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The BATTLE Over Tax Liability With Short Sales Rages On

April 15 is just a few weeks away, and still the governor and the Legislature can’t agree on what to do about short sales.

As reported in the OC Register:

California, unlike the federal government, no longer offers tax relief for mortgage debt forgiveness. Starting in 2009, mortgage debt that your lender forgives when you sell your home at a loss is now taxed, like income.

That means that thousands of Californians who sold their homes at a loss last year in what is commonly known as a short sale are now, depending on their personal tax situation, on the hook for potentially big tax bills from the state.

Last week, the State Legislature sent the governor a bill by State Sen. Lois Wolk, D-Davis, that would once again eliminate the tax liability for mortgage debt forgiveness. But four days later, Gov. Arnold Schwarzenegger announced he would veto the bill because it includes a provision that greatly increase penalties for businesses and wealthy taxpayers who claim higher tax refunds than they’re actually entitled to.

Later that day, Schwarzenegger sent the four legislative leaders a letter demanding that they pass a short sale bill that does not include a tax penalty:

I asked you to send me legislation that protects homeowners from being taxed on “short sales” when they are forced to sell their home for less than they owe on their mortgage. Instead you are sending me a bill that uses these homeowners as leverage to increase tax penalties for businesses. Send me a clean bill that protects homeowners from this tax immediately, and I will sign it.

Senate Leader Darrell Steinberg, D-Sacramento, shot back a short time later with a letter of his own, saying that the penalty simply mirrors federal law:

(Y)ou take issue with the bill we sent you that provides tax relief for victims of short sales and developers of renewable energy projects because the measure also includes a provision that imposes penalties on the wealthiest individuals and corporations that commit tax fraud, with full due process and appeals available to those fined. It is disappointing that you would consider vetoing this legislation over a provision that has been part of federal tax law since 2007, when President Bush signed it into law. Aside from conforming with federal tax law, the penalty provision also ensures that the vital tax relief we provide to short sale victims and renewable energy developers is paid for, reducing the effect on our budget deficit. We believe the tax conformity measure we sent you is fiscally responsible. Of course, if you find a conforming penalty for the wealthiest tax frauds unacceptable, we would seriously consider an alternative revenue source more to your liking, and of equal value, to include in the measure.

In other words, the governor and Legislature appear to be at loggerheads, although one Orange County lawmaker is working to bring the sides together.

Last week, state Sen. Lou Correa, D-Santa Ana, along with State Sen. Ron Calderon, D-Montebello, re-introduced a “clean bill” that only addresses the short sale tax liability.

We’ll see what happens.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

 

South ORANGE COUNTY Sale Volume INCREASES; VALUES ?

As reported by Kelli Hart with the OC Register, March 15, 2010

For calendar year 2009 – DataQuick’s freshest stats — Laguna Beach homebuying patterns showed:

  • Homebuying +34% vs. a year ago.
  • Sales counts in all Orange County beach towns ran +16% vs a year ago. Countywide, it was +14% vs. a year earlier.
  • Laguna Beach’s median selling price was $1,150,000 – that’s +177% vs. countywide pricing.
  • A year ago, that Laguna Beach home-price “premium” was 243% vs. the countywide median selling price.
  • For a detailed report on countywide price moves, CLICK HERE!

Here’s a look at how Laguna Beach compares to all Orange County beachtown trends and countywide totals for homebuying and median selling prices:

TownMedian priceYear’s chg.SalesYear’s chg.
Laguna Beach $1,150,000 -25.6% 320 +33.9%
All beach towns $671,500 -15.4% 4,925 +16.0%
Total O.C. $415,000 -7.8% 31,093 +14.5%

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.  SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

 

 

 

 

Mortgage Rates Remain Low

Will the low interest rates continue ? 

Will they help pick up home sales through 2010 ?

The typical rate that lenders were offering for 30-year home loans slipped below 5% again this week, the mortgage company Freddie Mac said in a survey released Thursday.

The survey asks lenders to report popular combinations of interest rates and points, the upfront fees borrowers pay to offset the cost of issuing the loan and sometimes to "buy down" the rate. The result is intended to reflect what people with good credit and a 20% down payment or home equity could expect to be offered.

For 30-year fixed-rate home loans, the combination this week was an average 4.97% in interest with an average of 0.7% of the loan balance in points, according to the survey, conducted Monday through Wednesday.

The low rates have been engineered by the federal government in response to the deep recession. Not since the 1950s have rates remained so low for so long, said Greg McBride, a senior financial analyst at Bankrate.com, citing data from the National Bureau of Economic Research.

The 30-year fixed loan has bumped around the 5% level since September, falling to a record low of 4.71% in a Freddie survey in December. So far this year, it's been above 5% in six of the weekly surveys and below seven times. It was at 5.05% a week ago.

The 15-year fixed-rate mortgage this week averaged 4.33% with an average of 0.7% in points, down from 4.40% a week ago.

The five-year Treasury-indexed hybrid adjustable-rate loan, which has a fixed rate for the initial five years, averaged 4.11% with 0.6% of the loan balance in points. It averaged 4.16% a week earlier.

Because the Freddie Mac survey assesses lenders' offering prices, mortgage professionals say well-qualified borrowers often negotiate slightly better deals. The rate research website FreeRateUpdate, for example, said rates have held steady this week at 4.75% for a 30-year fixed loan for borrowers paying points of 0.7% to 1.0%.

Despite the low rates and thousands of dollars in special tax credits for home buyers, a report Thursday from the National Assn. of Realtors suggested that demand for housing is lagging. The real-estate group said its index of sales agreements for existing homes fell in January to the lowest level since last April, a trend that "raises concern about the strength of a recovery."

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

 

Shall We Call This....A House a PIRATE Would Love ?

Have you ever walked through an OPEN HOUSE for a $1,250,000 home and heard an AGENT say these things ??

“It’ll be the funniest house you’ll see all day.”

“It’s kind of like Big Bear at the beach.”

The homeowner thought the workers were laying the bricks on the fireplace too perfectly and straight, ”so he proceeded to get them drunk.”

“It’s a combination of Knott’s Berry Farm and a mountain cabin in the harbor.”

“Did you see the rock bathroom?”

CLICK on photos for a better look:
.

That octagonal shape in the room with the cave walls and the chandelier covers a hot tub.  Those big chairs in the “River Rock Lounge” in the 4th photo are made of driftwood. The floozy behind the wheel is a sculpture. And check out that toilet.

The 3,000 square foot, 2-bedroom, 1,5 bath cottage, built in 1930, is on a canal in Huntington Harbour.

The owner was initially a horse trader, then later bought an escrow company, the Realtors said. He lived in Los Angeles, but spent weekends here with his children and grandchildren. The house was in the family for about 35 years.

It's kind of a shame to let a place like this go.....

Call me for a private showing:  (949) 922-2200

ZEN

CA Economy Gains 32,500 Jobs !

 

 

California employers added 32,500 jobs in January, with the construction industry leading the way, the state Employment Development Department reported Friday. But the unemployment rate increased to 12.5 percent from a revised 12.3 percent in January.

Construction gained 16,200 jobs in January, as builders and developers kicked off new projects in the beginning of the year. The Irvine Company, for example, released hundreds of homes for sale in January. Still, California construction employment is down 18 percent since January 2009.

The construction gains may not last long. “It’s definitely encouraging at this point in the state’s recovery, but it’s probably not sustainable,” said Eduardo Martinez, California analyst and senior economist at Moody’s Economy.com. As stimulus funding dries up and the weak housing market continues, he said, the construction industry will likely struggle.

Other industries added jobs as well, including manufacturing, trade and transportation. One area, education and health services, gained jobs over the year — it added 12,400 positions. Health and education jobs are often seen as recession-resistant.

Gains in trade and transportation are great for Southern California, as traffic at the Ports of Long Beach and Los Angeles tends to benefit Orange County employers, said Martinez.

In the U.S., the construction industry lost 64,000 jobs in January, according to U.S. Department of Labor statistics released Friday. The U.S. unemployment rate was reported at 9.7 percent in January, unchanged from December.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

 



ORANGE COUNTY....THE HOTTEST HOUSING MARKET ?

As reported by the OC REGISTER

Orange County, the nation’s best housing market? But, yes, that’s what the Federal Housing Finance Agency’s freshest data shows.

Of course, nothing FHFA does — that’s the old “OFHEA” math for the serious home-stats fan — is ever simple. So hold on, but here’s what FHFA’s fourth-quarter report says:

  • Orange County home values — by one FHFA index that derives values from purchase records — rose 6.38% in 2009.
  • That’s tops among the 25 major U.S. markets tracked by this methodology. Yes, O.C. is No. 1! We’re followed by Denver (+5.48%); Houston (+3.71%); and Pittsburgh (+3.26%).
  • By the way, that 2009 gain for O.C. still left local prices off 10.15% for the past five years, according to this math.
  • FHFA also tracks home prices with an index that includes both purchase info as well as values from appraisals included mortgage refinancings. That index shows O.C. home prices down 2.18% in 2009. That ranked O.C. 111th out of 299 markets tracked nationwide.
  • Curiously — even with the 2009 variances — this purchase/appraisal index shows O.C. values off 10.07% in five years.

Critics question the FHFA math because their underlying data comes from the files of government-backed, mortgage giants Fannie Mae and Freddie Mac that FHFA regulates. Loans that Fannie and Freddie control are typically for smaller dollars, so the FHFA index may miss some of their activity in the higher-priced (and currently weakened) slice of the local market.

Still, it’s curious that either way you look at FHFA math … Orange County’s long-suffering housing market ended 2009 as an above-average performer — maybe even the top dog.

PS: How does FHFA index — it’s not a median — work? It’s “a weighted, repeat-sales index, meaning that it measures average price changes in repeat sales or refinancings on the same properties. This information is obtained by reviewing repeat mortgage transactions on single-family properties whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac since January 1975. The HPI is updated each quarter as additional mortgages are purchased or securitized by Fannie Mae and Freddie Mac. The new mortgage acquisitions are used to identify repeat transactions for the most recent quarter and for each quarter since the first quarter of 1975.”

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

 

Is South Orange County REAL ESTATE on the road to Recovery ?

ARE ORANGE COUNTY HOME SALES AND PRICES ON THE RISE ?

Take a look at the statistics for the month of JANUARY 2010.

  • Sales counts in all Orange County beach towns ran +17% vs. a year ago.
  • Countywide, it was +8% vs. a year earlier.
  • The sales-weighted average of median price changes in South Coast ZIPs was  -15% vs. a year ago.
  • Price change in all Orange County beach towns ran +7% vs. a year ago.
  • Countywide, it was +15% vs. a year earlier.
  • It looks encouraging for South Orange County home owners:

    TownZIPMedian priceYear’s chg.SalesYear’s chg.
    Dana Point 92624 $552,500 +36.4% 6 +20.0%
    Dana Point 92629 $525,000 -19.5% 23 +27.8%
    San Clemente 92672 $642,500 +12.7% 31 +72.2%
    San Clemente 92673 $612,000 -2.4% 30 +7.1%
    San Juan Capo 92675 $254,000 -19.4% 31 +3.3%
    All beach towns   $682,500 +6.9% 324 +16.5%
    Total O.C.   $425,000 +14.9% 2,142 +7.7%

    Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

    Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

    For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

    Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

    SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

     

    Laguna Beach Home Sales up 21% over 2009

    As Reported by Kelly Hart, OC Register

    Here are the sales trends that appear from DataQuick’s freshest homebuying stats showing Laguna Beach homebuying patterns for calendar month January…

    • Homebuying +21% vs. a year ago.
    • Sales counts in all Orange County beach towns ran +17% vs a year ago. Countywide, it was +3% vs. a year earlier.
    • Laguna Beach’s median selling price was $1,125,000 – that’s +165% vs. countywide pricing.
    • A year ago, that Laguna Beach home-price “premium” was 81% vs. the countywide median selling price.
    • For a detailed report on countywide price moves, CLICK HERE!

    Here’s a look at how Laguna Beach compares to all Orange County beach town trends and countywide totals for homebuying and median selling prices:

    TownMedian priceYear’s chg.SalesYear’s chg.
    Laguna Beach $1,125,000 +67.9% 17 +21.4%
    All beach towns $676,500 +7.3% 288 +16.6%
    Total O.C. $425,000 +14.9% 1,867 +3.4%

    Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

    Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

    For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

    Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

    SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

     

    Helpful Hints for SELLERS ! Getting Your Home Ready to Sell !

    Getting Ready To Sell

    When selling a house, owners do not necessarily need to make expensive upgrades and renovations on their home to improve their chances at a quick sell. The simple task of cleaning the outside and inside is one of the best ways to perk up the appearance of a house. Maybe a little paint here, a few minor repairs there and it has a completely new look.

    First Impressions

    When a potential buyer is introduced to your house, the exterior is the first thing seen. Is the front door scuffed and in need of a facelift? Outer doors, walls and shutters need a good cleaning, and sometimes a fresh coat of paint. If the front door is in really bad shape, consider replacing it.

    Use a pressure washer to clean away dirt, mildew and oil stains on walks, driveways and exterior walls. Also give porches, decks and fences a good scrubbing. Some hardware or home improvement stores offer rental equipment for the do-it-yourselfer, or hire a cleaning service. Check windows and screens for damage, and repair or replace these before showing the house. Cracked or broken sidewalks and driveways should also be repaired.

    Sprucing Up

    Take a good look at your landscaping. How does it compare to your neighbor or the rest of the neighborhood? Add a splash of color by planting flowers or small shrubs. Keep the lawn mowed and neatly trimmed. Rake up leaves and grass cuttings, and prune trees and hedges. These little touches do not have to be expensive, and can noticeably brighten the outside of your house.

    Sometimes houses are shown in the evenings. Do outside lights work? Is the house number clearly visible? Remember to keep garage doors shut and trash cans out of sight. Small details can make a big difference.

    Less is Better

    Once inside the house, the key is less is better. As the owner, you are trying to sell a house; potential buyers are looking for a home. That means you have to de-personalize your house by getting rid of clutter so buyers can better visualize how they would give the house their own personality.

    Remove personal photos, pack away that collection of state spoons, and take down all those sports trophies and school memorabilia. Not everyone is a fan of the same team. Put any valuables out of sight. Rent a storage unit and finally clean out the garage, attic and overflowing closets. Use this as an opportunity to begin packing or plan a yard sale to offset the cost of improvements.

    Clear off kitchen counters and empty cabinets. Clean the outside and inside of ovens, refrigerators and dishwashers, especially if these appliances stay with the house. Keep the dishwasher, clothes dryer and washer, and trash cans empty. Do not hide dirty dishes or clothes in the washers.

    Clean, Repair, Replace

    Check doors and doorknobs, windows, lighting fixtures and electrical outlets, and faucets to make sure they are all in good shape and functional. Repair any damaged bathroom or floor tiles, or cracks in walls and ceiling. Replace any worn or stained carpet, and torn or peeling wallpaper.

    Take the opportunity to do a complete floor to ceiling cleaning. Sweep out cobwebs from corners, get rid of "dust bunnies" under beds and other furniture, wash windows, walls and floors, and shampoo carpets. You could use the money earned from your "de-cluttering" yard sale to hire a professional cleaning service.

    Remember not everyone likes cranberry or royal blue walls. Consider painting interiors walls a more neutral color. Replace elaborate window treatments with plain drapes or curtains.

    The Little Things

    Remember the little things like making beds, putting out matching towels in the bathrooms, setting the thermostat on a comfortable setting, and keeping lights on and blinds or drapes open.

    Smokers, pet owners and parents with infants need to recognize that, while resulting odors may have become unnoticeable to you, they are not undetectable to potential buyers. Consider smoking outside while you are trying to sell your house. Clean litter boxes daily and keep dogs outside as much as possible. Throw away diapers in an outside container immediately. Use air freshener or light scented candles. Bake a batch of cookies or homemade bread on days of showing.

    Enlist the help of a friend to "inspect" your house as a prospective buyer might. Encourage honest feedback on what improvements you could make to help the sale of your house. Most upgrades do not need to be costly and, in many cases, expensive renovations do not give a good return on your investment. Potential buyers should be able to see how great your house is and not try to imagine what it would be like with "a little work."

    Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

    Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

    For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

    Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

    SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Top 5 Most Affordable U.S. Housing Markets

    How affordable or unaffordable is it to buy a home?

    Well, it depends heavily on the part of the country where the buyer chooses to live.

    Earning the U.S. median income of $64,000 a year is enough to allow buyers to purchase 70.8 percent of all homes sold in the country during the last three months of 2009, according to a joint report from the National Association of Home Builders and Wells Fargo.

    But some parts of the country are a lot more affordable than others. Here are five major housing markets that housing analysts judge to be the most affordable major markets in the country.
    · Indianapolis
    · Detroit
    · Dayton, Ohio
    · Youngstown, Ohio
    · Akron, Ohio

    Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

    Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

    For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

    Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

    SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

     

     

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