IRS ISSUES NEW GUIDELINES ON OBTAINING HOME BUYER TAX CREDITS
From the Los Angeles Times

The Internal Revenue Service has issued new guidelines and clarified documentation that taxpayers must submit to successfully obtain the federal tax credit for home buyers.

Qualified first-time buyers may be eligible to receive a tax credit of up to $8,000 on homes purchased before April 30, 2010. Repeat buyers may be eligible for a tax credit of up to $6,500 - there are eligibility requirements for both first-time and repeat buyers, lenders and tax advisors are best qualified to make the determination.


CONSUMER CONFIDENCE DECLINES IN FEBRUARY
From the California Association of Realtors Newsline

The Consumer Confidence Index declined in February to 46 (1985=100) compared with 56.5 in January, the Conference Board reported. The Present Situation Index decreased to 19.4 in February from 25.2 in January and the Expectations Index declined to 63.8 from 77.3 last month, according to the report.

"Concerns about current business conditions and the job market pushed the Present Situation Index down to its lowest level in 27 years," said Lynn Franco, director of The Conference Board Consumer Research Center. "Consumers' short-term outlook also took a turn for the worse, with fewer consumers anticipating an improvement in business conditions and the job market over the next six months. Consumers also remain extremely pessimistic about their income prospects. This combination of earnings and job anxieties is likely to continue to curb spending." Consumers' assessment of current conditions was more negative in February than in January, with those claiming business conditions are "bad" increasing to 46.3 percent in February from 44.7 percent in January, while those claiming conditions are "good" decreased to 6.2 percent in February compared with 8.5 percent in January. Consumers' assessment of the job market also was more pessimistic, and their short-term outlook lost considerable ground in February, according to the report.


CALIFORNIA MEDIAN PRICE RISES IN JANUARY

The median price of existing, single-family homes rose 15 percent in January, while sales declined 10.6 percent compared with the prior year, according to the California Association of Realtor's (CAR) latest sales and price report. The median price of an existing, single-family detached home in California during January was $287,440, a 15 percent increase from the revised $249,960 median for January 2009, according to the report. The January median price declined 6.3 percent compared with December's $306,820 median price. Statewide home resale activity decreased 10.6 percent from the revised 602,660 unit sales pace recorded in January 2009. Sales in January 2010 decreased 3 percent compared with the previous month.

"Many sales that closed escrow in January were on homes with offers accepted during the holiday season - a time when many house hunters are first-time buyers," said CAR President Steve Goddard. "First-time buyers typically purchase homes priced below an area's median home price. Reflecting this, the percentage of homes priced under $500,000 increased to 77 percent of all sales in January, compared with 75 percent in December."


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