3.8% Medicare Tax - Get the Facts

Misinformation about the 3.8 percent Medicare tax continues to be circulated

Recent information provided by the California Association of Realtors (CAR) helps clarify the tax implications:

Beginning in 2013, the much-publicized 3.8 percent Medicare tax on unearned-taxable income will go into effect. While the application of this tax will utilize a complex formula, what is important to remember is:

• It is applicable to households in the top two tax brackets (individuals with an income above $200,000 or $250,000 for married couples),

• Applicable only on taxable unearned income, such as capital gains, interest, dividends and rents,

• Capital gains exemption for principal residences ($250,000 for individuals and $500,000 for married couples) is not affected, and

• Please contact your tax professional if you believe the new tax will impact you.

For more information click here

Start your engines..............Sellers

 

 

 

California home prices near 4-year high

California home sale prices came close to a 4-year high in July, with the pace of sales year-over-year growing for the fourth month in a row, the CALIFORNIA ASSOCIATION OF REALTORS® reported.

Making sense of the story.....

• The median home price in July for an existing single-family home was $333,860 last month, up 4.2 percent from $320,540 in June and nearly 13 percent from a year ago, when the median home price in California was $296,160.

• July’s median home price was the highest since August 2008, when it was $352,730. July also marked the fifth consecutive month that the median price increased month-over-month and year-over-year.
• Sales in July rose to an annualized pace of 529,230 homes, an increase of 15.3 percent compared with last July.
• California’s housing inventory was nearly flat in July, with the index of existing, single-family homes at 3.4 months compared with 3.5 months in June. However, July’s inventory was down from a revised 5.6-month supply in July 2011. The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. A 7-month inventory is considered normal.

Shortage "Oh My"

San Francisco Chronicle .... read more 


Shortage of California homes up for sale

After years of having too many homes and not enough buyers, real estate agents in California now have the opposite problem – too many buyers and not enough homes for sale.

Making sense of the story

• The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported Monday that its statewide inventory of unsold homes index for existing, single-family detached homes fell to 3.2 months in August from 3.5 months in July and 5.2 months in August 2011.


• The index reflects the number of months needed to sell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered normal. When the number goes higher, inventory is plentiful and it’s considered a buyer’s market. When the number goes lower, the advantage goes to the seller.

• Declining inventory helps explain why the statewide median price of an existing, single-family detached home rose to $343,820 in August, up 3 percent from July and up 15.5 percent from August 2011, according to C.A.R.

• Nationwide, the inventory of homes for sale also has declined. In July, there was a 6.4-month supply of homes compared with 9.3 months in July 2011. The current number is in line with the long-term average, according to the NATIONAL ASSOCIATION OF REALTORS®. However, NAR also acknowledges there are “acute shortages” in places such as California, Arizona, Nevada, and parts of Florida.

• Also constraining supply is the fact that so many homeowners are underwater – or owe more than their homes are worth – and unable to sell without taking a loss. As prices rise, more homes will increase in value, but it’s going to take time. Meanwhile, there are still a lot of homes that are not likely to come onto the market.

• At some point, the balance will tip, but it’s hard to predict when. When banks decide prices are high enough, they will start unloading houses they have been sitting on, according to the chief economist for Trulia.