The news that home prices are stabilizing across the country suggests that 2012 will be the year the housing market bottoms out. We also look to Washington, the site of next week’s rally for the American Dream. Plus, a group of REALTORS® is making waves with a $100M plan for the state’s national mortgage servicing settlement.

Forbes: Home Prices are Stabilizing, Signifying a Housing Market Bottom

Well, 2012 may or may not be the end of the world as we know it, but one thing is certain: It’s the end of the ghastly price hemorrhages home owners have suffered since the real estate market crashed in 2007. Yet new reports from several real estate research firms signify that home prices are finally stabilizing. The data reinforces a notion already asserted by many an economist, real estate agent, and Wall Street investor: 2012 is the year of the bottom.

Sunshine State News: REALTORS® Suggest Housing Trusts for Mortgage Settlement Money

REALTORS® in Florida are the latest to chime in on how Attorney General Pam Bondi should spend $300 million, the state’s share of a national mortgage servicing settlement. The Realtors and others that are part of the Sadowski Housing Coalition suggest one-third of the money go in the trust fund that supports affordable housing efforts.

HouseLogic: Renew Flood Insurance for Home Owners: REALTORS® to Congress (http://www.houselogic.com/news/issues-affecting-home-owners/renew-flood-insurance-program/)

The federal government’s national flood insurance program is set to expire at the end of this month, leaving thousands of home buyers without access to affordable coverage – unless Congress renews the program. “Real estate markets are continuing to recover and can’t tolerate the instability of operating the NFIP by stopgap or shutdown,” NATIONAL ASSOCIATION OF REALTORS® President Moe Veissi told a Congressional panel May 9. “More than 5 million home and business owners in 21,000 communities rely on it.”

National Journal: Thousands of Realtors to Rally Next Week (http://influencealley.nationaljournal.com/2012/05/thousands-of-realtors-to-rally.php)

The NATIONAL ASSOCIATION OF REALTORS® will hold a rally near the Washington Monument May 17 to which members of Congress, such as Rep. Steny Hoyer (D-Md.) and Sen. Johnny Isakson (R-Ga.), and up to 10,000 REALTORS® are expected to attend. The Rally to Protect the American Dream is aimed at calling attention to the role home ownership plays in helping the economy.

Wall Street Journal: Vacation Homes Beckon (http://online.wsj.com/article/SB10001424052702303877604577382002073347624.html?mod=googlenews_wsj)

If you’re thinking of buying a second home in the next five years, this might be your best opportunity. Near-record-low mortgage rates, bargain prices, and dwindling home inventories are bringing some once-untouchable markets within reach for the first time in a decade, say housing market experts.

Have a Great day,

Keith Parrett
Realtor/CDPE – Realty World
(925) 580-4650
keith@keithparrett.com
www.keithparrett.com
License No: 01714500

Article From HouseLogic.com

By: Meghan Smith
Published: May 11, 2012

Visit houselogic.com for more articles like this. Reprinted from HouseLogic with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2012. All rights reserved.

3216 Plantation Ct. Modesto Ca

What a difference year makes.
For the 2012 tax year, you can take a tax deduction on medically necessary home improvements (http://www.houselogic.com/home-advice/tax-deductions/medical-tax-deductions-home-improvements/) – like installing a wheelchair ramp and other projects that make life easier for an ill or injured family member – if you:
•Itemize deductions

•Spend more than 7.5% of your adjusted gross income on the upgrades (10% of AGI if you’re subject to alternative minimum tax).

Starting in 2013, if you’re under age 65, you can’t take the tax deduction on medical expenses until you spend 10% of your AGI. But if you’re 65 or older in 2013, you can stick with the 7.5% AGI tax deduction threshold through the end of 2016.
The rules for tax deductions on medical home improvements are tricky:
1. Start with what it costs to modify your home.
2. Subtract the value the upgrades add to your home.
3. What’s leftover is your tax deduction – if you meet your AGI threshold.
How it works
Say you’re 45 years old and spend $20,000 to put a bathroom on the first floor of your home because your husband can’t climb stairs anymore. Your AGI is $100,000. A REALTOR® says the bathroom adds $10,000 to the value of your house.
1. Start with the cost of the improvements: $20,000
2. Subtract your added home value: $10,000
3. Of that $10,000 difference, you can only take a deduction for expenses that exceed 7.5% of your AGI or $7,500.
So if you itemize, you can take a $2,500 deduction for the 2012 tax year. Wait until 2013 and you get no deduction because your threshold rises to 10%. If you’re over age 65, though, you can claim a $2,500 deduction.
Tip: Doing all your improvements in a single year will help you meet the AGI threshold.
Some of the improvements that you can claim a tax deduction for, according to IRS Publication 502 (http://www.irs.gov/publications/p502/index.html), “Medical and Dental Expenses”:
•Entrance ramps for your home

•Grading the yard before building a ramp, or to make it easier to get in your home

•Widening exterior or interior doorways

•Widening or removing hallways

•Installing railings, support bars, or other bathroom improvements

•Lowering or modifying kitchen cabinets and equipment

•Moving or modifying electrical outlets and fixtures

•Installing porch lifts and other forms of lifts (but elevators generally add value to the house)

•Modifying fire alarms, smoke detectors, and other warning systems

•Modifying stairways

•Adding handrails or grab bars anywhere (whether or not in bathrooms)

•Changing door knobs

•Upkeep of medically necessary upgrades, like elevators, and operating costs

•Lead-based paint removal if your child has lead poisoning

•Renovating an existing bathroom to make it handicap accessible or adding a new accessible bath

Will the tax change encourage you to make necessary changes this year?

Have a Great day,

Keith Parrett
Realtor/CDPE

Realty World Pigati and Russell
Direct: (925) 580-4650
Efax: (866) 404-4934
Email: keith@keithparrett.com

www.keithparrett.com

License No: 01714500

If you, a friend or family member need Real Estate assistance, please feel free to contact me anytime. Your referrals are the greatest compliment I can receive!

Article From HouseLogic.com

By: Dona DeZube
Published: April 10, 2012
Visit houselogic.com for more articles like this. Reprinted from HouseLogic with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2012. All rights reserved.