New Year, New Property Market

Are you thinking of buying or selling your home or asset, but don’t know if 2017 is an optimal time to do so? Between the uncertainty produced by the 2016 Presidential election and the high number of baby boomers and millennials projected to invest in the market, experts are expecting an interesting year. What does this mean for you?  

If you are attempting to make sense of the changes expected to occur in 2017, the Three Rivers Association of Realtors is here to help. Bearing this in mind, we would like to present some insight as to what the average buyer or seller can expect to experience next year.

·        Slow but steady wins the race: The real estate market is expected to remain steady through the upcoming year across the nation, but slight slowdowns are projected to occur with growth dropping by 1%.

·       Bigger is Not Always Better: Smaller homes have experienced a significant price rise in comparison to larger houses due to the lifestyle changes that many are experiencing. Millennials are moving out and babyboomers are newly empty nested parents are downsizing. Urban areas are also appreciating quickly

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        It’s all Good: In general, markets are currently doing very well and interest rates remain lower than average. Expert Rick Sharga estimates that Trump’s presidency will provide some credit relief to the average home buyer, consequently making it more readily available to home buyers.

·       Making Room for the New: Not only is millennial home buying expected to increase but experts are already beginning to think about generation Z (born 1995-2012). Although this generation will primarily consist of teenagers in 2017, it is foreseen that they will begin saturating the market within the next several years.

The trends of 2017 have a plethora of implications for a new direction in the real estate market and for our economy in general. Whether buying or selling, the Three Rivers Association of Realtors will ensure that you are never left in the dark, and we are here to assist you in making the most out of your housing experience. Visit our website today for more helpful tips and information.

Home Sweet Homeowners Tax Advantages

With the current housing market in an upswing, many people are becoming new homeowners. To those who have just purchased their first home - congratulations! Being a homeowner helps fulfill the American dream! Don't forget about one of the new benefits you'll enjoy....tax breaks!

Take advantage of these homeownership-related tax deductions and strategies to lower your tax bill and increase your refund.

• Mortgage Interest Deduction - One of the best deductions itemizing homeowners can take advantage of its mortgage interest deduction. Interest you pay on your mortgage (up to $1 million) is deductible when you use the loan to buy, build, or improve your home.
• Prepaid Interest Deduction - Prepaid interest (or points) you paid when you took out your mortgage is generally 100% deductible in the year you paid it along with other mortgage interest. If you refinance your mortgage and use that money for home improvements, any points you pay are also deductible in the same year.
• Property Tax Deduction - You can deduct the real estate property taxes you pay on Schedule A. If you have a mortgage with an escrow account, the amount of real estate property taxes you paid shows up on your annual escrow statement. If you bought a house in 2015, check your settlement statement to see if you paid any property taxes at closing. Those taxes are deductible on Schedule A, too.
• PMI and FHA Mortgage Insurance Premiums - You can deduct the cost of private mortgage insurance (PMI) as mortgage interest on Schedule A if you itemize your return. The change only applies to loans taken out in 2007 or later and the deduction is reduced if your adjusted gross income exceeds $100,000. besides private mortgage insurance, there's also government insurance from FHA, VA, and the Rural Housing Service. Some of those premiums are paid at closing, and deducting them is complicated. A tax adviser or tax software program can help you calculate this deduction.
• Energy-Efficiency Upgrades - The Non-Business Energy Tax Credit lets you claim a credit for installing energy-efficient home systems. Tax credits are especially valuable because they let you offset what you owe the IRS dollar for dollar, in this case, for up to 10% of the amount you spent on certain upgrades. The credit carries a lifetime cap of $500 (less for some products), so if you've used it in years past, you'll have to subtract prior tax credits from that $500 limit.

At Three Rivers Association of REALTORS®,  we advocate to protect real estate-related tax deductions, aim to address real estate issues in the community, and work to provide a good housing market for the Joliet area. To learn more about us, please visit our website! And if you are ever unsure about how to properly complete your tax returns, make sure to consult a tax professional for help.