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Santa Clarita Real Estate Update
Big News in SCV Real Estate
May, 2010 - Issue #67
by Joshua Suess

Did you know SCV real estate inventory is down 63 percent compared to this time last year? You may have heard about home buyers recently losing out in multiple-bidding situations. The decrease of inventory of homes for sale is one of the main reasons why. Couple that with savvy investors who know that these are some of the lowest real estate prices seen in many years, plus eager first-time buyers who are tired of renting and are now confident enough in the market to take advantage of incentives and low prices (Which, in many cases, are equal to or lower than their rent).

Anything priced under $500,000 is selling almost immediately (assuming it is priced in line with the market for that area). FHA-financed buyers, along with conventionally-financed buyers (even those with 20 percent down, 50 percent down or more) are repeatedly being beat out by all-cash buyers - another facet to this market. You may be asking yourself, "People are buying homes with all cash?" The answer is absolutely! Cash is king and there are plenty of buyers out there placing all-cash offers with no financing needed. Who are these buyers? They are previous homeowners who cashed out of the market within the past five years or so, while they still had equity (Yes, equity. Remember those good ol' days?). They are the homeowners who are downsizing and may still have enough proceeds from the sale of their larger home to purchase the smaller home outright.

They are also investors who continue to have the vision to purchase what others won't and then improve the home to sell for a profit. Risky? Yes. Profitable? You bet!

So what does this mean for you? If you are a homeowner and are thinking of selling, this may be the right time to sell. If you are home buyer, you may want to make sure you have the most aggressive representation to ensure you see the newest listings right away and to make sure your offer gets accepted with the fewest hassles.
Joshua Suess is with The Suess Home Selling Team at Re/Max 702-4640 www.nohasslenorisk.com.

California Tax Credit Bill Signed by the Governor
by Jennifer Thompson

Schwarzenegger signed a tax credit bill that is providing $200 million for home buyer tax credits. The bill allocates $100 million for qualified first-time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes. The tax credit is equal to the lesser of 5 percent of the purchase price or $10,000, taken in equal installments over three consecutive years. Purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit (i.e. repay it to the state).

The eligible taxpayer who closes escrow on a qualified principal residence between May 1, 2010 and December, 31, 2010, or who closes escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credit.

This is great news as the Federal Housing Tax Credit is scheduled to expire on April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
Jennifer Thompson is owner of and Realtor® with Regal Realty of California 373-5636 www.regalrealtyca.com
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