LUXURY HOME MARKETS SLOW IN CALIFORNIA

There are a significant number of "luxury" homes on the Coast and the trend for most of California appears to be relevant to us here. This article comes to us from the California Association of Realtors...

During last year's fourth quarter, luxury home prices in Los Angeles, San Diego, and San Francisco declined on a quarter-to-quarter basis for the first time since 2004, according to the First Republic Prestige Home Index™, which tracks homes valued at more than $1 million in key California markets. Despite the quarterly decreases, limited inventories continue to drive the luxury markets, and prices appreciated by single digits on an annual basis in all three areas.

In Los Angeles, fourth quarter luxury home prices were up 2.9 from a year ago and the average luxury home is now valued at $2.35 million. High-end homes in San Diego and San Francisco also recorded modest annual gains last quarter, rising 3.3 percent and 1.5 percent, respectively. According to the index, the average luxury home in San Francisco is now valued at $2.92 million, while the average luxury home value in San Diego is $2.15 million

Big Rise in Home Sales

From the National Association of Realtors. It appears that the reduction in prices are bringing buyers back into the market...

Sales of existing homes rose in January by the largest amount in two years, raising hopes that the worst of the severe slump in housing may be coming to an end. Median home prices, however, fell for a sixth straight month.

The National Association of Realtors reported this week that sales of previously owned homes rose by three percent last month, the biggest one-month increase since a 3.3 percent increase in January 2005. Sales of existing U.S. homes rose three percent to a seasonally adjusted annual rate of 6.46 million in January, the highest in seven months.

Selling Your Home May Be Tax Free

Your home may not always be your “castle,” but if it is your principal residence, there is one very significant tax benefit when you decide to sell. In general, if you file a joint tax return with your spouse, you can exclude up to $500,000 of your profit ($250,000 if you file a separate return).

Two real estate tax benefits -- the "roll-over" and the "once in a lifetime" -- are no longer with us. However, their memory will linger on, at least for some taxpayers who have made a lot of profit over the years and who were buying and selling their homes prior to l997.

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Sales to Rise

NAR chief economist David Lereah said today that existing home sales have likely hit bottom in the final quarter of last year. He projects a gradual rise in home re-sales in 2007 however sales tallies will likely remain below the 6.48 million unit pace set in 2006. Forecasts are for existing home sales to reach a level of 6.64 million in 2008. Weakness in new home sales is expected to persist this year and next. New home sales are expected to come in at 961k in 2007 and 971k in 2008, both below the 1.06 million units sold in 2006.

U.S. Home Buyers Will Pay Premium For ‘Green’ Homes, 11-25 Percent Mor

RISMEDIA, Feb. 1, 2007-A survey released this week by Green Builder(R) Media and Imre Communications reveals that U.S. home buyers are willing to pay a premium for more environmentally friendly, green-built homes.

The study surveyed more than 250 residential builders across the United States. A wide range of builders was included from the affordable, market rate, luxury/semi-custom, custom, multi-family and developer categories.

More than half of homebuilders surveyed report that buyers are willing to pay a premium of between 11-25% for green-built homes. The same builders report that the average green home buyer is between the ages of 35-50 with a college degree and fair understanding of green products. Continues..