How Absorption Rate is Figured.
How come? Absorption rate is one of the best indicators of whether a local real estate market is a buyers' market, sellers' market, or just evenly balanced.
Here's why: absorption rate indicates how long it is likely to take to sell ALL the existing homes in a given market, assuming the rate of sales stays constant and no new listings are added to the pool.
Here's how it works: Take all the listings that are on the market in the target area, and divide by the number of listings that sold in the past month in that same area. This tells us how many months we could expect it to take to sell all the current inventory in an area, IF the rate of sale stays the same and no new listings are added. (Of course, in reality, other sellers do put their houses on the market, making things even more challenging!)
Tax Considerations >Beneficial Tax Laws American tax law offers a significant capital gains tax exemption that allows taxpaying homeowners to unlock home equity and end the spiraling cycle of "investing up." First-time buyers enjoy expanded rules for Individual Retirement Accounts (IRA) and 401(k) plans, rules that allow penalty-free withdrawals to purchase a home.
Every two years, married sellers of principal residences who file joint federal income tax returns are allowed a $500,000 exclusion ($250,000 for singles) from capital gains tax. For sales that took place after May 6, 2003, the maximum capital gains tax rates for profits above the exclusion dropped from 20% to 15% for higher income taxpayers, and from 10% to 5% for lower income taxpayers.
Homeowners can now consider several new options. People who find themselves at an empty-nester stage (no children at home) in a four or five bedroom home with a large equity have been able to unlock their equity dollars, using the income to help their children buy a first home, take a luxury cruise, remodel the house or purchase a second home for vacation or retirement.
Consult your tax advisor for advice regarding your particular circumstance.
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| Q |
What house is considered to be the first house with running water in America?
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| A |
John Headly's home built in Newport, RI in 1723, was equipped with an underground pipe from the nearby spring.
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