Where Are the Home Sellers?

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Higher Taxes May Be In Store for Some Home Sellers Who Wait

Low inventory levels have plagued home buyers all year long.  As the 3rd quarter ended, Manhattan Beach had 2.9 months of inventory, and 2.4 months in Hermosa Beach and Redondo Beach.  Those numbers represent a drop of 47.5% in Manhattan Beach, 30% in Hermosa Beach and 46.6% in Redondo Beach against inventory figures from a year ago.  And although sales are strong, there is definitely a sense among buyers and real estate professionals that the low inventories are impeding sales.  Many potential home sellers feel that they could easily get the home sold, but then where would they go?

Some home owners who would like to move are still locked in to their homes by the loss of equity which resulted when prices dropped. But financial advisors are recommending to some clients that they sell before the end of the year.  If the seller has been in the property for many years and has gains beyond his $250,000 or in the case of couples, $500,000 exemption, those gains may be subject to higher capital gains tax and the 3.8% Health Care Tax starting next year.  If you are in this category, you would be wise to discuss your plans with your tax consultant or financial advisor.  With properties selling quickly in the Beach Cities, you might just be able to close a sale before December 31, 2012 if you act quickly.

Call me 310-995-1597 if you need a valuation of your property, and to learn what you could expect from a sale of your property.