Newsletter

March 2013

Beverly Hills Market Watch

Home prices up 9.7% in January from year earlier, CoreLogic reports
U.S. home prices rose 9.7% in January from a year earlier, the biggest increase since 2006, a real estate data analysis firm reported Tuesday. Southern California was among the best performing regions in the country, according to Irvine-based CoreLogic. Prices were up 12.2% in the Los Angeles-Long Beach-Glendale market and 12.1% in the Riverside-San Bernardino-Ontario market. The only area of the country where prices of single-family homes, including foreclosure sales, rose more was Phoenix, where prices were up 22.7%, CoreLogic said. The data add to recent reports showing a housing rebound. "With these gains, the housing market is poised to enter the spring selling season on sound footing," said Mark Fleming, CoreLogic's chief economist. The January price increase was the 11th straight and the largest year-over-year increase since April 2006, before the housing market crashed. Prices in January were up 0.7% from the previous month. Overall, prices throughout Arizona were up 20.1% in January from the previous year, followed by Nevada at 17.4%, Idaho at 14.9%, California at 14.1% and Hawaii at 14%. Only Illinois and Delaware did not show price increases in January from a year earlier, Fleming said. By Jim Puzzanghera, L.A. Times

Marco Pirozzolo
Cell: 310.975.5765 Office: 310.724.7100
marcopirozzolo@gmail.com www.marcopirozzolo.com

Nanette Marchand
Cell: 310.617.5564 Office: 310.724.7100
nanettemarchand1@gmail.com

www.nanettemarchand.com

Wondering How Much Your Home is Worth?

How has the price of your home changed in todays market? How much are other homes in your neighborhood selling for? If you're wondering what's happening to prices in your area, or you're thinking about selling your house, Well be able to help. Just give our office a call for a no-fuss, professional evaluation. We won't try to push you into listing with us or waste your time. Well just give you the honest facts about your home and its value. We can give you the inside scoop on what's happening in the housing market near where you live!

Home Prices Closed Out a Strong 2012 According to the S&P/Case-Shiller Home Price Indices
Data through December 2012, released today by S&P Dow Jones Indices for its S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, showed that all three headline composites ended the year with strong gains. The national composite posted an increase of 7.3% for 2012. The 10and 20-City Composites reported annual returns of 5.9% and 6.8% in 2012. Month over-month, both the 10- and 20-City Composites moved into positive territory with gains of 0.2%; more than reversing last months losses.

Quote of the Day:

Eighty percent of success is showing up Woody Allen
From real estate to finances, construction to design, inside and out, Demo2Diamonds.com is a complete turnkey real estate investment operation which integrates each and every part of your property investment into one system. Were here to take your ideas and make them come to life. 1305 N Clark St (Sunset Strip) Ask Price: $2,250,000

Page 1

Newsletter
March 2013

Beverly Hills Market Watch

Tax Tips: Seven Ways for Homeowners to Save
USA TODAY: While economists and investors can debate whether buying a home is still part of the American dream, it's undeniable that the tax code remains highly favorable to people who own instead of rent. Whether you were a first-time buyer, a long-time homeowner who refinanced or a seller, there are a host of important deductions available. The easiest way for a family to get more than just the standard deduction is to claim tax breaks related to a house. Charitable deductions or a smattering of health care costs might not get you above the $5,950 deduction for individuals or the $11,900 mark for married couples. But a few of these big-time breaks can push you over the top and result in a much bigger return. The downside is no more simple tax returns, since you'll have to itemize. But the money you'll get back makes it all worthwhile. Here are seven important tax tips for homeowners to ease the process: Mortgage interest is your best friend: Taxpayers collectively get roughly $100 billion annually in mortgage interest breaks. If you just bought a home or refinanced in the last few years, the savings are even more significant, since more than half your monthly payment goes towards interest. Mortgage insurance is still deductible: There were fears that the deduction for personal mortgage insurance would fall victim to fiscal fights in Washington. However, Congress thankfully left it in place. That's a huge boon to lower-income homeowners who often can't afford a big down payment and must pay private mortgage insurance until they have at least 20% equity in their homes. Taxes are tax deductible: It sounds odd and is frequently overlooked, but homeowners can deduct their local and state property taxes on federal tax returns. There also may be special property tax benefits for lower-income homeowners based on your state or municipality of residence, so look into further breaks specific to your community. Qualified renovations count: Fixing a leaky faucet or putting crown molding in the living room is not tax deductible. But there are a number of items in the tax code that allow for tax breaks and credits. A host of items covered under residential energy efficiency can provide tax relief, including new solar panels or certain hot water heaters. There are also deductions that can be made for home office improvements, as well as for medically necessary changes, such as an entry ramp or a handicap-accessible bathtub. Unqualified renovations can count later: While that new addition might not be "necessary," the expense could be an important part of reducing your tax burden when you sell. This is especially noteworthy in hot real estate markets or for homeowners sitting on big property appreciation. The IRS allows you only $250,000 of profit when you sell a primary residence, but you can deduct any renovations that boosted your home's value from any total profit to get under that threshold. Find those receipts if you're sitting on a big profit and planning to sell. Claim selling costs: If you sold a home in the past year, costs including title insurance, advertising and real estate broker fees can also be claimed on your return. You can claim certain repairs to reduce your capital gains on the sale, presuming they were made within 90 days of the sale and clearly for the intent of marketing the property. Don't forget moving expenses: If you bought a home in 2012, there's a chance that you did so because of a job-related move. If this is the case, you may be able to deduct some expenses, provided you have the receipts. You must have moved 50 miles or more, and the reasons for your move can't be personal. Jeff Reeves is the editor of InvestorPlace.com.

Major Economic News This Week March 1, 2013

The big news this week was that no deal was reached to avert the sequester spending cuts. Despite warnings of "doom and gloom" the stock market closed up for the week! Obviously, investors don't see these cuts as any real risk to the economy. Even health care was up and defense did not see any real drops in their stock prices. These cuts are such a small percentage of the budget that I really don't see how they can have any real impact. In most cases, spending in these areas cut are pretty much rolled back a year ago levels. The argument was that targeted cuts would have been better than across the board cuts. Unfortunately, there was no agreement on targeted cuts or limiting deductions to avoid cuts. The good news is that between these cuts, the end of year tax increase deal, the 2011 cuts, and winding down the wars the U. S. is expected to save over 4 trillion dollars over the next 10 years. The growing economy should make tax revenues higher as well. I would expect to see an upgrade in the United States credit rating soon. Bond yields dropped this week as well, easing interest rates! So for us its more of the same. Low rates, rising prices, multiple offers and low inventory. We are beginning to see more homes priced too high and not selling. There is definitely a cap presenting. I think that is a sign that we will see the market normalize within a year. The 30-year mortgage rate slightly fell this week to 3.51 % from 3.56% last week, dropping near the record 3.31% low reached in November. Last year this time, the 30-year FRM averaged 3.95%. The 15-year rate slipped to 2.76% from 2.77% last week. The record low is 2.63%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.61 percent this week with an average 0.6 point, down from last week when it averaged 2.64 percent. A year ago, the 5-year ARM averaged 2.83 percent. 1-year Treasury-indexed ARM averaged 2.64 percent this week with an average 0.4 point, down from last week when it averaged 2.65 percent. At this time last year, the 1year ARM averaged 2.72 percent. These low rates are continuing to help the drive housing market up, while mortgage delinquencies are decreasing and home prices are steadily rising as demand surges. Syd Leibovitch Rodeo Realty, Inc.

This newsletter and any information contained herein are intended for general informational purposes only and should not be construed as legal, financial or medical advice. The publisher takes great efforts to ensure the accuracy of information contained in this newsletter. However, we will not be responsible at any time for any errors or omissions or any damages, howsoever caused, that result from its use. Seek competent professional advice and/or legal counsel with respect to any matter discussed in this newsletter.

THIS NEWSLETTER IS NOT INTENDED TO SOLICIT PROPERTIES CURRENTLY FOR SALE.

Page 2