Real Estate Market

There are several positive indicators in our local market:

• The number of sales increased in 2011.
• Fewer of these were foreclosures.
• Home values are stabilizing.
• Inventory of homes for sale is at a 7-year low; upward pressure on prices should follow.

In looking at the local real estate market statistics for last quarter of 2011, the thing jumps off the page: the low inventory of homes for sale. In December 2011 the months supply of inventory was the lowest we've seen since November 2005.  Months supply of inventory is calculated by dividing the number of homes currently for sale by the number of homes that have sold in the prior month. In December, there were 3,439 homes, condos, and PUD's listed as active or accepting backup offers in Fresno Multiple Listing Service. In that same month there were 953 sales, which results in the calculation of 3.6 months supply of inventory.

Many economists use "months supply of inventory" as one measure for predicting if home values will appreciate. Most agree that an inventory of less than 3 months is an under-supply and could generate increased home values; also known as a seller's market.  More than a 6 month's supply, a buyer's market, when home sellers may need to reduce their asking price to attract buyers.  Best of all, between 3 and 6 months is considered a balanced market. With the exception of 2 months, the Fresno MLS has been in this territory since March 2009.
 

Read more. . . .

The biggest barrier to buying a home these days is saving for the down payment, according to a survey released in September by Trulia. The survey was based on responses from 758 renters who expressed an interest in buying a home. Fifty-one percent of those renters said coming up with the money for the down payment was keeping them from buying.

If one of your family members would like to become a homeowner but lacks the funds for the down payment, here are a few things you might consider as ways to help them with their purchase:

• A cash gift from a close friend or family member. Federal tax law permits each individual to give money or valuables worth up to $13,000 to a single recipient in a calendar year. A married couple could jointly bestow up to $26,000 a year per recipient.
• Home sellers assistance with closing costs.  If someone were to purchase a median priced Central Valley home for $140,000 the FHA minimum down payment would be $4,900, and closing costs approximately $4,500. These two expenses combined would be less than the federal gift giving tax law. And often home sellers will pay all or a portion of the buyer's closing costs.
• Loan from a relative or close friend. There also is an option to lend a relative or close friend the money for the down payment, or the closing costs, then forgiving the loan in a future year. The recipient would have to pay interest on the loan until it was forgiven, at which point it would become a gift.
• Help from family on other expenses. Another way to help with the down payment is to pay other expenses, such as tuition, thereby freeing up money to make a home purchase. Gifts for educational or medical expenses are not subject to taxes, as long as they are paid directly to the educational or medical institution.

Anyone considering make a gift of this nature should first talk with their tax professional to determine how making a gift would affect both the giver and the person receiving the gift. Potential home buyers should also disclose to their loan officer that they intend to use a gift as the source of the down payment and/or closing costs. This may affect the type of loan your loan officer would suggest as some lenders or loan types do not accept gifts as the down payment. Prior to giving the money, gift-givers should consider their own financial picture, and they should make sure the recipient is responsible and not behind on other payments that could be subject to debt collection.

This hearty seafood stew is just what the doctor ordered to take the chill out of your bones on a winter's evening. After some arm twisting, Max's Bistro Executive Chef, Scott Sauer, agreed to share one of his favorite recipes, Classic Cioppino. Delicious and easy to prepare, serve with warm crusty bread. Enjoy!

Cioppino

1 teaspoon olive oil

½ onion, diced

¾ cup garlic thinly sliced

3 c white wine

2- 15 ounce cans tomato sauce

2- 15 ounce cans chopped tomato

1-8 ounce can chopped clams

1 1/2 tablespoons crushed red peppers

1 1/2 tablespoons oregano

1 1/2 tablespoons tomato paste

Sauté garlic and shallots crushed red pepper and oregano in olive oil

Add white wine and cook off half

Add remaining ingredients and simmer for 1 hour

For seafood

½lb. crab

½ lb. salmon

1 lb. prawns peeled and de veined

½ lb. scallops

½ lb. your favorite sea food

Cook seafood separately until done to your liking. Combine seafood and place mixture into bowls, then ladle in broth before serving.