Monthly Update - April

By Rob Morel on April 5, 2009

The big news in real estate still seems to be the $8,000 first-time homebuyer tax credit.  Existing home sales rose 5.1% in February from the previous month and about half of these sales are attributed to buyers who are capitalizing on this temporary benefit.  Remember that this credit only runs from January 1st, 2009 to December 1st, 2009 and does not have to be paid back (unless you move or sell within 3 years).  To read more about this credit and also to download the form you need to apply for it, read my last months blog here:

Monthly Update - March

Beside the tax credit, there is another big reason people are stepping into the market: Mortgage rates have dropped to the lowest level on record in Freddie Mac’s survey, which dates back to 1971.  The average rates on a 30-year fixed-rate mortgage dropped to 4.78% last week from 4.85 the previous week.  Rates are down a full percentage point from just a year ago.  It seems the Federal Reserve’s announcement to buy troubled mortgages from banks really helped bring the interest rate down to improve affordability.  You can read about the “Public Private Partnership Investment Program” here:

Treasury Department Releases Details on Public Private Partnership Investment Program

Finally, if you already bought a home between July 2003 and June of 2008, the Los Angeles County Assessors office will be proactively reviewing the homes bought to see if they suffered a “decline-in-value”, which will temporarily reduce your property taxes.  After April 1st, 2009, you will be able to check the assessor’s website at http://www.assessor.lacounty.gov to see if your home is part of the review.  The review will be completed by June, 2009 and the assessor’s office will notify all those property owners who’s property was included in the review.