Homeowners: File Now for Homestead Exemption
Last year’s homebuyers can submit homestead exemption applications before March 1 – their once-per-year chance to apply for up to a $50K property tax reduction. ORLANDO, Fla. – New homeowners – and especially first-time homeowners – can lower their home’s estimated value for tax purposes by up to $50,000 if they apply for and receive a homestead exemption. However, they only have two months to do so through their county property appraiser, which can be found online. Applications must be in before March 1, 2023. The exemption rewards Floridians who live in the home. Of the $50,000 exemption, the first $25,000 applies to all property taxes, including school district taxes. The additional exemption up to $25,000 applies to the assessed value between $50,000 and $75,000 and only to non-school taxes. (See section 196.031, Florida Statutes.) If applying for the first time, they Florida Department of Revenue says new homeowners should be prepared to answer the following questions: Whose name or names were on the title on Jan. 1? What is your Social Security number and your spouse’s Social Security number? Were you or your dependent(s) living in the dwelling on Jan. 1? Do you claim residency in any other county or state? Property appraiser may ask for any of the following to prove residency: Proof of previous residency outside Florida and the date ended Florida driver license or identification card number Evidence of that a driver license from another state was given up Florida vehicle license plate number Florida voter registration number (if U.S. citizen) Declaration of domicile and residency date Name of current employer Address listed on last IRS return Dependent children’s school location(s) Bank statement and checking account mailing address Proof of payment of utilities at homestead address If moving from one Florida homestead to a new one, owners may be able to transfer – or “port” – all or part of their existing homestead assessment difference. Their county property appraiser will offer more information about the process.
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Home Price Affordability Is Shifting – Where?
With affordability a current driver for both housing demand and supply, some analysts expect Midwest housing markets to draw buyers’ attention in 2023. CONYERS, Ga. – Single-family home and condo prices peaked in May. Buyers are looking for bargains after the boom. You’re undoubtedly well aware that housing prices have fallen in recent months, but did you know that condo prices are dropping less than single-family home prices? The median single-family home price crested at a record high of $452,518 in May and then slid 8.5% to $414,000 in October, according to a study from Point2 looking at the biggest 100 U.S. cities. The firm is a real estate price information service. The median condo price hit an all-time peak of $341,457 in May and then dipped 4.5% to $326,000 in October. So why the disparity in pace of decline? “When the pandemic forced everyone to cram their entire life inside their homes, spacious, single-family homes (preferably with a backyard) became a must,” the study said. “Consequently, homebuyers went into a real house-hunting frenzy, jump-starting a period of bitter bidding wars and rapidly escalating asking prices.” Bargain-hunting for condos But now buyers are searching for better bargains. “After demand for space drove house prices to historic highs, making them totally unattainable, homebuyers started shifting their attention toward the more affordable option – condos,” the study said. Single-family home prices decreased in 88 of the 100 largest U.S. cities from May to October, while condo prices descended in just 65. On the single-family home side, Irving, Tex. led the decline with a 22% drop, followed by Toledo, Ohio at 20% and Los Angeles and San Francisco at 18%. On the condo side, Stockton, Cal. paced the descent at 29%, followed by Raleigh, N.C. at 25%, New Orleans at 23% and Glendale, Ariz. and Omaha, Neb. At 21%. On the upside, Oklahoma City led condos with a 79% gain, followed by Tampa at 40%, San Antonio at 29% and Louisville and Nashville-Davidson at 14%. For single-family homes, Tulsa, Okla. was No. 1 with a rise of 11%, followed by Lubbock, Tex. at 4%, and Albuquerque and Miami at 3%. Shift to the Midwest Meanwhile, during the housing boom that raged from the beginning of the pandemic in early 2000 until May, the Sun Belt led the way. People were attracted to the warm weather, reasonable prices at the beginning of the boom and the lack of a state income tax in Texas and Florida. But next year, things are going to change, according to a commentary from Zillow, the real estate information service. “As affordability has become the key driver of both supply and demand in the market, places that still feature reasonable prices are already seeing momentum shift their way, and should have the healthiest housing markets in 2023,” Zillow said. That means the Midwest. “Unlike nearly every other region in the U.S., prices in most Midwest metro areas haven’t run up to extremes,” the firm said. “Mortgage costs as a share of income are still within healthy, sub-30% levels across Ohio, Pennsylvania, Kansas, upstate New York, Iowa and smaller metros, in Illinois, which will allow first-time buyers to take the plunge.”
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Conventional Loan Limit
2023’s New Conventional Loan Limit: $726,200 By Kerry Smith FHFA announced new conforming loan limits for 2023, and most buyers can borrow up to $726.2K without a jumbo loan – and it’s over $1M in some areas. WASHINGTON – Fannie Mae and Freddie Mac – which back a majority of U.S. home loans – have a new lending cap in 2023. The Federal Housing Finance Agency (FHFA) announced that the conforming loan limit values (CLLs) for mortgages to be acquired by Fannie Mae and Freddie Mac (the Enterprises) in 2023 will go up $79,000 to $726,200 in most areas of the U.S for one-unit properties. The cap in those areas this year is $647,200. The cap varies by county, however. FHFA says two U.S. counties will have a lower cap, and additional areas will have a higher cap that, in 2023, will rise about $1 million for the first time – up to $1,089,300 for one-unit properties. FHFA says about 3.3% of counties – 100 out of more than 3,000 – are considered high-cost markets. In Florida, the higher conforming cap largely applies only for some Monroe County residents. The higher cap applies in areas where 115% of the local median-home value exceeds the baseline conforming loan limit. The Housing and Economic Recovery Act (HERA) of 2008 includes a calculation to create a higher cap in those areas. In addition, special statutory provisions create different loan limits for Alaska, Hawaii, Guam and the U.S. Virgin Islands. In these areas, the baseline loan limit will also be $1,089,300 for one-unit properties. HERA is a yearly adjustment to conforming loan limits. According to the nominal, seasonally adjusted, expanded-data FHFA HPI, house prices increased 12.21%, on average, between the third quarters of 2021 and 2022. As a result, 2023’s baseline conforming loan limit will increase by the same percentage.
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