Please click on the link below to discover the much anticipated new Porter Ranch Community School boundry lines and modified castlebay Lane school boundaries..

 http://www.prnc.org/images/boundaries.pdf

The Porter Ranch Community School is shown in the purple section, located at the corner of Mason and Sesnon. The purple area shows the attendance boundary for the school.

In the pale yellow area to the right, which includes the Heights and Promende, existing students will have the option to attend the new school or their existing school. New students will attend the new school.

In the orange area, which includes the Porter Ranch Estates students will have an option to attend Frost or the new school for middle school. This option will be available as long as there is space at the school. As new homes are built in the purple area, the orange option will be eliminated.

In the pale green area north of Rinaldi, west of Aliso Canyon, students may continue at Darby or switch to Castlebay. New students will attend Castlebay.

In the bright yellow area students may continue at Beckford or switch to Castlebay. New students will attend Castlebay.

Here are a few surprising and simple ways to cut your energy bill this season.

Put lamps in the corners: Did you know you can switch to a lower wattage bulb in a lamp or lower its dimmer switch and not lose a noticeable amount of light? It’s all about placement. When a lamp is placed in a corner, the light reflects off the adjoining walls, which makes the room lighter and brighter.

Switch to a laptop: If you’re reading this article on a laptop, you’re using 1/3 less energy than if you’re reading this on a desktop.

Choose an LCD TV: If you’re among those considering a flat-screen upgrade from your conventional, CRT TV, choose an LCD screen for the biggest energy save.

Give your water heater a blanket: Just like you pile on extra layers in the winter, your hot water heater can use some extra insulation too. A fiberglass insulation blanket is a simple addition that can cut heat loss and save 4% to 9% on the average water-heating bill.

Turn off the burner before you’re done cooking: When you turn off an electric burner, it doesn’t cool off immediately. Use that to your advantage by turning it off early and using the residual heat to finish up your dish.

Add motion sensors: You might be diligent about shutting off unnecessary lights, but your kids? Not so much. Adding motion sensors to playrooms and bedrooms cost only $15 to $50 per light, and ensures you don’t pay for energy that you’re not using.

Spin laundry faster: The faster your washing machine can spin excess water out of your laundry, the less you’ll need to use your dryer. Many newer washers spin clothes so effectively, they cut drying time and energy consumption in half—which results in an equal drop in your dryer’s energy bill.

Use an ice tray: Stop using your automatic icemaker. It increases your fridge’s energy consumption by 14% to 20%. Ice trays, on the other hand, don’t increase your energy costs one iota.

Use the dishwasher: If you think doing your dishes by hand is greener than powering up the dishwasher, you’re wrong. Dishwashers use about 1/3 as much hot water and relieve that much strain from your energy-taxing water heater. Added bonus: you don’t have to wash any dishes.

Despite the decline in home prices, 81 percent of U.S. adults believe buying a home is the best long-term investment a person can make, according to a national survey by the Pew Research Center.
MAKING SENSE OF THE STORY
Homeownership topped the list of long-term financial goals for Americans, according to the study.  Respondents rated homeownership, as well as living comfortably in retirement, as more important than sending children to college or leaving offspring an inheritance.

“Owning a home is really a part of the American dream, and that is just part of the American psyche and something that people aspire to,” according to one of the study’s authors.

Although the vast majority of adults surveyed are in favor of owning a home, the public’s faith in real estate has somewhat declined compared with the last time a comparable survey asked people about the wisdom of investing in real estate.  In the Pew Research Center survey, 37 percent of respondents said they “strongly agree” that homeownership is the best investment a person can make, while 44 percent said they “somewhat agree.”  The same question was asked by a CBS News/New York Times survey in 1981, and at that time, 49 percent “strongly agreed,” and 35 percent “somewhat agreed.”

While home prices have entered a renewed decline after showing some improvements last year, many economists believe that the worst of the housing crisis is probably over, which could help explain the resiliency in Americans’ optimism.

Homeowners in the survey were more positive about the financial wisdom of owning a home than were renters.  Among renters, the desire for homeownership remains strong.  According to the survey’s findings, 24 percent of renters surveyed said they rent out of choice and 81 percent said they would like to buy.

Read Full Story....

Sales jumped to an annual rate of 329,000 on a seasonally adjusted basis, with almost three-quarters taking place in the West, according to the Commerce Department. Economists polled by MarketWatch had predicted sales would rise to 299,000.

The market might have gotten a jolt from a tax credit in California that expired at year end, some economists say.

“The impressive increase in new home sales in December is mainly due to the rush to beat the deadline of a tax credit in California,” the firm Capital Economics said in a report. “Without that boost, new sales would have been broadly unchanged.”

Whatever the case, new home sales in 2010 ended up at the lowest level on record. The government estimates that sales fell 14% last year to 321,000 from 375,000 in 2009.

Sales plunged during the recent recession, and with millions of homeowners threatened with foreclosure, the housing market continues to struggle to recover.

Economists expect sales to accelerate in 2011 as the U.S. economy improves and buyers are attracted by low prices and ultra-low interest rates. Yet the rate of growth will depend largely on how fast the nation’s high 9.4% unemployment sinks.

The lack of work has hurt many homeowners, and the fear of losing a job has scared off prospective buyers, creating a surplus of available homes. Builders have reacted by slowing new construction.

In December, for example, the supply of homes at the current sales pace dropped from 8.4 months to 6.9 months, the lowest level since last spring. And at the end of 2010, about 190,000 homes were available for sale, the fewest on the market since 1968, according to the Commerce Department.

The median price of new homes, meanwhile, climbed to $241,500 in December from $215,500 in November. Fluctuating home prices can have a big impact on sales. If sellers think prices will continue to rise, for example, they might hold off on selling. Or if buyers think prices will fall, they might wait to purchase a new home.

Since data for tracking sales in new homes is volatile and subject to frequent change, economists tend to look at several months of data to gauge market trends. Over the three-month period of October to December, new-home sales averaged 296,000.That’s about one-third the rate of sales in normal economic times, however.

Source: RISMEDIA

Using data from Moody’s Economy.com, Forbes identified the top-10 states where more residents are leaving than arriving.

The factors that encourage outbound migration from these states are mostly economic — high employment and high cost of living — although both Louisiana and Mississippi have been affected by natural disasters.

The 10 states that have said goodbye to the most residents are:

1. New York
2. Illinois
3. Ohio
4. Nebraska
5. Kansas
6. Iowa
7. Louisiana
8. North Dakota
9. South Dakota
10. Mississippi

Source: Forbes, Jenna Goudreau (12/08/2010)

1. Have a pre-sale home inspection. Be proactive by arranging for a pre-sale home inspection. An inspector will be able to give you a good indication of the trouble areas that will stand out to potential buyers, and you’ll be able to make repairs before open houses begin.

2. Organize and clean. Pare down clutter and pack up your least-used items, such as large blenders and other kitchen tools, out-of-season clothes, toys, and exercise equipment. Store items off-site or in boxes neatly arranged in the garage or basement. Clean the windows, carpets, walls, lighting fixtures, and baseboards to make the house shine.

3. Get replacement estimates. Do you have big-ticket items that are worn our or will need to be replaced soon, such your roof or carpeting? Get estimates on how much it would cost to replace them, even if you don’t plan to do it yourself. The figures will help buyers determine if they can afford the home, and will be handy when negotiations begin.

4. Find your warranties. Gather up the warranties, guarantees, and user manuals for the furnace, washer and dryer, dishwasher, and any other items that will remain with the house.

5. Spruce up the curb appeal. Pretend you’re a buyer and stand outside of your home. As you approach the front door, what is your impression of the property? Do the lawn and bushes look neatly manicured? Is the address clearly visible? Are pretty flowers or plants framing the entrance? Is the walkway free from cracks and impediments?

Source: Realtor.org

Changes to mortgage interest deduction would hurt economy, prolong housing downturn, C.A.R. says

LOS ANGELES (Dec. 1) – In response to recommendations in the Deficit Reduction Commission report released today, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said it strongly opposes any changes that would modify or reduce the mortgage interest deduction.

“Few issues are more important to homeownership than the mortgage interest deduction (MID),” said C.A.R. President Beth L. Peerce.  “As the housing market continues to recover from the worst financial crisis in recent history, any change that reduces the ability of the market to heal is misguided and must be rejected,” said Peerce.

According to a recent survey commissioned by the NATIONAL ASSOCIATION OF REALTORS® (NAR), nearly 75 percent of homeowners and more than half of renters surveyed said the MID was “extremely” or “very important” to them.  The proposal from the Deficit Reduction Commission will negatively impact the housing market, further erode opportunities for homeownership across the country, and will contribute to further price declines and diminished equity for homeowners by as much as 15 percent.

C.A.R. and NAR will remain vigilant in opposing any plan that modifies or excludes the deductibility of mortgage interest and make certain that the real estate industry’s opposition to this proposal is heard and its far-reaching implications understood. 

Mortgage Interest Deduction Background

• The MID has been part of the federal tax code since it was first enacted in 1913.
• People with both low and middle incomes use the MID. According the most recent IRS tax return data available, 63 percent of the families who claim the MID earn between $50,000 and $200,000 per year.
• While in any particular year only about one-third of taxpayers itemize, of the taxpayers who itemize deductions, more than 81 percent take the MID. 
• Current law permits deductions of the interest paid on mortgage debt of up to $1 million on a primary residence and one additional residence. In addition, the interest paid on home equity loans of up to $100,000 may be deducted.

Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

Source: CAR

• Northeast: Regionally, the median existing single-family home price in the Northeast declined 3.2 percent to $238,000 in the second quarter from a year earlier. Existing-home sales in the Northeast jumped 14.9 percent in the second quarter to a level of 980,000 and are 23.6 percent above the second quarter of 2009.
• Midwest: In the Midwest, the median existing single-family home price increased 1.4 percent to $148,500 in the second quarter from the second quarter of last year. Existing-home sales in the Midwest rose 14.5 percent in the second quarter to a pace of 1.30 million and are 20.9 percent above the same period in 2009.
• South: In the South, the median existing single-family home price slipped 2.0 percent to $155,500 in the second quarter from the second quarter of 2009. Existing-home sales in the South increased 10.9 percent in the second quarter to an annual rate of 2.10 million and are 18.8 percent above a year ago.
• West: The median existing single-family home price in the West rose 2.6 percent to $219,700 in the second quarter from a year ago. Existing-home sales in the West fell 2.6 percent in the second quarter to an annual rate of 1.23 million but are 7.6 percent higher than the second quarter of 2009.

Southland Regional Association of REALTORS® is currently offering grants to qualified first-time homebuyers who are Public Safety Responders, have a low to moderate income-level, and purchase a home within the San Fernando or Santa Clarita Valley. The amount of each grant will be $4,000 and will only be paid to qualified applicants after the close of escrow. Repayment of grant is not required.

NOTE: The grant application has recently been updated to reflect higher income limits for individual programs that do not already specify their own limits. Also, VA Home Loans are now acceptable as a financing option for homebuyers (income limits still apply).

To view the updated application and to see if you qualify, click here or contact Michelle Gerhard at michelleg@srar.com or via phone at 818-947-2298.

C.A.R. reports June median price increased 13.6 percent; home sales decreased 4.2 percent

Multimedia:

• Click here to view a video of C.A.R. Chief Economist Leslie Appleton-Young discuss highlights of the June sales and price report.
  
• Click here to view Unsold Inventory by price point.
  
• Click here to view a data table comparing current prices with trough prices in areas throughout the state.

Quick Facts:

• Existing, single-family home sales decreased 4.2 percent in June to a seasonally adjusted rate of 492,800 units on an annualized basis compared with June 2009.
  
• The statewide median price of an existing single-family home increased 13.6 percent in June to $311,950 compared with June 2009.
  
• C.A.R.’s Unsold Inventory Index rose to 4.8 months in June compared with 4.2 months in June 2009.

LOS ANGELES (July 22) – Home sales decreased 4.2 percent in June in California compared with the same period a year ago, while the median price of an existing home rose 13.6 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

“Buyers who scrambled to close escrow in May to take advantage of federal and state tax credits before they expired impacted the number of homes sold last month,” said C.A.R. President Steve Goddard. “Although we expect sales to be lower in the second half of the year because of the absence of the government stimulus, they should remain above the long-run average and be significantly higher than the trough in 2007, when sales bottomed out.

“Although the tax credits are no longer available, it’s important to keep in mind that home prices are substantially below their peaks and interest rates remain at historic lows, making this a very affordable time for many first-time buyers to purchase a home of their own,” he said.

Closed escrow sales of existing, single-family detached homes in California totaled 492,800 in June at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity decreased 4.2 percent from the revised 514,230 sales pace recorded in June 2009. Sales in June 2010 decreased 11.1 percent compared with the previous month.

Trough vs. Current Price – June 2010

• Existing-home sales in the Northeast fell 18.3 percent to an annual level of 890,000 in May from a surge in April, but are 12.7 percent higher than a year ago. The median price in the Northeast was $240,200, down 2.2 percent from May 2009.
• In the Midwest, existing-home sales were unchanged in May at a pace of 1.33 million and are 22.0 percent above May 2009. The median price in the Midwest was $150,700, up 2.2 percent from a year ago.
• In the South, sales increased 0.5 percent to an annual level of 2.15 million in May and are 22.9 percent above a year ago. The median price in the South was $159,000, up 1.0 percent from May 2009.
• Existing-home sales in the West rose 4.9 percent to an annual rate of 1.29 million in May and are 15.2 percent higher than May 2009. The median price in the West was $221,300, up 7.4 percent from a year ago.

Southland Regional Association of REALTORS is now

NEW YORK (CNNMoney.com) -- First-time homebuyers looking to land an $8,000 federal income tax credit may have a little more time to close on their purchases if a Senate amendment unveiled Thursday makes it into law.

As it stands now, homebuyers must have signed contracts by April 30 and must close the deal by June 30. They could be eligible for an $8,000 tax credit if they are first-time buyers or a $6,500 credit if they owned and lived in their previous home for five of the last eight years.

The closing deadline, however, could be pushed back to Sept. 30 under an amendment offered by Senate Majority Leader Harry Reid, D-Nev., Sen. Johnny Isakson, R-Ga., and Sen. Chris Dodd, D-Conn. The senators said they want to make sure banks have time to process the transactions -- especially short-sales, which is a more involved process.

"By extending the transaction deadline, we can ensure that everyone taking advantage of this credit can complete the purchase of their new home, Reid said.

It remains to be seen, however, whether the amendment will go anywhere. It's part of a controversial jobs and tax bill that may be radically changed before the Senate approves it. Lawmakers are not scheduled to vote on the bill until next week at the earliest.

Source: CNNMoney

• Northeast: jumped 29.5 percent to 97.9 in April and is 24.5 percent above a year ago.
• Midwest: rose 4.1 percent to 104.2 and is 17.9 percent above April 2009.
• South: slipped 0.6 percent to an index of 123.9, but is 31.3 percent higher than a year ago.
• West: increased 7.5 percent to 107.9 and is 12.0 percent higher than April 2009.

Home-mortgage rates were little changed last week, holding steady for the most part at or near recent lows, including a record for the 15-year fixed-rate loan, Freddie Mac said.

The 30-year fixed-rate mortgage average rose slightly to 4.79% for the week ended Thursday, according to Freddie's weekly survey.

In the prior week, the average rate was 4.78%, the lowest since December. The year-ago average for the 30-year home loan stood at 5.29%.

"The economy grew at a slower rate than originally reported in the first three months of the year … which suggests inflation will remain tame in the near term," said Freddie Mac chief economist Frank Nothaft, referring to revised data on U.S. gross domestic product.

"As a result," he said, "mortgage rates held at historic levels this week."

Rates on 15-year fixed-rate mortgages averaged 4.2%, the lowest level since Freddie Mac began tracking the mortgage in 1991, down from 4.21% in the prior week.

One-year Treasury-indexed adjustable-rate mortgages averaged 3.95%, unchanged from the prior week and the lowest level since May 2004. The one-year ARM averaged 4.81% a year ago.

The five-year Treasury-indexed ARM averaged 3.94%, down from 3.97% in the prior week and 4.85% a year ago.

Source: Wall Street Journal

For years, Jennifer Metz and her husband John yearned for a bigger home in San Francisco. Three months ago, the couple started looking, figuring that in this shaky economy, their $3 million budget should provide them a pick of attractive homes and accommodating sellers.

They were wrong. Hours after seeing a 5,000-square-foot fixer-upper in Presidio Heights with an asking price around $2.7 million, the Metzes put in a bid—and lost. Soon after, they made another offer on a four-bedroom in Russian Hill. Their bid was rejected.

Last week, the Metzes rushed over to a large, dilapidated home in Pacific Heights that needed a lot of work but was asking the (relatively) low price of $2.25 million. The Metzes put in their over-ask bid the next day, but lost that one too: There were nine offers; the winning bid was $2.56 million.

"It's frustrating," says Ms. Metz, a 44-year-old stay-at-home mom whose husband works in finance. "You think you put in a good offer but, no."

After a near-disastrous 2009, the luxury market appears to be making a comeback, driven by growing buyer confidence, improved financing conditions and more-realistic seller pricing. Despite the housing downturn, attractively priced homes in some of the nation's most coveted neighborhoods are selling, sometimes fast and sometimes with multiple offers. Nationwide, sales of homes selling for $2 million to $5 million in the first quarter totaled 2,461, up 32% from a year before, says CoreLogic.

That sales are up from last year shouldn't come as a big surprise. The shock of the financial panic in the fall of 2008 left many potential buyers too nervous to bid, and those who were willing to wade in found it hard to get financing. But a study for The Wall Street Journal by MDA DataQuick, a real-estate data provider, found that in some areas of the country, sales of homes over $2 million in the first quarter were actually on par with the levels of 2005, the peak year for existing-home sales volume nationwide.

In San Francisco, 49 homes sold for $2 million or more in this year's first quarter, according to the study, compared to 47 in 2005. In Manhattan, there were 402 sales of $2 million or more in the latest quarter, compared with 311 in the first quarter of 2005, according to the appraisal firm Miller Samuel Inc. Other areas with strong rebounds included New York's Hamptons, Menlo Park, Calif., and Beverly Hills.

Even a couple of troubled housing markets experienced a strong uptick. In Las Vegas, there were 21 such sales in the first quarter, up from 15 in the first quarter of 2005, according to DataQuick. In Miami, 21 such sales of $2 million or more were recorded in the first quarter, up from 15 last year and close to the 23 that sold in that time five years earlier.

Of course, many markets including Greenwich, Conn. and parts of New Jersey are still ailing. Brokers say pricey homes in outlying suburbs are more likely to sit than sell. Miami-Dade County still has enough homes priced at $2 million or more to last 41 months at the current sales pace, though down from 116 months a year earlier, says Ron Shuffield, president of EWM Realtors, a large local brokerage.

The recent stock market tumble could unravel the turnaround. Unlike the rest of the housing market, which is driven largely by employment trends, housing analysts say high-end buyers are much more sensitive to changes in the stock market, which for the first quarter was helping them feel even wealthier. "If the markets don't recover soon, it will scare people" and hurt demand for high-end homes, says Kenneth Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley.

In the meantime, some high-end renovators are making quick sales. Koby Kempel bought a colonial in Brookline, a posh suburb of Boston, last year for $1.45 million. He raised the ceilings, rebuilt the interior, expanded the home by about 50% and added a heated garage. The six-bedroom home was listed by Mona Wiener of Hammond Residential on a Friday in early May and was under contract the next day for the asking price of nearly $3.5 million.

Back in San Francisco's Pacific Heights neighborhood, a four-bedroom home on Broadway, with a spa and views of the Golden Gate Bridge, was renovated by Gregory Malin. It went on the market in late January and sold two weeks later for $13.5 million, compared with the $14 million asking price. The listing agent, Val Steele of Sotheby's International Realty, says the sale, at $2,146 per square foot, marked the first time a home in San Francisco topped $2,000 a square foot since early September 2008.

Source: The Wall Street Journal

NEW YORK (CNNMoney.com) -- Walking away from a mortgage you can still afford to pay has consequences; everyone knows that. Your credit score is shot and it can be impossible to get credit.

Some homeowners, no doubt, believe that the credit score hit is worth getting out from a deeply underwater mortgage. They may owe, say, $500,000 when their house value is only valued at $350,000. And, they figure, there's no way it will ever be worth what they owe so it's better to get out from underneath the burden.

After default, they reason, they can raise their FICO scores by paying all their bills on time and eventually finance another home purchase.

Don't count on it.

While homeowners who default due to economic hardship, such as a job loss or divorce, normally must wait two to five years before buying a home again, walkaways may face double that time.

"It could be well over seven or eight years before [walkaways] are able to obtain a mortgage to buy a home again," said Jay Brinkmann, chief economist for the Mortgage Bankers Association.

How foreclosure impacts your credit score

"Credit scores are only one component of a complete credit decision," Brinkmann said. "[In these cases] credit scores are not a good indicator of their willingness to continue to pay their mortgage."

But future underwriters will scrutinize their records very closely, and if they find no precipitating factors leading to the defaults -- no job loss, no health issues --the repaired credit score won't overshadow the black mark of a walkaway.

"If you made a strategic decision to default on paying your mortgage, it will work against you," said Bill Merrell of the National Association of Review Appraisers and Mortgage Underwriters.

Merrell, who teaches underwriting, said banks are looking at several factors in determining whether to grant mortgages: the amount of money borrowers have in the bank; employment histories; payment history.

However, banks may be far more lenient if the default resulted from factors somewhat beyond the borrower's control, such as from local economic problems. "They'll give you more consideration if it's job related," he said. But, he added, banks look at strategic defaults "very negatively."

That said, it's not impossible to get a loan. Banks still want to make interest payments, so they might be willing to gamble with a walkaway.

"It might be a little more difficult for them to borrow, but [banks'] drive for market share -- to profit from making loans -- will trump that caution," said Keith Gumbinger, of the mortgage information publisher HSH Associates. "I don't think we'll see a full denial."

It's hard to foresee the state of mortgage lending six or seven months from now, let alone seven or eight years into the future. So lenders may look at applications from one-time strategic defaulters and say, "Yes, they walked away but it's a whole different market now," according to Gumbinger.

Even so, lenders may require more from borrowers who walked away than those who didn't.

"To the extent they could get a mortgage," said Brinkmann, "they can count on needing a heavy down payment."

The lenders may ask for 30% down or more. That would provide enough collateral cushion that the bank could get all or most of its money back in a foreclosure.

Strategic defaulters might also be charged higher interest rates, even above the levels other borrowers with similar credit scores would receive.

Source: CNNMoney 

Title insurance protects the holder from any losses sustained from defects in the title. It’s required by most mortgage lenders. Here are five other things you should know about title insurance.

1. It protects your ownership right to your home, both from fraudulent claims against your ownership and from mistakes made in earlier sales, such as mistake in the spelling of a person’s name or an inaccurate description of the property.

2. It’s a one-time cost usually based on the price of the property.

3. It’s usually paid for by the sellers, although this can vary depending on your state and local customs.

4. There are both lender title policies, which protect the lender, and owner title policies, which protect you. The lender will probably require a lender policy.

5. Discounts on premiums are sometimes available if the home has been bought within only a few years since not as much work is required to check the title. Ask the title company if this discount is available.

Source: Realtor magazine

1. Research before you look. Decide what features you most want to have in a home, what neighborhoods you prefer, and how much you’d be willing to spend each month for housing.

2. Be realistic. It’s OK to be picky, but don’t be unrealistic with your expectations. There’s no such thing as a perfect home. Use your list of priorities as a guide to evaluate each property.

3. Get your finances in order. Review your credit report and be sure you have enough money to cover your down payment and closing costs. Then, talk to a lender and get prequalified for a mortgage. This will save you the heartache later of falling in love with a house you can’t afford.

4. Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion, but be ready to make the final decision on your own.

5. Decide your moving timeline. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area? All of these factors will help you determine when you should move.

6. Think long term. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in this home for a longer period? This decision may dictate what type of home you’ll buy as well as the type of mortgage terms that will best suit you.

7. Insist on a home inspection. If possible, get a warranty from the seller to cover defects for one year.

8. Get help from a REALTOR®. Hire a real estate professional who can guide you through the whole process of your new home purchase.

The near-record low mortgage rates seen during the past few weeks may not be around much longer.

Signs of improving economic conditions could lead Federal Reserve Chair Ben Bernanke to raise key interest rates, driving up mortgage rates, says Stephen Stanley, chief economist at Pierpont Securities LLC.

The evidence includes more consumers are paying their bills on time. Past-due accounts at American Express declined 34 percent compared to a year ago, and Target Corp. reported its lowest delinquency rate in two years during the second quarter.

In another sign of economic improvement, fewer banks reported tightening lending standards this month, one reason consumer borrowing rose for the second time in three months.

“If lending standards start to stabilize, that’ll be another reason to remove the emergency measures, including the zero rate,” says Jay Bryson, a senior global economist at Wells Fargo Securities LLC in Charlotte, N.C., who formerly worked at the Fed in Washington.

Source: Bloomberg, Bob Willis and Anthony Feld (05/28/2010)

California home sales dropped 8.1 percent in April from a year earlier, but the state's median price jumped 21 percent to $306,230, the California Association of Realtors reported Monday.

Los Angeles County managed a 0.1-percent gain in annual sales, but its price increase of 12.7 percent was not as dramatic as the state's.

Some San Gabriel Valley cities experienced big year-over-year hikes in their median home price.

Monterey Park's median price jumped a whopping 33.9 percent in April to $471,500 from $352,000 a year earlier. That was the state's sixth biggest annual price gain, according to CAR.

Covina's median price rose 21 percent to $340,000, La Crescenta's rose 20.4 percent to $570,000, and Baldwin Park posted a 19 percent annual gain, bringing its median price to $250,000.

Leslie Appleton-Young, CAR's vice president and chief economist, said the price increases can be partially attributed to last year's more dismal housing market.

"You have to remember that we're coming up from a pretty low base," she said. "That has amplified the difference."

CAR President Steve Goddard said the statewide decline in home sales was fueled in part by homeowners opting to delay closing their escrow until a statewide tax credit took effect on May 1.

Many buyers were probably hoping to tap into that and a federal tax credit, he said.

Kathleen Mueller, owner/broker of Mueller Realty in San Gabriel, has seen that

trend first-hand.

"I had a couple of buyers who were supposed to close just prior to April 30 and they delayed their closing until just after May 1 to get the state tax credit," she said. "They also qualified for the federal credit. In talking to my lenders, a lot of people were doing that."

California has extended its $10,000 tax credit for first-time homebuyers and for those purchasing new homes. The $8,000 federal incentive ended April 30.

Moving forward, Goddard expects sales to pick up.

"We should see the pace of closed sales edge up in May and June as these tax-incentivized transactions close," he said.

Home sales in California dipped below the 500,000-unit level for the first time in 19 months, he said, because of supply issues. The demand for "attractive foreclosed properties" well exceeds the number of properties on the market, according to Goddard.

Still, mortgage interest rates continue to hover near historic lows, and many buyers are out in force to take advantage of the combination of low interest rates and affordably priced homes.

"It's an ideal time for many families to purchase their first home even though they may face stiff competition," Goddard said.

Mueller said many potential first-time buyers are putting in offers on homes, only to be outbid by others.

"There are still a lot of foreclosure properties, but there are hundreds if not thousands of buyers out there and that is keeping prices more firm," she said.

Other San Gabriel Valley cities weathered significant price drops, including Walnut, which saw its median price fall 15.3 percent in April to $520,000 compared with $614,000 a year earlier.

La Verne's median price dropped 12.6 percent to $413,000, while Glendora was down 7.7 percent.

Appleton-Young said prices will continue to stabilize or increase because buyer demand far exceeds the number of foreclosed homes that are coming onto the market.

"There is no doubt that the state and federal tax credits have provided a sense of urgency for buyers, so we expect the market to pull back a little when that's gone," she said. "But we don't expect the market to derail. I think it will continue to have momentum."

kevin.smith@sgvn.com
626-962-8811, ext. 2701

Make your home more appealing for yourself and potential buyers with these quick and easy tips:

1. Trim bushes so they don’t block windows or architectural details.

2. Mow your lawn, and turn on the sprinklers for 30 minutes before the showing to make the lawn sparkle.

3. Put a pot of bright flowers (or a small evergreen in winter) on your porch.

4. Install new doorknobs on your front door.

5. Repair any cracks in the driveway.

6. Edge the grass around walkways and trees.

7. Keep your garden tools and hoses out of sight.

8. Clear toys from the lawn.

9. Buy a new mailbox.

10. Upgrade your outside lighting.

11. Buy a new doormat for the outside of your front door.

12. Clean your windows, inside and outside.

13. Polish or replace your house numbers.

14. Place a seasonal wreath on your door.

Source: Realtor.org

 Home inspections will vary depending on the type of property you are purchasing. A large historic home, for example, will require a more specialized inspection than a small condominium. However, the following are the basic elements that a home inspector will check. You can also use this list to help you evaluate properties you might purchase.

For more information, try the virtual home inspection at www.ASHI.org, the Web site of the American Society of Home Inspectors.

Structure: A home’s skeleton impacts how the property stands up to weather, gravity, and the earth. Structural components, including the foundation and the framing, should be inspected.

Exterior: The inspector should look at sidewalks, driveways, steps, windows, and doors. A home’s siding, trim, and surface drainage also are part of an exterior inspection.