Properties going into escrow are up 42% over last January… and there is an even larger increase in ‘equity sales’, i.e. the non-foreclosure market. People are tired of sitting still and ready to move on with their lives. Our market is loosening up and there is very brisk buyer activity right now.
In fact, it’s interesting to note that right now we have LESS property available for sale/ compared to the number of buyers looking than at any time since the downturn started in 2005/ 2006. Competition for available properties is projected to keep prices stable to slightly increasing.
This is a great article from a local title company which describes some of the more interesting aspects of the ’1031′ tax exchange rules. I am intrigued by this allowance for a couple of reasons…
1. If you need to move out of your primary residence and want to hold it as a rental property, then that might be a great strategy right now.
2. I REALLY like the idea of liquidating investment property and rolling it over into a home that you might like to retire to in future. You can thus defer your capital gains, and as this article describes, purchase your future retirement home, rent it out for 2+ years to enable it to meet the investment property definition for your 1031 exchange and then move into it in your retirement, essentially converting it into your primary residence
As you know, REALTORS can’t give you tax advice, only a tax professional can do this. So you should consult one to ask how this might apply to your personal situation. If you decide it’s helpful… then I’m ready to go to work to help you find that perfect retirement home.
Personal Residence to Rental
Sonoma County truly is ‘ON SALE’ and our prices are better than we ever expect to see again. Take advantage of our wonderful prices, lock in at a lower property tax base and buy your future retirement home now! We have a strong rental market here and I think this all combines to create ‘The Perfect Storm’ for your retirement and tax planning.
Great news for the upper end of the real estate market! Check out this report on CA sales over $1 million. We’re seeing great activity here in Sonoma Co. as well.
http://www.latimes.com/business/realestate/la-fi-luxury-home-sales-20110212,0,2968790.story
Recently, a group of the top selling REALTORS® who work the luxury end of the Sonoma County real estate market, formed a new networking group. These 17 agents sell most of the Sonoma County real estate over $2 million. I am pleased to be a member of this group and to be able to offer specific benefits to my clients who are buying or selling luxury property.
Once a month, we tour, as a group, all the new properties we’ve listed in this price range. Each of us prepares a detailed feedback sheet to share our views about how the property shows and is priced. In particular, we make constructive suggestions about staging, presentation, marketing and price strategies. It’s a great way to take advantage of our collective experience, expose my listings to all the top agents at once and recruit ‘ambassadors’ for my properties so that when they return to their respective offices, they tell other agents with clients looking in this price range, about my listings.
These agents represent Coldwell Banker, Pacific Union, Sotheby’s, Legend, Spadoni and Prudential.
I’ll be touring properties with the group today and on the second Tuesday of every month. If you ever have questions about this market or any of the listings in this price range, I can offer you quite a bit of information on the subject!
