Home prices in 2013 are on the rise along with the price of property. The housing price forecast for 2013, as predicted by the Wall Street Journal, will increase due to a number of reasons. Sales tax on homes in 2013 will now be 3.8%, which also depends on the buyer’s income, as some can be exempt from this real estate sales tax.
Housing prices in 2013 will heat up as the year progresses due to a rebounding real estate market nation wide. The 2013 housing market will continue to grow as the price of rent increases, and mortgage rates become more attractive. Median home prices in the Northeast U.S. rose to $232,900 from $230,300 in October.
5 Contributing factors to the rise in home prices are:
1) Increase in affordable housing.
2) Increase in the formation of households.
3) Rise in rent prices.
4) Decline in distressed sales.
5) Inventories of new homes for sale are at their lowest levels.
The 2013 Real Estate Sales Tax
The tax will fall only on individuals with an adjusted gross income (AGI) above $200,000 and couples filing a joint return with more than $250,000 AGI.
This is applicable to the following types of income:
-Rents (less expenses)
-Capital Gains (less capital losses)
More details on the tax can be found on the National Association of Realtors website.
There is no doubt that buying sooner in our current real estate market will save you more money in the long run. Housing prices in 2013 will only increase as the demand for housing continues. Many are discussing the chance of the 2013 real estate tax broadening to consider more of one’s personal income in deciding if the tax is applicable to their income bracket.