GOVERNOR SIGNS HOME TAX CREDIT BILL
The California Association of Realtors reported that Governor Schwarzenegger recently signed AB 183 providing $200 million for home buyer tax credits. The bill allocates $100 million for qualified first time home buyers who purchase existing homes and $100 million for purchasers of new or previously unoccupied homes.

Eligible tax payers who close escrow on qualified principal residences between May 1, 2010 and December 31, 2010, or who close 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 credit is equal to the lesser of 5% of the purchase price or $10,000, taken in equal installments over three consecutive years. Under the bill, 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). Buyers also must be at least 18 years old and be unrelated to the seller. First-time buyers are defined as those who have not owned a home in the past three years.


MARKET SNAPSHOT FROM THE CALIFORNIA ASSOCIATION OF REALTORS
Distressed sales reverse trend: While the month-to-month median home-price decline in February 2010 was more significant than the 30-year historical monthly average change of zero percent, the drop of 2.4 per from January to February was generally in line with the price trend the market experienced in the last several years.

Low-end market remains strong: With continued demand in this segment of the market from first-time buyers and investors, sales of homes under $500,000 held up better than the rest of the market.


FAST FACTS - from California Association of Realtors

California median home price: January 2010 $287,440
California highest median home price by region: $760,000
California lowest median home price by region: $124,480