So goes California homes so goes Nevada homes…
7
Jan
The prices in some of our ”Golden Goose” feeder markets continue to decline. Depending on how you slice the numbers on the Reno home market statistics, we have declines of at least this much for the Reno Real Estate market in ”2008″.   Reno Condos have really taken it on the chin due in part due to over supply and greedy lawsuits, they are down around 50% according to UNR statistics.Â
 As an investor and a coach/Realtor for other investors I personally watch the California market on a regular basis. The following numbers are from a recent San Francisco Chronicle article which they also fed to the Associated Press (AP).Â
San Francisco -31%
Los Angeles -27.9%
San Diego -26.7%
Other Cities:
Las Vegas -31.7%
Phoenix -32.7%
Portland -10.1%
Seattle -10.2%
Minneapolis -16.3%
Denver -5.2%
Dallas -3.0%
Chicago -10.8%
Detroit -20.4%
Cleveland –6.2%
Atlanta -10.5%
Tampa -19.8%
Miami -29%
Boston -6.0%
New York -7.5%
Washington -18.7%
Charlotte -4.4%
Sphere: Related ContentFiled under: 2008 STATISTICS, LOCAL MARKET
Ron:
I was wrong about foreclosure relief last night. You cannot get relief on numerous houses in a year by making each your personal residence.
The Mortgage Relief Act of 2007 uses the definition of qualified residence as presented in Section 121 of the Internal Revenue Code To wit: “(5) PRINCIPAL RESIDENCE- For purposes of this subsection, the term `principal residence’ has the same meaning as when used in section 121.’.
Section 121 is entitled “Exclusion of Gain from Sale of Principal Residence”
Under that section a qualified residence is a residence is ” such property has been owned and used by the taxpayer as the taxpayer’s principal residence for periods aggregating 2 years or more.
LJK
Ron: Pass it along. Effective 1/1/2009, a real estate investor can no longer move into a previous rental, live there two years and then get the capital gains exclusion.
Lets say you own a rental house for the past three years, move in and two years later, sell. You can now only get 40% of the capital gains exclusion.
This will be covered in the H&R Block presentation at the 2/2 meeting.
LJK
Principal residence definitions have tripped people up for years. Especially when they are taking such care to get their driver’s license, cars registered, and every other show of living “full time” in their second/vacation home for advantageous tax consequences.
Then you have to ask, what is a vacation home? Where I spend the summer, or where I take sabbatical for over 8 months, or my hide out or my lair…..easy to be caught up in definitions…..