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
We often look at Newly Opened escrows to get a feeling for activity levels and what to expect in terms of home sale statistics. It’s an early forecaster for the real estate market. And wow! Look at the January results. This is a huge kick-off for our 2011 market:
Home Sales make huge increase in January
Here’s a good outline of the home buying process:
Home Buyer Guidebook
Want to know what kinds of services I provide for people looking to buy property? What to expect as you search, offer and purchase your home? Here’s a step by step guide to the process.
Buyer’s Services Presentation 2 pdf
