Don’t let the title worry you, there’s no diving going on! The crisis is over (for now) and the deal has been hammered out to side-step the looming fiscal cliff recently and even though the dust has barely settled the changes have made many winners and losers. For now however most experts agree that the real estate industry is most definitely on the winning side and should continue recovering in 2013.
In part this is due to the mortgage interest deduction and the one year tax break on mortgage debt forgiveness being protected in the new deal; this should allow homeowners who are refinancing or struggling to get a little relief. These changes are hoped to also help continue clearing out much of the foreclosure real estate “shadow inventory” as well.
“An extension of the tax break is positive for home values by reducing the number of foreclosures and helping more troubled borrowers stay in their homes,” wrote Jaret Seiberg of Guggenheim Partners. “That means less supply on the market.”
Consider also how the real estate market was bolstered by the surge in short sales during the last quarter – more than 90,000 short sales were completed – thanks to streamlined procedures and a more aggressive stand by big banks.
All of these contribute to positive signs ahead for real estate in Idaho for 2013, as we have already been fortunate to inch past many of the difficulties other areas of the nation could not escape. The new year is an exciting place to be; we’re excited at the prospect of being able to help people find the right homes for them this year as well as helping home sellers in Idaho benefit from the return of the market.