The recently enacted Emergency Economic Stabilization Act includes extensions of a variety of energy efficiency incentives for home and business owners.  It extends for 8 years 30% investment tax credits for solar and fuel-cell installations while eliminating the credit cap on residential solar electric projects.  In addition to solar panels and fuel cells, small wind property would be added as a category of qualifying commercial investment.  Also, the law extends energy efficiency incentives for new and improved homes as well as for commercial buildings.

The Federal Housing Administration, effective October 1, 2008, is only accepting new applications from state-certified appraisers.  No new applications are being accepted from state-licensed appraisers.  This is a result of the Housing and Economic Recovery Act of 2008, signed into law on July 30, 2008.  The act states that FHA can only accept appraisers that are certified by a state or a nationally recognized organization.  Appraisers must also demonstrate verifiable education in appraisal requirements as established by FHA.  A mortgagee letter providing additional details is expected in the coming weeks.

A California Association of Realtors® forecast call for prices to level out and sales to rise in 2009.  This is according to C.A.R’s “2009 California Housing Market Forecast,” released last week. The median home price in California will decline 6 percent to $358,000 in 2009 compared with a projected median of $381,000 this year, according to the forecast.  Sales for 2009 are projected to increase 12.5 percent to 445,000 units, compared with 395,000 units (projected) in 2008.

The lower home prices likely will increase the state’s affordability rate, currently at 48 percent, enabling more first-time home buyers to enter the market.  C.A.R. anticipates home prices will stabilize once inventory thins out.  In August, the Unsold Inventory Index stood at 6.7 months, down from 16.9 months in January 2008, meaning that it would take approximately 6.7 months to deplete the market at the current sales rate. 

The ability of consumers to obtain financing continues to play a vital role in stabilizing home prices,  Currently, buyers with at least 10 percent available for a down payment, proof of income and excellent credit scores may qualify for conforming loans – mortgage loans that are $729,750 or less.

C.A.R. also released results of the Association’s “2008 Use of Technology Survey.”  The annual survey, conducted in the third quarter, tracks current trends in technology used by the Association’s members.  REALTORS® are queried on topics ranging from computer and technology adoption to Internet usage and trends.

According to the survey, the top business uses of the Internet for REALTORS® include e-mail (93 percent), checking online listings (90 percent), MLS access (89 percent), access to brokerage Web sites (59 percent), and access to WINForms® electronic forms software (55 percent).

The survey also revealed that REALTORS® also are turning to high-tech instruments such as handheld Internet devices, e-mail, and Web sites to communicate with their clients.  Twenty-two percent of REALTORS® said they own a handheld wireless Internet device for their real estate business to respond to clients more quickly; 32 percent of respondents said they answered clients’ e-mails instantly and another 34 percent said they did so within 30 minutes to one hour.

New home sales decline 39 percent in August.  The pace of new home sales across California in August declined 39 percent from August 2007, according to the latest CBIA/Hanley Wood Market Intelligence (HWMI) New Home Sales and Pricing Report, representing a significantly smaller decrease than the 57 percent year-over-year decline a month earlier, according to the report.

Sales of new single-family homes were down 41 percent in August, while sales of townhomes and “plexes,” (duplexes, triplexes, etc.) were down 17 percent, and sales of condominiums were down by nearly 43 percent, according to the report.