Updated For June 2010

The chart below shows data relating to the Stockton Real Estate Market – in particular the amount of Sold, For Sale and Pending homes.  The amount of homes for sale has increased from the begining of the year?  This inventory increase of  homes is most likely do to the expiration of the federal and state tax credits which have discouraged many buyers to purchase.  Also, notice that the amount of sold homes has decreased.

We have had a slight increase in the amount of homes for sale at the first part of 2010, but there has also been a slight decrease in the amount of homes sold as well. Is this due to the typical slow winter season??  What do you think?

Please contact me for detailed data pertaining to your zip code or neighborhood.
David Mckeever with McKeever Real Estate, Stockton Ca

I recently got an email from TreXglobal, an online propery management software company, regarding the top 10 overlooked Tax tips.  I found many of them to be useful so I reprinted them here.

Please note I am not an accountant and do not claim to know everything there is to know about rental income tax laws.  I would advise you to speak to your accountant about any of the tips list here.  :)

#1 RENTAL INCOME TAX TIPS

The lower your rental income for the year, the less that you will owe in taxes. By minimizing your rental income, you can reduce your taxable liability.

This does not mean you should stop collecting rent, it just means you might not have to include all the rent you’ve collected in your taxable rental income.

1. You don’t have to report your rental income if you rented out your property or vacation home for 14 days or less.

2. Rental income is taxable in the year it is collected. If you did not receive the last month’s rent in the current year, do not report the income in the current year.

3. Exclude Security Deposits from your rental income if you plan on returning the deposits at the end of lease.

#2 MINIMIZE TAXABLE GAIN USING SALE EXPENSES

Many real estate investors overlook deductions when they sell their property. If you sold your rental property for a gain, make sure to minimize taxes by accounting for sale expenses – like closing costs, which can be found on the property’s settlement statement. read more »

$99,000 – Your Payments Can Be Less Than Most Rent

This wonderful family home is located in a quiet North Stockton neighborhood. Perfect for the first-time home buyer or for an investor, this property features 3 bedrooms, 1 bathroom, 2-car garage and is located on a lightly-traveled, tree-lined street.

Warmed by two fireplaces, and with beautiful hardwood floors throughout, this home is ready for a young family. The large family area with bar invites the entertainment of friends and family.  A Not-So-Hidden Bonus: A built-in gas BBQ on the backyard, covered patio, and sweet producing fruit trees.

Take David’s video walk-though below.

4 simple, quick, and efficient things to a quicker sale!
Would you buy your home if it was dirty, cluttered, overpriced, or had broken stuff?
No, me neither. So, do the following:

1. Clean the windows, carpets, walls, lighting fixtures, and baseboards to make the house shine. No dust or dirt wanted!  Please, Please, Please, clean the homes of your animals.  These things can smell!  That means your fishtanks, hamster cages, kitty litter box, etc…  If possible, have them removed all together.

2. Remove 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.  Pack excessive family photos.  People want to imagine themselves living in your home, not your family.

3. Do not over price the home. Hire a Realtor that is familiar with the your local market and have the home priced right. A good realtor will prepare a comparative market analysis and visit all the other homes which sold in your neighborhood.

4. Fix the small stuff. Do you have missing grout, a broken appliance, or sprinkler. Get the small things fixed that YOU wish were fixed. All of these little things will add up and make your home more complete. They will be things the buyer does not have to worry about and thus no reason to discount your fairly priced home.

Simple and effective.

David

Have you read this article yet? It was featured in Business Week.  My first thought, wow! what a blunt and harsh statement! But the writer, Mark Roth, uses this headturning title to get your attention to make excellent points for those who are on the fence.  Namely that interest rates are at an all time low, in fact, the lowest in 40 years. He noted that in the late 70s, rates hit a high of 18%! Can you even imagine buying a house at 18%?  I personally can’t fathom it as I bought my first house with an FHA loan while I was in college for 7% in 2001.  In the 80s, when rates dropped from 12% to 9%, my parents practically danced their way to the 1^strefinance of their home.  Generation X’ers probably would never dream of purchasing a home above 7% given all we have ever known are super low rates hovering between 5-6%. Mr. Roth points out the history of previous interest rates as well as the impact of rates on one’s purchasing power. I happen to agree with his prediction that as the economy becomes more stable, interest rates WILL rise to hedge inflation.  My prediction has been that by this time next year, rates will have risen 1-2% at a minimum.

In Stockton, the average sale is $150,000. Assuming a 5% down payment at 5% interest on a 30 year fixed, your monthly principal and interest payment would be $765.  If rates rise to 7%, your payment increases to $948/month.  Some buyers may be on the fence because they fear prices may drop further. Consider this. If there is a 10% decrease in price and the $150,000 falls to $135,000 in one year, but you wait to purchase and the interest rate rises to 7%, your payment will be $898.  You spend more money per month plus at the higher interest rate, you pay more interest over the life of the loan.  Real estate appreciation is always a cycle and as the economy stabilizes, values will level out.  Steve Harney is already analyzing data this is happening in many markets and that this will occur by 2014 in many states. Making a home purchase is still a decision that should be weight carefully and is not for everyone.  One important consideration will depend on how long you plan to stay in the home.

Mark Roth summed up the article, “What I’m trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime.”

I specializes in helping families make good decisions.  I do NOT think you are stupid or broke if you don’t buy a house right now.  But if you are considering purchasing a home and would like a FREE consultation, I’d love to sit down with you and help you weigh your options and direct you to a qualified, caring mortgage professional that will help you with the numbers.

Obama to meet with bank CEOs

The President will sit down with bank executives on Monday to discuss lending and industry reform legislation.

President Obama will meet with the chief executives of several big banks next week, in an effort to help spur greater lending to consumers and small businesses, two senior White House officials told CNN Wednesday.

http://money.cnn.com/2009/12/09/news/companies/banks_obama/index.htm

It’s that time of year when houses shine a bit brighter. Ever wonder how much the decorative holiday lights add to a monthly electric bill? Here’s an easy way to help calculate energy costs this holiday season.

• Count the bulbs on all of your decorative indoor and outdoor lights.

• Check the wattage per bulb.

• Multiply watts per bulb by number of bulbs. (1 watt per bulb x 1,000 bulbs = 1,000 watts).

• Convert watts to kilowatts — 1,000 watts = 1 kilowatt (kw).

• Estimate the hours per month the lights are on. (5 hours per day x 30 days = 150 hours)

• Multiply the total kilowatts by the total number of hours the

lights will be on to get the total kilowatt-hours (kwh). For example, 1 kw x 150 hours = 150 kwh.

• Multiply the total kilowatt-hours by the total cost ofelectricity per kwh. (150 kwh x $0.14 per kwh = $21) In this example, the cost of holiday lighting would be an additional $21 per month.

Reprinted with permission of RISMedia, publisher of Real Estate Magazine

Why Buy? 

There are many reasons you may wish to buy a home, whether you need or want:

On the other hand, you may not be ready to buy a home. Buying a home:

The purchase of a home is, in part, a financial transaction.  Much like a trip to the grocery store to buy coffee, you have many choices and a significant price range. But unlike a bag of Costa Rican coffee, a house has certain bonuses: Equity, Tax Savings and Ownership.  What’s all that mean? Read on.   read more »

Over a decade, price appreciation usually overcomes even bad slumps.

For all the doom and gloom about the housing market, it still generally pays to own a home.

http://www.msnbc.msn.com/id/33243863/ns/business-real_estate/

 Yes, these are simple and may seem obvious, yet they are often overlooked.  

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. read more »