Hope Leitner, Realtor®, CRS

  TRENDS, NEWS, FINANCE, HOMEBUYERS, HOME SELLERS Is the Housing Market Turning? The U.S.  avoided a recession in 2023 , and some say it will have a  soft landing  in 2024. Inflation has hovered in the 3% range for many months—higher than the central bank would prefer, but at 2.6% for personal consumption expenditures (PCE), it’s closer to the target range of 2% and far from the double-digit highs since the pandemic began. Most sources cite the “core” PCE, which excludes volatile energy and food prices which sat at 3.2% by year’s end—the lowest level since March 2021. Meanwhile, existing home sales volume began to edge higher by the end of 2023, and prices rose 4.0% year over year to a median of $387,600.  Mortgage interest rates  ended the year at 6.61% for a benchmark 30-year fixed-rate conventional home loan. Existing housing inventory remains tight with approximately 3.5-months’ supply on hand at the current sales pace. Due to the improvement in market ...

  HOME SELLERS, TAXES, SELLING A HOME Tax Tips for Selling a Residence According to the  Internal Revenue Service , the primary residence you sold in 2023 may have federal tax benefits that can help you avoid capital gains on the sale, if you meet certain criteria for ownership and use of the home. To claim a tax exclusion, you must have owned the home for at least two years and lived in the home for at least two out of no more than five years of ownership. The tax gain exclusion that’s available is $250,000 if you’re single, or $500,000 if you’re married and use a joint tax return. If you sell at a loss, such as a short sale, you can’t deduct the loss from your income, likely because of the many homeownership benefits subsidized by the government, including loan programs, first-time and low-income homebuyer grants, energy star appliance credits, and so on. Tax exclusions are also subsidized by the government. To maximize your gain and lessen your tax bill, you can adjust the...