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THE HARDING REPORT / March
2004
1. The
Market Outlook
The
housing markets in Jefferson and Berkley Counties continues to boom (see
statistics in Section 3), despite the cool weather and snow accumulation.
Interest rates continue to remain low which is stimulating the property
market. Both new developments and historic homes are being active sold.
Houses are selling equally well whether they are priced at $124,900 or
$565,500. The re-finance boom has slowed down since last year, allowing
for quick turn-around by lenders. Many local realtors believe that the
market will remain strong for the forseeable future.
2. Planning
A rewrite of Jefferson County land use laws
should help to make them understandable to the average person, better
organized and allow developers to begin work on projects as quickly as
possible, according to planning officials. The changes are required by the
County's new Comprehensive Plan adopted Jan 22 2004.
3. Jefferson County
Property Sales Year End Results and Sales
January 2004
2003 was an incredible year for
real estate in Jefferson County. Take a look at these figures:
* Total Property sold dollar
value increased 21.37%
* Year end sales topped the $1
billion mark for the first time ever, reaching $1.20 billion for Jefferson
County
* Average sold price increased
from $300,321 to $343,689
* Average days on market fell
dramatically from 21 days to 14 days
* Sale price as a percentage of
list price increased fro 94.67% to 98.59%
(source MRIS)
January 2004 Market Info
They said the snow would slow sales down...
but boy did it ever! Take a look at these numbers, sales were very very
brisk last month!
* Sales price as a percentage of asking
price up from 93% to 98% compared to same period year before
* Average days on market down from 110 days
to 68 days
* New listings up from 24% in January 2004
compared to same period previous year
Year end
results for Jefferson County will be available soon...
we hope.
4. Insurance and WV
A review of other states insurance laws by
the WV Insurance Commission listed areas of West Virginia law that are
different than those in other states. For example:
46 states have an anti-fraud unit - West
Virginia is one of ten states that do not investigate insurance fraud.
43 states settle third party complaints
administratively -West Virginia is one of only seven states that allow third
party lawsuits for alleged violations of the Unfair Trade Practices Act.
This second lawsuit occurs after a claim is settled and paid in full.
49 states have less restrictive reinstatement
laws. West Virginia requires a company to renew an automobile policy even if
the premium payment is 89 days late. It is one of the most restrictive
renewal laws in the nation.
- Tom
Maiden, M.B.A., CFPTM, CLU - MAIDEN Financial Inc., Shepherdstown
WV, Agent of Nationwide Life Insurance Company.
5. Renovation
Loans
Renovation Loans Offer Smart Way to Finance Home Improvements
Every year approximately 26
million homeowners make improvements to their home. In the past, there were
limited financing options available to homeowners interested in renovation
projects if they didn't have sufficient equity in their home. Today's
homeowners have more choices, including renovation loans that were developed
specifically for the purpose of helping homebuyers, homeowners, and
investors finance home improvements.
According to the U.S. Census, more than 67 percent of the
nation's housing stock is at least 25 years old, so the demand for mortgage
products that address the needs of older homes is real.
With renovation loans, homebuyers have the option to consider
homes that aren't perfect now, but could be with a few renovations. As the
housing stock continues to age, the ability to obtain extra financing for
renovation expenses will become increasingly important to homebuyers.
- Brian Foss,
Renovation Sales Manager, Wells Fargo Home Mortgage, Shepherdstown, WV
6. Five
Tax Tips for Residential Real Estate
* Deducting
Points: Questions often arise about deducting points paid to
secure a mortage on a previous residence. If a taxpayer did not deduct all
the points paid to secure a mortgage on the taxpayer’s old home, the
taxpayer may be able to deduct the remaining points the year the residence
is sold.
* Gain
On Sale Of Home: If a taxpayer sold his or her residence he or she
may be able to exclude from income any gain up to $250,000 (up to $500,000
on a joint return). If a taxpayer can exclude all of the gain, the taxpayer
does not need to report the sale on his or her tax return.
* Casualty
Loss: Taxpayers can deduct their uninsured casualty losses either
in the tax year the loss occurred, or in the previous tax year if the
President declared it a disaster area. If the taxpayers personal loss was
not paid by insurance or if it meets the "sudden, unusual or unexpected" IRS
test it may qualify as a casualty loss.
* Reporting
Residential Rental Income: A taxpayer
should report rental income on his or her tax return the year it is
received. Remember a taxpayer should not include a security deposit in his
or her income if the taxpayer plans to return it to the tenant at the end of
the lease; but if the taxpayer keeps the security deposit during any year it
should be counted as income. Please note if an amount called a “security
deposit” is to be used for the last rental payment on a lease then it should
also be included as income.
* Personal/Rental
Use of Vacation Homes: If
a taxpayer owns a vacation home and rents it out when not using it
personally, the taxpayer should divide his or her expenses between rental
use and personal use to determine deductions and income.
-
Nichols DeHaven & Associates CPAs, PLLC,
Kelly Parsons Tax Tips For
Residential Real Estate
7. Upcoming
Events
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The Harding Report and articles contained within are
for informational purposes only. This information is not intended to be
legal or tax advice. Please consult your attorney or tax advisor.
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