What is the National Association of Realtors Chief Economist saying about the Real Estate Market
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Tag Archives: palos verdes homes
Palos Verdes Homes Foreclosure Investment Strategy
Palos Verdes Distress Property StrategyFor investors and home buyers looking for a great deal, opportunities exist in the following categories
But were you aware why only one of these categories presents the best chance to buy a home for under market and why the other two end up selling (usually) for “retail market price” instead of “wholesale discounted market price”? There are distinct strategies that need to be carefully executed to maximize your chance of success at owning a Palos Verdes home at a good deal price. And, the best part is using the service I’m going to introduce you to costs you nothing – not one red cent! Would you like to learn more?
DRE # 785373 |
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Do folks correctly deduct for property taxes on Palos Verdes homes
Will the California Tax Man Come Looking for YOU?!Overlooked Property Tax Law as a source of RevenueDuring 2011, the California Franchise Tax Board (FTB) proposed a change to Schedule CA to require the information necessary to enforce an overlooked area of the real estate tax deduction. The real estate tax deduction applies to ad valorem taxes, the real estate tax amount based on the assessed value of a property. Taxes based on a direct levy or special assessment, such as Mello-Roos or various services provided to specific properties are generally not deductible. However, many taxpayers are not aware of this distinction and in practice most individuals or their tax preparers include the total property tax on Schedule CA. Until recently the FTB didn’t have the capability to determine whether the reported number included non-deductible taxes, but a computer system planned for 2012 will give the FTB that capability. The FTB had planned to enforce compliance stating this year by adding three lines to the 2011 state tax returns that would require property owners to show their parcel number, total property tax bill and the deductible amount. On November 1, 2011 the FTB announced the decision to delay the change to Schedule CA for a year and use 2012 to educate taxpayers and preparers on the rules. The board encourages voluntary compliance for 2011 tax returns and plans to enforce the rules on the 2012 Schedule CA. As part of the education effort, the FTB created a page on their website called Understanding the Real Estate Tax Deduction that explains the rules and provides an example tax bill with the ad valorem taxes and direct levies or special assessments broken down. For the 2011 tax year, some preparers are requiring their clients to bring in the county property tax statement before they will include the deduction in the Schedule CA. The FTB estimates that the change will bring in an additional $200 million of revenue per year and that voluntary compliance could bring in $20 million this year. |
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Palos Verdes Real Estate Trends
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Palos Verde Real Estate Transaction Report
So how long IS it taking to sell a Palos Verdes home?Most agents are trained to give you what the “average days on market” are but that really is a misleading statistic. What you REALLY need to know as a seller is how many days of unsold inventory are there on the market? Ask the real estate agent you’re planning to interview for the very serious job of selling your home this question, “Assuming no other listings came on the market, how many days would it take the market to absorb existing supplies?” See if their eyes glaze over … if they do, find another agent … because not only do you want to get an understanding of what you’re up against when planning your next transition from your current home in Palos Verdes, but you also want to know the statistical probability, given what the current absorption number is, for selling in the next 30 days, 60 days, 90 days etc. For example, did you know that right now, there are 224 days of unsold inventory for Palos Verdes real estate? That’s a lot of days, but better than the 293 days for the same time period last year. Given this 224 days of unsold inventory then, here are your chances of selling. These are calculations based on a standard deviation analysis of the absorption rate What are my chances of selling in…
So now that you know the realities of the market and if you’re a seller and you absolutely have to have, not a 19.30% chance of selling in 90 days but at least an 80% chance of selling … what do you think has to happen? Would love to read your comments! To view the latest suppy/demand trends please go here: Palos Verdes Real Estate Transaction Report
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Palos Verdes Real Estate Trends vs Western US and the “cost” of rising sales
Existing Homes Sales Rise, but at a costExisting-home sales rose in January, marking three gains in the past four months, while inventories continued to improve, according to the National Association of Realtors®. Total existing-home sales1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 4.3 percent to a seasonally adjusted annual rate of 4.57 million in January from a downwardly revised 4.38 million-unit pace in December and are 0.7 percent above a spike to 4.54 million in January 2011. Lawrence Yun, NAR chief economist, said strong gains in contract activity in recent months show buyers are responding to very favorable market conditions. “The uptrend in home sales is in line with all of the underlying fundamentals – pent-up household formation, record-low mortgage interest rates, bargain home prices, sustained job creation and rising rents.” To read the full story, go here: http://www.realtor.org/press_room/news_releases/2012/02/ehs_jan What the story underplays however is that there was a cost to the rise in home sales and before you conclude I’m just a “Negative Nancy”, there may just be a silver lining to all of this. The cost is clear as evidenced by these charts. Home sales rose because prices have been dropping and as a result of lower prices, demand increased. Economists call this “elasticity of demand” and it appears that the real estate market is highly elastic as small changes in prices caused huge changes in demand. The National Association of Realtors reported that while prices are down in the “West” about 1.8%, home sales rose 8.8% You’ve heard me often say that real estate is all local and you would be right to say “so what” to what’s happening on a national or even regional basis. Keep reading below to see the charts on price and home sale volume for the South Bay. Meanwhile, thank you for reading your latest newsletter and when you come across someone looking to buy or sell real estate here in Palos Verdes or around the South Bay, take out your cell phone and text or call me! At Your Service, George Fotion
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Palos Verdes Homes Absorption Trends
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As always, no one can claim any clarity with a “crystal ball”. That being said, I found this article interesting and may give some clue as to what is happening nationally with real estate. Of course one of the oldest real estate sayings other than “Location, location, location” is that “All real estate is local” … meaning, it really doesn’t matter too much what is happening nationally, it’s all about what is happening on the local level. For example, real estate in the last 3 or 4 years has behaved much differently for Palos Verdes homes than it has for Riverside homes.
“The 2012 outlook is improving modestly from a disappointing 2011. Economic growth picked up in the fourth quarter of 2011 to 2.8 percent and is expected to come in at 2.3 percent for 2012, up from 1.6 percent growth for all of last year, according to Fannie Mae’s (FNMA/OTC) Economic & Strategic Research Group…” To read more, go here http://www.fanniemae.com/portal/about-us/media/financial-news/2012/5650.html For more information on Palos Verdes homes and Palos Verdes real estate, you’re welcome to visit my website at http://www.homeispalosverdes.com |
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Palos Verdes Homes
Palos Verdes Estates BuyersWhere are they coming from? Many of my clients ask me, and rightly so, “George, where are the Buyers coming from these days?” Before you take a look at the facts below, ask yourself, have you ever seen accountable verifiable information like this before? And when it comes time to sell your home, can you imagine how many sales opportunities you would lose for your home unless you put your home in the hands of a real estate broker that knew HOW and WHERE to find the right Buyer for your home. It comes down to this … you can either hire a Broker that blindly throws darts hoping they will chance on a buyer for your home OR you can hire a Broker, like me, that knows how to target Buyers that will want to own your home. Without the experience of a broker that knows how to manipulate the internet search engines, you’re floundering around just hoping for a good result. It’s time you plan for targeting a GREAT result when you sell your Palos Verdes home! Wouldn’t you want 526 prospective Buyers competing for your home? For a free no obligation market evaluation and proposal, contact me today. 424.226.2147 Visitor Locations (526 total)
DRE #785373 |
Palos Verdes Estates Pending Home Sale Trends
Palos Verdes Estates Home Pending Sales Shows UptrendThe National Association of Realtors published today their latest study on home sales and there has been a significant improvement. “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 sales rose 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.” You can read the entire article by going here. But while national trends are interesting … what’s happening on the local level. For example, let’s take a look at Palos Verdes Estates real estate. Are pending sales (these are the Palos Verdes Estates homes that are entering escrow) increasing or decreasing? What’s the general trend? Obviously no matter what asset class we study, nothing goes straight line up or straight line down. So take a careful look at the highs and lows. Are there “higher highs” and “higher lows”? What’s this tell you about what the market’s direction might be in the next few months? You are welcome to request access to other charts I keep for the Palos Verdes real estate market and general South Bay real estate market by visiting this link.
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Knowing what the Fed is thinking helps when buying or selling Palos Verdes real estate
Want to know a Secret about what the Federal Reserve is thinking?Did you know that on January 25th the Fed will begin to publish their predictions about interest rates? From the “Daily Real Estate News” at Realtor.org, “Beginning Jan. 25, the Federal Reserve will start to publish a forecast four times a year that includes predictions about the direction of short-term interest rates, The New York Times reports. The report will include a summary of how long the Fed expects to keep short-term rates at current levels.” You can read the rest of the story here So now you have a new tool to help you decide when you’re buying or selling Palos Verdes real estate.
And now that interest rates are so low, what a great time to own a dream home in the Lower Lunada Bay area of Palos Verdes Estates… This is a piece of Palos Verdes real estate to be cherished a lifetime! |
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