Thought this article might be off interest to both Home Buyers & Sellers in So. California. It is not a bubble, but a rebalancing back to norm for the Real estate market.

Best regards,
Jeff

Inventory Of Homes For Sale Soars - Sales Slow

The Multi-Regional Multiple Listing Service (MRMLS) released its statistics for the first quarter of 2006 from its new headquarters in Pomona near the Cal Poly.

MRMLS Headquarters
3201 W. Temple Avenue
Pomona, CA

"Since we serve 19 Associations of REALTORS® throughout the San Gabriel Valley and the Inland Empire market areas, we need to be more centrally located", announced Art Carter, CEO of the MRMLS. "This location is perfect and the additional space will help accommodate our growth".

Read more about the MRMLS Home Inventory and MRMLS Statistics in PWR Point Online by clicking the link below.

To Read the Full Article Click Here!

http://216.52.172.179/DispArticle.cf...5&ISSUE_ID=999

 

48 days is a long time to wait when homes were selling here in 7-10 days at 300% of the homes purchase price 20 years ago. 14.3% increase a year is still an amazing average when some locations in the US haven't seen that much in ten years!

I bought my home in 2002 for 162.5K and it's worth about 445K this month ... after waiting an average of 48 days on the market When it triples in value some time about winter this year I'll be tempted to sell it and walk with $330,000 in profit for sitting in the house for four years.

 

The problem with that is the next house you buy will cost more then what you sold yours for (unless you plan to downgrade or move out of state). So with your $330K profit, you either have to use that to put as a down for the new house to maintain a decent monthly payment of about $2,500-$3,000 a month or take half and get taxed by the government. It's not as easy as it seems or like you just made $330K clean and free of worries. There is more to it then just cashing out. Again, you have nice equity but not something out of the norm these days.

 

Actually you get a $250k exclusion if you are single and $500k exclusion if you are married and have lived in the house for at least 2 years. You dont need to acquire new property to get this exclusion (what you described is the way the law used to be).

 

Nevertheless, you have to live somewhere.

 

So upgrade, and then pay Uncle Sam property taxes at the rate of your new higher purchase price. PROPERTY TAXES SUCK!

 

Why cash out and pay more for a house, property taxes, and your mortgage payment? When you move all those things are going to go up. Even if you put all the cash into your new place as a down payment. Because you are going to upgrade so the purchase price would be more like 650,000 or 700,000 so your money is now gone, your mortgage payment is up significantly, and your property taxes went up. The only way for this to make sense is move out of state. You do that and pay cash for a house somewhere then you are making sense. Do not upgrade here it is the worst thing you can do, you will just throw away even more money. Not to mention how much you will lose in real estate fees.

 

+1
property tax suck baulz. my supplimental tax came yesterday. Uncle sam can eat my sphincter.