Yun urged caution on interpreting price data. “The median price is influenced by the mix of homes that were sold and do not reflect pure appreciation or depreciation,” he says. “The recorded home prices in many markets were significantly depressed last year because of a large percentage of distressed homes sold at discount. Now as more normal, non-distressed home sales are occurring, the median price in many areas is showing higher values.”

Total state existing-home sales, including single-family and condo, rose 9.1 percent to a seasonally adjusted annual rate of 5.61 million in the second quarter from 5.14 million in the first quarter, and were 17.3 percent above the 4.78 million-unit pace in the second quarter of 2009.

Source: NAR

The 15-year fixed loan rate also hit a record low of 4 percent, down from 4.03 percent a week ago and 4.69 percent last year. The five-year adjustable-rate mortgage averaged 3.76 percent, compared to 3.79 percent last week and 4.75 percent a year earlier; and one-year ARMs averaged 3.64 percent, down from 3.7 percent and 4.80 percent, respectively.

Source: The Wall Street Journal, Nathan Becker (07/30/10)

Let me know if you have trouble printing this, I can email you a copy.

Applying for the 2010 First-Time Buyer tax credits: Applications must be faxed afterThe New Home tax credit still has about $40 mil to go.

, we receive the 2010 application before May 1, 2010, or we receive the application before escrow closes.is used escrow closes. We will deny the application if the 2009 form

Reserving a New Home Credit Before Escrow Closes: Taxpayers who qualify for the New Home Credit may, but are not required to, request a reservation prior

Good luck! into before May 1, 2010.was entered a reservation if they have entered into an enforceable contract on or after May 1, 2010, and on or before December 31, 2010. Taxpayers may not reserve a credit if the contract request, as a reservation will “hold the taxpayer’s place in line” until 2 weeks after escrow closes. Taxpayers may only is reached to the close of escrow. Reservations will become important as we near the $100 million cap for homes that may not close escrow before the cap

Here are three things that potential buyers of condos should consider:

1. Is this condo likely to fall further in price? Part of the answer is in falling or rising local inventory – even if sales have picked up recently.

2. Is this a fair price? Condo prices are more volatile than single-family homes. One big consideration is whether buyers in this particular complex are likely to be able to qualify for a mortgage. If the complex has too many renters, for instance, the Federal Housing Administration won’t approve loans to buy units.

3. Is the condo association in good fiscal shape? Are they maintaining the grounds and the amenities as well as staying on top of needed structural improvements?

Source: Money Magazine, Beth Braverman (06/29/2010)

Growing confidence in the San Francisco economy and its housing market has revived home sales activity in the City by the Bay. Home sales activity continues to accelerate, while inventory levels recede from recent highs, according to the latest Market Focus report issued jointly by the Rosen Consulting Group of Berkeley and the San Francisco Association of REALTORS®.

“As closed sales activity has rebounded, sellers have regained some leverage in negotiations,” says John Lee, president of the San Francisco Association of REALTORS®. “Prices at the low-end of the market are stable while pricing volatility in higher-priced segments remains,” according to Lee.

The Rosen Consulting Group believes that despite the pause in median price appreciation and anticipated slowdown during the summer months, the underlying housing market trend remains positive and will continue to improve through the remainder of the year.

Although recent stock market volatility driven by the European debt crisis continues to rattle investors and potential home buyers, the Market Focus report observes that the crisis effectively pushed mortgage rates back to historically-low levels.

In May 2010, the median single-family home price in San Francisco improved to $752,500, a slight increase from May 2009. But Rosen Consulting Group states, “While the rate of growth in the median sales price flattened, the market is still in much better shape than it was one year ago when home prices were in free fall. Rising housing affordability, driven by attractive pricing and low mortgage rates combined with a more optimistic view of the economy assisted by government incentives have brought buyers back to the market. Recognizing the shifting market conditions, sellers who have been waiting for more favorable market conditions to place their homes on the market should begin to do so in coming months.

Although the Rosen Consulting Group expects to see some effects of expiring tax credits on future home sales in San Francisco, Lee believes that the pent-up demand in the market matched with a rise in hiring activity into the second half of the year, should counterbalance the anticipated fallout from expiring government programs, sustaining the market’s recovery.

Condominiums for the same time period saw an overall 4% drop in the median price even with a huge 84% surge in demand when compared to last May, and inventory shrunk 2%. Days on market also decreased significantly by 40% from 75 to 45 days.

What does all of this mean to the average buyer or seller? Sellers seem to be on the mark with their asking prices – thus the increase in demand, and buyers may actually face a little competition when looking for their dream home. With interest rates at historic lows we hope to see a further stabilization of the market throughout the summer and fall.