The housing market crash in 2008 had a devastating impact on the value of real estate across the United States. Recently, signs have begun to appear that indicate that the housing market is starting to rebound. A recent report from the Massachusetts Association of Realtors details a significant increase in the number of real estate transactions in the area.
The number of homes sold in Massachusetts in November 2012 saw a 29.2 percent increase on the number sold during the same period in 2011. Furthermore, November 2012 saw 4,061 detached single-family homes sold. This is the first time that home sales of this type have exceeded 4,000 in November since 2004.
Residents should be aware that the prospect of fiscal reform by Congress may have an effect on the continuing health of the real estate market. Currently, homeowners are able to exercise a mortgage interest deduction in the federal tax code to deduct expenses associated with the interest on a home mortgage loan. According to the National Association of Realtors, if the United States government were to eliminate this tax deduction, home values could depress by up to15 percent across the nation.
As this report suggests, real estate transactions may be on the upswing, and more individuals may be willing to engage in the transfer of property. Even the seemingly straightforward task of purchasing residential property can involve complex tax and liability issues. Anyone involved in the purchase or sale of a home or other property asset should consider the legal issues involved in the sale and how they may affect a favorable purchase price.
Source: The Shrewsbury Lantern, “Shrewsbury real estate market continues to rebound,” Dec. 27, 2012