Posted November 16, 2012
Dear Friends,
Good News! The Santa Barbara Real Estate Market has been very robust in 2012. The number of sales have been up every month this year and are higher than sales for the last five years. This has caused our inventory of property listings to shrink which is pushing the demand for housing over the supply of available homes on the market. This lack of inventory has also started inching prices up slightly in certain areas of Santa Barbara.
Interest rates are at historical lows! Ihave included a chart showing the history of interest rates since the l980’s. I think you will appreciate just how fortunate we are to have rates starting under 4%. Now would be the perfect time to consider re-financing or purchasing. I have names of excellent lenders should you need help with this.
In addition, check out this informative article regarding the new “Medicare Tax” that will apply to real estate transactions starting in 2013. This 3.8% surtax was passed in 2010 to help fund the new health care mandates and kicks in next year on many fonns of investment income including some interest, dividends, rents and capital gains. Determining whether you will be subject to the tax is no easy matter. It is a confusing tax that has many tax attorneys and accountants scratching their heads. Hopefully, this article will give you useful information.
Some of you may be aware that my husband passed away in September. I am now back at work and it seems to be helping me regain my focus. As always, if you have any real estate needs I am here for you. This is a good time for me to thank you for your continued support and loyalty.
Wishing you and all your loved ones a Happy Thanksgiving,
Gail
