Popular Housing Trends

The American Institute of Architects Home Design Trends Survey for first quarter 2012 revealed that outdoor living spaces have become a must-have for many home owners. More than two thirds of architects surveyed said that homeowners are looking to increase their outdoor living space. Covered or enclosed porches, outdoor rooms, and outdoor kitchens are becoming increasingly popular, as well as low-cost/low maintenance landscaping, exterior and security lighting.

The desire for open living spaces as opposed to defined and enclosed rooms is a trend we are all pretty much aware of. Comfortable open floor plans are flexible and lend themselves to many uses.

A National Association of Home Builders Survey identified the following amenities as most desireable to home buyers with regard to new construction homes: Low-E windows, walk-in closet in master bedroom as well as separate shower and tub in master bath, energy efficient appliances and lighting, linen closet, programmable thermostat, great room, 9-Foot ceilings on first floor, insulated front door and laundry room.

Modest floor plans are on the rise as well, as Americans want more efficient use of space and consider down-sizing. Builders estimate that in 2015, the average size new construction will be around 2,100 sq ft.

Another interesting trend is demand for multi-generation homes or the "Next Gen" house which features defined, yet flexible floor plan layouts that can accomodate returning children and aging parents living under one roof.

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Mortgage Forgiveness Debt Relief Act for Short Sales Extended

In an effort to avoid the fiscal cliff, Congress passed the 2013 AmericanTax Payer Relief Act. Included in it is a one year extension of the 2007 Mortgage Forgiveness Debt Relief Act through the end of 2013. This is good news and a relief to homeowners who may be in a short sale situation or considering it.

A short sale occurs when a homeowner is in default and needs to sell a home which is worth less than the mortgage amount owed . The difference between what owed at time of sale and amount actually receivde from the sale is called the deficiency. The sale price is subject to lender approval for the very reason that the bank or lender will be accepting an amount which is less than what is owed.

Prior to the Mortgage Debt Relief Act, the government viewed the debt forgiveness as income to the seller who then had to pay taxes on that "income" at the end of the year. To sellers facing this tax liability in addition to having to give up their home, the advantage to short sale over foreclosure might not be so clear.

The extension of the law allows borrowers to exclude the debt forgiven in a short sale from income. Thus the added stress of a looming and possibly large tax liability is removed making the short sale solution a more viable alternative to sellers facing hardship once again. The amount extends up to $2 million ($1 million if filing separately) of debt forgiven on a principal residence. As per Compass Point Research & Trading, "for homeowners to qualify, their debt must have been used to buy, build or substantially improve their principal residence and be secured by that residence".