SACRAMENTO, CA- There are new signs that people are having greater success in selling their home.
The good news is that last month, existing home sales on West Coast rose nearly 9 percent.
The flip side is that doesn't mean home prices are going up or even stabilizing for that matter. The problem is the prices of homes across the country were down nearly 17 percent from a year ago.
Economists predict that in California, there is going to continue to be a softening of home prices - another 10 percent is likely before the year is over. This devaluation is due to mainly to additional foreclosures driven by job layoffs.
If you have a stable job and moderate income, the lower prices mean new home prices are low as well. A further incentive: the state of California is still offering a $10,000 tax credit to people who buy a new home.
But there's a catch: time is running out. The state is taking only the first 12,000 applicants for the tax credit and already almost 10,000 have applied.
So if you are planning to buy a home that is new, it might make sense to buy now.
Here are some of the basic rules of the incentive:
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The home must be a single-family residence, whether detached or attached
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Never have been previously occupied
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Be occupied by the taxpayer for a minimum of two years
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The credit is $10,000 or 5 percent of the price of the new home, whichever is less
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The credit is spread across three years in three equal payments.
The California Franchise Tax Board is providing for public viewing the number of applications received and the total is updated daily. The applications must be faxed and faxed only.
Find more money-saving advice at News10's Making End$ Meet section.
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