Florida Renovation Loans: Will there be a Real Estate Recovery in 2013? What Information are you hearing?

Will there be a Real Estate Recovery in 2013? What Information are you hearing?

Will there be a Real Estate Recovery in 2013?  What about the potential National Real Estate Transfer/Sales Tax?  What information are you hearing?  Is this a myth or fact?

I recently read that Economists gathered for a National Association of Real Estate annual meeting to discuss the real estate economy and where it's heading.  They said that the housing market likely will not recover until 2013.  Zillow chief economist, Stan Humphries was quoted as saying that home prices continue to decrease and sees a enormous amount of "shadow inventory" which potentially could delay the recovery.  He went on to say, "WE THINK THE MARKET WILL BE FLAT IN NOMINAL TERMS FOR 3 TO 5 YEARS",  WE ARE NOT GOING TO HIT BOTTOM AND SEE A V-SHAPED RECOVERY".

Doug Duncan, Fannie Mae chief economist,  was quoted as saying "it would be another 3 years before new household formation and housing starts pick up".  He also believes that home prices will fall 1% - 3% before bottoming out in the third quarter.

And to top it off, it's rumored that under the new health care bill - there's a possibility that all real estate transactions will be subject to a 3.8% - 4% Sales Tax?  The bulk of these new taxes don't kick in until 2013.

Inquiring minds want to know?  What do you think?  What have you heard about the economy and this potential Sales Tax?  Reading materials pertaining to the Health Care Insurance Reform can be found on:http://www.realtor.org/small_business_health_coverage.nsf.  You can also download NAR's Myth Busters Flyer.

 

 

Real Estate Recovery information - Source: Inman News, Glenn Roberts Jr.

National Association of Realtors - information on Health Care Tax Reform - Real Estate Sales Tax

Comment balloon 7 commentsSusan Gaieski • August 29 2010 06:30PM

Comments

I heard another 5 years before it changes which is horrible. I still think we haven't hit the bottom yet and I'm NOT a negative person. I always see the glass half-full but in this case, I'm realistic.

Posted by LaNita Cates (REMAX of Joliet) almost 9 years ago

I always hear different things, but really, real estate is going to improve as the economy improves. In pittsburgh, things are really good, but will get better in 3-5 years I'm sure.

Posted by The Elise Bickel Team, Leasing, Property Management and Sales (ReMax Select Realty) almost 9 years ago

No clue about when the market will turn, but I would agree that it will be a while and it won't be a rapid ascent when it does.  The information about the tax in the health care bill is wrong.  It's limited to the very wealthy with a qualifying capital gain.  Information is readily available on the web.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) almost 9 years ago

LaNita & Weber Team - yes I agree let's hope for the best!

Gabe, thanks for responding.  I just got back from FR Convention.  I was given the information to check National Association's Website from John Sebree. He said there were all the Q&A for this issue.  Maybe you should check it out. John is Vice President for Public Policy for FR.  Thanks..

Posted by Susan Gaieski, Director for Social Media & Technology (Water Pointe Realty Group) almost 9 years ago

Susan,

Here's a good explanation of what it's about.  Same as on the NAR site:

http://www.snopes.com/politics/taxes/realestate.asp

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) almost 9 years ago

Gabe thanks for the info.  Great information from ActiveRain Camp Orlando, REBARCamp, and FR Convention this past week.  Did you attend any of it?  At the convention, they discussed the new contracts, the Residential Contract for Sale and Purchase (now 11 pages) and the "As Is" Residential Contract for Sale and Purchase (now 10 pages) as well as all the addendums. Lots of info.  Thanks..

Posted by Susan Gaieski, Director for Social Media & Technology (Water Pointe Realty Group) almost 9 years ago

I couldn't get to RainCamp as we had some business I needed to be in town for.  We've been going over the new contract with our local attorneys.  Lots of changes and gotchas now in the new ones.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) almost 9 years ago

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