I just attended the California Association of Realtors update and forecast for 2013. After over a 5% gain in prices in Sonoma County in 2012 we conservatively expect another 1.6% in 2013. It could get larger due to shortage of inventories and bidding up of prices so make sure you have your piece of the real estate pie in your investment portfolio now!
Here is what the Fiscal Cliff legislation did with real estate:
Mortgage Cancellation Relief extended for one year
Deduction for Mortgage Insurance Premiums extended through 2013
15 year straight-line cost recovery for leasehold improvements on commercial properties is extended through 2013
10 Percent tax credit up to $500 for energy improvements extended through 2013
Mortgage interest deduction is safe for now
Tax rates increase to Clinton Admin levels for individuals with income about $400K and families above $450K
Cap gain and dividend tax rate increase to 20% for those earning more than $400K/$450K
5 year extension of American Opportunity and Child Tax Credits
The AMT will be adjusted for inflation
Estate tax will be set at 40% with $5M expemption for individuals and $10M for families
Unemployment Insurance is extended for another year.
