The Government Targets the Mortgage Interest Deduction - Massachusetts Blog - 02/28/09 09:29 PM
In order to pay for his new budget, President Barack Obama is proposing to slice up the longtime sacred mortgage interest deduction.  The proposal would reduce the deductions for those earning more than $250,000.  This was unveiled this week as part of a plan that would take effect in 2011.  
Currently, households paying income taxes at the 33% and 35% rates can claim deductions at those rates. Under the new proposal, they could deduct only 28% of the value of those payments.  
This proposition is certain to set off a heated battle within the housing-related industries.  The National Association of Home … (2 comments)

Home Construction Drops to a Record Low - Massachusetts Blog - 02/20/09 10:18 PM
The nation's home builders are experiencing their worst nightmare. 
This week the Commerce Department reported that construction of new homes dropped 16.8 percent last month to a seasonally adjusted annual rate of 466,000.  Well below the 530,000 units economist had expected.  This was the slowest pace on records dating back a half a century. 
Otherwise stated, housing starts are now 56.2% below the annual pace from the January 2008 market. 
This is unfortunate news for home builders; however, in an environment with 11 months plus of inventory to sell, it is probably good for the housing market.  With the glut of … (6 comments)

Massachusetts Prepares for its Share of the Stimulus Money - 02/17/09 04:04 PM
Today, President Obama signed into law a stimulus bill that will release the biggest influx of federal dollars since Lyndon Johnson's Great Society program.  The $787 billion package is aimed at reversing the country's economic problems with billions going to individual states. 
Governor Deval Patrick has appointed real estate developer, Jeffrey Simon to oversee the money that will flow into Massachusetts.  With 30 years of experience in the real estate industry, Simon oversaw the redevelopment of several closed military bases, including Fort Devens in Massachusetts and four bases in Bermuda.  Simon's title will be Director of Infrastructure Investment and will be paid a … (0 comments)

Massachusetts Housing Report - 02/13/09 07:09 PM
A recent study done by the Massachusetts Association of Realtors pointed out some interesting numbers. 
Not surprisingly, they found that over 90 percent of all homebuyers are using the internet as part of their home search.  They also found that over 90 percent of buyers chose to work with a real estate agent to guide them through the process. 
 Social Networking
According to the report, 47 percent of homebuyers are using social networking sites, such as MySpace, Facebook, LinkedIn and Friendster.  That is up from 50 percent last year.  Twenty-seven percent of those in ages from 18 to 24 reported that they … (4 comments)

Update - $15,000 Home Buyer Tax Credit Cut from Stimulus Bill - 02/13/09 06:44 PM
The much-anticipated $15,000 tax credit for homebuyers has been scaled back to an $8,000 tax credit for first time home buyers only.   
A few days ago, following extensive lobbying in Washington, home builders and realtors had hailed the proposed $15,000 tax credit.  Charles McMillan, President of the National Association of Realtors, had indicated that the credit might lead to 1 million additional home purchases.  Toll Brothers' CEO, Robert Toll had said, "The $15,000, I have no doubt, will make the greatest difference."  Pulte Home Builders' CEO, Richard Dugas was urging Congress to push the credit up to $20,000 or more and … (2 comments)

A $15,000 Tax Credit for Home Buyers - Massachusetts Blog - 02/09/09 05:58 PM
The federal government is working on a plan to stimulate the currently sagging housing market.  In the Senate, a "voice vote" has been made to propose a $15,000 tax break for homebuyers.  
More details are emerging about the amendment to the pending economic stimulus bill, which is the brainchild of Georgia Senator Johnny Isakson, a former real estate broker.    
Unlike the current $7,500 housing tax credit, the new credit would be available to all home buyers and would not have to be paid back.  The $7,500 plan that is now in place is offered only to first-time home buyers and requires … (1 comments)

The Bank's Role in Real Estate - Massachusetts Blog - 02/04/09 11:09 AM
It has been a recurring issue over the years that banks have expressed a desire to enter into the selling side of the real estate transaction.  Some banks have actually sought out the opportunity to own real estate brokerages.
For obvious reasons, the National Association of Realtors has been opposed to this idea and has petitioned the government to block banks from doing so.  Part of their reasoning is that the division of responsibility in the real estate industry makes all parties more accountable. 


Arguments - Pro and Con
 The American Bankers Association has contended that the public would … (1 comments)

Real Property vs. Personal Property - What is Included in a Home Purchase? - 02/03/09 10:04 AM
You have found the home of your dreams and you are ready to put an offer on it.  Before you sign the contract make sure you know which items will convey with the house and which will be excluded.  There can be some confusion about this, particularly if the listing is vague on the matter.
 Real Property vs. Personal Property
For the purpose of selling real estate, property is divided into two categories:
Real Property is the land and everything that is attached to it, including the ground to the core of the Earth and up to the sky.  This would … (2 comments)

 

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