WaterGrass,Tampa Palms, Westchase, Carrollwood, Tampa Bay and Wesley Chapel Real Estate News From Jeanne Prigitano

The Tampa Bay housing market continues to remain strong.

February 2013 sales in the Tampa Bay area were up over 7% from the same time last year, with 40% fewer homes on the market, and 7% higher than January of this year. Months inventory is below 4 months and average days on market is 84 days down from 99 this time last year.

If a house is priced well, it is not uncommon for multiple offers within the first few days. Investors are making offers sight unseen within a few hours of a house being listed. I am a bit concerned because it may once again be creating a false market. We still need owner occupied sales to stabilize the market. Nevertheless, I am optimistic about the pace of sales and the improving trend in the Tampa Bay housing market.

Prices have begun to increase, as well. Average sales price in February is up 2% over January and 13% over February 2012. The biggest price increases seem to be in new construction. Builders are raising prices and getting buyers and land prices are also increasing. Don’t let the opportunities pass you by.

The Tampa Bay housing market is off to a strong start in 2013.

January 2013 sales in the Tampa Bay area were up by 16.5 % over January 2012 with 40% fewer properties on the market. That is amazing! Single family homes are leading the way with a whopping 20.5% increase over January 2012. Average sales price for January 2013 is 16.5% higher than January 2012. Average sales price is lower than December 2012 but, historically, January’s average sales price has always been lower than that of December.

Don’t let it all pass you by. Now is the time to make your move.

Most of you are beginning to file your tax returns for 2012. I know that there may be a lot of confusion about what real estate deductions were eliminated in the bill to avert the fiscal cliff and what remained. As always, please consult your tax professional because every situation is different. Here are some of the tax measures that may be of interest when filing your taxes.

1. Mortgage Debt Forgiveness.

In a short sale, the house is sold for less than what is owed. The difference is usually considered taxable. However, under the Mortgage Debt Forgiveness Act, if the home was your primary residence, there is no tax on the amount forgiven. So, if you had a short sale in 2012 and the home was your primary residence, the amount forgiven is not added to your income or taxed. The act was supposed to end in 2012 but has been extended through 2013.

2. Mortgage Insurance Premiums (PMI).

If you put less than 20% down on the purchase of your home, you are subject to mortgage insurance. Homeowners making less than $110,000 can deduct the cost of the premiums. The PMI deduction was supposed to go away in 2012 but was extended through the end of 2013.

3. Energy efficiency tax credit.

There is a tax credit of 10% (up to $500) for energy efficient improvements to an existing home. Not only was this extended through 2013 but also made retroactive for 2012.

4. Points.

If you paid points to obtain a new mortgage on your primary residence in 2012, those points are deductible for 2012. If you paid points to refinance, the points are deductible over the life of the loan.

5. Mortgage Interest Deduction (MID).

The interest you pay on your mortgage is deductible. There has been some talk about eliminating the deduction but, for now, it is a major benefit of home ownership along with the property tax deduction.

These are just a few of the tax considerations for homeowners. There are others (moving expenses related to a job change, medically necessary home improvements). Make sure you check with a tax professional to ensure that you are taking advantage of the tax benefits of homeownership. Happy filing!

At the end of 2011, I predicted that the Tampa Bay Housing Market in 2012 would finally stabilize and begin to show improvement. I’m happy to say that my prediction has proven to be accurate.

I’ll start with the numbers first. December 2012 sales were approximately 3% lower than November 2012. That may not look like good news but there were 11% fewer homes for sale in December 2012 compared to November. More importantly, sales were 12% higher in December 2012 over December 2011. What’s truly remarkable, the number of homes on the market in December was 40% less than December of last year. An even better indicator that the market is improving is average sales price. Average sales price for December 2012 was 11.5% higher than December 2011. Inventories have been steadily declining throughout 2012 creating a supply and demand situation driving up prices. Overall days on market has steadily decreased throughout 2012. The start of 2012 showed average days on market to be 104 days and ended in December with an average of 77 days on market.

Last year I had predicted that the first time home buyer market would be strong. It was. Surprisingly, the move up buyer is back in the market too. This is important if we are going to see any sustained growth. The luxury market has also shown considerable improvement. One of the strongest growth segments in the Tampa Bay area has been new construction. The builders are back in force. That hasn’t been seen in years. It is such good news because it puts lots of people back to work, not just in the trades, but in the communities surrounding these new sub-divisions. It is finally beginning to look like a regular housing market.

There are still some challenges. Foreclosures are still playing a role although not as strong a role as in the past few years. Investors are outbidding homeowners creating frustration. If a home is priced well, there are often multiple offers on the first day. Personally, I don’t like that buyers have to make a decision as important as buying a home in a few hours so as to “get it” before someone else does. The biggest challenge seems to be in the area of bank appraisals. Banks are being very conservative, as they should be, in the area of home values. However, most appraisals have been low in comparison to the purchase price. It is almost as if they aren’t taking into consideration that there is a supply and demand situation and values are increasing. If there are multiple offers on a property, it must mean that homebuyers are seeing the value. Why then are appraisals coming in low? That can quickly kill the completion of the sale and the housing market in general.

So what do I see for 2013 in the Tampa Bay area? I believe the market will continue to improve and values will continue to appreciate but not at the crazy rates that destroyed the housing market in the first place. New construction will make a very strong comeback. Interest rates will stay low but keep an eye on the debt ceiling. Foreclosures will continue to decline. I don’t believe the market will be skewed to any one particular group. I believe we will see first-time buyers along with move up buyers, downsizing buyers and investors. People who went through short sales 3 and 4 years back will be back in the housing market.

If you were waiting for a turnaround in the housing market, it happened in 2012. Now is the time to buy. There are great opportunities out there for everyone. I finally took my own advice. I sold my home in January and am now building a new home. Join me.

I’m a little late this month reporting on October’s housing statistics. I, along with many of my colleagues, have been extremely busy. I have been saying it for some time now but the Tampa Bay housing market has been steadily improving. The pundits have finally started to report that the housing market is heating up. Those of us in the trenches have known it for a while. So, once again, if you are waiting for the market to hit bottom, it already has. There are good deals but great deals are few and far between. I have done a lot of work in new construction and the new construction market is incredible. There are waiting lists for building lots to be released and premiums on the best lots. Builders are steadily increasing the base price of homes. Workers in the trades are in short supply thus increasing building costs and the time it takes to build. If you are looking to buy, don’t wait. Conversely, if you are looking to sell, with inventories at an all-time low, now is the time. Now, on to the October housing numbers.

Average sales price in October increased slightly. Even a slight increase is surprising because sales price has declined every October over the last several years. Average sales price is almost 12% higher than October 2011. The number of home sales increased by 10% over September 2012 and 20% over October 2011 with 42% fewer homes on the market over the same time last year. It is actually pretty amazing! Months inventory is approximately 3.5 months. The last time inventories were this low was back in 2005.

There are some surprises in the September Tampa Bay Housing Market.

Average sales price in September dropped by almost 4% over August. It is surprising for 2 reasons. Foremost, average sales price has increased steadily in 2012 so it is surprising to see any drop. Secondly, a drop in sales price has historically occurred in October when the housing market starts to slow down after a summer surge. However, I don’t believe it is cause for concern because average sales price is still 5.5% higher than this time last year and average list price was 3.5% lower in September over August. The higher end of the market showed fewer sales in September.

Months inventory is still under 4 months with inventories down by 12.5% over August and 35% less since the beginning of the year.

The first 3 quarters of 2012 have shown a definite improvement in the Tampa Bay housing market. Inventories are very low and so are interest rates. It will be interesting to see what happens in the last quarter. Are Buyers and Sellers waiting for the presidential election? I guess we will see.

Amendment 4 is a constitutional amendment on Florida’s November ballot that is designed to ease property taxes.

Amendment 4 would take effect January 1, 2013 and proposes:

· An additional homestead exemption for first-time Florida homebuyers which will phase out over 5 years.

· A reduction in the non-homestead cap from the current 10% (on non-school levies) to 5%.

· Legislative authority to eliminate the “Recapture Rule” of the Save Our Homes Act.

So, why should you consider saying “YES”. Amendment 4 will provide growth in the housing market and much of Florida’s economic recovery centers on a strong housing market.

How exactly will Amendment 4 help the housing market?

· By providing an additional homestead exemption to first-time homebuyers (anyone who has not owned a homesteaded property in Florida for the last 3 years), buyers will have more buying power with less financial burden. Monthly home expenses would be lower qualifying more people for home ownership. Vacant foreclosed homes would be occupied by families who will contribute to the local economy. First-time homebuyers are pivotal to the housing market.

· Currently, taxes cannot increase more than 3% a year on homestead properties even if the assessed value of a home increases by more than 3%. This has saved many people from being forced out of their homes because of increased taxes. The cap on a non-homestead property is 10% and expires in 2018. Since many look to Florida for a vacation home, providing some stability to tax increases is critical. The cap would also apply to commercial properties. By placing a cap on tax increases for commercial properties, small business owners can reinvest in their businesses and create jobs and provide raises for their employees.

The “Recapture Rule” allows for property taxes to increase even if the value of the property has decreased. Amendment 4 provides that the Legislature can enact legislation that would not increase the property’s assessment if the Just Value of the property is less that the Just Value of the property on the preceding January 1.

There are some who are opposed to Amendment 4 because they say it would cut local revenues and, thereby, eliminate funding of necessary government programs and jobs. On the other hand, Florida Tax Watch estimates that Amendment 4 over a 10 year period would create more than 20,000 jobs, increase the gross domestic product by $1.1 billion, boost personal income by $5.3 billion, and increase home sales between 319,861 and 383,810. You be the judge.

For additional information go to:

http://www.floridarealtors.org/LegislativeCenter/upload/Amendment4-study-Tax-Watch.pdf

http://taxyourassetsoff.com

The Tampa Bay Housing Market continues to improve with many positive indicators.

Months inventory is still at 3.5 with inventories continuing to decline. Average sales price increased by 2.5% and is at a year high of $175,800. Average sales price is 11% higher than this time last year and the highest since July 2009.

Before doing the happy dance, please understand that your home may not be able to sell for 11% more than a house in your neighborhood sold for last year. Real Estate is hyper-local. Comparable sales in your neighborhood will still be used to determine market and appraised value. The reason the average sales price is increasing is houses in the higher price ranges are now selling. That market was dormant for a while. In the meantime, sales in the lower ranges (below $50,000) have declined.

I’m not trying to rain on your parade. It is still all good. The Tampa Bay housing market is much more stable. People who are choosing to occupy their homes and contribute to their communities are buying. New home construction is back creating jobs for many who were unemployed.

Now is the time to SELL and to BUY. Inventories are low so Sellers have a better chance of selling. Interest rates are low making housing affordable for Buyers.