More Good Loan News

Conforming Loan Limits Extended Through 2010.

The limits will be $417,000 for most areas in the U.S. and $729,750 for high-cost areas, including many in California.

This means that the lowest interest rates locally (currently under 5%) will remain in effect up $729,750 rather than drop back down to $417,000.

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Fast Facts

Fast Facts From the California Association of Realtors

Calif. median home price - October 09: $297,500 (Source: C.A.R.)

Calif. highest median home price by C.A.R. region October 09: Santa Barbara So. Coast $970,000 (Source: C.A.R.)

Calif. lowest median home price by C.A.R. region October 09: High Desert $118,580 (Source: C.A.R.)

Calif. First-time Buyer Affordability Index - Third Quarter 2009: 64 percent (Source: C.A.R.)

Mortgage rates - week ending 11/25/09 30-yr. fixed: 4.78% Fees/points: 0.7% 15-yr. fixed: 4.29% Fees/points: 0.6% 1-yr. adjustable: 4.35% Fees/points: 0.7% (Source: Freddie Mac)

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Tax Credit Exteneded and Expanded

New $6,500 federal tax credit for “move-up” home buyers!

The federal government recently extended and expanded the federal tax credit for home buyers. The tax credit now concludes June 30, 2010 instead of Nov. 30, 2009, and also includes existing homeowners who meet certain qualifications.

MAKING SENSE OF THE STORY FOR CONSUMERS

• Current homeowners are eligible for a $6,500 federal tax credit if they have lived in their current home for a consecutive five out of the last eight years, and the adjusted household income does not exceed $125,000 for single files or $225,000 for join filers.
  
• The expanded tax credit went into effect Nov. 6, the day President Obama signed the bill. Homes that close escrow between Nov. 6, 2009 and June 30, 2010 are eligible to apply for the tax credit.
  
• The legislation does not require homeowners to sell their current residence; however, the new home must be the primary residence and the price of the home must not exceed the limit of $800,000. Homeowners who plan to retain their current home as a rental or second home are advised to move into the new home the day escrow closes so there is no question it was the principal residence at the time of the tax credit.
  
• Almost all housing types are eligible, including new and existing single-family homes, condominiums, manufactured or mobile homes, and boats that serve as the owner’s principal residence. Second homes and investment properties are not eligible.
  
• Home buyers in 2009—those who close after Nov. 6, but no later than Dec. 31, can claim the $6,500 credit on their 2009 federal tax returns, or amend their 2008 returns. Similarly, eligible buyers in 2010 will be able to file for the credit on their 2009 returns or 2010 returns. All home buyers should talk to a tax adviser regarding timing decisions.

Home Prices Up!

According to the L.A. Times, home prices in Southern California moved up again in October. Read the article:

http://www.latimes.com/business/la-fi-home-sales18-2009nov18,0,2269629.story


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Garage Sale

Your neighbors are having a Garage Sale

Please visit them at:

6827 Pageantry
W/ Studebaker & N/Spring


Saturday November 14

Homebuyer's Credit Extended & Expanded

More good news for consumers! Congress just voted to extend the home buyer tax credit -- expanding the parameters to include existing homeowners and not just first-time buyers.

As it now stands, the federal tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. First-time home buyers will continue to be eligible for a tax credit of up to $8,000, while existing homeowners will be eligible for a credit of up to $6,500. To qualify for the $6,500 credit, existing homeowners must have lived in their current residences for at least five years. The bill also increases the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000 in both instances.

Under additional provisions included in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The legislation maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

Nationwide, more than 1.4 million first-time home buyers were given the opportunity to become homeowners as a result of the Federal Tax Credit for First-time Home Buyers. We expect that number to increase dramatically in the months ahead with this new legislation in place.

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Watching The Numbers

Watching the number of homes both for sale and in escrow in East Long Beach gives us a barometer on what is happening in our local real estate market. Obviously, a rising number of homes in escrow is a good sign of things. On the other hand, a rising number of homes currently for sale can have a depressing result on prices. We will be constantly watching these numbers and posting them here. As of today the numbers stand at:

Date	Homes On Market	Homes In Escrow
Nov 7	78	78
Oct 21	66	90
Oct 4	73	87
Sept 21	70	86
Sept 03	69	97
Aug 13	76	80
July 14	107	93
July 1	69	98
June 13	77	105
June 8	69	106
May 30	66	102
May 18	59	102
May 10	78	88

Please add your comments and questions below...

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