Real Estate Agent – Orange County, California – Pat Monahan

The Federal Homebuyer Tax Credit  has been extended beyond November 30th of 2009. The new rules include a deadline to be in escrow or under contract by April 30th of 2010 and close the purchase by July 1, 2010. First-time buyers, those who have not owned their principle residence during the past 3 years, are eligible for a tax criedit up to $8,000. Also, current home owners who have lived in their principle residence for 5 consecutive years of the past 8 years are eligible for a tax credit up to $6,500.

The home purchase must be for a principle residence and it can include a boat, motor home or traditional house, condo or townhome up to an $800,000 limit. There are income limits to the new benefits extention. They are $125,000/yr for a single person and $225,000 for a couple.  A purchase by a dependent is not allowed. See your tax advisor for more details.

The good news is that more people can get tax relief when they purchase their next home through April 30, 2010 or have a binding contract to purchase on April 30th and close by July 1, 2010.

The other good news for home buyers is the historically low mortgage interest rate and the reduced market values for homes. This is a combination that probably won’t be seen again in our lifetimes. Contact your realtor to find the best buying opportunites in your area.

I have lovely coastal homes in all price ranges from Orange County to Long Beach, CA. I will find the right one for you. I’m only a click away!

Any Orange County property owner can challenge the County’s tax assessment value if the market value is less in your neighborhood. You have until September 15th to file for a review. The process is explained and the needed forms are available at assessor’s site:
http://www.ocgov.com/assessor/

You don’t have to pay someone else to do this. The process is simple, but there is a deadline of Sept. 15th for an assessment review. Good luck!

From my perspective, Orange County, CA is experiencing not only stability in the market with values finding a floor and prices firming-up, but an increase in list prices in some areas.

There is still time to find good buying opportunities. The $8,000.00 first-time home buyer’s credit is still in effect through November 30th. There are still bank owned homes and short sales available. However, the room to negotiate a lower price is probably gone.

Here’s more information for the fence sitters to consider. Read the highligts of the NYT’s article. The information is from national survey’s such as the S&P/Case-Schiller Price Index, the NAR and from CAR’s chief economist, Leslie Appleton-Young.  Contact a Realtor in your local market to learn what is happening there.

The New York Times

3-year descent in home prices appears to be at end

According to recent reports and forecasts by housing analysts, the three-year descent in home prices appears to be at an end.  Eight cities, including San Francisco, showed price increases in May, up from four in April, and one in March, according to Standard and Poor’s/Case-Shiller Index.  For the first time since early 2007, the index of 20 major cities was virtually flat, rather than down.
 

MAKING SENSE OF THE STORY FOR CONSUMERS

·      Earlier reports show that sales of existing homes nationwide rose last month for the third consecutive month, while sales of new homes increased in June by the largest percentage in eight years, according to the NATIONAL ASSOCIATION OF REALTORS® (NAR) and the U.S. Commerce Dept., respectively.

·      Although some skeptics believe the market is pausing before home prices decline further, the median price in California’s housing market appears to be stabilizing.  June marked the fourth consecutive month of rising home prices and the second largest gain on record for the month of June, based on statistics dating back to 1979.  The year-to-year decline in June also was the smallest in the past 16 months.

·      The S&P/Case-Shiller price index for 20 cities showed a half-percent gain when May was compared with April.  It was the first month-over-month increase in the index in 34 months.  “It is very possible that years from now we will say that April 2009 was the trough in home prices,” said Maureen Maitland, vice president for index services at Standard & Poor’s.

·       One explanation for the increase in median prices is the rise in demand from buyers, especially first timers taking advantage of the $8,000 federal tax credit, which expires in December.  The NATIONAL ASSOCIATION OF REALTORS® (NAR) is lobbying for the tax credit to be extended and to be replaced with a $15,000 credit for all buyers.

·      Another factor in the market’s resurgence is the prevalence of foreclosures, which make up about a third of all existing home sales.  “Although another surge of foreclosures is expected later this year, demand remains strong, so the market may be able to absorb more distressed properties without significantly impacting the median price,” said C.A.R.’s Chief Economist Leslie Appleton-Young.

The real estate market is changing as quickly as the rest of the economy.  Mortgage interest rates for the week of December 8th have dipped below 5% for a 30 year fixed conforming loan – some as low as 4.75%! That is under historically low!

If you are thinking of buying a “hot property” soon, get pre-approved for a low-rate loan with a direct lender and contact me for the leads to the best deals on the market.  I have information on where to find the direct lenders if you’d like some guidance.

Most of the bank-owned houses highlighted in my home page have sold or are in escrow, and more houses are coming on market every week.  From January to March 2009 there will be many more bank-owned properties available for the prepared, qualified buyer.  Contact me at 714-932-5529 to get started. The time to act is NOW.