Archive for the 'New London Housing Market' Category

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7 Mortgage Interest Deduction Myths

Published on March 19, 2012 in New London Housing Market. 0 Comments Tags: , , .

Think losing the mortgage interest deduction would be no big deal? We bust seven myths to show why the cost is bigger than you think.

Proposals floating on Capitol Hill to curb the mortgage interest deduction gloss over all the ways home owners, and even renters, would be hurt by the change. Let’s set the record straight.

Myth #1: The mortgage deduction is just for rich people.

  • The mortgage interest deduction helps mostly middle- and lower-income families.
  • 65% of families who use it earn less than $100,000 per year.
  • 91% earn less than $200,000 per year (that’s where most economists draw the line between rich and middle-class).
  • Only 9% earn more than $200,000 per year.

This myth may have arisen because of a related fact: If you buy a house, you’re much more likely to accumulate wealth by the end of your life. Home owners have an average net worth of $200,000, while the average renter’s net worth is $5,000, according to the Federal Reserve’s Survey of Consumer Finances.

Myth #2: I’m not affected by the mortgage deduction because I don’t own a home.
If the mortgage interest deduction goes away, home values would fall by 15%, the NATIONAL ASSOCIATION OF REALTORS® estimates. When home values fall, tax revenues follow suit, giving your local government two choices:
  • Raise property taxes. Not only will home owners pay more in taxes, renters won’t escape unscathed either as landlords raise rents to cover their costs.
  • Cut services that everyone—renters and owners—enjoys.
Myth #3: Switching to a 12% mortgage interest credit would be a wash for most.
One proposal floating around Congress is to replace the mortgage interest deduction with a 12% nonrefundable mortgage interest tax credit. (Deductions reduce your taxable income; credits reduce your tax liability.) This plan would increase taxes for many home owners.

Example: If you paid $10,000 in mortgage interest, and you’re in the 25% bracket, you’d pay $1,300 in extra taxes.

  • The $10,000 deduction you have now saves you $2,500 on your taxes (25% x 10,000).
  • The 12% credit would save you only $1,200 (12% x 10,000) on your taxes.
  • In this scenario, if the mortgage interest deduction is changed to a 12% credit, you’d lose $1,300 (the current $2,500 savings minus the $1,200 you’ll save under the 12% plan).
Myth #4: Not that many people take the mortgage interest deduction.
There are 75 million American home owners, and 38.5 million of them take the mortgage interest deduction. The average mortgage interest tax deduction is $12,200, and a typical benefit for home owners is $3,050 a year.

The mortgage deduction is a key benefit to first-time home owners and trade-up buyers because you pay the most mortgage interest when you first take out a mortgage. (You won’t pay equal amounts of principal and interest until year 13 or later, depending on your interest rate.)

People with large families also get a lot of bang from mortgage interest deductibility—they buy relatively big houses for their big families.

Myth #5: Getting rid of the deduction won’t affect me or my housing market.
It will mean lower property values for all American home owners, including the one-third who own their homes outright and the 12 million who take the standard deduction.

Even if you don’t have a mortgage, getting rid of the MID will affect how much home you can afford to buy—and how much a buyer will pay for your home.

Myth #6: People will still buy my house without the mortgage interest deduction.
Yes, people will still value home ownership, but it will be harder for them to buy your house. The mortgage interest deduction makes it cheaper to buy a home because it saves real money at tax time.

If you bought a home last year with a $200,000, 30-year, 5% fixed-rate mortgage and you’re in a 25% tax bracket, you’d save about $2,500 from the mortgage interest deduction alone in the first year you own your home. That’s money you can use to pay down other debts, save for your children’s college education, or put away to buy a move-up house.

Myth #7: Solving the U.S. budget problems requires everyone to sacrifice.
Home owners already pay 80% to 90% of the federal income tax collected. If mortgage interest deductibility disappears, you and your fellow home owners could foot 95% of federal income tax.

If you’re at the beginning of your mortgage, losing the mortgage deduction will cost you a bundle:

  • $26,685—a 15% drop in value for the median home valued at $177,900.
  • A proportionally smaller gain in overall home equity over your lifetime, because your home now starts from a lower value.

Dona DeZube Dona DeZube has been writing about real estate for more than two decades. She lives in a suburban Baltimore 1970s rancher on a 3-acre lot shared with possums, raccoons, foxes, a herd of deer, and her blue-tick hound.

Visit Houselogic.com for more articles like this.  Reprinted from Houselogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.


Hot Off the Press – New Listing in New London, NH

Published on March 15, 2012 in New London Housing Market. 0 Comments Tags: , , .

This well-built, half cape on 7+ acres is less than 10 minutes to the center of New London and a very short drive to a lovely town beach on Pleasant Lake for swim lessons, play, relaxing, and catching up with friends. Attractive finish features and very comfortable living space. Nicely landscaped with year-round Whitney Brook at the rear of the house. Privacy with convenience. First floor master bedroom with private bath. Near conservation land with great, interpretive walking trails.  Offered at $334,800.  For more details and photos, visit www.3BRCapeon7Ac.com.

Marilyn Kidder, Listing Broker

New Hampshire January Home Sales Highest Since 2007

Published on March 9, 2012 in New London Housing Market. 0 Comments Tags: , , .

January residential unit sales in New Hampshire were ahead of the prior January for the third consecutive year, as 656 single family homes were sold in the Granite State last month.  According to MLS data released  by the New Hampshire Association of Realtors (NHAR), that number represented a 20 percent increase over the 549 homes sold in January 2011.  The median price of those homes, meanwhile, continued to lag slightly behind, having dropped 4 percent, from $207,000 in January 2011 to $198,500 in January 2012.

“Although it’s human nature to look for that one defining month that signals to everyone that the recovery in the housing market is afoot, that’s just not the nature of this economy,” said NHAR President John Rice, a 40‐year veteran of the real estate industry and an agent with Tate & Foss Sotheby’s International in Portsmouth. “As we continue to hear from economists, we’re probably in the early stages of a slow upward climb.  Rice said he was encouraged by the fact that the 656 January sales were the most since 2007, but he pointed out that this mild winter, particularly compared to last year’s frigid and snow‐caked January, has likely played a role in the uptick.

“We’re happy to report positive news in terms of the market, but we also need to be clear about the context,” Rice said, “and right now the context is that we’ve had positive conditions compared to last year.”

The drop in median price continues to be influenced by the foreclosure market. The New Hampshire Housing Finance Authority reported 368 foreclosure deeds recorded in December 2011, the highest December number since NHHFA began its reporting in 2005.

In terms of local markets, eight of the state’s 10 counties saw unit sales increases in January compared to a year ago, including a 108 percent jump in Sullivan County, 45 percent in Belknap County and 36 percent in both Cheshire and Rockingham counties. The state’s largest county, Hillsborough, witnessed a 14 percent sales increase.  Median price, meanwhile, saw increases in four of 10 counties, the largest of those being 22 percent in Coos County.

January 2012 data residential

January 2012 data condo

With inventory still relatively high, interest rates low and prices competitive, Rice said he would not be surprised to see an excellent spring in terms of sales.  “No predictions, but the market is certainly ripe for a continued increase in activity,” he said. “Those looking to buy a home have excellent opportunities right now.”

 

Source:  Press Release NHAR, Dave Cummings, NHAR Director of Communications, Concord, NH

Do You Want a Home with Character? New Listing in New London, NH

Published on March 6, 2012 in New London Housing Market. 0 Comments Tags: , , .

Cozy arts and crafts style, 3 bedroom home offers character and charm.  Located on a lovely, picturesque, tree-lined road in an area of fine homes.  Enjoy the views of Mount and Lake Sunapee on your long Farmer’s porch.  Bead board, hardwood floors, two fireplaces.  Offered at $320,000.  Give Chris McKee a call to schedule your viewing – 603-526-4116.  For more photos and details, visit www.BurpeeHillBungalow.com

Chris McKee, Listing Agent

Got the Real Estate Blues? It’s Not THAT Bad! Summary of New London Sales for 2011

Published on March 1, 2012 in New London Housing Market. 0 Comments Tags: , , .

Another year has flown quickly by, and it’s time to share with you the Summary of New London Sales for 2011. Note, that in order to include non-MLS transactions, we draw statistics from The Registry Review, as well as MLS.

There is some good news in the market’s performance of 2011:  condominium sales began a nice recovery, including 4 sales at The Seasons; the number of waterfront/access property sales increased; and total transaction numbers actually eked up about 4.5%.  MLS stats for condo and residential sales show an increase from 60 to 73, and an increase in the listing to selling ratio from 90% to 92%. The average days on the market increased from 178 to 206, however, I believe this is a function of older inventory selling.  Conversely, more homes sold for <$300,000 in 2011 (26), than in 2010 (16), creating a drop in average price; and total dollar volume inched further downward, despite the increase in number of sales.

While this marks the 5th straight year of the decline of total dollar volume since the highs of 2006, it is telling to note that, after the first big drops of 2007-2008, the subsequent decreases have not been dramatic.  A couple more sales in the over $300,000+ range, and these decreases could have been washed out.  It is also the case that one or two large sales can skew the market.  Therefore, I have not included the sale of a single family home for $2,450,000 or the $15,000,000+ commercial sale of the New London Shopping Center.

My optimism that 2011 would be the year of change didn’t prove true. There were signs, but just not enough momentum.  I do believe 2011 will be the last year of the downward trend.  Many forecasting services are predicting constant or rising home prices in 2012.  Nationally, buyer and seller traffic was up in late November and December (we were really busy!), which is also a very good sign.  The commitment to keeping interest rates low seems to be there.  I do believe that, if the news continues to be good, and buyers have reason to feel more confident, many of them, who have been sitting on the sidelines waiting for the “right” moment, will chose to buy a home in 2012.

Coldwell Banker Milestone had a very successful and productive year in 2011, proving that our consistent performance continues to yield good results for our buyers and sellers.  As always, your referrals are gratefully received, and you can be assured that “The Best Team in Town” will deliver extraordinary service and results.  2011 New London Stats Summary.

Marilyn Kidder is Broker/Owner of Coldwell Banker Milestone Real Estate.  Feel free to give her a call for professional advice on any of your real estate needs – 603-526-4116.

Home Sales are Up. Have You Found Your “Home Sweet Home” Yet?

Published on February 24, 2012 in New London Housing Market and Sunapee Housing Market. 0 Comments Tags: , , , .

Is it the weather, the interest rates, the choice of homes on the market?  Maybe all of the above, but home sales have increased so far in 2012.  Read on. . .

Give us a call if you’d like to see any properties in our market area – We’re “The Best Team in Town”!  603-526-4116; www.cbmilestone.com.

Is Your House Camera Shy?

Published on February 22, 2012 in New London Housing Market. 0 Comments Tags: , .

If you’re getting ready to put your house on the market, it is important to make sure it photographs well.  Since 90% of buyers start their search online, good pictures are essential to grabbing buyers’ interest.   Before your REALTOR® arrives to take photos, here are some tips to help maximize your online exposure.

  • De-clutter your house.  Pay attention to the small details like removing refrigerator magnets, soap & sponges by sink, and towels hanging on the stove.  Also, stash-or throw-all your piles away.
  • Watch out for strong colors as they may not show well in photos.   You may want to consider painting walls a more neutral palette or replacing too bold/busy bedspreads.  Ruffles and curtains may need to go as well.
  • Avoid having too much furniture in a room – remove excess pieces.
  • Make each room as light & bright as possible.
  • Pay attention to the exterior.  Good landscaping and a fresh coat of paint will look great on and off camera.

Talk to your REALTOR® to make sure they are using a camera with a wide angle lens and that they are putting as many photos as possible online.  You can count on me for this kind of good advice which will help your property stand out in the market and get the attention of serious potential buyers.  Give me a call – 603-526-4116!

Donna Forest, Broker Associate

Looking Under $200,000 in New London? This New Listing Could be for You!

Published on February 17, 2012 in Advice for Buyers and New London Housing Market. 0 Comments Tags: , , .

It’s not perfect, but it’s a great price for New London!  $178,000 for this 4 bedroom, 2 bath ranch in a great location with easy access to the medical center/hospital and shopping center.  Wood floors, some renovations started.  A great opportunity if you’re looking for a project with “home” work!  Call 603-526-4116 to schedule your showing.

Donna Forest, Listing Broker

First Offer – Best Offer?

Published on February 6, 2012 in Advice for Sellers and New London Housing Market. 0 Comments Tags: , .

It is commonly said among REALTORS® that the first offer is often the best offer.  And for good reason!  You would be surprised by how frequently we see sellers who are unable to come to terms with the first offer made, then end up selling the property at a later date for much less.  Usually the seller argues that the property has been on the market for such a short time, there must be more buyers out there willing to meet the price.  Sellers often get attached to that last $1000 – when buyer and seller fail to agree, the sale is lost for a tiny percentage of the overall price.  My advice to sellers?  Give serious consideration to the first offer and try to make it work if at all possible.  Hanging on to the property and paying taxes, mortgage, and maintenance for another few months may eliminate any perceived increase in selling price.  With the current market, sellers need to seriously consider a viable offer, especially if it is the first one presented.

Please feel free to contact me for any of your real estate needs, 603-526-4116, donna@donnaforest.com.

Donna Forest,  Broker Associate

Do You Find the Glass Half Full or Half Empty?

Published on January 24, 2012 in Advice for Buyers and New London Housing Market. 0 Comments Tags: , , .

Positive signs for the housing market and economic conditions – read more. . .