Gina Dumas's blog

Minnesota's New Homestead Exclusion

The 2011 legislature repealed the old homestead credit law and has replaced it with a new Homestead Exclusion law beginning with property taxes payable in 2012. It is confusing at best, even for those of us in the real estate field.  Let's start with the difference between "credit" and "exclusion;" a credit is a reduction in the amount of taxes due while exclusion is a reduction in the amount of value subject to tax.  Under the old credit based system, the homesteaded property received a credit (remember that's a reduction on the amount of property taxes) equal to .4% of market value for the first $76,000 in market value and went up to a maximum credit of $304, phasing out to $0 for homes valued higher than $413,800.  With the exclusion system, homesteaded properties will receive a Homestead Market Value Exclusion equal to 40% for the first $76,000 in value and 9% above the value of $76,000, up to about $414,000.  Homesteads with values higher than $413,800 will receive no homestead exclusion.  

The biggest question seems to be "will my property taxes go up?"  The answer is almost certain to be yes for most homeowners.  Why, you ask?  The state is no longer reducing total taxes and paying the credit to the local governments; the entire local property tax levy will be paid by the taxpayer.  Most local governments will be required to increase their tax rates to cover the loss of money that previously came from the state.  For many, the new exclusion will not be enough to offset the increases in tax rates. 

For more details, please visit the Minnesota Department of Revenue and the Minnesota House Research Department.  

Gina Dumas, Realtor  ~  RE/MAX Results ~ www.GinaDumas.com  ~  712.718.2783 

Seasonal Home Makeover Tips ~ Your Home and Lifestyle

New Weekly Article - Inside Out || Your Home and Lifestyle.

Updating your bathroom may seem like an overwhelming task. A simple coat of paint, new light fixture, new faucets or even a new shower curtain and towels to display may be inexpensive items to give your bathroom the boost it needs. Click this link for a great article for ideas to revitalize YOUR bathroom: http://www.yourhomeandlifestyle.com/pages/article/YHL_MAY_11_02/40333/index.html

Do St. Louis Park residents have any say in the freight rail re routing?

The City is holding open sessions this week to give its residents an opportunity to share their opinions about the controversial freight train re routing.  The plan calls for moving freight traffic from Minneapolis’ Kenilworth Corridor to St. Louis Park to make room for a regional light rail line which will connect Minneapolis to Eden Prairie and wind through the western suburbs. Hennepin County Commissioner Gail Dorfman does not sound optimistic about whether citizens could actually unite to stop a potential reroute and indicated that St. Louis Park reroute appears to be the most feasible option for making regional light rail a reality.  Visit the St. Louis Park Patch for more on the topic.

Gina Dumas, REALTOR  RE/MAX Results / 612.718.2783 / www.GinaDumas.com

Surprising School District Growth at some Minnesota Schools

Most schools in the state have seen declining enrollment numbers over the last few years.  A few are actually seeing increases in enrollment and now need to ponder the question - increase tax dollars for new schools?  See the StarTribune article for the full story.

Mpls Assoc of REALTORS Market Update

Weekly Market Activity Report

Housing activity for the week ending January 2, 2010 took a predictable surge upward following the holiday break. New listings rose to 688 for the week—down 37.3 percent from a year ago—while pending sales posted a number of 378—down 11.7 percent from a year ago. We will likely have to wait another week for all the holidays and frosty weather to get flushed from our year-over-year comparisons to get a full understanding of where our market is headed.

A few additional stats for the New Year:

-- Housing Affordability continues at historic levels: rising to 208 for January, an 8.3 percent increase from the previous year and a good sign for buyers in the year to come.

-- The Months’ Supply of Inventory is back in balanced market territory at 5.0 months. This is a dramatic 34.2 percent under the supply at the beginning of last year.
 
With a balancing supply and demand and the possibility of rising interest rates on the horizon, this is a unique opportunity time for Twin Cities' home buyers.

via mplsrealtor.typepad.com

Housing activity for the week ending January 2, 2010 took a predictable surge upward following the holiday break. New listings rose to 688 for the week—down 37.3 percent from a year ago—while pending sales posted a number of 378—down 11.7 percent from a year ago. We will likely have to wait another week for all the holidays and frosty weather to get flushed from our year-over-year comparisons to get a full understanding of where our market is headed.

A few additional stats for the New Year:

-- Housing Affordability continues at historic levels: rising to 208 for January, an 8.3 percent increase from the previous year and a good sign for buyers in the year to come.

-- The Months’ Supply of Inventory is back in balanced market territory at 5.0 months. This is a dramatic 34.2 percent under the supply at the beginning of last year.
 
With a balancing supply and demand and the possibility of rising interest rates on the horizon, this is a unique opportunity time for Twin Cities' home buyers.

Treasury announces guidelines to simplify short sales

 

news.yahoo.com

The U.S. Treasury on Monday set long-awaited guidance on a plan for mortgage companies to speed "short sales" of homes and other loan modification alternatives to stem a rising tide of foreclosures.

 

Link to story on yahoo.news