principal residence exemption veto

On 12/22 Granholm vetoed MAR-supported legislation aimed at getting the housing market moving. Senate bill 77,  passed both the House and Senate in the last days of the 2010 session, allowed foreclosed properties to retain their principal residence exemption for a period of up to 3 years. The bill was seen as a stepping stone in getting foreclosed properties, which are non-principaled residences, moving. Currently, a buyer may be priced out of purchasing a foreclosed property because they do not qualify for a mortgage at the higher tax rate. The bill alleviated that burden by allowing the homebuyer to immediately make a foreclosed property their principal residence.

The Michigan Association of REALTORS® worked hard through the last hours of session to provide information to legislators as to why this bill was critical for the housing market in this state. We are extremely disappointed that this bill was not signed into law, given the opportunity it provided for potential home purchasers. However, we expect legislation addressing the Principal Residence Exemption to be re-introduced next legislative session beginning in January.

Ask me how this affect you. Many who have been forced to trade down/move out/ or leave the state… needed to keep their exemption until a sale could be made in a tough market – this is a blow to fair and equitable ownership & seems like another strong hand act by a cash strapped government not unlike the property tax protest minefield process. So much for government serving the electorate., p

Where Home Prices Are Falling Dangerously

Not long ago it looked like the housing market was on the mend in most major U.S. metropolitan areas. But now prices are falling fast again in many. Foreclosures and vacant homes lingering on the market are depressing prices, and the home buyer tax credit that expired in July is sorely missed.

In September home prices fell in 18 of the 20 metro areas tracked by Standard & Poor’s Case-Shiller composite home price index. That was worse than August, when 15 of the top 20 cities were down month-over-month.   story

No. 1: Cleveland

No. 2: Minneapolis

No. 3: Portland

No. 4: Dallas

No. 5: Phoenix