Industry Leaders Push Congress to Help Housing

The Housing Working Group of the Business Round Table recently released detailed recommendations for Congress and the White House aimed at jump-starting the housing market and the economy in general.

One key action the group is pushing for is expansion of the existing $8,000 tax credit for first-time buyers to a maximum $15,000 tax credit for all home buyers, with no income limitations, and the removal of several other restrictions.

Other recommendations of the group include:

• Keep mortgage interest rates at historically low levels (below 5 percent) for at least one year
• Conduct a thorough review of current foreclosure mitigation and loan-modification programs in light of rising loan-modification re-default rates
• Make permanent the current temporary conforming loan limits
• Continue to review and strengthen government efforts already underway to review and refine mortgage lending practices

First Time Buyer Information Page

Thinking about taking the plunge and buying your first home? We've created a new web page just for first time buyers. Check it out to learn some of the details of the Federal Tax Credit and the new CAR Mortgage Protection Plan. You can also visit our Home Buyer's Quick Start page.

CAR Housing Market Report not all gloom

The California Association of Realtors released a new Housing Market Report this week which highlights the huge impact of the global financial crisis, with the chief symptom being the continued and increasing number of short sales and bank owned home sales. Never the less, there are some signs of positive news in the numbers.

Sales generally improved over last year in all parts of the state, with significant price declines leading to sharp increases in the Central Valley and Southern California. Sales of existing detached homes hit bottom in the last quarter of 2007, and have since risen in year to year comparisons. Following two years of steep declines exceeding 20 percent, annual sales in the California housing market are expected to increase 12 percent to 395,600 in 2008, with a further 12.5 percent annual increase projected for 2009.

The real distressed segment of the market continues to be the lower price range, as shown by a comparison of the number of sellers selling their home at a loss:

Homes Sold at a Loss
Price Range	2007	2008
Under $500k	16%	28%
$500k - $1Million	9%	20%
Over $1Million	8%	5%

Another point which is often overlooked is that ground zero for most the distress in the real estate market is centered on those who purchased recently at the peak of the market. In 2008 a whopping 47% of sellers who had purchased within the last 3 years and a net cash loss, while only 97% of sellers who held there home more than 5 years did not experience a loss.

Interested in taking advantage of what may be a once-in-decades investment opportunity? Check out the bank owned deals available in Mission Viejo, Rancho Santa Margarita, Ladera Ranch, even Coto de Caza, or all of Orange County.