Although home sales are down this year, prices are steadily increasing in the Riverside County Real Estate Market. Sales for the month of July 2010 were 2,985, down from last July’s number of 3,868. However, home prices have increased a healthy $15,000. Last July, the median sale price of a Riverside County home was $190,000. Last month, the median home price came in at $205,000, an increase of 7.3%. See the home price data below:

As the media continues scaring people about the current real estate market, all you really need to do is take a look at the current data. With most homes in todays market getting multiple offers, it’s pretty safe to say that we’re moving on and the market has stabilized. So, for home buyers who keep submitting low-ball offers because you think the market as a whole is still crashing down and there is going to be a second dip in home prices, I would advise for you to stop holding your breath and make an offer that is closer to the current market value, rather than what you “think” the home is worth with no reasonable data to back it up. I am not saying give the owner their asking price because sometimes, owners are just too unrealistic, but I advise you to do some research and make a good, solid respectable offer.

Please note that the data from above is for Riverside County as a whole. Some local markets may have had stronger price appreciation, while others are still very anemic.

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New construction of single-family homes, the key sector of the housing market, rose 10.2% over the month to an annual rate of 593,000.

New construction of multi-family homes — buildings with 5 or more units — was 68,000.

April was the last month in which sales to first-time home buyers could qualify for a federal tax credit of up to $8,000. Earlier this year lawmakers extended the deadline through April 30 and added a new credit of up to $6,500 for some existing home owners who move.

“The increase in demand prompted by the tax credit has lifted construction,” wrote Ian Shepherdson, economist at High Frequency Economics, in a research note.

“But the expiration of the credit … has made homebuilders wary about continuing to add new homes during the summer,” he said.

Building permits: That’s probably why applications for building permits, a gauge of future construction activity, sank in April. Permits fell to a seasonally adjusted annual rate of 606,000 last month, down 11.5% from a revised 685,000 in March.

Economists were expecting 680,000 permits. But despite this month’s sharp drop, permits were still up 15.9% from April 2009.

“In the near-term the drop in permits clearly signals falling starts ahead,” Shepherdson wrote

Property Description:

Stunning top floor unit in desirable gated community of ‘The Heights’ community of Carmel Valley. This elegant floorplan is the largest in the development and features soaring ceilings and wood flooring. The kitchen is gorgeous and features dark wood cabinets, granite counter tops and stainless steel appliances. Beautiful master suite features a walk-in closet and private bath with dual vanity. There are 2 additional spacious bedrooms that share the full hall bath. There’s a lovely balcony and inside laundry with stacked washer and dryer. The Heights features a community pool & gym. Convenient freeway access to the 5, 805 and 56 freeways. Great local shopping and dining too!

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Property Description:

1/2 Acre Estate! “English Tudor Revival” built by Jeckel in 1925 in the Historic Pisquresque “North Hill”. Featured in “Cottages, Colonials and Community places of Riverside”. 4 bedroom, 3 1/2 baths, refinished hardwood floors, formal dining room, family room with slate floors, wet bar, entertainment center, temp. controlled wine storage for 30 cases. Kitchen less than a year old: Wolf appliances include 60″ gas cook top, 2-36″ convection ovens, miele dishwasher, sub-zero Pro 48″ refrigerator/freezer, new Anderson patio doors & windows +++. All of this in a park like setting. Price includes adjacent lot .20 acre parcel #207103013.

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Property Description:

GO GREEN, GREEN, GREEN!!! PRIVATE WATER WELL, REVERSE OSMOSIS DRINKING WATER! NO NEED TO BUY WATER!!, SOLAR ELECTRIC SYSTEM—REVERSE THE ELECTRIC METER!, EXTREMELY LOW YEARLY ELECTRIC BILL ! TOTALLY UNIQUE PROPERTY! 2 structures: Custom Main House w/custom cabinets, formal dining room, Master BR w/sitting area. Open the back door on to a fabulous covered patio, surrounded by low maintenance, mature landscaping, leading to a covered full outdoor kitchen. Then you transition to the Accessory Building(aprox 2,835 Sq Ft) featuring a Billiard room, huge open family room w/ a Gourmet Kitchen and Bar. Upstairs is your 22 ft. X 60 ft. IMAGINATION ROOM (currently a huge craft room & office). Home has in-ground pool, enclosed hot tub, work shop, & a Steel (20′x40′) RV Barn. The back yard/RV parking area is entered by an electronic gate, opening up to a large open space for lots of parking. BE SELF SUFFICIENT—HOW ABOUT A HUGE GARDEN!! BRING YOUR TOYS,BOATS,& ANIMALS. SOCIAL GATHERINGS,YES!

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Property Description:

Turnkey condition, This townhouse is looking for someone to enjoy the beautiful sites of San Diego with Stain windows to look out, three bedrooms, 2 1/2 bathrooms, beautiful tile in the front room, upgraded kitchen with granite counter, comes with washer and dryer , upgraded heating ,walking distance to Westfield Shopping Center, and to UC San Diego Medical Center, Torrey Pines Golf course, close San Diego University. This one will not last on the market.

View this property: San Diego Home for Sale

Indoor Laundry hook-ups, Stove, Dishwasher, Central Heating and New Air Conditioner further compliment the home. Pets OK. CALL NOW!

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Revised Form 5405 & Proof Needed for Federal Tax Credit
Anyone who wishes to claim a federal tax credit for home purchase should first fill out Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. Then, they should attach one or more documents as proof of a qualifying purchase.

Documentation Needed for First-Time Home Buyers
First-time home buyers must provide the IRS with proof of purchase. The IRS indicates that one of the following documents must be attached in order for a federal tax credit for home purchase to be processed correctly:

•Copy of Form HUD-1 (Settlement Statement) or similar document that shows all parties’ names and signatures, the property address, sales price, and date of purchase.
•Copy of the executed retail sales contract (in case of mobile home purchases) that shows the same information.
•Copy of the dated certificate of occupancy (in case of new construction) that shows the owner’s name and property address.
Additional Proof Required for Existing Homeowners
The Worker, Homeownership, and Business Assistance Act of 2009 (H.R. 3548) not only expanded the first-time homebuyer tax credit, but also opened up a new $6,500 tax credit for existing homeowners.

Existing homeowners are eligible for a $6,500 tax credit if they have lived in their old house for five consecutive years out of an eight-year period ending on the purchase date of the new house. In addition to the documentation requirement above, taxpayers who fall into this category must also provide proof of the five-year residence with mortgage interest statements, property tax records, or homeowner’s insurance documents.

Important: Anyone who wishes to claim a first-time or existing home buyer tax credit must file paper returns because certain paper documents must be attached to the returns as proof of purchase.

New Home Buyer Tax Credit – Downloading 2009 Form 5405 Instructions
Unlike previous versions of the document, the instructions for revised Form 5405 come in a standalone PDF document. Revised Form 5405 (otherwise known as the “2009 version,” or “2009 Form 5405”) is available separately.

Here are direct links to revised Form 5405 and its instructions:

Revised IRS Form 5405 (2009 version)

Instructions for Revised IRS Form 5405

Obama Tax Stimulus – $6,500 & $8,000 Home Buyer Tax Credit Form
Currently, the old version of Form 5405 is no longer available on the IRS website. The 2009 version of Form 5405 should be used to claim tax credits for house purchases made in 2009 or 2010 (filed with original or amended 2008 or 2009 tax returns).

Assuming no changes are made to the form between now and the next filing season, this same form may also be required for home buyer tax credits claimed on 2010 tax returns.

New Form for $8,000 & $6,500 Tax Credits – Processing Delays
In a January 15, 2010 announcement (IR-2010-006), the IRS indicated that tax returns with attached Forms 5405 would be processed beginning sometime in mid-February 2010. The IRS mentioned a need to first test its systems for compliance with new tax laws and make sure important fraud detection systems were in place before any home buyer tax credit forms are processed. Anyone who files their return with attached Form 5405 and proof needed for the federal tax credit should expect any anticipated refund to be delayed while the IRS double-checks its systems.