Federal Stimulus Update

On Wednesday the U.S. Senate unanimously adopted an amendment to the tax portion of the stimulus package that would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit, for all purchasers, not just first-time homebuyers, in 2009 for a primary residence. Taxpayers would claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principal residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment.

The House-passed version of the bill continues the current $7,500 credit for first-time homebuyers and eliminates the repayment feature of the credit, but only for purchases that occur between January 1, 2009 and June 30, 2009.

The Senate legislation so far does not include the loan limit increase for FHA and GSEs, but NAR is urging its inclusion. The House-passed bill reinstates and makes permanent last year's temporary FHA and conforming loan limits of $729,750, as sought by NAR. Limits currently are $625,500.

Market Conditions

In Gilroy there are pleanty of houses for sale - still. BUT, there are a lot of properties going into contract! The other but is that the escrows are taking an extraordinary long time because lenders are scrutinizing new loans and borrowers at an unprecedented degree.

There's an odd thing going on, too. Homes owned by banks and other financial institutions are going on the market at really reasonable prices. Once on the market they are receiving multiple offers, and are ultimately going into contract at over list price. We had one buyer offer competing with 22 other offers last week. The winner went in with an over-list-price offer, and raised it even more on counter.

News on the national level includes the National Association of Realtors reporting this week that there have been pending home sale gains in the South and Midwest. The other regions saw slight declines. Here's the complete article.

Back to Gilroy - take a look around. Is there something out there for you? Call Team Patereau to talk about your wants and needs.

Groundhog Day Info

We get confused about seeing shadow and not seeing shadow and what it means. Here's the real scoop:

In traditional weather lore, if a groundhog emerges from its burrow on this day and fails to see its shadow because the weather is cloudy, winter will soon end. If the groundhog sees its
shadow because the weather is bright and clear, it will be frightened and run back into its hole, and the winter will continue for six more weeks.

You can get more info than you want to know here.