NEW YORK (CNNMoney) — The modest housing market winning streak continued as the Census Bureau reported Friday that sales of new homes rose again in November to an annualized rate of 315,000.
That was up 1.6% compared with the revised October rate of 310,000 and 9.8% higher than November 2010.
The good news followed other recent positive industry reports. November sales of existing homes rose12% year-over-year; homebuilding spiked nearly 21% compared with 12 months ago; and mortgage rates hit record lows this week.
The sales hike was in line with expectations: The forecast from Briefing.com was for a 315,000 annualized rate.
The median price for a new home was $214,100 in November. Inventory shrank to 158,000 units, a 6-month supply at the current sales rate.
New homes sales are particularly important because they have a large impact on the overall economy, said Bob Denk, senior economist with the National Association of Home Builders.
“Inventories of new homes are very low: There’s nothing on the shelf, so any increase in new home sales will translate directly into new housing starts,” he said. “That means putting people back to work.”
Residential housing construction has been a missing link in the slow economic recovery. Denk described conditions as still slow but “generating momentum.” He expects steady but modest improvement through 2112 with a more robust recovery coming in 2013.
Despite historic problems plaguing the U.S. housing market such as tumbling values, record foreclosures and tight credit for buyers, a new Yahoo! Real Estate survey of current and aspiring homeowners indicates that owning a home is still a major part of the American dream.
 |
But, unlike bullish years gone by, the so-called American dream home isn’t a supersized McMansion – it is a “green,” energy-efficient home built with “sustainable” materials that yield a lower carbon footprint. Or, more often, it is a home remodeled with energy-efficient appliances and eco-friendly home products.
Four out of five of those polled in a Yahoo! Real Estate study of 1,545 U.S. adults say that owning a home is still a part of the American dream. The Yahoo! Home Horizons 2012 study, fielded on the Web in October, is mapped to the American population of homeowners, buyers, sellers and renters.
The study finds that optimism about homeownership is widespread despite the massive downturn that has so far claimed six million homes in foreclosure and threatens to sink even more in the future. Yet, given the record inventory and dropping housing prices, buyers realize that their dream home is more attainable. In the study, 72% of homeowners and renters believe that they live in their dream home, or it will be their next home, or they will own it someday.
 |
Yet, there is a growing consensus that the dream home must be more energy efficient. Take Marilyn, a middle-aged renter in Topeka, Kan. who is in the market to buy a home. She says that her conception of a dream home has evolved in the past five years. She seeks a brick house with four bedrooms, a large kitchen and “environmentally efficient appliances to conserve energy.”
Green Dreams
But, rather than build or buy new homes, many eco-conscious homeowners seek to lower their carbon footprint by purchasing more energy efficient appliances or making other home modifications that may include the addition of solar panels to offset other energy costs.
According to the Home Horizons 2012 study:
Asked about their dream home, respondents indicated that they like various styles of home, but size was also a factor. One woman surveyed said that her dream home is “Small, environmentally friendly, very energy efficient.”
Higher Cost of Green
Although green homes are designed produce a smaller carbon impact that result in reduced home energy costs, even advocates concede that they have garnered a reputation as more expensive and not a little bit eccentric.
 |
“Green homes have gotten a bad name because most stories are told about super energy efficient homes,” explains Sarah Saranka, architect and author of several “Not So Big House” books. Hyper-efficient, eco-friendly homes, the ones most closely associated with green living, “consume almost no energy – they’re essentially off the grid,” she says.
But there’s an emerging class of green homes that reduce energy consumption in cost-effective ways, yet haven’t drawn much attention because “they’re not astounding,” says Saranka. “Yet, they’re in the realm of possibility for an average home buyer.”
Increasingly homebuyers are willing to pay a bit of a premium for green or energy-efficient homes. The National Association of Home Builders (NAHB) says that baking in green construction materials and energy-efficient appliances typically adds 2% to 4% to construction costs, but that can translate to higher sales prices depending upon what local markets will bear.
To some extent this rise in interest by consumers is arguably a surprise considering that there are few if any standards about what constitutes a ‘green’ home, apart from the widely accepted EPA Energy Star standards for appliances. EPA is now moving into certifying homes. Energy Star-certified homes are reportedly 20% to 30% more energy efficient than standard homes according to the EPA – leading to average savings of about $200 to $400 per year on utility costs.
Yet, industry groups such as NAHB and organizations such as U.S. Green Building Council (USGBC) with its LEED, or Leadership in Energy and Environmental Design certifications, also seek to popularize certifications and guidelines, which may help build trust for consumers wading into uncharted waters and provide direction to the home industry itself. You can even find some green-certified realtors in certain pockets of the country.
A Greener Future
For about one in four of those surveyed in the Home Horizons study, living in a more energy-efficient home is a major reason why they plan to move. In support of this groundswell of interest, the government offers a small tax incentive to spur growth in demand for energy-efficient home materials and appliances.
Homeowners can earn up to a $500 U.S. tax credit for making energy-efficient upgrades by Dec. 31st in one or more of these areas: home insulation; windows, doors and skylights; and non-solar water heaters among other projects, according to the Alliance to Save Energy.
Still, there are plenty of other reasons why people plan to move in 2012 and it’s not all about saving on energy costs or living on a more sustainable planet. Nearly half of those planning to move simply want to live in a larger space or in a home better suited to their “life phase.” And some want to live closer to public transportation, city services or their job.
 |
“During the height of the housing boom there was [an attitude among buyers of] drive until you qualify and I don’t care about the consequences of commuting time,” says Stan Humphries, chief economist at Zillow. “Now people are aware of the cost of commuting personally in terms of time, resources and gas, but also longer term about environmental degradation.”
Though 57% of homeowners and renters say they are very satisfied with where they live, some homeowners may never be completely satisfied with their home. “I recently bought my dream home, but there are always things that could be done to improve it,” one respondent said. “We need décor more than anything. And a hot tub, wine cellar, basement bar, laundry sink, and patio.“
With a record number of foreclosed and short-sale properties crowding the market, and historically low interest rates available to those buyers with outstanding credit and a sizable down payment, there has rarely been a better time to buy.
The Yahoo! Real Estate Home Horizons study indicates that 2012 is the year that demand for green homes, energy-efficient appliances and low-carbon impact home building materials reaches a tipping point in America.
By Rusty Weston, Yahoo! Real Estate
From: http://realestate.yahoo.com/promo/yahoo-study-american-dream-homes-turn-green.html
Once you’ve reached the last month of the tax year, your options are limited to minimize your income taxes. But there are a few things that could still be done, so don’t give up hope.
For example, you could double up your real estate taxes by prepaying next year’s tax during December. Doing this with, for example, a $3,000 per year real estate tax bill could result in a reduction of tax for the year of $750 if you’re in the 25% bracket. Keep in mind though, that you’ll have forked out this money long before it is actually due in most cases, and for the next year you won’t have this deduction available if you used it in this year.
The same could be done with your charitable contributions – there’s no reason that you can’t make additional contributions to your favorite charities at the end of this year instead of waiting until next year.
You could also send your final estimated state income tax payment due in January of next year during December and claim that payment on this year’s itemized deductions as well.
Prepaying your January mortgage payment will credit that mortgage interest to this year as well, further increasing your itemized deductions.
Other itemized deductions could be “stacked” in one year, such as medical expenses (subject to the 7.5% floor) and miscellaneous deductions (subject to the 2% floor).
It’s important to keep in mind that the moves that you make this year might reduce your tax now – but you might have an adverse impact on next year’s income tax by doing so. It will pay to run the calculations based on what you know about this year’s tax and next year’s tax to make sure that it is in your best interest to do this.
Here’s how it might play out: if you prepaid your next year’s real estate tax during this year, it might reduce your deductions below the Standard Deduction – which could be a good thing. In doing this, you would get to use the Standard Deduction to increase your tax deductions on next year’s return when you specifically reduced your deductions for that year by prepaying the deductible real estate tax in during this year. In this fashion you might be making the most of the standard deduction and your itemized deductions year after year – one year using the “stacked” deductions, the next using the standard deduction.
These prepayment options could have a negative affect if you are subject to the Alternative Minimum Tax (AMT). Prepaying your state tax, mortgage interest and some medical expenses might trigger or cause an increase in AMT. One tactic that you might consider is selling a taxable investment that has an inherent loss; this is especially useful if you’ve sold another investment at some point in the tax year that has resulted in a taxable gain. Losses can be used to offset those capital gains dollar for dollar, and an additional $3,000 in capital losses can be used to reduce your ordinary income as well.
You can also make up for underpayment of estimated tax by taking a withdrawal from an IRA (especially if you’re over age 59½) and having tax withheld from the withdrawal. This can also be accomplished by having more tax withheld from your paycheck if you’re still working, by filing a new W4.
Another significant move you can make includes the Qualified Charitable Distribution from your IRA, 401(k) or 403(b) – allowing you to bypass recognizing that income, including your RMD. This can only be done if you’re at least age 70½ and subject to Required Minimum Distributions. The charity receives a contribution, and you get to lower your year-end balance in your account, therefore reducing your RMD for next year. For more details on this, you should check out the IRA Owner’s Manual.
You can also delay your first RMD (if you reached age 70½ this year) until as late as April 1 of next year, although that will mean you have to take two RMDs next year. But in some circumstances that may be the better option.
You can also make a deductible contribution to your IRA, if you qualify – but you don’t have to do that before the end of the year, you have until April 15 to do that.
This isn’t an exhaustive list of year-end tax moves, just several of the more prominent ones. Hopefully you’ll find what you need here to help with your year-end tax plans.
From: http://www.forbes.com/sites/advisor/2011/12/12/its-not-too-late-year-end-tax-moves
The Maine Real Estate market has seen a significant improvement compared to the same period in 2010. A decrease in inventory reflects increasing demand for single family homes and is an excellent leading indicator of the condition of the overall market.
Legacy Properties Sotheby’s International Realty has several Maine Real Estate Agents based in it Portland Maine office.
Should you require more information, please contact:
Chris Lynch
President
Maine Real Estate Expertise
Legacy Properties Sotheby’s International Realty
2 City Center
Portland, ME 04101
clynch@legacysir.com
note: Data presented was sourced from the Maine Real Estate Information System using Terradatum analytical software.
 |
|
|
Maine Real Estate Services for Buyers and Sellers which transcend boarders to help our clients buy and sell homes. Maine Waterfront, Oceanfront and Coastal communities are our areas of focus.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2013 ActiveRain Corp. All Rights Reserved
