MS Leading The Way To Economic Growth

First-Time Homebuyer Savings Accounts

Who Is It For?  Any Mississipian who has never purchased, owned, or partially owned a home in MS or any other state.

What Is It?  A savings account for first-time homebuyer that offers tax advantages for individuals up to $2,500 a year and up to $5,000 a year for couples.

Where Can A Buyer Create An Account?  Buyers can create an account at any financial institution licensed to do business in MS.  It can be a cash deposit account or money market account.

When Can A Buyer Create One?  Buyers can open an account and start saving today.  They can start taking a tax deduction beginning in the 2018 tax year.

Why Would A Buyer Want To Create One? When buyers are ready to buy a single family home, they will have money saved to help make the purchase.  Plus, money deposited in the account is deductible from state income, which lowers their tax bills. Interest earned on the deposits is also free from state income tax.

Visit  firsthomems.org  for more information.

 

Pending Home Sales Recover in June, Grow 1.5 Percent 

 
 

MEDIA CONTACT: ADAM DESANCTIS / 202-383-1178 /  EMAIL(LINK SENDS E-MAIL)

 
 
 
 

 

 

 

WASHINGTON (July 31, 2017) — After declining for three straight months, pending home sales reversed course in June as all major regions, except for the Midwest, saw an increase in contract activity, according to the National Association of Realtors®.

The Pending Home Sales Index*www.nar.realtor/topics/pending-home-sales, a forward-looking indicator based on contract signings, climbed 1.5 percent to 110.2 in June from an upwardly revised 108.6 in May. At 0.5 percent, the index last month increased annually for the first time since March.

Lawrence Yun, NAR chief economist, says the bounce back in pending sales in most of the country in June is a welcoming sign. "The first half of 2017 ended with a nearly identical number of contract signings as one year ago, even as the economy added 2.2 million net new jobs," he said. "Market conditions in many areas continue to be fast paced, with few properties to choose from, which is forcing buyers to act almost immediately on an available home that fits their criteria."

Added Yun, "Low supply is an ongoing issue holding back activity. Housing inventory declined last month and is a staggering 7.1 percent lower than a year ago."

Yun does note that there could potentially be a sliver of increased hope in the months ahead for prospective first-time buyers, who continue to struggle reaching the market1. Sales to investors last month were the lowest of the year (13 percent), which helped push all cash transactions to 18 percent – the smallest share since June 2009 (13 percent).

"It appears the ongoing run-up in price growth in many areas and less homes for sale at bargain prices are forcing some investors to step away from the market," said Yun. "Fewer investors paying in cash is good news as it could mean a little less competition for the homes first-time buyers can afford. However, the home search will still likely be a strenuous undertaking in coming months because supply shortages in most areas are most severe at the lower end of the market."

Heading into the second half of the year, Yun expects existing-home sales to finish around 5.56 million, which is an increase of 2.6 percent from 2016 (5.45 million). The national median existing-home price this year is expected to increase around 5 percent. In 2016, existing sales increased 3.8 percent and prices rose 5.1 percent.

The PHSI in the Northeast inched forward 0.7 percent to 98.0 in June, and is now 2.9 percent above a year ago. In the Midwest the index decreased 0.5 percent to 104.0 in June, and is now 3.4 percent lower than June 2016.

Pending home sales in the South rose 2.1 percent to an index of 126.0 in June and are now 2.6 percent above last June. The index in the West grew 2.9 percent in June to 101.5, but is still 1.1 percent below a year ago.

The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Mississippi Ranked #2 In USA For Retirees!!  Here Are Some Fast Facts About Retiring In The Magnolia State
TAX-FRIENDLY
Mississippi offers a sweet income-tax deal for retirees. It not only exempts Social Security benefits from state income taxes, but it also excludes all qualified retirement income from state income taxes. Remaining income is taxed at a maximum 5%. Mississippi is home to some of the cheapest property taxes in the nation. Residential property is taxed at 10% of its assessed value, and seniors qualify for a homestead exemption on the first $75,000 of value.
STATE SALES TAX
7%. Prescription drugs, residential utilities, motor fuel, newspapers, health-care services, and payments made by Medicare and Medicaid are exempt. County and city taxes may add an additional 3% to the state rate.
INCOME-TAX RANGE
3% – 5%
EXEMPTIONS FOR RETIREMENT INCOME
Qualified retirement income is exempt from state income tax. Social Security is not taxed, regardless of total income. Retirement income from IRAs, 401s/403s, Keoghs, and qualified public and private pension plans is not taxable. Interest income from federal securities and obligations of Mississippi and its political subdivisions are all exempt.
PROPERTY TAXES
Property and automobiles are both subject to ad valorem taxes -- meaning that the tax is assessed in relationship to the value of the property. Single-family residential property is taxed at 10% of its assessed value. All other personal property is assessed at 15% of its value. Motor vehicles are taxed at 30% of their value. The state offers a homestead exemption to all eligible taxpayers. Eligible homeowners should apply with the tax assessor in the county where the home is located. This application must be filed between January 1 and April 1. The maximum exemption for regular homeowners is $300. For homeowners 65 years of age or totally disabled, there is an exemption on the first $75,000 of true value. You do not have to apply for homestead exemption each year. You should reapply if there were changes in your homestead status (marital, property, ownership, etc.).
INHERITANCE AND ESTATE TAXES
There is no inheritance tax and no estate tax.
Read more: http://kiplinger.com/tools/retiree_map/index.html?map=14&state_id=25&state=Mississippi&si=1#ixzz1SezYkfoe


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