Thursday, July 8, 2021 / by Ryan Nager
What you need to know about the primary residence principal exemption.
You can potentially make up to $500,000 and not have to pay a single tax on it. This is called a primary residence principal exemption, and it states that if you decide to sell your home and you’ve lived in it for two out of the last five years, the money you make from that sale would not be taxed. A married couple wouldn’t have to pay any taxes on the gain from up to a $500,000 taxable event, and it’s $250,000 if you’re filing as a single person. This is a unique exemption that I’ve used myself, and I’ve seen clients use it to help them move to a more expensive property.
The primary residence principal exemption isn’t a one-time exemption either, you can use it as many times as you want. Especially with how much equity people have gained in our real estate market over the last couple of years, they may be worried about how much they’d have to pay back in t ...
Monday, May 3, 2021 / by Ryan Nager
Why have home prices grown so rapidly across the nation?
It’s very easy to attribute rising home prices to the influx of buyers in the market looking for homes right now. Of course, there has been an above-average level of demand, but that’s not necessarily the reason home prices have grown so rapidly.
The first real issue has to do with the supply of homes. As I’ve mentioned before, we’re currently experiencing a record-low amount of inventory. To give you some perspective: We would need almost 24,000 active listings to hit the market just to create some semblance of a normal market, which would be a 700% increase from where we currently are. At the moment, sellers are in charge, but we’re starting to see a little bit of fatigue; in some segments of our market, demand has been lower than it has in years.
Friday, April 2, 2021 / by Ryan Nager
Sellers in this market are running into problems and we’re solving them.
So much has been said about this low-inventory market. Combined with fears from the pandemic, a lot of people are staying put in their homes right now. If you’re in a situation where you don’t love where you live, I want to talk about some options that our sellers are successfully utilizing in today’s market to win as buyers, too:
"A lot of buyers are open to the idea of a leaseback in this market."
1. Do a leaseback. Buyers are making extraordinary sacrifices to secure homes these days. One of those sacrifices is a leaseback, which allows you to stay in your home for a period of time after it has sold to give you ti ...
Thursday, March 4, 2021 / by Ryan Nager
Here’s a quick update on Phoenix real estate heading into spring 2021.
Today we’re going to take a closer look at the spring market for Phoenix real estate in 2021. The word unprecedented is probably overused in today’s world, but it’s hard to find a better word to describe what’s happening right now.
"Homes are selling just as quickly as they’re listed."
For starters, we’re sitting at record-low inventory levels. There have never been this few homes for sale in Phoenix. Inventory is down almost 60% from where it was this time last year, and even that was low for our market. Additionally, homeowners have seen a 19% home appreciation rate year over year, so a lot of homeowners are sitting pretty with some nice equity in their properties.
The biggest things driving home price growth are record-low interest rates and an influx of people coming here from the coasts and other big cities. They’re able to offer a little more on ...
Wednesday, December 2, 2020 / by Jessica Nager
Are you concerned a housing bubble might be looming? In this post, I give you 3 reasons why the Phoenix Housing Market is nothing like the crisis we saw in 2005/2006. For more Phoenix real estate advice and tips on the current market, check out my youtube channel: https://www.youtube.com/channel/UCKwi5-5TiG3TIWWuY_GA8BA Reason # 1 - Rental Home Prices Are Rising Between 2000-2005 rental rates decreased as home prices increased. When home prices are increasing and rents are decreasing for the exact same home that is a strong signal of a real estate bubble. Today renters face stiff competition as rental rates are on the rise. Reason # 2 - Types of Buyers During the 2005 crisis, anyone could purchase multiple homes for little to no money down. Our buyers out there today are qualified with solid credit scores and the desire to live in that residence long term. Investors today are purchasing with all cash and typically 20% down, so we are seeing a lot of real money poured into the market. R! ...