Neighborhood Garage Sale June 13, 14 and 15 (8 a.m. to 5 p.m.)

1. 11867 101st Ave N
2. 9955 Hemlock Way
3. 9772 Ives Lane
4. 11421 99th Pl N
5. 9907 Deerwood Ln N
6. 11262 98th Place N
7. 11282 98th Place N
8. 11655 100th Ave N
9. 9817 Kirkwood Lane N
10. 10065 Hemlock Ln

Other garage sales:
224 4th Ave SE, Osseo

2012 Neighborhood Real Estate

For those of you wanting to know how the story ends, read no further:
The market has finally turned!

What led to the recovery:
(1) Interest rates have remained at ridiculous lows (apprx 3.25% at the time of writing)
(2) Rents have gone up making owning more affordable than renting
(3) First time home buyers have re-entered the market in increasing numbers
(4) All this led to an increase in demand and therefore, a shortage of supply
(5) Driving prices up and leading in 2012 to an APPRECIATION of home values

In our neighborhood, 18 homes sold with an average of 75 days market time and an average sale price of $202,122.
I divide these homes into two general categories:
(1) Distressed sales-those involving a bank to sell the home (short sales and foreclosures)
(2) Traditional sales

There were seven distressed sales with an average sale price of $164,971 and 11 "traditional" sales with an average sale price of $225,764.

DISTRESSED SALES SUMMARY

MAP OF 2012 DISTRESSED SALES

1. 9926 Deerwood Ln N
2. 11700 N 98th Ave N
3. 12282 97th Ave N
4. 9964 Cottonwood Ln N
5. 9792 Ives Ln N
6. 11600 97th Ave N
7. 12169 97th Ave N

TRADITIONAL SALES SUMMARY

MAP OF 2012 TRADITIONAL SALES

1. 9877 Deerwood Ln N
2. 11534 100th Ave N
3. 11573 100th Pl N
4. 9852 Norwood Ln N
5. 12052 99th Ave N
6. 11575 98th Ave N
7. 9805 Kirkwood Ln N
8. 11331 100th Pl N
9. 12468 99th Ave N
10. 12344 99th Ave N
11. 9843 Kirkwood Ln N

Our neighborhood offers easy access to 610, 169 and 94 and the park reserve is unbeatable! I see the recovery continuing through 2013 provided interest rates remain relatively low and unemployment doesn't rise significantly.

Mortgage Debt Relief and Taxes

 The Mortgage Debt Relief Act is set to expire at the end of 2012. This is the law that may exclude from taxation qualifying debt forgiven at the conclusion of short sales. Although it is possible that this law will be renewed, no one knows for sure.

 For some time now, emails have circulated suggesting that the federal health care law will impose a 3.8% federal tax on the sale of all homes. The emails are terribly misleading – the tax referred to is neither a real estate transfer tax or a sales tax. Instead, it’s a 3.8% tax increase on capital gains (and other unearned income) for individuals with adjusted gross income over $200,000 (or $250,000 for married couples filing joint returns). In addition, the normal capital gains exclusions that we work with every day still apply – which in most cases means no tax on the sale of principal residence (assuming less than $500,000 gain under a joint return, $250,000 for an individual return). In the end, a small percentage of homesellers will be affected by this new tax. See my previous blog article.

For more information on the Mortgage Debt Relief Act

For more information on the capital gains tax

Property Taxes and Market Values

If you're like me, you just received your property tax statement for next year's taxes and were shocked by how low the assessed value is.

Based on our neighborhood property values, my assessed value is below what my home would sell for in the current real estate market and yours may be as well. (see chart below showing YTD Maple Grove increase in median sales prices)

The taxable market value is established each year by the Maple Grove assessor using appreciation/depreciation percentages, sales data and computer programs. Additionally, every five years the assessor visits your property to confirm condition and updates which he/she also factors into his/her valuation.

A few details to consider:
(1) Make sure you are looking at your taxable market value and not the net value after the homestead market value exclusion is subtracted (see previous blog article on this)
(2) You can appealing your taxes and taxable market value - an appeal is required by April 30. See the city website and a previous blog article for more details.

If you still have questions on your taxable or actual market value, drop me a line.

Whirlyball - what's that?

You've probably noticed that the Mann Theater in Maple Grove closed but have you heard what's moving into the old theater?

Whirlyball! What's that? Whirlyball is a cross between bumper cars and lacrosse. Click HERE for the YouTube video. The facility featuring two Whirlyball arenas and a lasertag course is expected to open in spring 2013.

And the large building in the parking lot? That's a 2nd Maple Grove Goodwill store which is expected to open as early as December 2012, just in time for your Christmas decoration shopping!

Neighborhood Market Update

Finally. The news is catching on that the real estate market has recovered. Sales are up - 21% through the end of September for Maple Grove over 2011 levels which has led to inventory being down 37% over 2011 levels. source: Mpls Area Association of Realtors

In our neighborhood, the average sales price for the 16 homes that have sold so far this year is $203,025 and an avg list price of $206,350. (an avg pricing discount of just 1.6%)

A map showing the current active listing and those sold or otherwise off the market since September 1st are below. Click HERE for a link to these listings (which will be good until Dec 2012).

To recap, the real estate market in our neighborhood and Maple Grove is recovering nicely and I expect we'll see 3-5% APPRECIATION of values this year.

Is There a Health Care 3.8% Real Estate Sales Tax?

Let me say this up-front - the 3.8% real estate sales tax rumor is mostly false.
There's a popular rumor being circulated that starting January 1, 2013, the health care reform bill will add a sales tax to all home sales. NOT TRUE.
Now, before I go into details, a caveat -- I am NOT a tax expert! Consult your tax professional for the details on how your taxes could be affected.
Who/what will be taxed:
Adjusted Gross Income (AGI)

• above $250,000 AGI married filing jointly
• above $200,000 AGI for single filers

Taxed Amount (principal residence home sales)

• gains above $500,000 if married filing jointly
• gains above $250,000 for single filers

For more details on the tax, including examples for various scenarios, a brochure is available from the National Association of Realtors.