More Homes on the Market Act

In a stunning turn of events, we might actually have some positive financial news this on the horizon! The More Homes on The Market Act, which is backed by the National Association of Realtors, is gaining steam and could be adopted in the near future. The act was originally drafted back in 2022 but didn't gain traction with the powers that be at that time, now it looks as though the discussion is warming back up. If the act does pass, the current capital gains exemption amount would double, from $250,000 for singles up to $500,000, and for married couples it would jump from $500,000 to

$1,000,000! We have now arrived at the part of the Newsletter where I remind everyone that I am by no means a financial expert, so please consult with your financial advisor, tax guy, CPA or whatever before making any major financial decisions. Capital gains tax rears its ugly head when you sell an asset, in this case, real estate. But the exemption comes into play only if the property you're selling was your primary residence for two out of the previous five years. Say for example, a married couple bought a house (that was their primary residence) 30 years ago for $100,000, and now the house is worth $700,000, you're looking at a $600,000 gain in value, but only $500,000 of that is exempt, so the sellers would be looking at a 15% tax on that non-exempt $100,000 which would result in a capital gains tax of $15,000. There are two different type of capital gains tax, short term and long term. Short term is for assets that are bought and sold in less than a year, and long term is for anything held for over one year. Short term capital gains tax has a much higher rate (anywhere from 12% - 37% depending on your income), whereas long term rates are either 0%, 15%, or 20%, again depending on your tax bracket, with the vast majority paying 15%. Humboldt has seen a huge increase in it's market value, so as you can imagine this fee can completely change the math when selling a property, and should absolutely be a consideration for your future life planning.

Want to buy, sell or invest? Call me today at (707) 616-8752!

• New listings picked, from 48 last week, to 55 this week.

• Pending properties decreased this week, down 11 spots to 32.

• 25 properties closed escrow this week, one less then last weeks mark.

If you find yourself dreaming of calling Humboldt County home look no further! By clicking the button below, you will be whisked away to my website where you'll have access to all of our local listings straight from Humboldt Counties Multiple Listing Services, aka the website real estate agents use to post their listings. As you can imagine, it is the most secure and accurate place to find detailed information on all of Humboldt Counties listings, so please tap below and get to searching! If you'd like, I can always create a property search for you, then as soon as a new listing hits the market that matches your desired criteria, it would automatically be sent straight to you!

February Market Report for Arcata

February Market Report for Eureka

February Market Report for McKinleyville

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