Good news pertaining to interest rates

Although last week’s trading schedule was shortened due to the Thanksgiving holiday, Bonds finally made some moves to be thankful about, helping home loan rates improve by about .125%. The most notable news of the week was the release of the Federal Reserve’s last set of “meeting minutes”, the play by play of discussion during the last Fed meeting. It appears that more than a few members of the Fed feel that inflation is controlled, and the cycle of rate hikes may be coming to a close soon. These comments were welcomed by both Stock and Bond Traders, and brought an across the board rally on the upbeat news.

Possible Tax Dollar Savings via the Energy Tax Incentives Act of 2005

If you are thinking about replacing doors, insulating or installing skylights? If you wait until the first of the year, Uncle Sam might assist you with tax credits, pursuant to the Energy Tax Incentives Act of 2005. This Act was created to provide homeowners tax credits for improvements made to a residence that increase energy efficiency.

All new windows will provide a homeowner with a maximum tax credit of $200. Doors, skylights, insulation, and metal roofs coated with heat-reducing pigments provide a credit of 10% of the cost up to a maximum of $500. The largest credit allows up to 30% of the cost or a maximum of a $2,000 credit for the equipment and installation of solar water heating, (heating of spas and swimming pools are exempt).

In addition to tax savings, the return on investment for making these improvements could save hundreds or possibly thousands of dollars in reduced utility bills, as well as increasing the value of your home. Additional information may be found @ the Home Energy Website.

As always, it is important to confirm any tax credits with a certified tax accountant. Should you need a CPA referral, please contact me via email at Phyllis@RealtorHarb.com, as I may be able to provide a great recommendation.

Housing News

In housing news, the latest report showed Housing Starts declined 5.6%, just a touch more than expected, and Building Permits – which indicate future new construction activity – fell 6.7%. Economists were expecting some declines, but because the numbers were slightly lower than anticipated, this was also a positive for Bonds. Overall, housing numbers continue to remain strong – but all of the housing related reports are important to watch month over month, so we can determine any change in trend to the hot housing market.

November Market Update

Currently there are only 6 homes available in the La Canada school district, priced under $1,000,000; and 14 homes listed from 1,000,000-1,500,000.

Homes in move in condition and those "staged for sale" continue to sell within a week and often in multiple counter offer situations.

There are several distinct neighborhoods: "La Canada Flintridge" (South of Foothill Blvd.), "Sagebrush" (West of Rosebank; not in the La Canada school district), "Meadow Grove" (South of Foothill & East of Gould) and "Deodars" upper La Canada, not too hilly - a very wooded and serene neighborhood.

For more detailed information, visit www.RealtorHarb.com.