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Unemployment Goes Down

by Corey Salois

Unemployment Rate Slips to 9.1%

After heading higher for three straight months, the nation’s unemployment rate declined to 9.1 percent in July, down from 9.2 percent in June, according to figures just released by the U.S. Department of Labor. The economy added 117,000 jobs last month. July’s numbers beat analysts’ forecasts. Investors are hoping the news will help dispel fears of a double-dip recession and quell some of the sell-off frenzy seen in the stock market yesterday, which led to the largest one-day drop in the Dow since the financial upheaval following Lehman Brothers’ collapse.

California SB1316 is Dead

by from IPC1031

 

If you or your clients are contemplating an exchange of California real estate for non-California property, you will be pleased to know that California Senate Bill 1316 has just been laid to rest. SB1316 proposed to deny IRC Section 1031 tax-deferral treatment, at the California state income tax level, to like-kind exchanges in which the relinquished property was located in California, but the replacement property was located in another state. Had the legislation passed, a taxpayer who swapped California property for real estate in Montana would have been able to defer the Federal capital gains tax, but would have had to pay the California state tax on the gain from the sale of the California property. The proposed legislation would not have affected exchanges in which all properties were located in California.

IPX1031® worked with the Federation of Exchange Accommodators, the industry association for Qualified Intermediaries, to oppose SB1316. We pointed out to the legislative sponsors that the economic and constitutional problems with the bill would negate any anticipated increase in tax revenues, resulting in no net benefit to the State of California. Similar legislative proposals have been raised and dropped in several other states for the same reasons.

Foreclosure and Property Values

by Corey Salois

It seems that lately the buzz words in the real estate industry are"foreclosure" and "short sale". Everyone thinks that the best deals out there are the foreclosure homes. But are they really? What does foreclosure do to the value of a home and how does it affect it's marketability?

A recent MIT-Harvard study showed that Foreclosure drops a houses value by 27%. They found that when a house is sold after the death of an owner, the price drops 5% to 7% on average. When an owner declares bankruptcy, the value sinks 3%, according to the report.

So how does this affect you if you are buying or selling? If you are buying it could mean a great deal for you. Beware though of deferred maintenance on many of these homes and also the condition of them. Often when the previous owners leave they take quite a bit of the personal and real property with them, including appliances, light fixtures, wood stoves, etc. If you are trying to sell your home in a subdivision with a foreclosure in it the non-distressed homes often take a price hit as well. The study found that the value of a home drops by 1% on average if it is within 250 feet of a foreclosed home.

You can read the entire research paper if you want here: http://econ-www.mit.edu/files/3914

Different Kind of Foreclosure???

by Corey Salois

Thought that just your bank could foreclose on your home? Well now we are seeing foreclosures arise from more entities. It is well known that your mortgage company can foreclose on your property, the IRS and even the local tax department but how about your Homeowners Association? It can happen.

Read more here: http://www.cnbc.com/id/38260141

Homebuyer Tax Credit Extension

by From DS News

It’s official—on Friday morning, President Obama signed legislation to extend the closing deadline for homebuyer tax credit recipients.

Originally, qualifying buyers who were under contract by April 30, 2010 had until June 30, 2010 to close. But as this deadline approached, concerns arose that the backlog of loan applications created by the popularity of the program would leave many buyers unable to claim the credit.

In fact, an estimated 180,000 buyers were at risk of missing the closing deadline, according to the National Association of Realtors (NAR).

These at-risk buyers can now breathe a sigh of relief. President Obama’s approval of the Homebuyers Assistance and Improvement Act of 2010 extends the closing date from June 30, 2010 to September 30, 2010, giving qualified buyers who signed a contract by April 30, 2010 an extra three months to complete their closing.

Displaying blog entries 1-5 of 5

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Photo of Corey Olofson, Broker Real Estate
Corey Olofson, Broker
RE/MAX of Whitefish
509 E. 6th St.
Whitefish MT 59937
Office: 406.863.3400
Cell: 406.253.0531
Fax: 406.863.3400