03/15/2013 Florida Realtors News

Daily Briefing: Friday, March 15, 2013 TODAY'S TOP STORIES Economists revise housing figures amid optimism NEW YORK – March 15, 2013 – Several economists have recently revised their predictions on housing values to reflect a stronger-than-expected real estate rebound, and some have even doubled their original forecasts over the rise in home prices. For example, economists at Bank of America revised their home price forecast from 4.7 percent this year to 8 percent. Capital Economics’ Economist Paul Diggle upwardly revised his home price forecast too, from a 5 percent projection to an 8 percent rise in home prices this year. “Prices of both new and existing homes are picking up, the latter by over 10 percent year-on-year,” Diggle notes. “Indeed, after a couple of years during which new house prices outperformed, primarily owing to builders constructing more homes for the higher-end market, we now expect existing house prices to close the gap. As more consumers are able to access mortgage credit, home builders should widen their offering, while continued investment demand will bid up existing house prices.” Consumers are growing more optimistic about home prices too. A recent report of consumers from mortgage giant Fannie Mae showed that 48 percent believe home prices will rise over the next year. Ivy Zelman, an independent real estate analyst, told CNBC last week that “we’re in a nirvana for housing. I’m the most bullish I’ve ever been.” Zelman said that home prices could rise for another four to six years.   Source: “Why A Bunch Of Economists Expect The US Housing Market To Go On A Huge Tear,” Business Insider (March 8, 2013) © Copyright 2013 INFORMATION, INC. Bethesda, MD (301) 215-4688 U.S. rate on 30-year mortgage rises to 3.63% WASHINGTON – March 15, 2013 – The average U.S. rate on the 30-year fixed mortgage rose this week to its highest level in seven months but remains near historic lows. Low mortgage rates have helped support the gradually recovering housing market. Freddie Mac said Thursday that the average rate for the 30-year fixed loan rose to 3.63 percent from 3.52 percent last week. It’s the highest rate since August. But it’s still near the 3.31 percent reached in November, which was the lowest on records dating to 1971. The average rate on the 15-year fixed mortgage rose to 2.79 percent, up from 2.76 percent last week. The record low is 2.63 percent. Cheap mortgages are encouraging more people to buy or refinance and are helping sustain the economy’s recovery. The increased sales are also helping lift home prices. To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount. The average fee for 30-year mortgages rose to 0.8 point, up from 0.7 point last week. The fee for 15-year loans also rose to 0.8 point from 0.7 point last week. The average rate on a one-year adjustable-rate mortgage edged up to 2.64 percent this week from 2.63 percent last week. The fee rose to 0.4 point from 0.3 point last week. The average rate on a five-year adjustable-rate mortgage dipped to 2.61 percent from 2.63 percent last week. The fee rose to 0.6 point from 0.5 point.  Copyright © 2013 The Associated Press, Martin Crutsinger. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Pocket listings: helpful or harmful? WASHINGTON – March 15, 2013 – Pocket listings have gained popularity in recent years and established their own, albeit small, market. These homes are not entered in the MLS, often because the sellers want to protect their privacy or test the waters before committing to a sale. Some agents contend that pocket listings make it difficult to search comparable homes and prices, and they’re unfair because the listing brokerage generally completes the transaction in-house, earning both the buyer and seller commissions. However, some agents who handle pocket listings say they alert buyers and market them on social media while preparing photos, paperwork and marketing plans in hopes that they’ll sell before officially hitting the market. States have differing views on pocket listings as well. New York, for instance, makes it unlawful for buyers and their agents to be deterred from viewing a pocket listing – although listing brokers are not required to compensate buyer’s agents. Source: RISMedia (03/14/13) © Copyright 2013 INFORMATION, INC. Bethesda, MD (301) 215-4688 7 banks foreclosing on the most mortgages WASHINGTON – March 15, 2013 – A small portion of banks are servicing the majority of the mortgages in foreclosure. “The banks foreclosing on the most homes may not directly own the bulk of the mortgages,” 24/7 Wall St. explains. “Rather, they often service them for other entities, which means collecting payments from homeowners and foreclosing on those properties when they become delinquent.” 24/7 Wall St. determined the banks foreclosing on the most home loans by reviewing RealtyTrac data from February of this year. The company identified the following banks as foreclosing on the most homes: 1. Bank of America (which includes Countrywide’s portfolio from its acquisition) Loans in foreclosure: 96,319 Percentage of loans underwater: 61 2. Wells Fargo Loans in foreclosure: 84,903 Percentage of loans underwater: 56 3. JPMorgan Chase Loans in foreclosure: 53,325 Percentage of loans underwater: 54 4. U.S. Bancorp Loans in foreclosure: 44,881 Percentage of loans underwater: 62 5. Deutsche Bank Loans in foreclosure: 33,608 Percentage of loans underwater: 63 6. Bank of New York Mellon Loans in foreclosure: 31,821 Percentage of loans underwater: 67 7. Citigroup Loans in foreclosure: 27,697 Percentage of loans underwater: 54 Source: “Banks Foreclosing on the Most Homes,” 24/7 Wall St. (March 12, 2013) © Copyright 2013 INFORMATION, INC. Bethesda, MD (301) 215-4688 Self-employed save with 9 tax tips WASHINGTON – March 15, 2013 – The independence that comes with being your own boss is often a double-edged sword. On one hand, it’s liberating to be free of corporate shenanigans; on the other, you’re on your own figuring things out, including taxes. Filing taxes can be a source of dread for self-employed Americans. The trick is not to see the tax code as bureaucracy meant to confound you but a tool to give your homegrown business a leg up. You can deduct a host of expenses if you keep good records and know what to look for. Here are nine tax tips for both making your 2012 returns less of a headache and a bit more financially advantageous: • Remember that you didn’t pay taxes upfront. This can be a shock to first-time filers, but self-employed workers pay no upfront taxes. While salaried workers get paychecks with taxes already taken out, that’s up to you, since you are your own payroll department. If you did not set aside money to pay the tax collector, your 2012 bill might be high. To avoid problems next year, you should start making a plan for 2013 now. Read about self-employment tax burdens at irs.gov. • Don’t fear the home office deduction. The IRS has been cracking down on abusers in the last several years. But if you are honestly using a space for your job and can conform to guidelines for an exclusive-use space (don’t put a bed for guests or video games for the kids in there), you shouldn’t be scared of this big-time deduction. Qualified home offices open the door to breaks for real estate taxes, utilities, insurance and more. View guidelines at irs.gov. • Don’t fear vehicle and travel deductions. It’s highly unlikely you can claim 100 percent business use of a vehicle or write off your daily Starbucks run. But if you keep good travel records, you have nothing to fear. Get business vehicle guidelines and extensive travel and entertainment tips at irs.gov. • Supplies and professional dues. Hopefully, you also kept records for your office chair or special design software, which are deductible, as are professional liability insurance premiums, fees for trade associations and other charges that are the cost of doing business in your field. Keep good records, and write them off. • Don’t forget depreciation. If you have a big fixed-asset expense such as a jackhammer or a copying machine, you can write off part of the value each year as the equipment ages. Get specific guidelines on how to calculate depreciation at IRS.gov. • Be diligent about income records. If you’re a busy contractor or freelancer, it’s crucial you keep accurate records of your income and track down relevant 1099s and other documentation. You could get audited if the numbers don’t add up, or if you miss filling out a tax form, so make sure you check for complete records before filing. The IRS has more info about recordkeeping on its website. • Deduct your health insurance. If you’re footing the bill for your own health insurance, you can deduct the full cost. • Don’t get greedy. Generally, a qualified business expense  “must be both ordinary and necessary” in government terminology. These are slippery terms, but keep them in mind as you do your returns. If you act in good faith, you’ll be fine. Otherwise, you could face steep fines. • Write off tax preparation. You can deduct tax-preparation expenses, and books full of tax tips or preparation software are deductible, too, so there’s no reason not to get the help you need. Copyright © USA TODAY 2013. Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. AROUND FLORIDA Miami: New vision calls for luxury hotel, condos Marco Island: Sewer system hookup at issue for buyer Boynton Beach: Ground broken for 338 rental apartments Panama City Beach: New building code issues addressed New Port Richey: Six homes signal fresh start East Orlando Short sales and Foreclosures orlando, Short sales and Foreclosures in East Orlando orlando, Education in East Orlando orlando, East Orlando Education orlando, East Orlando Pre Short sales and Foreclosures orlando, Pre Short sales and Foreclosures in East Orlando orlando, East Orlando School Rating orlando, School Rating in East Orlando orlando,  Avalon Park Short sales and Foreclosures orlando, Short sales and Foreclosures in Avalon Park orlando, Education in Avalon Park orlando, Avalon Park Education orlando, Avalon Park Pre Short sales and Foreclosures orlando, Pre Short sales and Foreclosures in Avalon Park orlando, Avalon Park School Rating orlando, School Rating in Avalon Park orlando,   Waterford Lakes Short sales and Foreclosures orlando, Short sales and Foreclosures in Waterford Lakes orlando, Education in Waterford Lakes orlando, Waterford Lakes Education orlando, Waterford Lakes Pre Short sales and Foreclosures orlando, Pre Short sales and Foreclosures in Waterford Lakes orlando, Waterford Lakes School Rating orlando, School Rating in Waterford Lakes orlando, Stoneybrook Short sales and Foreclosures orlando, Short sales and Foreclosures in Stoneybrook orlando, Education in Stoneybrook orlando, Stoneybrook Education orlando, Stoneybrook Pre Short sales and Foreclosures orlando, Pre Short sales and Foreclosures in Stoneybrook orlando, Stoneybrook School Rating orlando, School Rating in Stoneybrook orlando,  Eastwood Short sales and Foreclosures orlando, Short sales and Foreclosures in Eastwood orlando, Education in Eastwood orlando, Eastwood Education orlando, Eastwood Pre Short sales and Foreclosures orlando, Pre Short sales and Foreclosures in Eastwood orlando, Eastwood School Rating orlando, School Rating in Eastwood orlando,    Timber springs Short sales and Foreclosures orlando, Short sales and Foreclosures in Timber springs orlando, Education in Timber springs orlando, Timber springs Education orlando, Timber springs Pre Short sales and Foreclosures orlando, Pre Short sales and Foreclosures in Timber springs orlando, Timber springs School Rating orlando, School Rating in Timber springs orlando,Spring Isle Short sales and Foreclosures orlando, Short sales and Foreclosures in Spring Isle orlando, Education in Spring Isle orlando, Spring Isle Education orlando, Spring Isle Pre Short sales and Foreclosures orlando, Pre Short sales and Foreclosures in Spring Isle orlando, Spring Isle School Rating orlando, School Rating in Spring Isle orlando,