3 Reasons to Avoid Buying a Foreclosure | RE Insider

This isn't the entire story on buying foreclosures, but most people who ask me about them are first-time buyers thinking they are going to outsmart the market.  Foreclosed homes can be a good buy, and are sometimes in decent condition, but are few in number in a strong market like we have now.

3 Reasons to Avoid Buying a Foreclosure | RE Insider:

On the other hand, pre-foreclosure homes can be a disaster.  Owners are seldom genuinely motivated, and tremendous amounts of time can be wasted trying to pry such homes from unwilling sellers, while genuinely available properties are being purchased by more realistic buyers.

Good topics for conversation; call me if you have an interest! -David

Helping out the Kids (with their first home)

This article from the LA Times highlights how some are Finding ways to help young adults make their first home purchases.

First-Time Buyers Losing Interest in Short Sales

Short sales are certainly an important component of South Bay real estate sales these days, but not what I would call a dominant force.  In fact, inventories of all types of homes are remarkably low already - - more like November and December levels.

Still first-time buyers unaware of the delays often involved have been pursuing short sale homes in hopes of getting a bargain.  According to RISMedia, though, they're Losing Interest in Short Sales.

In many cases, the best idea is to look for the best deal, whether it's a short sale or not!  Short sales aren't for the feint of heart, as blogged here before, and may be best suited to investors or others not in need of a home right away. - David

Area STAR test scores show gains - The Daily Breeze

The results of the latest Area STAR testing are in, as reported in this article by the Daily Breeze.  The article features a convenient graphic that lets the reader easily compare scores by area, including California and LA County overall, plus South Bay area cities/school districts individually.

Outstanding proficiency scores in Manhattan Beach and Hermosa Beach lead the pack, but Wiseburn and other locales have strong showings as well.  Don't miss Wiseburn School District (including the Holly Glen area of Hawthorne)!  It's a great price performer for first time homebuyers.

Note: The percentages shown are not average scores!  They are the percentage of students who scored "Proficient" or better.

From Fry Cook to Homebuyer? It's a Start!

Wells Fargo's economists wonder if McDonalds' recent mass hiring is a sign of things to come by other employers.  While not too many South Bay homebuyers work at McDonalds, our area's "utes" (youths) do need to pick up some work experience somewhere.  At a minimum, says the article, these jobs "will provide valuable on-the-job training for young workers, many of which have little or no work experience, that will help them become more productive workers both now and in the future." - Submitted by BCD reader Rod Kuhns

CALIFORNIA'S TAX CREDIT MONIES MAY GO FAST

The $100 million allocated for California's first-time homebuyer tax credits may be depleted in about 10 to 20 days or sooner, according to C.A.R.'s Economics team.  California's Franchise Tax Board (FTB) plans to begin accepting applications on May 1, 2010 for tax credits up to $10,000 for first-time homebuyers and for homes that have never been previously occupied.  However,

$18,000 in Combined Homebuyer Tax Credits for a Limited Time - California Ass'n of Realtors

Californians have a brief window of opportunity to receive up to $18,000 in combined federal and state homebuyer tax credits. To take advantage of both tax credits, a first-time homebuyer must enter into a purchase contract for a principal residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010, inclusive. Buyers who are not first-time homebuyers may use the same timeframes to receive up to $16,500 in combined tax credits if they are long-time residents of their existing homes as permitted under federal law, and they purchase properties that have never been previously occupied as provided under California law.

Under the federal law slated to soon expire, a first-time homebuyer may receive up

First-timers snap up 47% of homes - SignOnSanDiego.com

Who's buying California homes these days? First timers!

First-timers snap up 47% of homes - SignOnSanDiego.com

Makes sense in that entry level home prices have dropped more than high-end home prices, equity usually used to trade up has been impaired, and FHA lending programs favor lower-cost homes, particularly in areas such as the South Bay. - David

Money Essentials: Mortgages 101

Here's an excellent collection of articles on home mortgages assembled by Bankrate.com.

Money Essentials: Mortgages 101

This is especially good for first time homebuyers, but potentially a good refresher for all. - David

Last-minute homebuyer tax credit tips - Bankrate

Here are 12 last-minute homebuyer tax credit tips to help you get in on a valuable credit if you're planning to purchase a home.  Remember that unlike a tax deduction, a tax credit comes directly off your tax bill dollar for dollar! - David

Just 100 Days Left To Claim The Homebuyer Tax Credit

November 6, 2009, Congress voted to extend and expand the First-Time Home Buyer Tax Credit program.  There's 100 days left to claim it.
The expiration date of the up-to-$8,000 tax credit has been pushed forward to spring, requiring homebuyers to be under contract for a home no later than April 30, 2010, and to be closed no later than June 30, 2010.

Good Reason Why The New Home Sales Data Plunged In November

One day after November's Existing Home Sales report blew away estimates, the Census Bureau's related New Homes Sales report failed to impress.
A "new home" is a home that is newly-constructed; not bought as a resale.
In a lackluster showing, New Home Sales dropped 11 percent in November, falling to the lowest levels since April. Furthermore, the all-important "months of supply" climbed by a half-month to 7.9.
The press pounced on the figures and if you only read the headlines, you'd think that housing had cratered.

Picking holes in $6,500 tax credit - Inman News

The real estate tax credits, though popular, aren't a be all/end all.  - David
Picking holes in $6,500 tax credit - Inman News

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