California to Extend Homebuyer Tax Credit

California homebuyers will still have access to a Homebuyer Tax Credit when the federal tax credit expires at the end of April.  Last week Governor Arnold Schwarzenegger signed California's Homebuyer Tax Credit into law.  It extends a statewide program that ran out of funds at the end of last June.  The $10,000 credits can be used by first time buyers and repeat buyers who have lived in their current home at least two years.

To be eligible for the California tax credit the buyer must purchase a home between May 1, 2010 and December 31, 2010 and close on the property before August 30, 2010.  Homebuyers who purchase a home before May 1st can still qualify for the federal tax credit which expires April 30th.

Money Magazine: 10 Cities Home Prices Will Rise; 10 Where They'll Fall

Money Magazine has released its latest home-price projections for the country’s largest metropolitan areas. Here are the 10 cities where it believes home prices will rise the most in the next year, and the 10 where it foresees the most substantial declines:

Where prices will rise:
• Santa Rosa, Calif., 6.0 percent
• Cheyenne, Wyo., 4.7 percent
• Kennewick, Wash., 4.6 percent
• Merced, Calif., 4.4 percent
• Bremerton, Wash., 4.2 percent
• Fairbanks, Alaska, 4.2 percent
• Corvallis, Ore., 4.1 percent
• Tacoma, Wash., 3.9 percent
• Anchorage, Alaska, 3.8 percent
• Bend, Ore., 3.3 percent

Where prices will decline:

• Miami, -22.5 percent
• Fort Lauderdale, Fla., -21.3 percent
• West Palm Beach, Fla., -18.5 percent
• Phoenix, -18.5 percent
• Las Vegas, -15.4 percent
• Tampa, -13.8 percent
• Pensacola, Fla., -13.6 percent
• Gainesville, Fla., -13.4 percent
• Suffolk, N.Y., -13.4 percent
• New York City, -12.9 percent

Source: Money Magazine (03/20/2010)

Fannie Mae: Recovery is Moving Forward

The decline in home sales in February was a disappointment to the housing industry, but Fannie Mae’s analysts say it is temporary and a sustainable turnaround is likely by the end of the year.

Fannie Mae Chief Economist Doug Duncan points to evidence that a recovery is on its way, including an increase in consumer spending, an improving service sector, and the likelihood that employers will begin hiring soon.

"More favorable financial conditions overall keep us optimistic that we are moving forward with the recovery, albeit at a lower trajectory than previously forecast," Duncan said in a statement.

Source: Fannie Mae (03/17/2010)

State of the Housing Market in California

Last week the California Association of Realtors released their annual State of the California Housing Market Report. Among the findings:


• Last year 47% of all homes sales were to first time buyers – the highest percentage since 1995 and well about the historic average of 38.6%

• More than half of those first time buyers bought a home in distress, either a bank owned property or a short sale property.

• REO/foreclosures and short sales accounted for almost half of all sales in 2009, up from nearly 36% the year before.

• Statewide the median price of distressed properties was down nearly 25% in 2009. Non-distressed property prices dropped about 10% in last year.

• Nearly of third of all sellers in 2009 sold at a loss – the highest percentage on record and three times the historic average of 9.5%.

• The median price of California homes hit bottom in 2009 and have been increasing every month since then.

• Sales of home priced above $500,000 started to pick up at the end of last year, ending 2009 with 3% more high end sales than in 2008.

How To Pay Off Your Mortgage In Half The Time

How’d you like to pay off your 30-year mortgage in 17 years? It is easier than you think. If you simply make one extra mortgage payment a year, you’ll trim about 13 years off the term of your loan. So how do you come up with that extra payment? Here are a couple of tips:


1. Apply your tax refund to your mortgage

2. Each month add an additional 8% to your mortgage payment

3. Pay half your mortgage every two weeks, instead of one payment a month -- you’ll end up making 26 half payments, which means 13 full payments instead of 12.

These are just a few things you can do to easily pay off your mortgage quickly. It is important that you tell your lender to apply the extra money to your principle. It is also important to keep detailed records of your payments and instructions and review your mortgage at least once a year to ensure your lender is following your instructions.

If you do, you could own your home free and clear in no time.