Supply of Available Homes for Sale
Pending home sales dropped in April and June for the first time in over 8 months, but not because of a lack of demand. Homes sold have been outnumbering new homes coming to market for the past two years causing a trend that is starting to cause an obvious flat-line.
What does this mean for prices? If fewer homes come to the market and homes continue to go under contract; demand will outweigh supply and create an increase in home prices. An increase in home prices will then hopefully draw the attention of the people who were on the sidelines waiting to sell i.e. those sellers who were once unable to sell their home due to being underwater and owing to much on their mortgage.
Investors are buying to “Hold” Instead of “Flip” to Maximize Return
With over 20% of all single family transactions selling to investors, many have decided to rent the home and make a solid 8-15% monthly return and wait for an increase in pricing before they sell. 2013 will be a big year for property managers as investors continue to take advantage of this shortage in supply. With low supplies investors are not buying at low enough levels to command a margin to flip the property. Instead, they will take advantage of the booming rental market and sell 2-3 years down the road for a sizeable profit.
First time homebuyers are not only faced with the difficulty from a very low supply of homes but also from the competitive edge cash strapped investors are bringing to the market. Sellers are very eager to take a cash offer from an investor over the first time home buyers financed offer that may or may not appraise. This is causing another sharp and steady increase in once interested buyers who are now faced to rent and sign that lease for at least another year.
Capital Gains Tax Increase is Coming: Push to Sell in 2012!
As the political race comes near so does the end of the Bush Era Tax Cut. Your capital gains tax rate is going to increase from 15% to 20% starting January 2013. What does this mean to you as a real estate owner? If you’re a home owner thinking about selling your home and stand to make more than the standard exemption of $250,000.00 or a real estate investor with a list of available properties that need sold you may want to think about a price reduction to increase traffic; you could be facing a 5% increase in your CG tax if your closing falls in 2013 .
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If you have any questions regarding property management, buying, selling, or leasing South Florida Real Estate please call Whitney Dutton @ 954-614-6517 or by email at Sales@WhitneyDutton.com visit my website at www.whitneydutton.com
-Whitney Dutton - Agent - Lic # 3248950 -
-Berger Realty Group-1955 N University Dr Coral Springs FL 33071
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