Unexpect Rise in Home Prices

LA is leading the way, with a 1.8% increase in January over December. This makes the eight consecutive month that prices have risen.

$10,000 State Tax Credit for Home Buyers

The governor and legislature have agreed to offer a $10,000 state tax credit to first-time home buyers at a cost of $200 million. It is set to take effect on May 1.

A similar program that passed last year was wildly popular. Buyers snatched up all $100 million in available credits within months.

By the way, a "first-time Home buyer" is defined as anyone who has not owned a home in the previous three years.

Southland Homes Prices Jump 10%

Home prices in the southland jumped 10% from February 2009 through February 2010. Orange County led the way with a 11.2% jump. The price gains are mostly at the entry level, where inventory has become significantly reduced.

The news is probably not welcome to potential buyers who are hoping that prices would have fallen even further, but homeowners are loving it.