Home Sales Climb in July, Second Month of Double-Digit Gains in the Valley

Home sales rose 17.4 percent as first-time buyers rushed to take advantage of a tax credit that expires this fall. The median price fell back to the $180,000 baseline, a far cry from the median price measured a year ago at $274,000. The median was last in the $180,000 range in 2001.

Leading to the median price not seen in nearly a decade have been the glut of foreclosure sales activity, joblessness and the credit crunch that has swept the nation and made borrowing a daunting task.

Real estate experts said those rock-bottom prices are spurring sales.

A total of 965 new and resale houses and condos closed escrow in the Coachella Valley in July, with the bulk representing resale single-family homes.

Greg Berkemer, executive vice president of the California Desert Association of Realtors, sees recovery in sight.

“I think we have passed the bottom in terms of sales,'' he said. “In terms of pricing, we may be rocking along the bottom for awhile. But I think we will, over time, see some more tick-ups in price.”

But it is premature to call a bottom, DataQuick president John Walsh said.

“While some data continues to hint at that, it remains an especially risky call to make given the magnitude of future job losses and foreclosures,” he said.

Uncertainty over how many more homes may tumble into foreclosure because of the risky pick-a-payment, adjustable-rate and stated income loans also makes it difficult to determine if the end is in sight.

“Even if this is the bottom, we could easily bounce along it for quite awhile. But we appear to be on course, right now, for recovery,” said Berkemer.

Hurry! Time is running out to get the $8,000 First Time Home Buyer Tax Credit

We are quickly approaching the December 1 deadline. If you are a first-time buyer considering buying a home now is the time to get the ball rolling to ensure you find a home and can go to settlement prior to the deadline. Here's what you have to do to get your benefit:

1. Close on your home purchase by November 30, 2009,
2. Ensure that you are a qualified first-time buyer under IRS guidelines,
3. Decide which year to file under, 2008 or 2009,
4. File an amended 2008 return or choose to apply the credit to your 2009 tax return.

Deciding When to Apply the Credit

If you want the benefits of your credit as soon as possible:

You might choose to file under your 2008 tax year. Since April 15 has already passed, you would have to file an amendment to your return. However, if you've already filed for an extension of your 2008 return, then you can simply claim the credit when you submit your return.

If you anticipate a drop in income next year:

You can wait to claim the credit as part of your 2009 filing. In some cases the value of the credit might be higher, particularly if in 2008 you qualify for only a partial credit because your income is over $75,000 (single) or $150,000 (joint).

Your Next Steps

Once you have determined which year to apply the tax credit, you will need to do two things to claim the credit:

1. Fill out Form 5405 to determine the amount of your available credit, and

2. File an amended return for your 2008 taxes, or wait and apply to credit when you file your 2009 tax return.

Determining Your Home Buyer Tax Credit Amount: Form 5405
Applying the Home Buyer Tax Credit to Your 2008 Tax Return
Applying the Home Buyer Tax Credit to Your 2009 Tax Return

Take Advantage of Undervalued Real Estate Properties

There are rumblings that the “real estate market” is or has started to bottom out. The Desert Sun reported on Sunday, August 2, 2009, that the Coachella Valley had the strongest month in real estate in June in eight months, with a 23 percent hike in sales, and home prices appear to be stabilizing. This could be and will happen, as real estate is historically cyclical and conditions will improve. However, the unemployment rates are going up every month, consumer spending is flat and we are really in debt now with the wild spending by the Federal government in an effort to stimulate the economy.

Whether the market has hit the bottom or not, the fact is there are FABULOUS VALUES right now with loads of short sales and REO’s (lender owned properties) with very attractive prices at every price level, with financing available. All you need is a little innovation and creativity to obtain an undervalued property.

Fred Prescott wants to work with serious buyers who have cash or lender pre-approval to help and assist you to acquire your primary residence, second home/vacation home/condo or investment property.

Don’t sit on the sidelines and wait. It’s time to GET IN THE GAME! It’s easy to hit a home run if you’ve got the right realtor. Let Fred Prescott guide you in this process of making realistic, intelligent offers on very undervalued real estate properties.

There is NO OBLIGATION. If you qualify as a serious buyer contact Fred today to discuss your particular situation.

Thanks and best wishes.