Hard-hit Sun Belt starting to bounce back

ORLANDO, Fla. – March 14, 2013 – After years of record foreclosures and job losses, the Sun Belt is recovering some of its lost appeal as the population begins to grow again in counties from Florida to Arizona.

At the same time, new ways to tap the nation’s rich supply of natural resources – from oil to gold – continue to create boom towns in some remote Western counties and parts of the Great Plains that have suffered decades of population declines.

Census county population estimates out today for July 1, 2012, show a nation in flux after a grueling economic downturn. Counties such as Arizona’s Maricopa (Phoenix), Nevada’s Clark (Las Vegas) and Florida’s Orange (Orlando) all show population gains that are once again outpacing national growth.

“Even the deepest recession since the Great Depression cannot permanently disrupt the decades-long trend of growth in the South and West,” says Robert Lang, professor of urban affairs at the University of Nevada-Las Vegas. “Now that we’re several years past the recession, things are slowly getting back to where they were.”

Some of the fastest recent gains are in or near the Great Plains and Texas – regions benefiting from oil and gas drilling and processing. Texas had 11 of the 50 fastest-growing counties. In Elko, Nev., one of the fastest-growing small urban areas, gold mining is the lure.

Williams, N.D., was the fastest growing among counties with more than 10,000 people. Williston, its main city, and surrounding areas gained 9.3 percent in one year.

“Parts of the country that were given up for dead end up producing new life,” Lang says. “Technology keeps changing, so our ability to access resources changes. America’s mineral and energy abundance is the gift that keeps on giving.”

Despite glimmers of growth and rebound, the recession’s impact on birthrates is being felt in more corners of the country. Natural decrease (when deaths outnumber births) occurred in a record 1,135 counties, or more than a third, according to Kenneth Johnson, senior demographer at the University of New Hampshire’s Carsey Institute. For the first time, two states had more deaths than births: Maine and West Virginia.

As recently as 2009, this scenario happened in just 880 counties.

Natural decreases are happening more often because there are fewer births, Johnson’s analysis shows – 4 million last year nationwide compared with a record 4.3 million before the recession.

“It is no longer an isolated phenomenon,” Johnson says. “Once natural decrease begins in a county, it is likely to recur. …%

re posted by Chris Ryder

Home is where the tax breaks are: 7 tips

WASHINGTON – March 11, 2013 – While economists and investors can debate whether buying a home is still part of the American dream, it’s undeniable that the tax code remains highly favorable to people who own instead of rent.

Whether you were a first-time buyer, a longtime homeowner who refinanced or a seller, there are a host of important deductions available.

The easiest way for a family to get more than just the standard deduction is to claim tax breaks related to a house. Charitable deductions or a smattering of health care costs might not get you above the $5,950 deduction for individuals or the $11,900 mark for married couples. But a few of these big-time breaks in housing can push you over the top and result in a much bigger refund.

The downside is no more simple tax returns since you’ll have to itemize. But the money you’ll get back makes it worthwhile.

Here are seven important tax tips for homeowners:

• Mortgage interest is your best friend. Taxpayers collectively get roughly $100 billion annually in mortgage interest breaks. If you bought a home or refinanced in the last few years, the savings are even more significant, as more than half your monthly payment goes toward interest.

• Mortgage insurance is still deductible. There were fears that the deduction for personal mortgage insurance would fall victim to fiscal fights in Washington. However, Congress left it in place. That’s a huge boon to lower-income homeowners who often can’t afford a big down payment and must pay private mortgage insurance until they have at least 20 percent equity in their homes.

• Taxes are tax deductible. It sounds odd and is frequently overlooked, but homeowners can deduct their local and state property taxes on federal tax returns. There also may be special property tax benefits for lower-income homeowners based on your state or municipality of residence, so look into further breaks specific to your community.

• Qualified renovations count. Fixing a leaky faucet or putting crown molding in the living room is not tax deductible. But there are a number of items in the tax code that allow for tax breaks and credits. A host of items covered under residential energy efficiency can provide tax relief, including new solar panels or certain water heaters. There are also deductions available for home office improvements, as well as for medically necessary changes, such as an entry ramp or a handicap-accessible bathtub.

• Unqualified renovations can count later. While that addition might not be “necessary,” the expense could be an important part of reducing your tax burden when you sell. This is especially%

via Home is where the tax breaks are: 7 tips.

Forget ‘improving’ or ‘rebound’ – Fla. is ‘on fire’

WEST PALM BEACH, Fla. – March 8, 2013 – Lesley Deutch, senior vice president at John Burns Real Estate Consulting, said the “Florida market is on fire” in her latest update on the state’s housing market.

Deutch says she traveled the state recently and visited more than 20 communities. While recovery reports differ between Florida cities and urban areas, she reports five major trends:

1. Land prices. While the price of land continues to rise quickly statewide, Orlando feels the most pressure. Deutch says she saw some submarkets where “land and finished lot prices have now surpassed peak levels.” In Orlando, she sees developers buying raw land “just to gain a position and market share.”

2. Home prices. Some communities, such as Orlando and Naples, are seeing 1- to 2-percent new-home price increases monthly, Deutch says. The hallmarks of a seller’s market have also returned, such as lotteries. She expects a 2013 price increase of at least 10 percent in many Florida markets.

3. 55-plus market. Deutch reports a 20- to 25-percent jump in potential buyers interested in active adult living, according to builders in Southwest Florida. She also notes a boost in customer traffic in second- and third-tier markets.

4. Foreign buyers. It’s more than Miami, Deutch says. While in Orlando, she visited a sales office that had three active buyers: One from Brazil, one from Germany and one from China.

5. Foreclosures. While the state has a notoriously long foreclosure process, Deutch says banks are slowly releasing foreclosures. But investors continue to buy new foreclosures shortly after they hit the market.

via Forget ‘improving’ or ‘rebound’ – Fla. is ‘on fire’.

Economist Makes Bold Statement on Home Prices

Daily Real Estate News |

Friday, March 01, 2013

Home values could surge 35 percent without stretching housing affordability, Raj Dosaj, vice president of the home price index at LPS Applied Analytics, said during a recent webinar hosted by HousingWire.

Dosaj says that the increase in home prices could be less than that if mortgage rates rise, which he says they are predicted to do.

“During the peak of the housing run-up, affordability was stretched as the market sold off,” Dosaj said. “As home prices dropped, affordability dropped.”

Industry reports are showing home prices rebounding and rising across the country.

“There are definite signs that there’s room for growth,” said Dosaj. “Things are generally looking good for the housing market.”

Source: “LPS: Home prices could skyrocket 35% without affecting affordability,” HousingWire (Feb. 28, 2013)

How to guide: Finding homeownership tax deductions

WASHINGTON – March 6, 2013 – Tax season is underway, and homeowners gearing up to meet the April 15 filing deadline can find the tax tips and insights they need at HouseLogic.com, a consumer website created by the National Association of Realtors® (NAR).

An overview of the tax benefits of homeownership, HouseLogic’s Homeowner’s Guide to Taxes helps filers get a general understanding and avoid common home-related tax mistakes.

“From the mortgage interest deduction to energy tax credits, many homeowners can take advantage of a variety of tax strategies that can lower their tax bill,” says Pamela Kabati, NAR senior vice president of communications and HouseLogic spokesperson. “For example, a family who bought a home last year with a $200,000, 30-year, fixed-rate mortgage, assuming an interest rate of 4.5 percent, could save nearly $3,500 in federal taxes when they file this year.”

HouseLogic also offers tips to avoid unnecessary tax mistakes in 9 Easy Mistakes Home Owners Make on Their Taxes, which identifies common errors, such as deducting the wrong year for property taxes, confusing the escrow amount for actual property taxes paid and neglecting to take the private mortgage insurance (PMI) deduction.

Other possible deductions: Homeowners who make certain energy-efficient home improvements may be eligible for tax credits. Also, owners who had a portion of their mortgage forgiven as part of a workout plan, short sale or foreclosure don’t have to pay income tax on the forgiven debt, provided the mortgage was secured by a principal residence and the total amount of the outstanding debt is not more than the original purchase price plus improvements.

Other HouseLogic articles:

• How to Deduct PMI

• How to Deduct Mortgage Interest and Equity Loan Costs

• How to Amend Your Tax Return

• How to Claim Your 2012 Energy Tax Credits

Homeowners should consult a tax professional for specific advice about their own transactions or circumstances. Information on HouseLogic should not be relied on as tax or legal advice.

U.S. home prices post healthy gain in December

Florida cities price track

S&P/Case-Shiller includes two Florida cities in its 20-city index. In Miami, sales prices rose 10.6% year-to-year. In Tampa, prices rose 7.2%.

WASHINGTON (AP) – Feb. 26, 2013 – U.S. home prices rose at a healthy pace in December compared with a year ago, driven higher by rising sales and a smaller supply of available homes.

The Standard & Poor’s/Case-Shiller 20-city home price index, released Tuesday, rose 6.8 percent in December compared with the same month a year ago. That’s up from a 5.5 percent annual gain in November.

Nationwide, the report showed that prices rose 7.3 percent in 2012. That is similar to other home price measures that show a healthy gain last year.

Prices also rose in December compared with a year ago in 19 of the 20 cities tracked by the index. New York was the only metro area to show a decrease.

Steady price increases should help fuel the housing recovery. They encourage more people to buy before prices rise further. Higher prices also build homeowners’ wealth, which can spur more spending and economic growth.

Purchases of previously occupied homes rose last year to their highest level in five years. The National Association of Realtors forecasts that sales will rise 9 percent this year. Independent economists have similar forecasts.

At the same time, the number of available homes for sale fell last month to the lowest level in 13 years.

In December, the 20-city index ticked up 0.2 percent from the previous month, reversing November’s small decline.

The S&P/Case-Shiller index covers roughly half of U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The November figures are the latest available.

Despite the increases, prices nationwide are still about 30 percent below the peak they reached at the height of the housing bubble in the summer of 2006. They are now at the same level as in the fall of 2003.

Copyright © 2013 The Associated Press, Christopher S. Rugaber, AP economics writer.

via U.S. home prices post healthy gain in December.