To Buy or to Sell a House in the Lake City, FL Real Estate Market

If you are interesting in selling your property, now would be a good time to put it on the market. We have noticed a measurable increase in the number of buyers, prospects, and overall market activity right now in the Lake City, FL area.

With approximately a 12 month supply of residential homes for sale in the Lake City, FL area, prices are still low & will most likely remain stable for this year. However, because of the drastic drop in home values over the past few years, if you are waiting to see the market come back before you sell, it could be a very very long time.

Perhaps a better plan to consider would be to sell your home now, and buy your next home while price are low. You will loose some, but you will more than gain in the buying power of your money right now on the purchase whether upgrading or downsizing.

Also a option is to sell it as a short sale if you are underwater regarding the equity in your home. This will get you out of a high monthly obligation, most likely settle your debt, and free up your monthly resources. Even though your credit will be hit, if you rent for a year or two, and get back into something at today's prices, you would mostly likely be in a much better financial situation in a few years.

Florida is ranked #5 out of 50! Great for Business

Fla. No. 5 nationally as ‘best for business’

WASHINGTON – Jan. 26, 2012 – Wyoming, Florida and Texas rank among the 10 best states for taxes on business, while companies in states like New York, New Jersey and California have a far less pleasant tax climate, according to the Tax Foundation’s State Business Tax Climate Index, now in its 8th edition.

The Tax Foundation says it looks at dozens of state tax provisions to create the ranking –a single easy-to-use score that measures each state’s tax climate against every other state. While some similar studies focus on residents’ tax burden they pay each year, the Index focuses on how a tax system enhances or harms a state’s businesses.

http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=270776

NAR affordability index in the south is now over 200.

In other words the median income is double what it needs to be to buy the median price home

In the early 80’ the index was about 68 which meant the median I income was a little more than half of what was needed to buy the median price house.

THIS IS THE BEST TIME TO BUY A HOME SINCE NAR HAS BEEN KEEPING RECORDS

Short Sale Market Update in Lake City, FL

http://newsgeni.us/?p=103219

"Seems to be right on with my expectation for the market.  Lots of sales, but more soft prices and shorts until we clear up the current economic situation that many home sellers got themselves into.  Massive over-leveraged debt is no longer in fashion, and that sentiment extends even to the big banks.  The federal government doesn’t seem to interested in austerity, but capitalistic corporations see the need to right-size before they capsize. 

Some short sale trends I expect to see:

-We will start to see the major lenders and even some of the smaller lenders start to waive or reduce deficiencies, even on secondary homes and investment properties.

-For properties in markets that are still predicted to drop, we will see more lender incentives (cash to seller, simpler review processes, etc) to get shorts done.

-Modifications will really take a back seat lenders rush to de-leverage. 

-The people that have gotten used to not making a payment for 2 years will suddenly find time has run out, and in these cases of severe delinquency, it will be almost impossible to modify, and may be almost as hard to short sale, as the banks will mandate their foreclosure attorneys to clear out bad assets as quickly as possible.

-2012 may be a bloodbath for the lenders, but it will bring much needed liquidity to the market, and will be a haven for Buyers, and hard working Realtors."

Credit to:

Rob Stewart,

Short Sale Specialist,

Rockford Realty Group

Now is the time to Short Sale. Tax Advantages Could End Soon.

You may owe federal income taxes in 2013 if you have a short sale, foreclosure

WASHINGTON – Jan. 9, 2012 – You may owe federal income taxes in 2013 if you have a short sale, foreclosure after this year. Now is the time to make the hard decision: Are you going to walk away from your underwater home?

Uncle Sam is still giving homeowners until Dec. 31, 2012, to go through a short sale or foreclosure without tax consequences – as long as the lender officially releases the debt.

But on Jan. 1, 2013, the rules change: The amount a lender forgives, ether in a short sale or foreclosure, on a primary residence will be taxable on federal income taxes.

http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=269530