Homeowner Tax Changes

The new tax law that was signed into effect at the end of 2017 will affect all taxpayers. Homeowners should familiarize themselves with the areas that could affect them which may require some planning to maximize the benefits.
Some of the things that will affect most homeowners are the following:

• Reduces the limit on deductible mortgage debt to $750,000 for loans made after 12/14/17. Existing loans of up to $1 million are grandfathered and are not subject to the new $750,000 cap.
• Homeowners may refinance mortgage debts existing on 12/14/17 up to $1 million and still deduct the interest, so long as the new loan does not exceed the amount of the existing mortgage being refinanced.
• Repeals the deduction for interest on home equity debt through 12/31/25 unless the proceeds are used to substantially improve the residence.
• The standard deduction is now $12,000 for single individuals and $24,000 for joint returns. It is estimated that over 90% of taxpayers will elect to take the standard deduction.
• Property taxes and other state and local taxes are limited to $10,000 as itemized deductions.
• Moving expenses are repealed except for members of the Armed Forces.
• Casualty losses are only allowed provided the loss is attributable to a presidentially-declared disaster.

The capital gains exclusion applying to principal residences remains unchanged. Single taxpayers are entitled to $250,000 and married taxpayers filing jointly up to $500,000 of capital gain for homes that they owned and occupied as principal residences for two out of the previous five years.
Not addressed in the new tax law, the Mortgage Forgiveness Relief Act of 2007 expired on 12/31/16. This temporary law limited exclusion of income for discharged home mortgage debt for principal homeowners who went through foreclosure, short sale or other mortgage forgiveness. Debt forgiven is considered income and even though the taxpayer may not be obligated for the debt, they would have to recognize the forgiven debt as income.
These changes could affect a taxpayers’ position and should be discussed with their tax advisor.
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PS - don't forget that the generally LOWER TAX RATES will improve your Purchasing Power in 2018.  If your plans this year include Selling your current home and making a new purchase, please call us right away, and we'll help you put together a solid strategy!

Homes for sale Clark County WA - December 2017

Big Drop in Closed Home Sales in Clark County WA for December 2017.

As we close out the year for Clark County real estate and home sales, the final month finds over 100 fewer units-sold for December. Here are some of the highlights for December's results: 

• Average-Sales Prices have seasonally retreated from recent record highs; the 12-month/long-term trend line is up 10.64% compared to December 2016,  and the 3-Month Moving Average  is up 11.09% from last year; 
   
• The Inventory for Resale Homes slipped again to the low 1.1 Months Supply;
   
• Approximately 505 Resale Homes were sold in the month, which is about 102 fewer (-16.8%) homes than in 2016; and 67 fewer than last month.
   
• REO/Bank Owned property sales were 4 units (0.8% of total); down from 13 (2.1%) in 2016. 
   
• Short Sale /Pre-Foreclosure property sales were 4 units (0.8% of total); down from 7 (1.6%) in 2016.

The month-end, 30-year-fixed home loan benchmark interest rate is 3.95% (up from 3.92% last month) according to Freddie Mac; compared to 4.20% for December 2016.

We will continue with our custom graphs/charts for Clark County WA. A simple "smoothing" technique is employed to better present the short-term trend (3-month moving average in Red); and long-term trend (12-month moving average in Blue). 

Clark County Home Sales - Units Sold Trend December 2017

The seasonally-declining short-term trend-line crossed below the longer-term trend-line, and will stay below for a few more months. The long-term line is going sideways this month; which is likely the near-term plateau. For the total Year there were about 242 (-3.35%) fewer units-sold this year compared to last.

For the next chart: Average Sales prices (shown below) are showing a slight decline, which is common this time of year; with the long-term trend continuing its upward run. 

Clark County Home Sales - Average Sales Price Trend December 2017

The December short term Average sales price for Clark County is now up to $366,933. This is an increase of about $36,632 from a year ago.

Clark County Home Sales Inventory
& Days on Market - December 2017

These final three graphs from RMLS show:

With both Pending and New Listings dropping strongly for the past few months, it is no wonder we are seeing a drop in closed sales. 

The second graph is showing the average list price maintaining its high level despite the sales slowing this time of year.

Finally, for the Days on the Market, both the Average and Median moved up about 6 days from the prior month.

More information from the RMLS published report on the Clark County real estate scene can be found here: RMLS Market Action Report on our website.
 

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PS - This is a great time to List and Sell Your Home with Our Team for 2018; or, at least find out what your home is worth!  We offer a no-cost, no-obligation Clark County WA Home Valuation, and invite you to try it out!

PPS - You are invited to visit our web-page for Clark County WA  Homes For Sale where it is Quite Easy to search by City, Neighborhood or by Category, with homes and real estate listings from the entire RMLS.  Sign-up Not Required!  The property and home listings shown are provided via many updates each day, and you will be e-mailed hourly with any new matches once you've signed up for a home search.

We also have the MLS Listings for these great towns in Clark County:  Battle Ground WA Real Estate | Brush Prairie WA Homes | Camas WA Real Estate | Hockinson WA Homes | La Center WA Homes | Ridgefield WA Homes | Vancouver WA Homes | Washougal WA Real Estate | Yacolt WA Homes | Amboy WA Homes

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The information and charts in this Clark County WA real estate update (prepared by Vancouver WA Realtor, John Slocum, CRS, SFR, our resident statistician) are based on home sales recorded in the Clark County WA MLS system (RMLS), excluding sales of mobile home; and shows the purchase activity since 2009; charting the 3 month Moving average number of sales, and the 12 month Moving average.  This "smoothing" of the trend-data helps illustrate the short-term and longer term trends in Clark County's real estate market.

Disclaimer: as with any real estate statistics, we do our best to provide the best representation at the time the data was acquired and compiled.  The data and reports are deemed reliable but not guaranteed.

A Nice Surprise When Renting Your Vancouver WA Home

Planning to go to the Masters Golf Tournament next April 2-9th and don’t have a place to stay? Each year, there are homeowners who rent their home for a big premium during the Masters because hotels are in short supply with premium prices, and demand for private homes is up.
Homeowners go on vacation and make tax-free income while temporary tenants rent their home. Homeowners can benefit from a little known provision in the tax code that does not require taxpayers to recognize the income derived from renting their home for less than 15 days per year. See Plan Ahead for Tax Time When Renting Out Residential or Vacation Property- special rules.
This situation can particularly benefit homeowners where there are large sporting events nearby like golf and tennis tournaments, championship games or other high attendance venues. The demand for a private residence can be more attractive than staying in a hotel which makes the price go up.
Here in Vancouver WA we may not have the Huge Convention or Sports Arena type event however, our area is attractive in the summer season and the local hotels fill up; or, you may have that vacation cabin at the beach that you don't use the entire summer.
Obviously, there are challenges with personal belongings and insuring for damage but getting a premium rental rate and not having to recognize the income could be worth it. You’ll certainly want to discuss this with your tax professional prior to making this decision. You’d probably also want to get some help from an experienced real estate professional.
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PS - 2018 is already starting out with our local market being very hot for homes and real estate. If you are thinking about selling please contact us for your Free Market Analysis!

Condos For Sale in Vancouver WA - November 2017

 Vancouver WA Condos for sale in Short Supply in November 2017!

Despite a chronic very low level of Active units available, sales have remained strong for Condos in Vancouver Washington.  This combined condition is expected continue for the next several months.

Some of my Custom Condo Charts in the video are shown below:
 

Vancouver WA Resale Condo Sales - Average Sales Price Trend

With such low inventory with consistently strong buyer demand, the sales prices for Condominiums have a tremendous amount of support.

Unit Sales, Average & Median Prices; and Days on Market information are shown in the charts below (from RMLS chart-tools):

Vancouver Condo Sales Inventory & Days on Market Trends

The first chart - Inventory-by-Month, shows the bump-up in Closed Sales from last month, with the New Listings and Pending Sales at a roughly 40-units-per-month level.

The second graph shows the higher closed sales prices and much higher average list prices for this month.

Finally, both Average Days on Market and the Median Days on market rose slightly - but still evidence of a relatively brisk market. 

It has been my pleasure sharing with you my report on the Vancouver WA Condo Market in November 2017.  I look forward to your questions or comments; and would love to help you sell or buy a condo!

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This month's condo search link highlights Condos for sale in Downtown Vancouver WA .   Many of these condos are located on or near Esther Short park (seen in the video above).  One of the Heritage Place condo buildings is shown here.

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PS - I Love to Sell Condos! If you are thinking of selling your condo this year, I offer a no-cost, no-obligation Vancouver WA Condo Market Valuation, and invite you to try it out!

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The statistics used for Vancouver WA Condos in this report (prepared by Vancouver WA Condo Listing Realtor® John Slocum, are based on condo sales recorded in the Vancouver MLS system (RMLS), excluding sales of newly constructed condos.
Disclaimer: as with all real estate statistics, I do my best to provide the best representation at the time the data was acquired.  The data and reports are deemed reliable but not guaranteed.