Home Page | Search

Search Box

C.A.R. reports entry-level housing affordability at 64 percent in the second quarter of 2010

Quick Facts:

• C.A.R. First-time Buyer Housing Affordability Index stood at 64 percent in the second quarter of 2010 compared with 67 percent in the second quarter of 2009
• The median price of an entry-level home in California was $266,750 in the second quarter of 2010
• The estimated monthly payment including taxes and insurance was $1,470 in the second quarter of 2010
• The minimum household income needed to purchase an entry-level home in California in the second quarter of 2010 was $43,960.

LOS ANGELES (Aug. 19)  -- The percentage of households that could afford to buy an entry-level home in California stood at 64 percent in the second quarter of 2010, compared with 67 percent for the same period a year ago, according to a report released today by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

C.A.R.’s First-time Buyer Housing Affordability Index (FTB-HAI) measures the percentage of households that can afford to purchase an entry-level home in California.  C.A.R. also reports first-time buyer indexes for regions and select counties within the state.  The Index is the most fundamental measure of housing well-being for first-time buyers in the state.

The minimum household income needed to purchase an entry-level home at $266,750 in California in the second quarter of 2010 was $43,960, based on an adjustable effective interest rate of 4.09 percent and assuming a 10 percent down payment.  First-time buyers typically purchase a home equal to 85 percent of the prevailing median price.  The monthly payment including taxes and insurance was $1,470 for the second quarter of 2010. At $43,960, the minimum qualifying income was $4,051 greater than a year earlier when households needed $39,909 to qualify for a loan on an entry-level home. 

At 84 percent, the High Desert region was the most affordable area in the state.  The San Luis Obispo County region was the least affordable in the state at 48 percent, followed by the San Francisco Bay region at 49 percent. 

Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 155,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

C.A.R. First-time Buyer Housing Affordability Index

 

 

* -- percentage of California households that can afford to purchase an entry-level home

 

r – revised

 

Source:  CALIFORNIA ASSOCIATION OF REALTORS®

Source:  CALIFORNIA ASSOCIATION OF REALTORS®

By: seckar | In: General Information | Comments: 0 | On: 09/04/2010 22:45:01

Are you looking to buy a new home? Are you thinking that now's a great time to find bargains? Before you make an offer, it pays to know a little about the seller's situation.

If a home is being sold for below what the current seller owes on the property—and the seller does not have other funds to make up the difference at closing—the sale is considered a short sale. Many more home owners are finding themselves in this situation due to a number of factors, including job losses, aggressive borrowing against their home in the days of easy credit, and declining home values in a slower real estate market.

A short sale is different from a foreclosure, which is when the seller's lender has taken title of the home and is selling it directly. Homeowners often try to accomplish a short sale in order to avoid foreclosure. But a short sale holds many potential pitfalls for buyers. Know the risks before you pursue a short-sale purchase.

You're a good candidate for a short-sale purchase if:

• You're very patient. Even after you come to agreement with the seller to buy a short-sale property, the seller's lender (or lenders, if there is more than one mortgage) has to approve the sale before you can close. When there is only one mortgage, short-sale experts say lender approval typically takes about two months. If there is more than one mortgage with different lenders, it can take four months or longer for the lenders to approve the sale.
• Your financing is in order. Lenders like cash offers. But even if you can't pay all cash for a short-sale property, it's important to show you are well qualified and your financing is set. If you're preapproved, have a large down payment, and can close at any time, your offer will be viewed more favorably than that of a buyer whose financing is less secure.
• You don't have any contingencies. If you have a home to sell before you can close on the purchase of the short-sale property—or you need to be in your new home by a certain time—a short sale may not be for you. Lenders like no-contingency offers and flexible closing terms.

If you're serious about purchasing a short-sale property, it's important for you to have expert assistance. Here are some people you want to work with:

• Experienced real estate attorney. Only about two out of five short sales are approved by lenders. But a good real estate attorney who's knowledgeable about the short-sale process will increase your chances getting an approved contract. Also, if you want any provisions or very specialized language written into the purchase contract, a real estate attorney is essential throughout the negotiation.
• A qualified real estate professional.* You may have a close friend or relative in real estate, but if that person doesn't know anything about short sales, working with him or her may hurt your chances of a successful closing. Interview a few practitioners and ask them how many buyers they've represented in a short sale and, of those, how many have successfully closed. A qualified real estate professional will be able to show you short-sale homes, help negotiate the purchase when you find the property you want to buy, and smooth communications with the lender. (All MLSs permit, and some now require, special notations to indicate that a listing is a short sale. There also are certain phrases you can watch for, such as "lender approval required.")
• Title officer. It's a good idea to have a title officer do an initial title search on a short-sale property to see all the liens attached to the property. If there are multiple lien holders (e.g., second or third mortgage or lines of credit, real estate tax lien, mechanic's lien, homeowners association lien, etc.), it's much tougher to get that short sale contract to the closing table. Any of the lien holders could put a kink in the process even after you've waited for months for lender approval. If you don't know a title officer, your real estate attorney or real estate professional should be able to recommend a few.

Some of the other risks faced by buyers of short-sale properties include:

• Potential for rejection. Lenders want to minimize their losses as much as possible. If you make an offer tremendously lower than the fair market value of the home, chances are that your offer will be rejected and you'll have wasted months. Or the lender could make a counteroffer, which will lengthen the process.
• Bad terms. Even when a lender approves a short sale, it could require that the sellers sign a promissory note to repay the deficient amount of the loan, which may not be acceptable to some financially desperate sellers. In that case, the sellers may refuse to go through with the short sale. Lenders also can change any of the terms of the contract that you've already negotiated, which may not be agreeable to you.
• No repairs or repair credits. You will most likely be asked to take the property "as is." Lenders are already taking a loss on the property and may not agree to requests for repair credits.

The risks of a short sale are considerable. But if you have the time, patience, and iron will to see it through, a short sale can be a win-win for you and the sellers.

* Not all real estate practitioners are REALTORS. A REALTOR is a member of the NATIONAL ASSOCIATION OF REALTORS and is bound by NAR's strict code of ethics.

 

Note: This article provides general information only. Information is not provided as advice for a specific matter. Laws vary from state to state. For advice on a specific matter, consult your attorney or CPA. 

By: seckar | In: General Information | Comments: 0 | On: 08/15/2010 12:40:31

Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.

1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.

2. Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer — you risk losing out on the home of your dreams. The housing market usually doesn’t change fast enough to make that much difference in price, and a good home won’t stay on the market long.

3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family — the people who will be living in the home.

4. Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.

5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.

6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself — room size, kitchen, etc. — that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.

7. Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and let your home deteriorate.

9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.

10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home’s most important role is to serve as a comfortable, safe place to live.

By: seckar | In: General Information | Comments: 0 | On: 08/02/2010 19:55:01

If you're thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.

1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as: Refinancing your loan at a lower interest rate; providing a different payment plan to help you get caught up; or providing a forbearance period if your situation is temporary. When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if:

• Your property is worth less than the total mortgage you owe on it.
• You have a financial hardship, such as a job loss or major medical bills.
• You have contacted your lender and it is willing to entertain a short sale.

2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won't try to take advantage of your situation or pressure you to do something that isn't in your best interest. A qualified real estate professional can:

• Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).
• Help you set an appropriate listing price for your home, market the home, and get it sold.
• Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).
• Ease the process of working with your lender or lenders.
• Negotiate the contract with the buyers.
• Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.

3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include: 

• A hardship letter detailing your financial situation and why you need the short sale
• A copy of the purchase contract and listing agreement
• Proof of your income and assets
• Copies of your federal income tax returns for the past two years

4. Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:

• If you have only one mortgage, the review can take about two months.
• With a first and second mortgage with the same lender, the review can take about three months.
• With two or more mortgages with different lenders, it can take four months or longer.

When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)

5. Don't expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:

• You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.
• Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.
• Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy

By: seckar | In: General Information | Comments: 0 | On: 07/11/2010 18:17:09

Make sure you choose a REALTOR who will provide top-notch service and meet your unique needs.

1. How long have you been in residential real estate sales? Is it your full-time job? While experience is no guarantee of skill, real estate — like many other professions — is mostly learned on the job.

2. What designations do you hold? Designations such as GRI and CRS — which require that agents take additional, specialized real estate training — are held by only about one-quarter of real estate practitioners.

3. How many homes did you and your real estate brokerage sell last year? By asking this question, you’ll get a good idea of how much experience the practitioner has.

4. How many days did it take you to sell the average home? How did that compare to the overall market?
The REALTOR you interview should have these facts on hand, and be able to present market statistics from the local MLS to provide a comparison.

5. How close to the initial asking prices of the homes you sold were the final sale prices? This is one indication of how skilled the REALTOR is at pricing homes and marketing to suitable buyers. Of course, other factors also may be at play, including an exceptionally hot or cool real estate market.

6. What types of specific marketing systems and approaches will you use to sell my home? You don’t want someone who’s going to put a For Sale sign in the yard and hope for the best. Look for someone who has aggressive and innovative approaches, and knows how to market your property competitively on the Internet. Buyers today want information fast, so it’s important that your REALTOR is responsive.

7. Will you represent me exclusively, or will you represent both the buyer and the seller in the transaction? While it’s usually legal to represent both parties in a transaction, it’s important to understand where the practitioner’s obligations lie. Your REALTOR should explain his or her agency relationship to you and describe the rights of each party.

8. Can you recommend service providers who can help me obtain a mortgage, make home repairs, and help with other things I need done? Because REALTORS are immersed in the industry, they’re wonderful resources as you seek lenders, home improvement companies, and other home service providers. Practitioners should generally recommend more than one provider and let you know if they have any special relationship with or receive compensation from any of the providers.

9. What type of support and supervision does your brokerage office provide to you? Having resources such as in-house support staff, access to a real estate attorney, and assistance with technology can help an agent sell your home.

10. What’s your business philosophy? While there’s no right answer to this question, the response will help you assess what’s important to the agent and determine how closely the agent’s goals and business match your's

By: seckar | In: General Information | Comments: 0 | On: 07/06/2010 21:43:53

Not all real estate practitioners are REALTORS. The term REALTOR is a registered trademark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS and subscribes to its strict Code of Ethics. Here are five reasons why it pays to work with a REALTOR.

1. You’ll have an expert to guide you through the process. Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page settlement statements. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes.

2. Get objective information and opinions. REALTORS can provide local community information on utilities, zoning, schools, and more. They’ll also be able to provide objective information about each property. A professional will be able to help you answer these two important questions: Will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

3. Find the best property out there. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your REALTOR to find all available properties.

4. Benefit from their negotiating experience. There are many negotiating factors, including but not limited to price, financing, terms, date of possession, and inclusion or exclusion of repairs, furnishings, or equipment. In addition, the purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

5. Property marketing power. Real estate doesn’t sell due to advertising alone. In fact, a large share of real estate sales comes as the result of a practitioner’s contacts through previous clients, referrals, friends, and family. When a property is marketed with the help of a REALTOR, you do not have to allow strangers into your home. Your REALTOR will generally prescreen and accompany qualified prospects through your property.

6. Real estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with a professional who is immersed in the industry and knows the real estate language.

7. REALTORS® have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. REALTORS, on the other hand, handle hundreds of real estate transactions over the course of their career. Having an expert on your side is critical.

8. Buying and selling is emotional. A home often symbolizes family, rest, and security — it’s not just four walls and a roof. Because of this, home buying and selling can be an emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on both the emotional and financial issues most important to you.

9. Ethical treatment. Every member of the NATIONAL ASSOCIATION of REALTORS makes a commitment to adhere to a strict Code of Ethics, which is based on professionalism and protection of the public. As a customer of a REALTOR, you can expect honest and ethical treatment in all transaction-related matters. It is mandatory for REALTORS to take the Code of Ethics orientation and they are also required to complete a refresher course every four years.

By: seckar | In: General Information | Comments: 0 | On: 07/06/2010 21:30:42

If you are wondering what Home Staging (or House Fluffing) is all about, here is a definition for you: MSN Encarta dictionary defines Home Staging as the act of "beautifying a home for sale: cleaning, repairing and updating the decor and furnishings of an older home to make it more attractive when shown to potential buyers." Actually, I believe that ANY home can use some staging before being put on the market. Remember, the way we live in a home and the way we want to sell a property are two completely different things. When we sell a property, there is no room for emotions - after all, it's probably our biggest financial investment and, so, we want the biggest possible return on it!

The concept dates from 1970s, when a California realtor and decorator noticed that the properties she took the time to stage sold faster and for more money than the average. Today, it's an important marketing/merchandizing tool in the USA (and spreading to Canada from the West) for the realtors and the home owners alike and it's especially important in a slow market, where you need every advantage over your competition. TV shows, such as Designed to Sell and Flip that House demonstrate that a bit of effort and a small investment can transform a property and make a BIG difference at sale time!

The logic is strikingly simple: when you decide to sell your used car, wouldn't you clean, wash and fix it up before reselling it? You should do the same for your house, which is probably your biggest investment and presents an opportunity for a biggest return.

First impressions count for a lot, especially today, when most buyers pre-select the properties they are interested in on Internet. If your photos don't show your house at its best, you are probably missing out on dozens of potential buyers. The same is true for the visitors - when they come, make them feel at home, create that first impression which will make them fall for YOUR house.

Statistics vary from marketplace to marketplace but, on average, a staged home can sell 30%-50% faster and for 2%-10% more money than a comparable unstaged home. So, a few hundred dollars invested can bring you back thousands! And a home staging consultation costs a lot less than a first price reduction on the property.

A professional Staging consultant looks at your property with a buyer's eye and will recommend some easy and inexpensive solutions to enhance its value - such as decluttering, depersonalizing, and reorganizing your furniture and artwork.

The end result: your house shows better than its competition and it sell faster and for more money!

By: seckar | In: General Information | Comments: 0 | On: 06/28/2010 15:20:50

For many homeowners, selling their house can be stressful and somewhat confusing. Whether you use a real estate salesperson or sell it yourself, you have to be objective. As a former real estate broker in South Florida, I sold many beautiful homes and some that weren’t so beautiful. But, there are ways to make your home more appealing to buyers.

1.  Set a fair selling price.

You have to be objective and take into consideration what the market is for similar homes in your area. If you are considering having a real estate salesperson handle it for you, they will provide you with a market analysis and explain how they arrived at a fair selling price. They do this by checking the recent sales of homes similar to yours within your area, using steadfast parameters, such as square footage, number of rooms and bathrooms, lot size and view, as well as interior home improvements.

Keep in mind that the appraised value of your home (also called assessed value) is based on the steadfast values mentioned above and the sales of similar homes in your area. The Property Appraiser assesses your property yearly, based on aerial photography (which is usually done every three years) and permits that were pulled. If you added a new roof, extra room, porch, patio or a pool after the assessment, you should include it when you set your selling price. There are other things you can do to improve your home (such as modernizing your kitchen with new cabinets and appliances or modernizing your bathroom) that do not require pulling a permit. These types of home improvements won’t be included in the appraised value, but should be included when arriving at a fair selling price.

2.  Be objective.

Most sellers find it difficult to be objective. You have lived in your house for years and have formed an emotional bond. You think that the cost for the new wallpaper in the kitchen or the new carpet in the living room should be included when setting a price. Unfortunately, that new carpet you just installed may not impress a buyer who wants tile or wood floors in their house and they absolutely hate the wallpaper that you chose. Don’t incur the extra cost unless you have to.

3.  Thoroughly clean your house.

Bathrooms and kitchens, including appliances, should be clean. If there is rust in your sinks or tubs, have the porcelain repaired, and clean the sliding doors in your shower. Make sure your oven is clean and organize the inside of your cabinets. Buyers will always look at these things.

4.  Have your carpets professionally cleaned.

Even if your carpet is a little worn, a good cleaning will help. If you feel that it needs to be replaced, you can always offer a reduced sale price equal to what you would have paid to replace the carpet. That way, a buyer who wanted a different color carpet or tile or wood flooring doesn’t have to rip up the brand new carpet you just installed.

5.  Touch up your walls with new paint.

If you are repainting an entire room, use neutral shades. Also, pay attention to the paint on the outside of your house. Touch up if you can. Clean the brown stains from the walls left by your sprinkler. If not, paint the house in a neutral shade or a shade accepted by your homeowner’s association.

6.  Light some candles.

Fragrance candles are good if they all have the same scent. Vanilla scent is always pleasing. Place one in each room of the house.

7.  Outside maintenance is important for a good first impression.

Clean your pool and remove all leaves. Mow your lawn and weed a little too. Buyers love nicely maintained lawns and clean pool areas.

8.  Store clutter away.

Put everything that is on top of your dressers into drawers, including your jewelry. Put all of your bathroom toiletries inside drawers or cabinets and hang some nice guest towels on the rack. If you are in the middle of moving to another home prior to selling your home, please be sure to store boxes in the garage. A buyer would rather see a totally empty house than one with boxes stacked everywhere.

9.  Pets and litter boxes should be out of sight.

Pets should be kept outside or in the garage while showing your house. Some buyers do not like animals, regardless of how well-behaved they may be, and some may have pet allergies. If you have cats, make sure the litter box is not in the house.

10.  Try to schedule appointments with buyers.

It might not always be possible to schedule a showing and invariably, walk-ins will show up just when you’re in the middle of cleaning or cooking. If you can, try to schedule the viewing time around dusk and turn on some low lighting. If it’s cold outside, light a fire in your fireplace. Homes always look better when the bright sun isn’t shining on all your windows (in case you haven’t had a chance to thoroughly clean all the windows). This way, the buyer can still see the outside area of your home, and the inside will be clean and cozy.

Buying a home is the single largest investment a family will make. Buyers will be finicky and their designing tastes will be different from yours. Keep in mind, you were a buyer once, so try to remember what you looked for when buying your house. Good luck

By: seckar | In: General Information | Comments: 0 | On: 06/28/2010 15:20:11

Governor Arnold Schwarzenegger recently signed legislation offering up to a $10,000 tax credit for purchase of a home.

This comes on top of a soon-to-expire federal tax credit of $8,000 for first-time buyers and $6,500 for repeat buyers under a plan approved by the Obama Administration, which also was designed to bolster the economic recovery by fueling home sales, typically one of the most important sectors of the economy in any recovery.

California’s previous home buyer tax credit program was so successful that it ran out of tax credits by the end of June 2009, eight months before it was set to expire and just as the housing market appeared to be turning the corner.

Unlike last year’s legislation, this year’s Homebuyer Tax Credit recently signed into law adds a tax credit for the purchase of an existing home by a first-time home buyer.

Be sure to consult a Realtor and a tax specialist to ensure all of the benefits of the state and federal credits are fully captured. For detailed information regarding the California credits go online to the Franchise Tax Board’s website at ftb.ca.gov. Check the FTB’s website regularly as updates will be added as they become available.

Some of the most important details of this once-in-a-lifetime opportunity for prospective home buyers include:

The 2010 New Home Credit and First-Time Buyer Credit begins May 1, 2010.

• The New Home/First-Time Buyer Credits are available only for purchases that close escrow on or after May 1.

• The home must be the buyer’s principal residence for at least two years after the date of purchase.

• Applications must be submitted after escrow closes. The new application will be available by May 1. (The FTB will deny the application if the 2009 form is used or if the 2010 application is received by the FTB before May 1, 2010.)

General Information: These tax credits are available for taxpayers who purchase a qualified principal residence on or after May 1 and before January 1, 2011. Additionally, the New Home Credit is available for taxpayers who purchase a qualified principal residence on or after Dec. 31, 2010, and before Aug. 1, 2011, so long as an enforceable contract is executed on or before Dec. 31, 2010. The purchase date is defined as the date escrow closes.

• The tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence.

• Taxpayers must apply the total tax credit in equal amounts over three successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits are nonrefundable and unused credits cannot be carried over.

• The total amount of allocated tax credit for all taxpayers may not exceed $100 million for the New Home Credit and $100 million for the First-Time Buyer Credit.

• The FTB will allocate the tax credits on a first-come, first-served basis. Only one tax credit is allowed per taxpayer.

Taxpayers will not be eligible for either tax credit if any of the following apply:

• The taxpayer was allowed a 2009 New Home Credit.

• The taxpayer is under 18 years old. (A taxpayer who is married as of the date of purchase will be considered to be 18 if the spouse/registered domestic partner of the taxpayer is 18 or older on the date of purchase.)

• The taxpayer or the taxpayer’s spouse or registered domestic partner is related to the seller.

• The taxpayer qualifies as a dependent of any other tax-payer for the tax year of the purchase.

Additional information will be presented in coming weeks on this page. For all full details and the most recent updates, be sure to visit the Franchise Tax Board’s website at ftb.ca.gov.

By: seckar | In: General Information | Comments: 0 | On: 04/19/2010 20:15:18

A tight inventory restricted home sales throughout the Santa Clarita Valley during February while the median price of homes sold was up slightly to $410,000, the Southland Regional Association of Realtors reported.

A total of 140 single-family homes and 55 condominiums changed owners last month. The single-family total was down 16.2 percent from a year ago while condo sales increased 22.2 percent as buyers scrambled to purchase any available entry- level property.

“February typically is a slow month for sales, but the strict qualifying standards for securing a home loan combined with the low number of homes listed for sale were drags on activity,” said Andrew Walter, president of the Association’s Santa Clarita Valley Division. “The really good news is that we’ve seen a steady increase in move- up buyers over the past few months.”

Walter and Jim Link, the Association’s chief executive officer, praised the State Legislature for passing and Governor Arnold Schwarzenegger for signing into law on Thursday a measure that offers a $10,000 tax credit to California home buyers.

“The federal tax credit of $8,000 for first-time buyers and $6,500 for repeat buyers has been a tremendous boon for home sales, but those are set to expire in coming months,” Walter said. “California’s $10,000 tax credit comes at the perfect time. It will go a long way to reassure sellers and buyers that the housing market is stable.”

Walter and Link agreed that reports from Realtors indicate there are many more buyers seeking a home to purchase than there are properties listed for sale.

“There’s intense competition for any property under $500,000,” Link said. “Competition has grown more fierce as the inventory dries up.”

The Association reported a total of 891 active listings at the end of February. That number was down 30.6 percent from a year ago and represents a 4.6-month supply at the current pace of sales. A balanced market emerges with a 5- to 6-month inventory. A year-ago February the Association reported a 6.1-month inventory.

Both executives urged lenders to act faster when it comes to approving short sales.

“The inconsistencies from lender to lender plus the extensive delays in closing short sales drag sales down further and leaves dozens of prospective buyers in limbo,” Link said. “Short sales need to be approved in under 90 days, but now many are taking much longer.”

Link and Walter also agreed that the market won’t return to normal until all distressed properties move through the system and traditional home sellers return in greater numbers.

“Foreclosure and especially short sale listings still predominate, “ Link said, “while listings from traditional sellers typically appear only if the owner has to sell. That’s slowly changing as owners gain more confidence in the strength of the market.”

The median price of the 140 single-family homes that changed owners last month was $410,000, up 0.5 percent from a year ago and 2.5 percent higher than this January. The median has been steadily rising almost every month since the low point of $385,000, which came in December 2008.

The condominium median resale price of $250,000 rose 11.1 percent above a year ago and increased 6.4 percent from January. It too has been moving higher nearly every month since its low point of $199,500 in March 2009.

Pending escrows - a measure of future resale activity - rose 19.3 percent compared to a year ago with 377 open escrows.

By: seckar | In: General Information | Comments: 0 | On: 04/19/2010 20:14:23

Powered By: LinkU v1.3.2 Copyright © 2010 TheSCVShortSaleSpecialist.com |  RSS Feed