If you have been thinking about making a change in residence, it would be prudent to take action today. Here are two strong reasons:
- The long-term capital gains from the sale of property are now taxed at a maximum rate of 15% and short-term capital gains are taxed at 35%. In 2013, a scheduled increase would place the maximum tax rate of 21.2% on long-term capital gains and 40.8% for short term.
- Medfield has a drought in available homes. Today, we have only 43 homes on the market available for buyers. This time last year, we had approximately 72 properties.
Attributing the active sales market to the extremely low interest rates is not surprising. The statistic that approximately half of all homes sold are first time home buyers means the interest rates are pulling renters toward purchasing their first home. This is demonstrated by breaking down my 13 real estate transactions year-to-date in 2012, in which five of the buyers were first time homeowners.
The fall season has just begun and you could easily be in your new residence by Jan 1, 2013, and toasting to capitalizing on a seller market and your real estate acumen that help you deflect the threat of rising capital gains.
Please ask me to email you a comparable market analysis for your home. It will give you a means to determine if "the time is right" for you to sell your home.