Distressed homeowners no longer need to pay California state income tax on debts forgiven in a short sale, foreclosure, or mortgage loan modification. Introduced into law yesterday, Senate Bill 401 generally aligns California’s tax treatment of mortgage debt relief revenue with federal legislation. Pertaining to debt forgiven on a loan secured by a “qualified principal residence,” individuals will now be exempt from both federal and state income tax penalties. The current federal exemption is for indebtedness up to $2 million, whereas the California State Senete Bill 401 exemption is for indebtedness up to $800,000 and forgiven debt up to $500,000.

Good news for the California real estate market today as Governor Arnold Schwarzenegger signed Assembly Bill 183 which gives the Franchise Tax Board authority to extend a total of $200 million in tax credits to California homebuyers; $100 million for buyers of new, unoccupied homes and another $100 million for first-time buyers of existing homes. With the ending of federal tax credits and potential increases in the loan rates there is a growing fear that the recovery that we are currently seeing in the local real estate market will soon come to an end. The tax credits provided in AB 183 will help to mitigate those fears as it provides California home buyers with a tax credit of up to $10,000.

Generally speaking if you take the time to properly stage your home it will sell more quickly and for a higher price than a home that is not staged.  Although every agent or home seller has their own ideas on home staging there are some universal rules that everyone can agree on.

A new report released July 20th by ZipRealty indicates that the U.S. housing market is showing signs that the free fall seen in last 18 months may be leveling off. According to the report the number of single-family homes and condos listed for sale decreased in June from May by 2.1 percent, based on MLS reporting in 28 major cities. This marks the 12th consecutive month that ZipRealty has reported a drop in the number of Multiple Listing Service-listed homes. The median list price in the 28 markets increased to $270,440 in June from $270,027 in May.

We’ll be hosting an open house Sunday July 12th at 2118 Marshallfield Lane #B in Redondo Beach. In turnkey condition this fully detached rear unit has many upgrades and is very spacious!

2118 Marshallfield Lane #B, Redondo Beach

Custom flooring, granite countertops, 2 fireplaces, huge master bedroom with large private bath featuring jacuzzi tub and shower are just some of the outstanding features. This home is a must see! The price was just reduced by $20,000 to $799,000 so it won’t be on the market long.