Suffolk County NY economy and home value confidence seems to be on the rise, according to Fannie Mae's April National Housing Survey.
Americans continue to expect home prices to go up, with the projection averaging 1.3 percent over the next 12 months, the highest value recorded.
A high percentage (71%) of Americans still say it is a good time to buy while the percentage (15%) who said it is a good time to sell was up 1 point from March.
Doug Duncan, Fannie Mae's chief economist, says "consumer views of housing market conditions have become more supportive of home purchases, and sustained healthy hiring is required to help realize these improved expectations."
Suffolk County NY Economy Appears to be Increasing
The percentage of Americans who believe the economy is on the right track rose to 37 percent, a 2 point increase from the previous month and the highest level in the survey's two-year history. Still, an even greater 56 percent believe the economy is moving in the wrong direction.
Also, 23 percent of Americans reported their household income is significantly higher than it was a year ago, while 36 percent said their household expenses are significantly higher since the same time period. Both categories rose 2 percentage points compared to March.
The expectation for average rental prices decreased slightly to 3.6 percent; in March, respondents expected rent to go up by 4.1 percent over the next 12 months.
If respondents were to move, 32 percent said say they would rent while 64 percent said they would buy. The percentage of those who said they would rent increased 2 points and reached the highest level since November 2011.
With the Suffolk County NY economy and home value confidence apparently increasing, would you say things are on the right track, or moving in the wrong direction? We'd love to hear your thoughts.
Buying a Suffolk County NY home presents a major choice right off the bat. Buy a new home, 
or one that has been previously owned? You may want to consider the following factors when making a decision on this all-important question.
Planning and Design Flexibility
Buying a Suffolk County NY home that hasn't been built yet provides a greater amount of flexibility and customization options. Buyers who purchase land and build a house from scratch have complete control over the planning, design and finishing of the home, which provides the greatest degree of flexibility and customization.
If you're buying a Suffolk County NY home sold by a builder or developer, depending on the stage of development, you may be able to choose from a variety of floor plans, exterior finishes, flooring options, paint colors, bathroom fixtures, kitchen appliances, and lighting fixtures.
Buyers of previously owned homes don't have this flexibility, since someone else made all the decisions as to what that particular home would have when it was built.
Buying a Suffolk County NY Home – Layout and Maintenance
Buyers frequently have a particular layout style in mind when looking for a home, whether it's a large, open floor plan, or a home with distinct and separate living spaces. Newer homes reflect current trends in layouts, including larger kitchen and dining areas, high ceilings, increased closet space and more bathrooms.
Older homes may suffer from functional obsolescence with outdated layout, design and style features. For example, many older homes lack the "flow" that modern homes have, making it difficult to get from one room to the next.
Many older homes may only have one bathroom, regardless of the number of bedrooms. However, the pro's of buying a pre-owned home is, the landscaping is mature, and you don't have to nurse and care for a new lawn, trees and shrubbery.
Those buying a new home often do so with the intention of avoiding time-consuming upkeep and costly repairs. New homes are usually free of the structural defects – such as leaky roofs and cracking foundations – common in older homes. But just because you're buying a new home, you still should have a home inspection done, just to make sure the builder didn't shortcut somewhere that you might not see without a professional who knows what to look for.
All homes require routine maintenance, but a new home should not require any major work for a number of years.
Older homes do require more time and attention, but many buyers feel the extra effort is worth it to be in a home with more charm than newer homes tend to offer.
Warranties When Buying a Suffolk County NY Home
Builders usually provide warranties on brand new homes, covering any defects in construction. Warranties vary, but most last up to 10 years for certain items. Warranties like this provide a great deal of peace of mind for new home buyers.
Many previously owned homes are also able to get home warranties that will cover certain repairs during the warranty period. Buyers should know, whether new or previously owned, home warranties are limited. They do not cover every defect that might occur in the home. Be sure to read the fine print of your warranty.
Selling a Suffolk County NY home? Sellers need to be aware, with real estate prices continuing to tread along the bottom, it's a tough time to sell.
It's even more important not to make some of these dumb mistakes when trying to sell your Suffolk County NY home.
These are just a few of the mistakes you could make when selling a Suffolk County NY home. If you'd like more home selling tips, we have those for you at this site under the "Home Selling Tips" category.
As always, if you have questions, please don't hesitate to contact us or post them using our comment form.
Tax advantages of owning a Suffolk County NY home are probably not the number one motivating force behind buying a home. But the tax advantages associated with owning your own home are significant, and may be a factor in your decision to buy a home.
Mortgage Interest Deduction
If you itemize deductions you're generally able to deduct the interest you pay on debt resulting from a loan used to buy, build, or improve your principal residence, provided that the loan is secured by your Suffolk County NY home.
The ability to deduct mortgage interest also generally applies to second homes, though special rules apply if you rent the home out for part of the year. Interest you pay on up to $1 million in mortgage debt ($500,000 if you're married and file a separate federal income tax return) can qualify for the deduction (different rules may apply if you incurred the debt prior to October 14, 1987).
Interest on qualifying home equity debt of up to $100,000 ($50,000 for married individuals filing separately) is generally deductible regardless of how the loan proceeds are used. If you're subject to the alternative minimum tax (AMT), the AMT calculation doesn't allow a deduction for interest on debt that's not used to buy, build, or improve your Suffolk County NY home.
Qualified mortgage insurance premium payments made prior to 2012 can be deducted in the same manner as qualified mortgage interest, provided the mortgage insurance contract is issued after 2006. Congress is debating this tax deductible interest subject, and have been for several years. Each year, the possibility of this valuable deduction evaporating becomes more and more possible.
Could the mortgage interest deduction ultimately be eliminated? That seems unlikely, but elimination or reduction of the deduction has remained part of the ongoing debate, and was included among the recommendations contained in the National Commission on Fiscal Responsibility and Reform's December 2010 report.
Deduction for Property Taxes
If you itemize deductions, in most cases, you can deduct the real estate taxes you pay on your Suffolk County NY home in the year you pay them to the taxing authority. If you pay your real estate taxes through an escrow account, you can only deduct the real estate taxes actually paid by your lender from the escrow account during the year. For purposes of calculating the AMT, however, no deduction for state and local taxes, including any real estate tax, is allowed.
Capital Gains on Your Suffolk County NY Home
If you sell your Suffolk County NY home at a gain, you may be able to exclude some or all of the gain from federal income tax. For the most part, capital gain (or loss) on the sale of your principal residence equals the sale price of the home less your adjusted basis in the property. Your adjusted basis is the cost of the property (i.e., what you paid for it), plus amounts paid for capital improvements, less any depreciation and casualty losses claimed for tax purposes.
If you meet all requirements, you can exclude from federal income tax up to $250,000 ($500,000 if you're married and file a joint federal income tax return) of any capital gain that results from the sale of your Suffolk County NY home. This exclusion can be used only once every two years. To qualify for the exclusion, you must have owned and used the home as your principal residence for a total of two out of the five years before the sale. If you fail the two-out-of-five-year test, you might still be able to exclude part of your gain if your Suffolk County NY home sale is due to a change in place of employment, health reasons, or certain other unforeseen circumstances.
Special rules apply in a number of situations, including one in which you maintained a home office for tax purposes or otherwise used your home for business purposes. Special rules may also apply if you are a member of the uniformed services. Check with a tax professional about current laws that may affect the tax advantages of owning a Suffolk County NY home.
For more on current tax laws, visit the IRS website.
Suffolk County NY home prices rose for the first time in 10 months, according to the 
S&P/Case Shiller composite index released recently, an encouraging sign the battered housing sector is starting to stabilize.
It was the first time home prices have gained since April 2011. That gain was itself an anomaly in a string of declines stretching back to May 2010.
Suffolk County NY Home Prices Likely to Remain Weak
Yale economics professor Robert Shiller, the co-creator of the Standard & Poor's/Case-Shiller home price index, believes the Suffolk County NY housing market is likely to remain weak and may take a generation or more to rebound.
Shiller, the co-creator of the Standard & Poor's/Case-Shiller home price index, told Reuters Insider a weak labor market, high gas prices and a general sense of unease among consumers was outweighing low mortgage rates and would likely keep a lid on home prices for the foreseeable future.
David Blitzer, chairman of the index committee at Standard & Poor's, cautioned that while there were some pieces of good news in the report, some areas saw home prices still continuing their decline.
The S&P/Case Shiller composite index of 20 metropolitan areas gained 0.2 percent in February on a seasonally adjusted basis, matching economists' forecasts. Seven of the cities saw home prices drop on a seasonally adjusted basis, while home prices in two cities were unchanged. On an unadjusted basis, 16 of the areas slumped further.
Home prices in the 20 cities fell 3.5 percent year over year, moderating from the previous month's decline of 3.8 percent.
"Looking forward, we think homes sales will continue to trend upward, which ultimately will result in a slower rate of home value depreciation," said Stan Humphries, chief economist at Zillow. "But any housing recovery will be dependent on job growth. Continued progress in this area is essential to keeping the housing recovery, such as it is, on track."
Related News
Recent Comments