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Market Snapshot: San Mateo County Real Estate Report

by Kathy and Michael Rain - The Rain Team

Here is an updated Market Report summarizing recent real estate activity along the coastside. Please keep in mind that the values represented are based on current, detailed information from the regional Multiple Listing Service. If you need clarification on any of the figures or if you wish to take additional steps toward property ownership, please let us know. We are happy to help you. See the full report.

C.A.R Forecast: Housing Market Will Keep Going Strong in 2018

by Kathy and Michael Rain - The Rain Team

California’s economy is expected to grow and bring forward a strong housing demand in 2018, according to the California Association of Realtors. The housing market will keep growing, albeit at a slower pace, the slowdown being attributed to the supply challenges that will carry on in the next year, as per the report.

Median home prices in California are estimated to rise 4.2% in 2018 to $561,000—a percentage well below the projected 7.2% increase in 2017 to $538,500.

The Association predicts a slight increase of 1.0% in existing single-family home sales, and a total of 426,200 units sold in 2018. The estimated figure for 2018 marks a small uptick from this year’s sales projection of 421,900 units, and not enough to satisfy the strong housing demand, especially in the lower-end segment.

C.A.R. predicts an increase in U.S. GDP of 2.3% in 2018, roughly on par with the projected gain of 2.1% in 2017. California’s unemployment rate is expected to drop to 4.6% next year, after resting at 4.8% in 2017 and 5.5% in 2016.

Mortgage interest rates will remain low in California, even if the 2018 forecast predicts an increase of 4.3%, up from 4.0% in 2017 and 3.6% in 2016.

C.A.R. President Geoff McIntosh said that the “solid job growth” will create a demand for housing in 2018, “however, a persistent shortage of homes for sale and increasing home prices will dictate the market, as housing affordability diminishes for buyers struggling to get into the market.”

Moreover, the limited supply has been “the new ‘norm’ for the past few years,” according to Leslie Appleton-Young, C.A.R senior vice president & chief economist. Appleton-Young foresees that the 2018 housing market will be a “tale of two markets – the inventory constrained lower end and the upper end that’s non-inventory constrained.” It is thus very likely that 2018 sales growth will remain low, while prices will be driven up by a competitive market.

 

3 Things To Do Now If You're Buying in 2018

by Kathy and Michael Rain - The Rain Team

Planning on a move in 2018? Start preparing now! It doesn’t matter if you’re thinking of entering the real estate market this month or six months from now; preparing today will help make the process a little less stressful. Here are three things that will really help in preparing.

Check Your Credit & Get Pre-approved: 

Take a look at your credit score. You'll want to make sure that your credit is in good standing. If there are any issues, take care of them. If you have a high credit score, you'll get a better finance rate, which could save you on your mortgage payments. 

 

After you know your credit is in check, you can work with a mortgage lender to get pre-approved. Getting pre-approved for a mortgage tells you how much you can afford and when it comes time to make an offer, the sellers will see that you can, in fact, afford the house. 

 

A mortgage broker can be a big help in this process. If you need a good recommendation, email me back and I’ll help connect you to one. 

Make a Wants & Needs List:

The all-important question is, what are you looking for in your next home? A lot of people waste time looking at properties they would have never looked at if they’d just taken some time to prioritize their wants and needs. So, start searching online to help you gain a sense of what it is you desire. Make a list of your top three needs and top three wants. If you’d like some properties emailed to you, just click here therainteam@coastal-realestate.com to send me an email and I’ll get you set up.

If You’re Selling:

Start looking at any improvements that you can make to help your home sell. Make repairs, get rid of clutter, and make your home presentable for potential buyers. Knowing your home’s value is helpful in starting the process and knowing where to invest your money. Again, just reply to this email and I’ll help you get the most current value of your home.

 

These ideas are just a snapshot of things to help you get started in your new home search. I would like to guide you through the entire process and help you every step of the way. If you have a question about this or any other news you might have heard about the industry, I’m here to help. Give us a call. 

Market Snapshot: San Mateo County Real Estate Report

by Kathy and Michael Rain - The Rain Team

Here is an updated Market Report summarizing recent real estate activity along the coastside. Please keep in mind that the values represented are based on current, detailed information from the regional Multiple Listing Service. If you need clarification on any of the figures or if you wish to take additional steps toward property ownership, please let us know. We are happy to help you. See the full report.


The Tax Cuts and Jobs Act: What It Means for Homeowners

by Kathy and Michael Rain - The Rain Team
Congress has now passed a sweeping tax bill that will affect almost every American. In addition to changing tax rates and deductions, these new rules affect a wide variety of personal and business activity.
 
The National Association of Realtors® has compiled a summary of provisions of interest, which may be of relevance to you.
We hope this information is helpful as you discuss The Tax Cuts and Jobs Act's impact with your financial advisor or legal counsel.
 
The Rain Team is here to help you with all of your real estate needs. Contact us today to see how we can help.

The New Tax Law and Its Housing Impact

by Kathy and Michael Rain - The Rain Team
 Upcoming Changes for Some Home Buyers & Homeowners  

 By: Andy Block

Mortgage Advisor and Personal Finance Advisor

 
Under the new tax law, homeowners will have decisions to make in 2018, due to reductions or elimination of certain deductions under the new tax law.  
   
Real Estate: How The New Tax Law Compares to the Old Tax Law  
   
Measure Old Tax Law New Tax Law
Mortgage Interest Deduction Could deduct interest on up to 
$1 million in mortgages on primary & secondary residences
Can deduct interest on up to 
$750,000 in mortgages on 
primary & secondary residences
State and Local income, sales & Property Taxes  Can be deducted from federal income taxes Caps Federal income tax deduction at no more than $10,000 for total of all local state income, property and sales taxes
Interest on home equity debt (HELOCs) Home equity debt interest 
is deductible up to $100,000 if not disallowed by the AMT
Cannot deduct interest on home equity debt-new or existing on personal residence unless improving the residence* 

Equity debt on the personal residence is deductible if it is used to finance 
or improve a rental property
Capital Gains on Home Sales Can exclude up to $500,000 of gain for joint filers or $250,000 of gain for 
single filers from capital gains when selling a primary home, as long as the homeowner has lived in the 
residence for 2 of the past 5 years
No change
Source: Factcheck.org
 
$937,500 in purchase mortgages is the Max deduction for Mortgage Interest with 20% down.
The mortgage interest deduction is now limited to mortgages totaling up to $750,000 for primary and secondary homes. This means that homebuyers with a 20% down payment can only deduct 100% of the interest from their mortgages if their purchase price total is less than $937,500. 

 

Property Tax Impacts in High Tax States
State income tax, sales tax and property tax deductions (SALT) are now capped at $10,000 total. This is a significant hit for many high tax state residents in high cost areas. 

 

Tax Plan Calculator: Estimate Your Tax Liability
What does this mean for your bottom line? The Wall Street Journal’s tax plan calculator analyzes the impact of the biggest factors in the bill, so you can estimate your tax liability for 2018 through 2027. Click here for The Wall Street Journal Tax Plan Calculator.
 
Common Scenarios: How the Tax Bill Will Affect 8 Families
Bloomberg shows how taxes owed on wage and pass-through income (from a business you own) will change in 2018. These scenarios may remind you of someone you know: 
  • The multimillionaires in New York
  • The second home scenario in California
  • The small business owners in Pittsburgh
  • The suburban family in Westchester
  • Single in Manhattan
  • Married in Austin – a young couple who rents
  • Median income in Oregon
  • Renting in Milwaukee
 
Tax Workaround for Vacation Homes
Owners and buyers of second homes can potentially turn their vacation homes into an investment property by setting up a limited liability company. That allows them to write off interest and upkeep, while using the property part of the year for themselves, according to The Denver Post. Consult a tax professional for help navigating the new tax rules and how to best structure this business.
 
Contact Andy Here
 
*HELOC deductibility depends on whether it was “home equity indebtedness” or “acquisition indebtedness.” Acquisition indebtedness — mortgage debt used to acquire, build or substantially improve the residence — will be deductible, according to Michael Kitces, partner and director of Wealth Management at Pinnacle Advisory Group. 

Opes Advisors, A Division of Flagstar Bank, is neither a law firm nor a certified public accounting firm and does not provide legal or tax advice. Consult your accountant or tax advisor for advice specific to your situation.
While Opes Advisors, a division of Flagstar Bank, Member FDIC, uses all reasonable efforts to ensure that this information is current, accurate and complete on the date of publication, no representations or warranties are made (express or implied) as to the reliability, accuracy or completeness of such information. Opes Advisors, a division of Flagstar Bank, Member FDIC, therefore, cannot be held liable for any loss arising or indirectly from the use of, or any action taken in reliance on, any information appearing in this email. 

For real estate professionals only. Not for distribution to consumers.
 

Recap On The New Tax Law For Home Owners

by Kathy and Michael Rain - The Rain Team

There are changes homeowners should be aware of with the new tax law effective as of 1/1/2018.  Below is the summary of the changes that may be useful information for you to know. 

The recommended protocol still is having your clients talk to their tax professional for more information regarding their taxes.

  1. The state and local tax deduction now has a cap.

The state and local tax deduction, or SALT, remains in place for those who itemize their taxes -- but now there's a $10,000 cap. Previously, filers could deduct an unlimited amount for state and local property taxes, plus income or sales taxes.

  1. The mortgage interest deduction has been lowered.

Current homeowners are in the clear. But from now on, anyone buying a new home will only be able to deduct the first $750,000 of their mortgage debt. That's down from $1 million. This is likely to affect people looking for homes in more expensive coastal regions.

  1. Home sellers who turn a profit keep their tax break.

Homeowners who sell their house for a gain will still be able to exclude up to $500,000 (or $250,000 for single filers) from capital gains, so long as they're selling their primary home and have lived there for two of the past five years.

  1. The deduction for moving expenses is also gone ...

There may be some exceptions for members of the military. But most people will no longer be able to deduct the cost of their U-Haul when they move for work.

  1. As is the tax preparation deduction ...

Before tax reform passed, people could deduct the cost of having their taxes prepared by a professional, or the money they spent on tax prep software. That break has been eliminated.

 

Displaying blog entries 1-7 of 7

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The Rain Team
CA# 01169588 | CA# 01125976 | CA# 01908304
248 Main Street, Suite 200
Half Moon Bay CA 94019
Michael: 650-888-6361
Kathy: 650-888-6903
Fax: 866-396-0207

Kathy and Michael Rain of Coldwell Banker provides real estate services in the San Mateo County, California area including the surrounding communities: El Granda, Half Moon Bay, Montara, Moss Beach, Pacifica and San Mateo. Search for homes in San Mateo County. We list and sell residential real estate, investment properties, vacant land, lots for sale in the San Mateo County, California area.

Licensed in the State of California

Kathy Rain - CA BRE# 01169588 | Michael Rain - CA BRE# 01125976 | Coldwell Banker - CA BRE# 01908304  

Email: therainteam@coastal-realestate.com
Cell Phone: (650) 888-6903 * Direct Phone: (650) 712-0411
San Mateo County Real Estate and Homes for Sale

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