Archive for January, 2013
2013 Capitol Conference
Start: January 15, 2013 Cost: $30.00
Venue: Capitol Plaza Phone: (573) 635-1234
Address: Google Map 415 W McCarty St, Jefferson City, MO 65101
MAR’s annual Capitol Conference provides REALTORS the opportunity to meet Missouri’s elected officials to ensure the interests of real estate professionals are represented in Jefferson City.
A $30 registration fee includes lunch, briefing session, afternoon visits to the Capitol and an evening reception honoring members of the General Assembly and statewide elected officials.
Download the registration flyer here
Please note, registrations for this event will now need to be either emailed or faxed. MAR is unable to process registrations for Capitol Conference online at this time.
Importance of the Internet in Home Buying and Selling
In an effort to better understand the evolving role of digital media in the consumer home search, Google and NAR have collaborated to produce a report called The Digital House Hunt: Consumer and Market Trends in Real Estate.
The home shoppers surveyed for the report include those looking for an existing home, a newly-constructed home, or an apartment.
The goal of this study is to show real estate professionals the value of digital marketing strategies. Video, mobile, social channels, and paid search strategies have all become essential tools in the real estate business.
The report contains a wealth of information which can be used by real estate agents to help target marketing dollars. Among the many topics covered are the importance of virtual tours and video showcasing, where internet searches rank in the tools potential home buyers use to look for a home, and how agents bridge the gap between internet research and viewing and buying a home.
Missed the Code of Ethics Training Deadline? Look Here.
Members who did not complete required Code of Ethics training before the Dec. 31, 2012, deadline will be suspended from membership by their local boards. While suspended, you can still access Realtor.org to satisfy your training, but other membership services and privileges are affected.
Suspended members have until March 1, 2013, to complete training before their membership is automatically terminated. For more information, contact your local board.
Access the online Code of Ethics training courses now.
Protecting Real Estate in “Fiscal Cliff” Legislation
Steve Brown, NAR’s 2013 President-Elect, thanks REALTORS® for a job well done in the most recent call for action in which REALTORS generated 143,000 letters to Congress in less than a month, asking them to do no harm to housing. He also reviews the outcomes of the recent legislation to avoid the fiscal cliff that will help continue the real estate market recovery.
Real Estate Provisions in “Fiscal Cliff” Bill
On Jan. 1 both the Senate and House passed H.R. 8 legislation to avert the “fiscal cliff.” The bill was signed into law by President Barack Obama on Jan. 2.
Below is a summary of real estate related provisions in the bill:
Real Estate Tax Extenders
• Mortgage Cancellation Relief is extended for one year to Jan. 1, 2014
• Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012
• 15-year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012
• 10 percent tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012
Permanent Repeal of Pease Limitations for 99% of Taxpayers
Under the agreement so called “Pease Limitations” that reduce the value of itemized deductions are permanently repealed for most taxpayers but will be reinstituted for high income filers. These limitations will only apply to individuals earning more than $250,000 and joint filers earning above $300,000. These thresholds have been increased and are indexed for inflation and will rise over time. Under the formula, the amount of adjusted gross income above the threshold is multiplied by 3 percent. That amount is then used to reduce the total value of the filer’s itemized deductions. The total amount of reduction cannot exceed 80 percent of the filer’s itemized deductions.
These limits were first enacted in 1990 (named for the Ohio Congressman Don Pease who came up with the idea) and continued throughout the Clinton years. They were gradually phased out as a result of the 2001 tax cuts and were completely eliminated in 2010-2012. Had we gone over the fiscal cliff, Pease limitations would have been reinstituted on all filers starting at $174,450 of adjusted gross income.
Capital Gains
Capital Gains rate stays at 15 percent for those in the top rate of $400,000 (individual) and $450,000 (joint) return. After that, any gains above those amounts will be taxed at 20 percent. The $250,000/$500,000 exclusion for sale of principal residence remains in place.
Estate Tax
The first $5 million dollars in individual estates and $10 million for family estates are now exempted from the estate tax. After that the rate will be 40 percent, up from 35 percent. The exemption amounts are indexed for inflation.
Pending Home Sales Rise in November
WASHINGTON (December 28, 2012) – Pending home sales increased in November for the third straight month and reached the highest level in two-and-a-half years, according to The National Association of Realtors®
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, rose 1.7 percent to 106.4 in November from a downwardly revised 104.6 in October and is 9.8 percent above November 2011 when it was 96.9. The data reflect contracts but not closings.
The index is at the highest level since April 2010 when it hit 111.3 as buyers were rushing to beat the deadline for the home buyer tax credit. With the exception of several months affected by tax stimulus, the last time there was a higher reading was in February 2007 when the index reached 107.9.
Lawrence Yun , NAR chief economist, said home sales are on a sustained uptrend. “Even with market frictions related to the mortgage process, home contract activity continues to improve. Home sales are recovering now based solely on fundamental demand and favorable affordability conditions.”
On a year-over-year basis, pending home sales have risen for 19 consecutive months.
The upward momentum means existing-home sales should rise 8 to 9 percent in 2013 to approximately 5.1 million, following a 10 percent gain expected for all of 2012. The median existing-home price is projected to rise just over 4 percent in 2013, after rising more than 7 percent in 2012.
The PHSI in the Northeast rose 5.2 percent to 83.3 in November and is 15.2 percent above a year ago. In the Midwest the index edged up 0.1 percent to 103.8 in November and is 15.2 percent above November 2011. Pending home sales in the South were unchanged at an index of 117.2 in November and are 13.9 percent higher than a year ago. In the West the index rose 4.2 percent in November to 110.1, but is 3.2 percent below November 2011 with inventory constraints limiting sales.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
* The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.
NOTE: Existing-home sales for December will be reported January 22 and the next Pending Home Sales Index will be on January 28; release times are 10:00 a.m. EST