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January
29

Proposed Changes To Estate Tax and Stepped-Up Basis Rule

Proposed Changes To Estate Tax and Stepped-Up Basis Rule

Biden's administration may spell changes to estate tax and stepped-up basis rule. Along with a new administration comes tax code changes.

Proposed Changes to Estate Tax and Stepped-Up Basis Rule

While it remains unclear exactly what tax changes President Biden's administration will usher in, two possibilities are that he will propose lowering the estate tax exemption and eliminating the stepped-up basis on death. The first would affect only multi-millionaires, but the second could have an impact on more modest estates and their heirs. 

In 2017, Republicans in Congress and President Trump doubled the federal estate tax exemption and indexed it for inflation. For the 2020 tax year, the exemption is $11.58 million for individuals and $23.16 million for couples. As long as your estate is valued at under the exemption amount, it will not pay any federal estate taxes, and the vast majority of estates do not owe any tax. President Biden has expressed an interest in lowering the estate tax exemption. It could be halved to $5 million or even reduced to the previous exemption of $3.5 million for individuals. 

Another possible tax change is to how property is valued when it is passed on at death. "Cost basis" is the monetary value of an item for tax purposes. When determining whether a capital gains tax is owed on property, the basis is used to determine whether an asset has increased or decreased in value. For example, if you purchase a stock for $10,000, that is the cost basis. If you later sell it for $50,000, you will have to pay taxes on the $40,000 increase in value. 

Under current law, when a property owner dies, the cost basis of the property is "stepped up." This means the current value of the property becomes the basis. For example, suppose you inherit a house that was purchased years ago for $50,000 and it is now worth $250,000. You will receive a step up from the original cost basis from $50,000 to $250,000. If you sell the property right away, you will not owe any capital gains taxes.

According to an article in the New York Times, the current administration may propose to eliminate the basis step-up rule. In the past it was difficult to determine the original cost basis of some property, but in the digital age that information is more easily gathered. The change could result in tax increases for some people inheriting property that has risen significantly in value. 

Another question is whether either of these changes will be made retroactively. It is unlikely, but possible, that if Congress changes these rules later in the year, they could be made retroactive to the first of the year. 

If you are concerned about these rules changing, a trust may be a good way to protect your estate. Property in a trust passes outside of probate, and there are specific types of trusts that are designed to protect assets against estate taxes and capital gains. Talk to your attorney to determine if a trust is right for you. 

Tax experts agree that while changes to the tax code are likely, they probably will not happen right away. The coronavirus pandemic and the recession it has triggered mean that Congress has other priorities now. 

View the full article at www.elderlawanswers.com

January
12

Real Estate Market Update January 2020

Real Estate Market Update January 2020

In this Beacon report you will see information about the housing market from 1997-2020. Median sales price trends in Bend and well as Sunriver and La Pine, Oregon.

the Central Oregon real estate market has experienced a significant decline in the level of inventory this last quarter. The median single family residence sale price in Bend declined for the second consecutive month as the number of sales was nearly unchanged from November and December. Inventory declined to .3 months supply.

    

Redmond single family residential real estate market median sales price was $375k in December and had an increase in the number of sales when compared to November. The inventory in Redmond remains less than half month suppply.

Sunriver's single family residential real estate market median sales price was $635k with an average of 4 days on the market. Current Sunriver inventory is .2 months.

   

La Pine's single family residential median sales price  was $325k with 17 days on market and a current inventory of .3 months.

With interest still being at record lows buyers are stacked up waiting to purchase properties as soon as they come on the market. If you are looking to sell a property now is a great time.

If you have any questions about the Central Oregon real estate market give me a call! 541-815-0906

View the whole report here

This information is from our MLS system, it is deemed liable but not guaranteed and is subject to change.

November
10

Could we see a flurry of foreclosures in 2021?

Could we see a flurry of foreclosures in 2021?

Although there is more demand for housing, there is also a higher risk of losing it, and many economic signs point to a rocky road ahead. Here's why this housing boom won't last.

That's what we're seeing in the housing market right now. Not only will this housing boom not last, there may be a reckoning in about a year.

Real estate is up

When the economy first shut down, many were hoping for a V-shaped recovery, but as more time passed, it became clear that was not a likely outcome. One hallmark of this downturn, however, is that the economic effects are not uniform, with geographic and industry-specific micro-recessions and micro-recoveries punctuating a staggered downturn.

Within this context, the housing market has seen a V-shaped recovery. There was the initial plunge, of course, but over the last couple of months, we've seen strong consumer demand for new homes.

Housing sales are at a 13-year high, and home prices are up 7.2 percent from last year. Google searches show a 50 percent year-over-year increase in home improvement searches and a 30 percent year-over-year increase in homes for sale searches.

Some of this can be explained by how society is reorganizing itself in the face of a pervasive pandemic. As work-from-home asserts itself as a long-term reality, consumers look toward home improvement to accommodate the new lifestyle. Many people are also fleeing high-density urban areas in favor of the suburbs or rural areas.

Homeowners/renters are vulnerable 

According to a recent survey, most renters and homeowners could not pay more than a month's rent or mortgage payment if they were to lose their job. Part of the government programs protecting consumers was delayed payments, or forbearance, which renters and homeowners will be responsible for paying back in the coming months.

One in every 12 mortgages is now past due, a delinquency rate that has not been seen in years. As of August, 90 percent of renters are paying rent, as opposed to 92.1 percent in August of last year — not a huge drop but still a signal that all is not well for tenants.

Jobless claims rose back above one million this summer. The stimulus package that protected unemployed Americans elapsed, and many were using this added stimulus to pay their rents and mortgages.

While the president has issued an executive order, it's a reduced payment that some states are unwilling to contribute to. Any signs of weakness from rent and mortgage payers this summer will become more apparent in the coming weeks, as bills continue to be due but the extra stimulus and unemployment benefits are not there to cover.  

Simultaneous rise and fall

The demand for new homes is causing strong optimism from homebuilders, as seen by the recent record high in the NAHB/Wells Fargo Housing Market Index. Meanwhile, consumer confidence is down as of August.

While demand for new homes appears strong, many may be under appreciating the financial vulnerability of those residing in existing homes. This appears to be a recipe for continued building while people continue to lose jobs in a volatile marketplace. In other words, there is a simultaneous bullish housing market as well as signs of a bear market in the coming year.

When you consider all of these factors together, you start to see some similarities to the housing crisis of 2008, most likely not in severity but in structure — that is, a boom cycle followed by a bust.

Another aggressive stimulus could alleviate some of these concerns, but the reality is that there are many to-be-determined economic factors. All the while, the presidential election, which historically has weakened consumer confidence in the months leading up to it, looms large. Housing looks good now, but proceed with some caution heading into 2021.

Andrew Duguay is the chief economist at Prevedere, an industry insights and predictive analytics company, in Boston. Connect with him on LinkedIn or Twitter. 

October
27

Is The Highest Bid The Best Bid?

Is the highest bid the best bid?

An offer on your home moves you one step closer to the finish line in the selling process. And if you're lucky, you'll receive multiple offers from a range of bidders. 

The highest bid is the obvious choice, right? Not necessarily. Here's what to consider before moving forward on an offer:

Focus on your priorities. Take this step early, before any offers roll in. Make a list of what's most important to you in the sale of your home, like a tight moving deadline or your financial needs. Are there any requests that would make an offer a deal breaker for you? 

Review the contingencies. Now that you've established your top priorities, determine your bidders' conditions for the sale. Common contingencies for potential buyers include a property appraisal and a home inspection. 

Compare earnest money amounts. People who are interested in purchasing your home need to show you that their offer is made in good faith. An earnest money deposit proves the buyer is serious about the transaction. The more money they put into the deposit, the more likely they are to be able to back it up with financing.

Be aware of unusual requests. A bidder could ask you to make unnecessary repairs or leave all your appliances in the home for them. Their offer might be high, but if something unusual interferes with your top priorities, it might be best to move on to another option. Together, we'll carefully read over their requests and discuss any questions or concerns you may have.

Are you ready to get a great offer on your home? Get in touch today.

October
14

How To Buy a Home Sight Unseen

How to Buy a Home Sight Unseen

If you're thinking about buying a house right now, you're probably wondering how best to go about it. The truth is, you can still do in-person tours in some places, depending on the local regulations, but many people are buying homes right now without stepping foot inside until the deal is done.

Sight unseen deals are nothing new, but up until recently they were used mostly for foreign buyers, investors, or long-distance home shoppers. These types of remote deals have become more mainstream in the wake of the COVID-19 pandemic, and there's evidence to suggest they're more than a passing trend.

A survey from 2018 showed that about 20% of homebuyers had made an offer on a home without seeing it first. A more recent, COVID-19-influenced survey, found that 45% of homebuyers in the last year had made an offer without seeing the property in person. In April of this year, realtor.com found that "24% of 1,300 consumers surveyed said they'd be willing to buy a home without first seeing it in person."

If you're considering purchasing a home sight unseen, keep these tips in mind:

Work with the right agent
If you're buying a house without touring it first, you have to depend on your agent to be your eyes and ears. It's crucial that you go with a local expert, especially if you aren't super familiar with the area.

Take advantage of technology
Online listings with 3D home tours are up by more than 600% since the pandemic hit. Listings that have this functionality are likely to rise to the top because they give you a better feel for the home. Remember, whether you're looking at a carousel of images or a 3D tour, don't forget to ask your agent to go a step further.

"Once you know which homes you're most interested in, have your agent book some showings and take you along on the tour using FaceTime," said HomeLight. Being able to view the property with someone in real-time will allow you to ask questions while getting an understanding of the "flow" of the home.

Then, ask for a floorplan
Today, you're more likely to find home listings that include a floorplan image. If you don't see one, make sure to ask. While video tours offer an understanding of how a home feels, a detailed floorplan helps you ensure it measures up to your needs.

Knowing the full layout of a home will give you some insight on what day-to-day life will be like. For example, watching a video tour might not reveal the fact that the new home office you're excited about shares a wall with a noisy laundry room. Also, being able to quickly reference dimensions will allow you to imagine how you and your furniture will fit into the new space.

Order an appraisal and a home inspection
Even in cases where they're not required, you don't want to skip these steps. Especially when you can't or don't want to tour a home yourself, having expert and objective documentation regarding the value and condition of the home is more important than ever.

September
18

Central Oregon Real Estate Housing Market Update

Central Oregon Real Estate Housing Market Update for August 2020

Bend, Oregon

Bend has seen the housing prices stabalize a bit for August but inventory is lower than it was in July. The new detached single family residence permits increased to 76 from 46 in July. Building is definatly going on and growth is happening in Bend.  Right now we are waiting to see how much the wildfires across or state will impact us.

Redmond, Oregon

Redmond's single family residendial housing market median sales price has increased aproximately 5% and the level of inventory is holding steady right now.

Sunriver, Oregon

In Sunriver the inventory is low with a median average sales price of $507,000. 

Sunriver market update

La Pine, Oregon

Right now La Pine is seeing a lot of action but inventory is low and the prices are rising, more people are buying in La Pine as Bend's prices increase. Average median price in La Pine is $336,000. This has rose from the 4th quarter in 2019 when we were at a median price of $248,000.

In the Central Oregon real estate housing market we have been dealing with low inventory which is leading to multiple offer and homes selling for more than they were listed for. Right now it's a touch time to be a buyer but a great time to be a seller. It is defianatly a sellers market.

With Covid and the wildfires it is so hard to know what to exspect with the real estate market as we head into fall.

Read the full real estate market report here

If you would like to know more about the housing market give me a call 541-815-0906 or send me an email keith@isellsunriver.com

August
11

Central Oregon Housing Market Update

Central Oregon Housing Market Update for August 2020    

The Central Oregon houseing market has taken off, the single family median sale price in Bend has broken another record in July. 
Last month the median  sale price was Central Oregon Housing Market Update
$529,000, up 12.55% from July 2019.  The data was reviewed three times in order to ensure the $529,000 was correct.  The number of sales in Bend reached over 300 sales in July.  Demand is strong and the inventory level fell slightly lower than a one month supply.  This spike may be temporary and time will tell if the trend remains over $500k.
 
In Redmond, Oregon the housing market for single family residence had a slight increase in July, $345k, up about 9.52% from July 2019.  

Building permits in  Bend and Redmond are at typical levels.

In the report you will also find the smaller outlining areas of Bend, Or.  Sisters, Or the median single family home price was $499,000 with 15 sales and only and average of 33 days on market. Inventory in Sisters is very low with only a two month supply.

Sunriver, Or housing market is very hot right now as well, median single family home is $507,000 with an average of only 63 days on the market, we are finiding much lower numbers than this and also receiving multiple offers. The number of single family home sales was 21 with a less than a two month supply. Inventory in this market is very low for this time of year and buyers are just waiting for homes to come on the market. There is a lot of cash sales right now as well.

The La Pine housing market has really taken off with Bend jumping in average sales price La Pine has come up in their sales prices as well. The median sales price for single family home in La Pine is $336,000, with 27 sales and an average of 27 days on the market and only 2 months inventory.

Right now the market is very hot, if you are looking to buy the best way to win at multiple offers is make your best offer. If you are a home seller now is a GREAT time to put your home on the market to get the most ROI on your investment.

If you have questions about what the Central Oregon housing market is doing please give me a call.... 541-815-0906 or email me at keith@isellsunriver.com

 

 

*Information obtained from the MLS of Central Oregon with permission of COAR, compiled reports by Donnie Montagner with Beacon Appraisal. Information is deemed reliable but subject to change.

June
4

Deschutes County Real Estate Market Data

Deschuts County Real Estate Market Data

Real estate market data for Deschutes county includes, Sunriver, Bend and La Pine. Keep in mind when looking at the graphs we are in the process of popping back from a pandemic that shut down our towns for the last two months. With that in mind these number are actually very impressive.

sunriver-median-sales-price-graphsunriver-new-listings-real-estatesunriver-pending-real-estate-home-sales

Real estate data for the first quarter of 2020 for Sunriver, Oregon

For the first quarter of 2020 Sunriver had a total of 31 residential properties sold, that is a 3% change from last year with not short sales or bank owned properies. The average real estate sales amount was $601,658 that up from last year by abour 11% with a median sales amount of $506,000. Average days on market for Sunriver was about 129 days, that is us from last year by 11% but keep in mind that Sunriver has been shut down for 2 months during this quarter, so actually that is not bad numbers.

Total number of condos or townhomes that were sold in Sunriver was 9, that is down by -36% with an average sales amount of $326,521 and a median sales amount of $355,788 with average days on market of 99. 

sunriver-real-estate-stats

Deschutes County Real Estate Data for Bend, Oregon

Total solds for Bend residential real estate sales with less than one acre in the first quarter were up from 2019 by 18% with 455 solds now short sales and 1 bank owned property. Average sales amount was $546,461 up by 7%. Median sales amount was $454,600 up by about 3% from last year. Residential real estate in Bend with over one acre was up from last year by 26% with a total of 68 solds, average median sales amount of $779,500 and average sales amount of $896,100. 

There were 12 manufactured homes sold with less than 1 acre  and 7 manufactures homes sold with more than 1 acre this number is down from last year with an average sales amount for less than one acre of $292,729 and $349,357 for over one acre. Townhomes and condos sold in Bend were 54 thats a 6% increase from 2019 with a median sales price of $334,950 an increase of 3%.

See the Bend 1st quarter statistics table below for more information.

Bend Oregon real estate stats for first quarter 2020

Overall in Deschutes County it is still a sellers real estate market, home prices are holding their value and I would say they will even go up as we go into the second quarter and head into the summer months. With pending sales declining in April during the middle of the pandemic we were wondering what direction our housing market was going to go. Now we see pending are higher in May than they have been all year, this should give you hope that prices are going to increase.

If you area thinking of selling your home, listings are very low and we are finding that if priced right we are getting multiple offers and in some cases driving the price up above the asking price. We are have a 40% decline in newly listed homes for sale vs last year. That's a huge decrease!

Find out what your home is worth today just by entering your property address, go to the main paige of www.isellsunriver.com and scroll down to enter your address.

If you have any questions about this report or what is going on in the Sunriver, Bend housing market give me a call/text at 541-815-0906 or email keith@isellsunriver.com

 

"Information deemed Reliable but not Guaranteed." Information was gathered from Central Oregon Association of Realtors.

November
27

Bend Oregon Inclusionary Zoning FAQ

Bend Oregon Inclusionary Zoning FAQ

Inclusionary housing

Definition
Inclusionaryzoning(or inclusionary housing as it is alsoknown)is a term which refers tomunicipal and county planningordinancesthat require a given share of newconstruction to be affordable forpeople with low to moderate incomes.

Issue Overview
Inclusionary Zoning is an impactful policy, the effects of which could be detrimental to central Oregon communities within thecontext of thecurrent affordable housing crisis. Price-controlling a designated amount of units within a specified area will ultimately result in the opposite of the desired effect –pricing out the middle-class buyer and creating a steep entrance into the housing market.

Until recently, a statutory preemption existed in Oregon which banned Inclusionary Zoning. However, during the 2016 short session, state lawmakers approved a package of housing legislation that included a bill which reverses the 17-year ban on Inclusionary Zoning. This bill –SB 1533B –provides the limited ability for cities to require somelarge multifamily developments, including workforce housing, if the city adopts the requiremen

What's in the bill?
Specific provisions of the bill include:
Requirements may be imposed on developments of 20 units or more of multifamily developments with at least three adjacent units within a development.

Jurisdictions may require that up to 20% of units be affordable at 80% of AMI or above. Jurisdictions must offer developers the option of paying an in-lieu fee, and at least one of several incentives related to the requirement of affordable housing. Requirements and incentives may be determined by each locality.

Communities may offer voluntary incentives designed to encourage affordability in addition to or independently of affordability requirements.SB 1533 also provides cities and counties with the option to create a dedicated revenue source through the imposition of a construction excise tax to offsetthe costs of creating affordable homes within their communities.Residential construction fees must be capped at 1% of permit value and 100% of revenues must be dedicated to affordable housing

The Loophole
A significant loophole currently exists in Inclusionary Zoning that extends the policy's reach in the case of annexation. The loophole essentially allows a city to require whatever amount of Inclusionary Zoning it desires when land is annexed into the city.

What's next?
The passage of SB 1533B and the subsequent lifting of the ban on Inclusionary Zoning gives Oregon cities the option to adopt Inclusionary Zoning policies. So it is now up to city councilsto determine whether or not –or to what degree –their city adopts Inclusionary Zoning policies.

COAR's Position
We recognize that compromise is necessary in order to pass legislation that addresses the affordability crisis while also protecting the interests of developers and REALTORS®. However, it is COAR's position that Inclusionary Zoning is a detrimental policy that will ultimately increase the price for homebuyers and decrease both the seller's bottom line and the supply of homes.COAR maintainsits opposition to Inclusionary Zoning and will oppose the efforts of any cities within itsjurisdiction that attempt to adopt Inclusionary Zoning as permitted by SB 1533B, as well attempts to extend the policy's reach through annexation

Resources
For more information on Inclusionary Zoning, reference the following resources:

Bento, A., Lowe, S., Knaap, G-J., & Chakraborty, A. (2009). Housing Market Effects of Inclusionary Zoning. Cityscape: A Journal of Policy Development and Research, vol. 11 (2). p. 7-26. -click here

High, A. (2016, February 21). Letter: Inclusionary zoning is not right for Bend. The Bulletin. Retrieved from http://www.bendbulletin.com/opinion/4006839-151/letter-inclusionary-zoning-is-not-right-for-bend 

Means, T. & Stringham, E. P. (2012). Unintended or intended consequences? The effect of belowmarkethousing mandates on housing markets in California. Department of Economics, San Jose State University; School of Business and Economics, Fayetteville State University. -click here

Poverty & Race Research Action Council. (2014). Inclusionary Zoning: A Selected Annotated Bibliography. -click herePowell, B. & Stringham, E. (2005). The Economics of Inclusionary Zoning Reclaimed: How Effective are Price Controls? Florida State Law Review, vol. 33:471. p. 471-499. -click here

Schuetz, J., Meltzer, R., & Been, V. (2008). Silver Bullet or Trojan Horse? The Effects of Inclusionary Zoning on Local Housing Markets. Furman Center for Real Estate & Urban Policy. -click here

Theriault, D. C. (2016, March 17). Kate Brown signs bills on affordable housing rules, renter relief. The Oregonian. Retrieved from http://www.oregonlive.com/politics/index.ssf/2016/03/kate_brown_signs_bills_on_affo.html -click here

Article provided by: Central Oregon Association of Realtors (COAR)

 
November
13

Central Oregon Real Estate Market Update

Central Oregon Real Estate Market Update

The real estate housing market in Bend was still going strong in October with a median sales price per sq. ft for single family residence of $254, that's up from the previous month when it was t $231. Days on market for sold properties increased a bit from 77 to 86 days in October.
Sales did slow in September from 252 the previous month to 213 and then shot back up in October to 220 sales.  Amazing enough the median sales price is higher in October at $471 than it was in July at $470.

Now is a great time to put your home on the market if you wanting to sell, the market is still strong and there is less inventory.

Bend real estate market

In bend if your looking for a home under $300k there is not much to choose from, only 4 homes on the market between $250 - $300 and there is none under the $250 price point. Even the $300-$350 price point there is little to choose from with only 35 homes on the market.

If your looking for a bit more affordable housing Redmond is great option with the median sales price at $327 and the price per sq.ft at $197.  Redmond is growing like crazy, with the prices in Bend jumping up people are looking at Redmond. Building permits in October increased from 45 the previous month to 56 in October, Bend's permits fell from 51 to 25 in October.

There are not as many sales in Redmond as there were Bend but the sales increased from the previous month at 88 to 90 in October and the days on market has been holding the last three months at an average of 73 days.

Redmond real estate market

Sisters average sales price has fallen under Bend and is now at $419 with an average of 104 days on the market and a current inventory of five months.

In Sunriver the current inventory is an average of 4 months and a median sales price of $550, days on market art holding at 104 days. We are finding in the Sunriver market if the home has any updates and is price competitively, they are selling very quick and sometimes with multiple offers.

Real estate in La Pine continues to amaze us, the price of housing has jumped, the media sales price is $257 with 113 days on the market and 5 months inventory. La Pine is now being looked at as the alternative place to live with Bend and Redmond's housing prices rising. Watch the market in La Pine because I don't think you will see this area's prices doing anything but going up.

If you would like to view/ search all properties in the Central Oregon check out our website at www.isellsunriver.com

View the whole real estate update report here.

 

 

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