There are several issues brewing in Washington that will directly affect the real estate market and its ability to continue its stabilization.
- The Mortgage Debt Forgiveness Act expires on December 31st. This soon-to-expire tax break has helped a lot of borrowers who sold their homes through the short sale process. Currently, homeowners don’t have to pay federal tax on the unpaid mortgage debt. The National average of forgiven debt is $33,250.
- The mortgage deduction is on the chopping block and this deduction loss could have unintended consequences on a housing market that is sparking back to life.
- And then there are the “Bush era tax cuts”. This will not affect real estate directly, but could make a difference indirectly, especially if there is a loss of discretionary spending.
So while they (the politicians) are working hard in Washington DC looking after our affairs, our little corner of the world here in Kingsburg remains pretty much the same as it was in October. Inventory is still dropping …. only 24 Active listings as of November 30th, as compared to 29 last month. Sold listings went down a little from 11 in October to 8 in November. It is typical that as we head into the holidays, the real estate market slows down a little. See the November CMA (Comparative Market Analysis) for Kingsburg on the right side of this blog.
We will be recapping the 2012 real estate market in early January. Look for our ad in the Kingsburg Recorder which will give you the entire year at a glance.
All our best wishes for a wonderful Christmas and a healthy, happy 2013 ….. and that your heart grows 3 sizes!
Be sure and watch our video blog below, fun stuff this month!