Market conditions not so bad

5.92%
Average interest rate on a 30-year fixed-rate mortgage during February 2008, compared with 6.29 percent in February 2007, according to Freddie Mac.
68.6
The median number of days it took to sell a single-family home in February 2008, compared with 66.1 days for the same period a year ago.

As you can see the market in terms of interest rates is better than last year at the same time. Interest rates are down while prices are still down as well. The average number of days that it takes to sell a home is about the same. The market is quite favorable for buyers still and market analysts are seeing an upward turn, a slow upward turn but a turn non the less.

Information curtisousy of the San Francisco Chronicle

New listing

Hi everyone,
Just wanted to update everyone about my new listing in Fontana.
It's a 3 bedroom 2 bath home with great potential for only $260,000.
It just needs the right buyer and that can be in the form of a first time buyer or an investment buyer looking to add to their investment portfolio. Give me a call or email me if you want more information.

The Buying Process

Find a REALTOR®
Nothing can substitute for the broad market knowledge of a REALTOR® when it comes
to buying a home. A REALTOR®’s expertise, experience, commitment to a code of ethics,
and promise to keep up-to-date on the latest industry news and changes in real estate
practice ensure an opportunity to negotiate the best price on a home. In addition, a
REALTOR® is able to offer impartial and unemotional advice as you navigate the road to
homeownership.
Get Pre-Qualified
Work with a qualified lender and obtain a pre-qualification letter that will give you a clear
picture of your borrowing and buying power. The pre-qualification letter tells a seller that you
are a serious buyer, and can save you time during the home-search process.
Shop Around
The current real estate market is not impacting all neighborhoods equally. For example: The
median home price in Los Angeles in November 2007 was $520,960, while in Riverside/San
Bernardino counties it was $344,140, and in the San Francisco Bay Area it was $793,930. A
qualified REALTOR® can break down this kind of data by neighborhood and provide other critical
information about homes in your area. For example, did you know that in today’s market, homes
are listed for an average of between six and eight weeks, in some cases longer, before they are
sold. You have more time to consider your options today, and more homes from which to choose.
Make an Offer
The bidding wars that prevailed as recently as a year ago have subsided considerably in many
areas. Roughly 55 percent of the sellers of homes on the market in 2004 received multiple offers. Today, the number is roughly 27 percent. Once you have found the home you would like to buy,a REALTOR® can help you complete a written offer to purchase the home. This crucial document should include your initial offer on the house and a comprehensive list of terms of the sale, including the price you are offering; deposit amount; escrow closing date; termite work; loan terms; inspection schedules; and other fee arrangements to be promised by either you or the seller.
Make a Deposit
Once you and the seller have a signed purchase agreement, your “good-faith” deposit may be delivered to escrow, and credited toward your down payment. The U.S. Dept. of Housing and Urban Development (HUD) advises that a good-faith deposit typically be a minimum of between 1 to 5 percent of the purchase price. The home-buying process encompasses many often complicated steps, from the pre-qualification phase, to negotiating a sale price, right down to your final walkthrough.
Have the Home Inspected
Arrange for the home to be inspected for termite damages and construction and
mechanical soundness, as well as the functionality of the home’s plumbing, heating,
and electrical systems, among other things. The buyer usually pays for his or her own
inspection, so prepare to pay these fees either directly to the inspector or through escrow,
unless you are able to negotiate with the seller to cover a portion or all of them.
Get a Copy of the Appraisal
Once you’ve made an offer to purchase a home, your lender may order an appraisal of
the home. An appraisal is an estimate of your home’s value based on the current housing
market, the home’s age, condition, and other factors. An appraisal amount is not the
same as a listing price, but rather an estimate of what a professional believes a home
is worth. Your appraisal will likely include comparables for a minimum of three similar
properties in your buying area; an evaluation of the overall market conditions nearby; and
detailed comments about the characteristics and features of the home.

Taxes on Forgiven Debt

A bill that would make it possible for California taxpayers to avoid paying taxes on forgiven mortgage debt through a short sale or short payoff recently passed a key senate committee. The measure would help California taxpayers whose lenders have forgiven a portion of their mortgage debt, by allowing them to exclude the forgiven debt from their incomes for state income tax purposes. Under existing state tax law, forgiven debt on mortgages is taxable to the borrower as ordinary income for the year in which the debt is forgiven

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