of your moving expenses, says Chantay Bridges, a licensed senior real estate agent in Los Angeles, CA. Deductions could include transportation costs, travel to the new place, storage costs, and lodging costs.

 3. Property tax deduction

“You can deduct your property taxes for the portion of the year that you owned the home,” says Dr. Kimberly R. Goodwin, associate professor of finance and the Parham Bridges Chair of Real Estate at the University of Southern Mississippi. Deduct the taxes “up to, but not including the date of the sale,” according to the IRS. The buyer pays beginning from the sale date.

4. Home improvements

In some cases you may need to improve your home — not for your own benefit and enjoyment, but for the home’s future owners. If you make home improvements that help sell your home (like replacing a leaking roof or defunct HVAC system), and if they are made within 90 days of the closing, they are considered selling costs, which are deductible, according to Goodwin. Please confirm these with your local tax adviser.

5. Points

If you paid mortgage points to lower your interest rate when you refinanced your home, you might qualify for an additional deduction, says Bridges. Because you can deduct a proportional share of the points until the loan is paid, when you pay off the loan through a sale, you can “deduct the remaining value of those points,” says Goodwin.

What can’t you deduct?

Tax deductions are fickle. They “can vary from state to state and from year to year,” says Bridges, who suggests that home sellers check with a local tax expert to confirm the deductions are still available at the time of the sale.

Taxes can be confusing (Who knew?)

There is also some confusion regarding deductions. Sean P. Storck, a certified financial planner and enrolled agent with Rawdin-Baron Financial in California, explains that many sellers think they can deduct, but can’t. Storck says the biggest misconception concerns repairs, and that “generally speaking, anything done in the course of maintaining property for normal use is nondeductible.”

The same goes for what Storck calls “phantom labor,” in which “you do the work of constructing your home on your own.” Although you may have worked your tail off, you still cannot deduct your sweat equity come selling time.

This is some good information and remember to always check with you local tax adviser for the current rules and regulation.

Tools to Help Simplify Life Planning

by Elite Asset Management Team

Pete Veres, local Seniors Real Estate Specialist what to share to following information with you: " Tools to Simplify Life Planning". If you have any questions please reach out to your local Senior Real Estate Specialist Pete Veres, call/text 505-362-2005505-362-2005. Here to help and serve our clients.

The Best Year for Sales Since the Housing Boom

by Elite Asset Management Team

 

The end of the year brought a sizable boost to existing-home sales, as delayed closings from new mortgage rules pushed some would-be November transactions to December, according to the National Association of REALTORS®. Existing-home sales — which are completed transactions for single-family homes, townhomes, condos, and co-ops — rose 14.7 percent month-over-month to a seasonally adjusted annual rate of 5.46 million in December. Sales are now 7.7 percent above a year ago.
That marks the best year of existing-home sales since 2006, though it's still well below the record for that year, which was a whopping 6.48 millionThe end of the year brought a sizable boost to existing-home sales, as delayed closings from newmortgage rules pushed some would-be November transactions to December, according to the National Association of REALTORS®. Existing-home sales — which are completed transactions for single-family homes, townhomes, condos, and co-ops — rose 14.7 percent month-over-month to a seasonally adjusted annual rate of 5.46 million in December. Sales are now 7.7 percent above a year ago.

The end of the year brought a sizable boost to existing-home sales, as delayed closings from new mortgage rules pushed some would-be November transactions to December, according to the National Association of REALTORS®. Existing-home sales — which are completed transactions for single-family homes, townhomes, condos, and co-ops — rose 14.7 percent month-over-month to a seasonally adjusted annual rate of 5.46 million in December. Sales are now 7.7 percent above a year ago.

 


That marks the best year of existing-home sales since 2006, though it's still well below the record for that year, which was a whopping 6.48 million.


“While the carryover of November’s delayed transactions into December contributed greatly to the sharp increase, the overall pace taken together indicates sales these last two months maintained the healthy level of activity seen in most of 2015,” says Lawrence Yun, NAR’s chief economist. “Additionally, the prospect of higher mortgage rates in coming months and warm November and December weather allowed more homes to close before the end of the year.”


The Know Before You Owe initiative, which took effect Oct. 3, 2015, prompted some delays in closings as lenders adjusted to new rules and the rollout of a new mortgage form to consumers.


“December’s rebound in sales is reason for cautious optimism that the work to prepare for Know Before You Owe is paying off,” says NAR President Tom Salomone. “However, our data is still showing longer closing timeframes, which is a reminder that the near-term challenges we anticipated are still prevalent. NAR advised members to extend the time horizon on their purchase contracts to address this concern.”


5 Stats to Judge the Market


1. Home prices: The median existing-home price for all housing types was $224,100 in December, up 7.6 percent year-over-year ($208,200).

2. Days on the market: Thirty-two percent of homes sold last month were on the market for less than a month. Properties, on average, stayed on the market for 58 days in December, which is below the 66 days in December 2014. Broken out, the properties on the market the longest amount of time in December were short sales, which had a median of 86 days. Foreclosures sold in 68 days, on average, while non-distressed homes took 57 days.

3. All-cash sales: All-cash transactions comprised 24 percent of transactions in December, down from 26 percent a year ago. Individual investors, who account for the bulk of cash sales, purchased 15 percent of homes in December, down from 17 percent a year ago.

4. Distressed sales: Foreclosures and short sales dropped to 8 percent in December, down from 11 percent a year ago. Of that, foreclosures made up 6 percent of December sales and short sales comprised 2 percent. Foreclosures sold for an average discount of 16 percent below market value last month, while short sales were discounted 15 percent, on average.

5. Inventory: By the end of December, total housing inventory fell 12.3 percent to 1.79 million existing homes available for sale, reaching a 3.9-month supply at the current sales pace. That is 3.8 percent lower than a year ago (1.86 million).

“Although some growth is expected, the housing market will struggle in 2016 to replicate last year’s 7 percent increase in sales,” says Yun. “In addition to insufficient supply levels, the overall pace of sales this year will be constricted by tepid economic expansion, rising mortgage rates and decreasing demand for buying in oil-producing metro areas.”

 Searching for your dream home in Albuquerque? Our dedicated team of Albuquerque real estate agents can help! Albuquerque was founded by the Spanish in 1706. To this day, Albuquerque is heavily influenced by its history. The Albuquerque Culture is a mix of Indian, Hispanic and Anglo tradition. Please click here for More info about Albuquerque.

Home buying more affordable than renting in Bernalillo, Sandoval counties

by Elite Asset Management Team

Buying a house is still more affordable than renting a place with similar square footage in 58 percent of U.S. housing markets, according to RealtyTrac.

RealtyTrac released its 2016 Rental Affordability Analysis last week and found it's cheaper to buy a house than rent in Bernalillo and Sandoval counties.

 

 

The report looked at average three-bedroom rental units and homes in 54 counties across the U.S., and compared numbers from the U.S. Department of Housing and Urban Development (HUD) as well as weekly wages through the Bureau of Labor Statistics.

In Bernalillo County, RealtyTrac found the average wage earner would spend 36.6 percent of their income on a monthly home payment, compared to 37.7 percent of their income on rent. In Sandoval County, the disparity was even more apparent, with residents having to spend 33.8 percent of wages on a home, compared to 39 percent of take-home pay on rent.

Pete Veres, Certified Residential Specialist with RE/MAX in Albuquerque, NM agrees that buying a home in many cases may have a lower monthly payment. You can also have some tax benefits and build equity for yourself. Most buyers are not aware how easy it is to get a Free Loan Pre-Qualification. In fact, some buyers may even qualify for a downpayment as low as $500.00. For a Free Report click here: Why Rent When you can Buy?

RealtyTrac vice president Daren Blomquist said with rents rising faster than wages in most markets, it may be a good time to buy for new homeowners.

In markets such as Albuquerque, New Mexico, where home prices are still relatively affordable, 2016 may be a good time for some renters to take the plunge into homeownership before rising prices and possibly rising interest rates make it increasingly tougher to afford to buy a home.

On the other hand, RealtyTrac found it's cheaper to rent than buy in Santa Fe County. The average Santa Fe worker would have to spend more than half of their income to afford a house payment in The City Different, compared to about 39.1 percent on rent.

As expected, it's cheaper to rent than buy in bigger markets on the coasts and in Texas. RealtyTrac has an interactive map showing four New Mexico counties and data from other states. Click the map below to view the interactive map.

 

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Elite Asset Management
RE/MAX Elite
8300 Carmel Ave. NE Ste. 201
Albuquerque NM 87122
(505)362-2005
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