Real Estate News for Monday, March 6th, 2006

REAL ESTATE CHAT: Introduction to 1031s. A 1031 exchange is also sometimes referred to as a like-kind exchange. A like-kind exchange is the sale of property used in a trade or business, or one that is held as an investment, in exchange for property that is used in a trade or business or one held for investment. The basic, typical 1031 exchange is related to real estate, although it does not have to be. Typically, when someone sells a parcel of real estate, they'll deposit funds with an independent third party known as a qualified intermediary. From there, they have within 45 days have to identify a replacement property, the like-kind property, and 180 days to close on the purchase of that replacement property. One of the best attributes of 1031 exchanges is they provide buyers the ability to defer all income tax on the sale of property, if they buy a new property of equal or greater value. Click here to read more.

Hoping for Best in Home Sales, 2 Sides Sit Tight. Many buyers, having heard that the real estate market is a bubble in danger of popping, are refusing to offer the asking price on a house, convinced that it will soon drop. But many sellers are not blinking either, thinking that offers will improve when the weather does and biding their time until then. As a result, the housing market is now in a deeply confusing state, with average prices still rising even though homes are taking much longer to sell and the number on the market has soared. Sometime soon — probably in the spring, the peak sales season — one side or the other will have to capitulate, many economists and industry executives predict. Click here to read more.

Coachella Valley real estate market undefinable. 15 facts about valley's housing scene you may not have known. The Coachella Valley real estate market continues to defy attempts to define it in simple, one-dimensional terms. The numbers point to a market with a decidedly split personality. With 2006 now well under way, the valley housing scene is nowhere near the seller's paradise that existed in the early months of 2004. But with a new record median price of $405,000, it's also not a haven for bargain-hunters - except those from places like Monterey and San Diego. Local sales counts have dropped and unsold inventory has soared - now topping 7,000 properties - but homes that do sell are still seeing double-digit appreciation from a year ago. Affordability for local residents is at historic lows - with only 10 percent of households now able to afford the median-priced home based on working income - even as the market continues to attract baby boomers from outside the area seeking retirement and vacation houses. Click here to read more.

2005 was sunny year for county job growth. San Diego County enjoyed robust job growth last year, with more than 28,000 jobs added to an economy already operating near full employment. The county's unemployment rate dropped to 4.1 percent, from 4.6 percent a year ago. Only Orange, Marin and Mono counties have unemployment rates lower than San Diego's. Economists applauded the numbers, released yesterday by the state Employment Development Department, but they cautioned against expecting similar growth in 2006. Almost a third of the new jobs were created in the construction and real estate industries, two sectors that are already weakening. Click here to read more.

Declining U.S. Home Market Demands Pricing Savvy. As the U.S. home market continues to resemble a bear entering hibernation, home buyers and sellers will be increasingly tested on their mettle and savvy. Whether you are a buyer or seller, the key is getting the right price, a real challenge in any market. Fortunately, the art of property pricing is becoming more consumer-friendly as the deflating home market grabs headlines. Sales of previously owned homes fell 2.8 percent in January -- the fifth monthly decline in a row and the slowest pace in two years -- according to the Chicago-based National Association of Realtors. New-home sales dropped 5 percent in the same month, the U.S. Commerce Department reported. Another sign of a slowdown is that more than a half-million new homes are sitting unsold, staying on the market about five months, the longest time in a decade, according to the Realtors' group. Builders are increasingly offering incentives such as free kitchen upgrades and swimming pools in some markets, although they are finding fewer takers as mortgage rates rise. Click here to read more.

~Tina Jan~
Coldwell Banker Kivett-Teeters
1655 E. Sixth St.
Beaumont, CA 92223
Work: 951-845-5520 Ext. 105
Fax: 951-845-4916
Cell: 909-446-2666
Toll-Free: 1-877-TINAJAN
tina.jan@coldwellbanker.com
www.tinajan.com