Market Update : corona real estate

Obama Outlines Job Creation Agenda

Liane Thomas — Tue, 08 Dec 2009 19:29:00 GMT

The president says savings from cheaper corporate bailouts frees up funds that can be used on jobs programs and energy-efficient home projects. The total cost of his proposal is not yet known.

By Christi Parsons and Jim Puzzanghera

10:24 AM PST, December 8, 2009

Reporting from Washington

President Obama today proposed to spend money on job creation available because of smaller than expected corporate bailouts, in part by building roads, expanding credit for small business and encouraging energy-efficient home projects.

In a morning address at a nonpartisan Washington think tank, Obama unveiled a mix of proposals that he said would generate the greatest number of jobs while generating the greatest value for the economy.

"There is only so much government can do," Obama said. "Job creation will ultimately depend on the real job creators: businesses across America. But government can help lay the groundwork on which the private sector can better generate jobs, growth and innovation."

The total financial cost of the proposal hasn't been determined, according to administration officials familiar with the package that the president described. Obama only meant to draw the broad strokes of the overall plan, said one, adding that the White House plans to work with members of Congress to determine the size and scale of many of the components.

But administration sources suggested the cost would be partly -- and possibly mostly -- offset by $200 billion which the federal government was supposed to lose on the Troubled Assets Relief Program but now expects to recoup.

"That means we have space to do these proposals and to have a lower deficit than what we were expecting," said one administration official who requested anonymity to speak about the thinking at the White House.

In his morning speech at the Brookings Institution, Obama called for tax cuts to encourage additional business investments next year, with a particular focus on struggling small business.

He called for a one-year elimination of the tax on capital gains from new investments in small business stock. The economic stimulus act signed into law in February allowed a 75% exclusion from capital gains taxes on small business investments.

He also called for an extension through 2010 of the Reinvestment and Recovery Act provision, which lets small businesses expense up to $250,000 of qualified investments, as well as for an extension of the provision that speeds up the rate at which businesses can deduct the cost of capital expenditures.

Obama also proposed a new tax cut for small businesses to encourage hiring in 2010, and an elimination of fees and increasing guarantees for small businesses that borrow through the major Small Business Administration programs through the end of next year.

The president also wants to encourage people to retrofit their homes in energy-efficient ways. He called on Congress to consider providing rebates for consumers who undertake such projects, which White House aides say would not only lower consumers' energy bills, but also boost the hard-hit construction industry.

He also proposed expanding popular Recovery Act programs to leverage private investment in energy efficiency.

The ideas outlined this morning don't constitute the president's entire agenda for job creation, administration officials said. The administration will work with Congress on these and other projects, one official said.

In particular, the official said, the administration is focusing on ways to increase the competitiveness and export capacity of U.S. business overseas.

During his morning address, ticking off a list of steps that his administration has taken to create or save jobs, the president said his work is "far from done."

Getting job growth on track with more general economic growth is critical to recovery, Obama said.

"Even though we have reduced the deluge of job losses to a relative trickle, we are not yet creating jobs at a pace to help all those families who have been swept up in the flood," Obama said. "There are more than 7 million fewer Americans with jobs today than when this recession began.

"That's a staggering figure and one that reflects not only the depths of the hole from which we must ascend, but also a continuing human tragedy," he said. "And it speaks to an urgent need to accelerate job growth in the short term while laying a new foundation for lasting economic growth."

cparsons@tribune.com

jim.puzzanghera@latimes.com

Thanks to the LA Times for this story.

Shared by

Liane Thomas, REALTOR®, CDPE©

The Thomas Group, Keller Williams Realty

Serving Corona, Norco, Riverside, and surrounding communities

(951) 454-3805

www.AllCoronaHomes.com

www.FreeNorcoHomeSearch.com

www.FreeRiversideHomeSearch.com

Ca DRE #01704162

It Is Getting Harder to Buy a House

Liane Thomas — Tue, 08 Dec 2009 15:59:00 GMT

FHA to toughen rules for borrowers

The Federal Housing Administration (FHA) is proposing raising minimum credit scores for borrowers who receive FHA-backed mortgages, increasing down payment requirements, and limiting the amount of money sellers can provide toward closing costs. The proposed changes are part of an effort to shore up the agency's finances, which have been hit with rising defaults to its mortgage insurance program.

So what does this mean to you?

Historically, the FHA has played a critical role in propping up the housing market by insuring lenders against default after the mortgage market failed. Currently, the agency guarantees approximately 30 percent of all home loans and 20 percent of refinancings. In the past, the FHA has resisted raising down payments or insurance premiums, fearing it would be shutting out qualified borrowers and stunting the housing market's recovery.

The FHA is hoping that the proposed changes, including requiring that borrowers bring more cash to the closing table, will ensure that borrowers are less likely to default on their loans. Officials at FHA have yet to determine how much cash will be required.

Up-front cash can include down payments as well as other payments. Currently, FHA borrowers can put down as little as 3.5 percent. One lawmaker has introduced legislation that would require FHA borrowers to put down a minimum of 5 percent. The agency also currently allows sellers to provide up to 6 percent of the home's value toward closing costs or down payments. Secretary of Housing and Urban Development (HUD) Shaun Donovan has said he wants the maximum permissible level to be lowered to 3 percent, in line with industry norms.

The FHA has decided "for the time being" to raise its minimum credit score requirements for new borrowers. The new requirements have yet to be determined. Presently, borrowers with credit scores as low as 500 may qualify for an FHA loan.

So if you are thinking about buying a home in 12-18 months, and you plan on using an FHA loan, you might want to consider moving that plan up and buying sooner rather than later. It may cost you a lot more next year.

Brought to you by:

Liane Thomas, REALTOR®
The Thomas Group, Keller Williams Realty
1860 Compton Avenue
Corona, Ca 92881
Serving Corona, Norco, Riverside, and Surrounding Communities
951.454.3805
www.AllCoronaHomes.com

Have You Seen The New Show "Hoarders"? Do You Need To De-Clutter?

Liane Thomas — Tue, 08 Dec 2009 14:57:00 GMT

Last week I caught the premier of the show "Hoarders" on A & E (if you missed it, you can go to their website to view the entire episode). It was amazing, and got me to thinking about how someone goes from being a pack rat (guilty!) to being a hoarder.

The show inspired me to get rid of some of the clutter around my home, and my office. It seems like a big task, but by breaking it down, it can be done in 10 easy steps.

Step # 1: Set A Schedule

You are much more likely to stick to a routine, whatever it may be, if you work on a schedule. In addition, this allows you to clean when you can minimize interruptions and maximize your time.

Step # 2: Set A Goal For Each Room

If you can visualize what you want, you will be better able to achieve it. By setting goals for each room, you can note the things that need changing and work toward that goal one day at a time.

Step # 3: Create A Timeline

When do you hope to have your home completely free of clutter? One week, two weeks or even a month? Depending on your schedule and the amount of clutter that you have, it may take anywhere from a few days to a few weeks before you can kick back and relax again.

Step # 4: Start Small

The clutter in your home didn't appear overnight, and it won't disappear overnight either. If you start small, you will be less likely to get frustrated and give up midway through your cleanup.

Step # 5: Categorize Your Clutter

When cleaning, it's important to categorize your items into groups. By separating the items that you want to keep, toss and donate, you will be able to move through your clutter quickly and efficiently.

Step # 6: Letting Go

A good rule of thumb for uncluttering your home is to get rid of anything that you haven't used within the past year. If it's still useful, consider donating it to a good cause. Otherwise, toss it.

Step # 7: Storing Your Seasonal Apparel

When storing seasonal clothing, purchase a sturdy plastic storage bin with a lid and roll your clothes instead of folding them in an effort to maximize storage capability. When full, snap the lid on and slide the unit into your closet.

Step # 8: Closet Organization

Did you know that your choice of clothes hangers can greatly impact the storage capacity of your closet? Wire hangers take up less space and can save your shirts from getting that annoying shoulder bump that often arises from the use of plastic hangers.

Step # 9: Shoes Blues

When it comes to storing shoes, many homeowners are fighting a losing battle with clutter. How many pairs of shoes do you own? How neatly are they stored? If your shoe storage has you down, try purchasing clear lidded shoe boxes. These handy creations can house each pair of shoes and can be stacked neatly in your closet. And best of all, you can see your shoe collection without having to sift through a sea of sandals.

Step # 10: Read The Labels

If you have medicine, food or anything else with an expiration date in the home, check to make sure that the items are still good. If the expiration date has already come and gone, throw them away.

If these ideas inspire you, please respond and share your success! Thanks, Liane

Brought to you by:

Liane Thomas, REALTOR®
The Thomas Group, Keller Williams Realty
1860 Compton Avenue
Corona, Ca 92881
Serving Corona, Norco, Riverside, and Surrounding Communities
951.454.3805
www.AllCoronaHomes.com

One in Four Borrowers is Underwater on their Home

Liane Thomas — Sun, 29 Nov 2009 10:04:00 GMT

One in four borrowers is underwater
Despite recent indicators that the housing market is improving,a new report shows that one in four mortgage borrowers are underwater, meaning they owe more on their mortgage than their home currently is worth. According to First American CoreLogic, nearly 10.7 million households had negative equity in their
homes in the third quarter, accounting for about 23 percent of all U.S. homeowners. Most homeowners, however, still have equity, and nearly 24 million owner-occupied homes do not have a mortgage, according to the U.S. Census Bureau.

A study by credit-scoring company Experian shows that approximately 588,000 borrowers strategically defaulted on their mortgages last year, even though they could afford to pay--more than double the number in 2007. Homeowners with negative equity are more likely to strategically default if they live in a state where the bank cannot pursue their assets in court, according to a study by the Federal Reserve Bank of Richmond. California is
an example of a state with anti-deficiency laws protecting homeowners from personal liability under certain circumstances.

"Borrowers who are less than 20 percent underwater are likely to maintain their mortgage if their loan is modified and the payments reduced," said an official with Citigroup's mortgage unit. "Beyond 120 percent, the most effective modification is a complete loan restructuring, including a principal reduction."

So what does this mean to you? If you are underwater on your home, you are not alone. And you do have options....loan modification, short sale, deed in lieu of foreclosure, foreclosure, and bankruptcy are just a few. Not sure what to do first? Call for a free consultation. We will help you find the options available to you, no cost, no obligation, no pressure.

Brought to you by:

Liane Thomas, REALTOR®
The Thomas Group, Keller Williams Realty
1860 Compton Avenue
Corona, Ca 92881
Serving Corona, Norco, Riverside, and Surrounding Communities
951.454.3805
www.AllCoronaHomes.com

What If..You Stop Making House Payments???

Liane Thomas — Sat, 21 Nov 2009 04:07:00 GMT

We all talk about what-ifs.

One big what-if many homeowners have today has to do with making house payments.

Many homeowners are underwater, meaning they owe more than the home is worth at today's depressed prices.

Some homeowners certainly are wondering why they're sending in the payment on, say, a $450,000 mortgage, when the house would sell today for only $250,000.

Your options: Keep paying, try to change your loan's terms, or sell and get the heck out!

But some people wonder, what if I just stop paying the mortgage? It may be a tempting idea, but it quickly leads to trouble.

Here's what could happen if you don't pay the mortgage:

• Report to the credit bureau — If your payment does not arrive, your lender or servicer will report this late payment to the credit bureau by the first day of the next month. This can happen in as little as two weeks from due date and put a negative mark on your credit report.

• Your credit score drops — The late payment report whacks your credit rating. Your credit score starts to drop, by up to 200 points, if this is your only late or missed payment.

• Cards are closed, rates rise — In the next 30 days, you can expect your other creditors to take note of the late payment and to take action. They can raise your interest rates, shut off your credit card entirely, or lower your credit limit. You also could face other changes in your financial life, because auto insurance, student loans and other forms of credit are pegged to your credit score.

• Tightening of credit lowers your score — Credit scores feed on themselves. If your credit card limits are lowered and you are carrying a balance, you are then using more of your available credit, something known as your utilization rate. When that goes up, it lowers your score some more. The negative mark stays on your credit report for seven years. But the impact on your credit score lessens over time. The biggest impact is for the first two years.

• Lender response — The phone will start ringing. Your lender will try to contact you to persuade you to go into a loan modification of some kind. But after 90 days, you cannot just start making payments again. The lender may send your payment back, if you send it this late and have not been in contact.

• What happens next — After four months of not paying your mortgage, you will likely be served with a foreclosure notice. If you don't respond within 20 days, then the lender, in the following 60 days, will ask a court to issue a judgment against you.

A county sale will be arranged 50 to 120 days after the judgment. Then, 120 days after the sale, the sheriff will be at the door. Ten days after that, you'll be thrown out of your home.

This schedule is a general one, however. If you hire a lawyer and fight the foreclosure, you may be able to delay the sale for many months or avoid it altogether.

If you are in this position, and not sure what to do, please call 951 454-3805 for a free, no obligation, consultation. We will explore the "What If's" with you, no pressure, and no cost.

Liane Thomas, REALTOR®
The Thomas Group, Keller Williams Realty
1860 Compton Avenue
Corona, Ca 92881
Serving Corona, Norco, Riverside, and Surrounding Communities
951.454.3805
www.AllCoronaHomes.com

2 Story For Sale in Sierra del Oro

Liane Thomas — Sun, 08 Nov 2009 20:15:00 GMT

• 3,031 sq. ft., 3 bath, 5 bdrm 2 story - $550,000 - Priced To Sell Fast!

Sierra del Oro, Corona - Luxury Living Orange County Close! You must see this highly upgraded Sierra del Oro, Corona Pool Home! The elegance starts at the gated courtyard entrance, and continues to the 3 sided slate fireplace, the granite in the kitchen, and to the romantic master suite. Newer stainless steel appliances including a double oven, and 5 burner gas cook top. You will love the low maintenance landscaping, and the inviting rock pool and spa. This is a standard sale, no long waits for banks. You'll save money too, with low tax rate, and no HOA fees. Commuter close to Orange County, and close to great schools, shopping center, and so much more. Call to see this beauty today!

Property information

Big 4 Bedroom Home For Sale in South Corona

Liane Thomas — Sun, 08 Nov 2009 19:56:00 GMT

• 3,486 sq. ft., 3 bath, 4 bdrm single story - $649,000 - Standard Sale!

South Corona, Corona - Visit me first. Stunning South Corona Pool Home! Standard sale, no long waits! This beautiful 4 bedroom, 3 bath home is on one of the largest lots in the tract! Granite in the kitchen, honey maple cabinets, city lights view, and a 4 car garage, too. Romantic master suite has private bath with separate oval tub and shower. Highly upgraded, including a whole house fan, and insulated, drive thru garage. Fenced yard, fully landscaped, with a sparkling rock pool. Commuter close to freeway and shopping. Plan your visit today.

Property information

Welcome to Paradise! Executive Home for Sale in South Corona

Liane Thomas — Tue, 03 Nov 2009 23:29:00 GMT

Executive Home, Private Paradise!

• 5,941 sq. ft., 5 bath, 5 bdrm 2 story - $1,500,000 - Not A Short Sale!

South Corona, Corona - Welcome to Paradise! Private & Elegant Estate in Crown Ranch, The Premier Destination in Corona. Orange Country Close, You Will Live in Grandeur!. HIghly Upgraded Home, Seller Spent Over $700,000 in the Backyard Alone! Upon Entrance, You Will Be Greeted With Slate and Granite Flooring, Soaring Ceilings and a Romantic Wrought Iron Spiral Staircase That Will Take Your Breath Away. Cherry Cabinets and Granite Counters Await You In The Kitchen Along With Impressive Crown Molding Throughout. An Extensive Media Center With Surround Sound is Both Inside and Out, Ideal For Socializing. This Home Has Four Fireplaces To Create The Perfect Mood No Matter Where You Roam. For The Ultimate Luxury, Try a Massage From Your Own Personal Masseuse In Your Private Retreat Off the Master Suite. Impress Your Friends As You Entertain Them With Your Gorgeous Pool/Spa and Built In Bar-B-Que. And For The Sports Enthusiast, A Full Soccer Court Awaits You. Perfect Location, Private Cul de Sac. Motivated Seller Says Bring Your Offer Today!

Property information

12843 Prairie Circle in Eastvale Corona is Sold!

Liane Thomas — Fri, 23 Oct 2009 19:47:00 GMT

Eastvale, Corona - The single story at 12843 Prairie Circle has been sold. If you have a house to sell, call the team that can get the job done! Short sales are welcome!

Property information

Liane Thomas,
Keller Williams Realty, The Thomas Group
www.AllCoronaHomes.com
951 454-3805
dre #01704162

Existing Home Sales Up June 2009!

Liane Thomas — Tue, 28 Jul 2009 14:59:00 GMT

According to the National Association of Realtors (NAR), existing home sales in June rose by 3.6% to an annual rate of 4.89 million, the highest since last October. Lawrence Yun, NAR chief economist, said: "The increase in existing-home sales occurred in all major regions of the country." Analysts say that this signals moderation in housing slump.

"Market-clearing price levels are resulting from the foreclosure wave," said John Ryding, chief economist at RDQ Economics. "This will be a protracted bottom, rather than anything that will show a quick recovery." The national median existing-home price for all housing types was $181,800 in June, which is 15.4% below June 2008, according to the NAR. Analysts expect to see depressed home prices for many more months to come. Tax incentives and drop in interest rates have contributed to the rise in home resales. But concerns about unemployment are keeping many prospective homeowners in the sidelines.

Information provided by:

Liane Thomas, REALTOR(R) dre ca 01704162
Thomas Group, Keller Williams Realty
Serving Corona, Riverside, Norco, and surrounding communities
www.AllCoronaHomes.com
951.454.3805

New Home Sales Up June 2009

Liane Thomas — Tue, 28 Jul 2009 13:48:00 GMT

Sales of newly built, single-family homes rose 11% in June, 2009 to a seasonally adjusted annual rate of 384,000 units, according to numbers released by the U.S. Commerce Department. Coming on the heels of an upwardly revised number for May, the gain marks a third consecutive month of improved sales activity.

“This is good news that indicates the nation’s housing market may be in the process of turning the corner,” said Joe Robson, chairman of the National Association of Home Builders (NAHB) and a home builder from Tulsa, Okla. “That said, the key to moving us out of recession is to get Americans back to work. Congress and the Administration should know that housing can be a significant generator of good jobs. We need to make housing a priority in the recovery process, otherwise we could continue to bounce along a bottom for some time.”

“The big gain in home sales last month was reflected in three out of four regions and helped shrink the inventory of new homes for sale to its lowest level in years,” said NAHB Chief Economist David Crowe. “Even so, the pace of home sales in June 2009 was still more than 21 percent off the pace of sales in the same month last year, so we still have quite a way to go. The concern now is that complicating factors-particularly job losses, appraisal issues that are torpedoing more than a quarter of new-home sales, and the impending expiration of the first-time buyer tax credit-threaten to stifle the positive momentum.”

The number of newly built homes on the market declined for a 26th consecutive month in June, falling 4.1% to 281,000 units. This marks a relatively thin 8.8-month supply at the current sales pace.

New-home sales rose by double-digits in the Northeast (29.2%), Midwest (43.1%), and West (22.6%) in June. Meanwhile, sales activity declined 5.3% in the South, which is the country’s largest housing market.

Information provided by:

Liane Thomas, REALTOR(R) dre ca 01704162
Thomas Group, Keller Williams Realty
Serving Corona, Riverside, Norco, and surrounding communities
www.AllCoronaHomes.com
951.454.3805

Do YOU Want $8000?

Liane Thomas — Tue, 14 Jul 2009 14:05:00 GMT

Would You Like $8,000? Buy a Home. Soon!

To stimulate the economy, Washington juiced up the stimulus plan passed last year in February. Two benefits for FTHBs (First Time Home Buyers) were that the amount of the tax credit was increased from up to $7,500 to $8,000. And, more importantly, the amount of the credit does not have to be repaid!

To qualify for the credit the individuals buying a home cannot have owned a home in the last three years. So, while the credit is discussed as a credit for first-time buyers, anyone who has not owned a home in the last three years is eligible.

There are income limitations to fully qualify but they are quite liberal. Single tax filers earning up to $75,000 and joint filers earning up to $150,000 based on modified adjusted gross income can earn the full credit. A partial credit is available for those earning up to $95,000 and $170,000 respectively.

The amount of the tax credit is based on a percentage of the price of the home, specifically 10% of the purchase price, up to $8,000. This means if someone purchases a home for $70,000 their credit would be $7,000 and if the amount of the home purchased is $100,000, the credit would max out at $8,000.

Note! The deadline to take advantage of this opportunity is November 30, 2009. Close in December, and you just lost $8,000.

Homes Have Never Been More Affordable
FTHBs are leading the way, taking advantage of one of the best home buying opportunities ever, providing support for the real estate market. As indicated earlier, FTHBs have accounted for as much as 53% of purchases for any month this year.

Who can blame them? In short, no one. Home prices have fallen to levels not seen in years and interest rates hit their lowest point ever. This combination led to the highest home affordability ever recorded.

The National Association of Realtors® tracks what is known as the Home Affordability Index. The Home Affordability Index is arrived at as a function of both median home prices, available interest rates, and median family income.

The index represents the amount of monthly income that is required to pay a mortgage payment. In 2005, approximately 23.3% of a family's monthly income was required to carry a mortgage payment. With falling home prices and interest rates, the percentage of monthly income required to pay a mortgage payment is now approximately 15%.

This means that for a family at the median income level purchasing a home priced at the median income level, the monthly mortgage payment has declined nearly 36%! This is great news for anyone shopping for a home today.

You can take advantage of the low down FHA program, and combine it with this tax credit!

Get Busy, Time is Short!
In order to take advantage of both the available tax credit and low interest rates, anyone going into contract should strive to have their purchase agreement not later than mid-October. This will allow some time cushion in the event anything pops up in the purchase process and still allow for closing in time to take advantage of the available tax credit.

Home prices have fallen to levels not seen since the start of the decade in many parts of the country, interest rates are still near all time lows, and the availability of free money from the IRS all mean that the time to act is now. It is always easy to look back and identify times people should have acted, and this could well be one of those times people will look back and say, "Wow, I should have bought a home in 2009!"

Brought to you by:

Liane Thomas, REALTOR(R)
The Thomas Group, Keller Williams Realty
Serving Corona, Norco, Riverside, and surrounding communities
www.AllCoronaHomes.com
951.454.3805

Changes to Home Affordable Refinance Program (HARP) July 2, 2009

Liane Thomas — Thu, 09 Jul 2009 18:18:00 GMT

The Obama administration eased eligibility rules Wednesday for its Home Affordable Refinance Program, lifting the maximum loan-to-value ratio to 125% from 105%.

This change should make refinancing available to more people whose homes are worth less than their mortgages.

HARP is open to homeowners whose loans are owned or guaranteed by Fannie Mae or Freddie Mac, the mortgage finance giants now under government control. It covers first mortgages only.

The refinance program, launched this year, has gotten off to a slow start, in part because the maximum 105% loan-to-value ratio was too low to include many homes that have fallen sharply in value.

The new 125% maximum means an eligible homeowner with a $375,000 mortgage can refinance if his or her house is worth at least $300,000. But the borrower still must be able to afford the new loan. Income requirements are an increasing problem as unemployment soars and many workers are dealt pay cuts.

Treasury Secretary Timothy F. Geithner said the move to raise the loan-to-value limit was "a crucial step in our broader efforts to get America's housing market and economy on the path to recovery."

Liane Thomas, a REALTOR(R) in Corona, Ca, says "If you are underwater on your loan and unable to make your payments, please call your loan servicer first. As them to help you stay in your home." If they cannot help you, consider other options like bankruptcy, a short sale, or a deed in lieu before letting your house go to foreclosure.

Information provided by
The Thomas Group, Keller Williams Realty
Serving Corona, Riverside, Norco and surrounding areas
www.AllCoronaHomes.com
951.454.3805

CNN Says Housing Market may be Stabilizing!

Liane Thomas — Sun, 05 Jul 2009 21:20:00 GMT

CNN is searching for a bottom in the housing market

With consumer confidence rising in May to its highest level in eight months, housing starts increasing more than 17 percent in May compared with the previous month, and sales of existing homes climbing 2.9 percent in April nationwide, it appears that the housing market may be stabilizing.

So what does that mean to you?

Although sales of existing, single-family homes rose 35.2 percent in May in California, compared with a year ago, the median price declined 30.4 percent during that same year. Some industry analysts predict that as specialized adjustable-rate mortgages, known as option ARMS and Alt-A mortgages, reset over the next 18 to 24 months, prices could decline further before stabilizing.

"We are seeing strong buying activity, particularly in those boom and bust markets, where prices have declined significantly. Buyers are coming in and fighting over properties -- there is multiple bidding in California and Florida," says Lawrence Yun, chief economist with the NATIONAL ASSOCIATION OF REALTORS(R).

Sales of existing homes are soaring as many investors and first-time buyers purchase distressed properties. Yun estimates that about 50 percent of current sales involve distressed properties, and he expects the trend to continue as foreclosures rise in the months ahead.

Although some economists predict home prices will continue to decline in the coming months, California'ss median home price rose for the third consecutive month in May, posting the largest monthly increase on record for the month of May.

Some buyers are trying to time the bottom of the market and purchase once it appears that prices are consistently and steadily rising. Many housing forecasters advise against this approach as buyers should not view their homes solely as investment opportunities. Historically, the average annual rate of return on a home lived in for five years or more is nearly 12 percent, based on data C.A.R. has collected over the last 40 years.

If you are thinking of selling your home, now is an excellent time with low inventory and the seasonal spike we get this time of year. Even if you are underwater on your home, like so many families, we'd like to help you find a solution. Call for a free consultation. Thanks!

Liane Thomas, REALTOR(R), CDPE
The Thomas Group, Keller Williams Realty
Serving Corona, Norco, Riverside, and Surrounding Communities
www.AllCoronaHomes.com
951 454-3805

California Running Out of $10,000 Tax Credits for New Homes

Liane Thomas — Sat, 20 Jun 2009 09:56:00 GMT

First-time home buyers wanting to take advantage of the state's $10,000 tax credit may have less time than originally expected. California set aside $100 million to help home buyers purchase newly built homes, hoping to jump start the residential-construction market. According to state officials, the tactic has worked well and is helping to entice home buyers into the market. However, there only is approximately 20 percent of the program?s funding remaining.

The program launched in March, and as of June 3 nearly $24 million in tax credit certificates already had been issued, according to the state's Franchise Tax Board, leaving nearly $76 million in credit available. Many applications still are in the pipeline awaiting approval. If all of the submitted applications are approved, only $17.5 million would remain in the fund.

The California state legislature is considering adding another $200 million to the program. However, securing approval may be difficult due to the state's estimated $24 billion budget deficit. A bill to extend the program already has won Assembly approval and now is awaiting activity in the state Senate.

So what does this mean to you? If you are considering buying a new home, you need to move fast! If you are a first time home buyer you, and you have completed the home buying process before 12/1/09, you could cash in on a much as $18,000 in tax credits. Need help finding you home? Call or email us! We offer a free service to get you in touch with a professional in your area who will help you find you home AND secure your tax credit!

Thanks!

Information provided by:
Liane Thomas, REALTOR(R), CDPE
The Thomas Group, Keller Williams Realty
Serving Corona, Riverside, Norco, and surrounding communities
www.AllCoronaHomes.com
www.FreeRiversideHomeSearch.com
951.454.3805