3 year housing price descent is at the 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.

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A Tax Credit for 1st time Homebuyers?

2009 Tax Credit for First Time Home BuyersWould you like $8000 back on your taxes this year?

We've been hearing a lot of questions about the new tax credit. Who qualifies? How does it work? How long will it last? In this special edition video, weAccording to the new legislation, a first time home buyer is defined as someone who has not owned a principle residence in the past three years. Those three years are counted up to the date you take possession of the house you buy in 2009. This means that even if you’ve owned a home in the past, you can still take advantage of the tax credit as long as you haven’t purchased a primary residence since 2006.The same goes for married tax payers - they must both be first time home buyers. For non-married joint buyers, only one of them needs to be a first time home buyer, or someone who hasn’t owned a primary residence in the past three years.Qualifying homes include: New Homes, homes that are being sold, condos & townhouses.

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Bay Area Home Sales on the Rise!!

The number of homes sold in the Bay Area in April was
higher than a year ago for the eighth month in a row while
the median price fell 41.3 percent to $304,000 as bargainpriced
foreclosures continue to dominate the market.
While the median prices is down significantly from a year
ago, it edged up slightly on a month-to-month basis for the
first time in almost two years, said the report released
Thursday by MDA DataQuick Information Systems.
In April, a total of 7,139 new and resale houses and
condominiums closed escrow in the Bay Area, a 12.9
percent increase from March and a 13.1 percent gain from
March 2008. The 13.1 percent year-to-year gain for home
sales is significantly smaller than the 29.1 percent year-toyear
gain reported for March home sales.
Last month's median price was 4.8 percent higher than in
March, the first time there was a month-to-month gain
since October 2007, when the median price increased 1
percent from September 2007.
From March to February and from March to April, the
median sales price reflected a 1.7 percent drop, compared
to an average month-to-month decline of almost 5 percent
in the 12 months ending in January 2009.
"When you see units up and prices going up it points
toward stabilization and it's very encouraging," said Rick
Turley, president of Coldwell Banker Residential Brokerage
in the Bay Area.
A lower concentration of discounted foreclosure resales
helps explain why the median sales price has begun to
stabilize, the DataQuick report said.
That said, Turley and other real estate observers expect
more foreclosures to come onto the market in the coming
Bay Area home
sales rise again
months now that temporary foreclosure moratoriums have
ended. More foreclosures could drag down median prices,
which is the point at which half of homes sell for more and
half sell for less.
In April, 47.4 percent of existing home sales in the Bay
Area involved properties that had been foreclosed upon
at some point in the last 12 months, compared to 50.2
percent in March and 52 percent in February.
Turley pointed out that the recent slowdown in foreclosure
sales is likely the result of foreclosure moratoriums that
were in place until the end of March. Now that the
moratoriums have been lifted, expect to see more foreclosed
properties to be put on the market, he said.
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