It's that time of year again

Time for us to be thankful that our market continues to show signs of recovery and for the third, record setting, low interest rate in a month. That new low can only help as we continue our slow climb out of the recession.

It is also that time of year when people begin to put the brakes on listing their property for sale. Some, even though committed to a broker, begin to think of taking their properties off the market, because Thanksgiving means the start of the holiday season and, after all, there can't be much market activity in the winter because no one wants to move then and everyone is too busy with family stuff.

In fact, as any Realtor will tell you, activity continues all year-round. People need to move for any variety of reasons. Job transfers, changes in status of health, marriage or need, know no calendar or season.

Last year in December, we reported 236 sales in the Coeur d'Alene Multiple Listing Service. In July 2011 we sold 292 properties. Although that represents nearly a 20 percent decline in the six-month period, it still indicates fairly strong buyer activity in a holiday month where weather may be less than perfect.

Last year too, we did not enjoy the record low interest rates we have enjoyed the bulk of this year. Last year interest was closer to 4 percent, this year closer to 3. Arguably, money was harder to borrow then too. While we cannot forecast our December sales activity, we know that July 2012 counted for 343 sales. If we sell 20 percent fewer in December, we will still complete 274 sales. One thing for sure, if your property is off the market this time of year, we cannot help you sell it.

At least through December, there will be no loss of the Mortgage Interest Deduction nor will there be a 3.8 percent tax on earnings from the sale of investment properties. An encounter with an otherwise astute customer last week causes us to re-iterate the impact of this tax, once again, for clarity.

The 3.8 percent "Obamacare" tax on real estate sales applies ONLY to investment properties or second homes, not your principle residence. The Clinton era, tax free profit on your home is still in effect and has not been repealed with the implementation of the health-care bill. You still can profit by $250,000 from the sale of your home as an individual, or by $500,000 as a couple when you file a joint tax return, without paying income tax on that profit. This is not a transfer tax. If you make less than $200,000 a year, you will not be affected by this tax. You do not pay this tax upon the sale of an investment property, rather the tax will be applied to your total investment income. The tax applies to other types of investment income, not just real estate. If your income is more than the $200,000/$250,000 amount, then the tax formula will be applied to capital gains, interest income, dividend income and net rents (i.e., rents after expenses). For answers to any tax question, refer to a tax expert for advice.

Trust an expert...call a Realtor. Call your Realtor or visit www.cdarealtors.com to search properties on the Multiple Listing Service or to find a Realtor member who will represent your best interests.

Kim Cooper is a real estate broker and the spokesman for the Coeur d'Alene Association of Realtors. Kim and the association invite your feedback and input for this column. You may contact them by writing to the Coeur d'Alene Association of Realtors, 409 W. Neider, Coeur d'Alene, ID 83815 or by calling (208) 667-0664.