Home prices improved in the third quarter of 2009, posting their second quarter-over-quarter gain in three years, according to the S&P/Case-Shiller U.S. National Home Price Index, released yesterday.

The index, which covers all nine U.S. census divisions, recorded an 8.9 percent decline in the third quarter of 2009 compared with the third quarter of 2008, but an improvement over the 14.7 percent decline in the second quarter of the year. The 10-City and 20-City Composites recorded annual declines of 8.5 percent and 9.4 percent, respectively. These two indices generally have seen improvements in their annual rates of return every month since the beginning of the year.

“We have seen broad improvement in home prices for most of the past six months,” said David M. Blitzer, chairman of the Index Committee at Standard & Poor’s. “The U.S. National Composite rose by 3.1 percent in both the second and third quarters of 2009. Both the 10-City and 20-City Composites posted their fifth consecutive monthly increase with September’s report. However, the gains in the most recent month are more modest than during the seasonally strong summer months.”

Bloomberg – California, one-time hub of subprime mortgage lending and the nation’s leader in home foreclosures, has turned the corner toward a housing recovery, according to the state association of REALTORS®.

CNN Money – Propelled by the first-time home buyer’s tax credit, nearly half of home sales now are being made by first-time purchasers, according to an industry report released Friday.

San Francisco Chronicle – Americans’ confidence in the economy improved slightly in November from October, but shoppers remain gloomy heading into the traditional start of the holiday shopping season amid a weak job market, according to a monthly survey.

CNN Money - Housing counselors, who’ve received more than $400 million in federal funds to help mitigate the mortgage crisis, are helping troubled homeowners avoid foreclosure and lower their monthly payments, a study released last week has found.

Los Angeles Times - The Standard & Poor’s/Case-Shiller index increased 0.3 percent from the prior month on a seasonally adjusted basis, after a 1.1 percent rise in August.  The index fell 9.4 percent from September 2008 and marked the narrowest year-over-year decline since the end of 2007.

Los Angeles Times - The federal government recently extended and expanded the federal tax credit for home buyers.  The tax credit now concludes June 30, 2010 instead of Nov. 30, 2009, and also includes existing homeowners who meet certain qualifications.

 MAKING SENSE OF THE STORY FOR CONSUMERS

• Current homeowners are eligible for a $6,500 federal tax credit if they have lived in their current home for a consecutive five out of the last eight years, and the adjusted household income does not exceed $125,000 for single files or $225,000 for join filers.
• The expanded tax credit went into effect Nov. 6, the day President Obama signed the bill.  Homes that close escrow between Nov. 6, 2009 and June 30, 2010 are eligible to apply for the tax credit.
• The legislation does not require homeowners to sell their current residence; however, the new home must be the primary residence and the price of the home must not exceed the limit of $800,000.  Homeowners who plan to retain their current home as a rental or second home are advised to move into the new home the day escrow closes so there is no question it was the principal residence at the time of the tax credit.
• Almost all housing types are eligible, including new and existing single-family homes, condominiums, manufactured or mobile homes, and boats that serve as the owner’s principal residence.  Second homes and investment properties are not eligible.
• Home buyers in 2009—those who close after Nov. 6, but no later than Dec. 31, can claim the $6,500 credit on their 2009 federal tax returns, or amend their 2008 returns.  Similarly, eligible buyers in 2010 will be able to file for the credit on their 2009 returns or 2010 returns.  All home buyers should talk to a tax advisor regarding timing decisions.

Despite recent indicators that the housing market is improving, a new report shows that one in four mortgage borrowers are underwater, meaning they owe more on their mortgage than their home currently is worth. According to First American CoreLogic, nearly 10.7 million households had negative equity in their homes in the third quarter, accounting for about 23 percent of all U.S. homeowners. Most homeowners, however, still have equity, and nearly 24 million owner-occupied homes do not have a mortgage, according to the U.S. Census Bureau.
A study by credit-scoring company Experian shows that approximately 588,000 borrowers strategically defaulted on their mortgages last year, even though they could afford to pay—more than double the number in 2007. Homeowners with negative equity are more likely to strategically default if they live in a state where the bank cannot pursue their assets in court, according to a study by the Federal Reserve Bank of Richmond. California is an example of a state with anti-deficiency laws protecting homeowners from personal liability under certain circumstances.

“Borrowers who are less than 20 percent underwater are likely to maintain their mortgage if their loan is modified and the payments reduced,” said an official with Citigroup’s mortgage unit. “Beyond 120 percent, the most effective modification is a complete loan restructuring, including a principal reduction.”

Upcoming Open Homes

OPEN: 11/29/2009 2:00 PM to 4:00 PM
896 Hillside Blvd., Daly City | $895,000
MLS#363778
4 bedroom, 2.5 bath | Single Family Residence | Map
Original Daly City
2009 Brand New 3 Story Detached Home. 4 bedrooms and 2.5 baths. Huge living w/ fireplace and dining room combo. Kitchen w/ stainless steel appliances. Recessed lighting throughout. Luxury master suite has a walk-out balcony. Master bathroom with Jacuzzi more.
Nancy Jen
DRE# 01041366

OPEN: 11/29/2009 2:00 PM to 4:00 PM
564 San Jose Ave., San Francisco | $599,000
MLS#361797
2 bedroom, 2 bath | Condo / Townhome | Map
Inner Mission
Renovated 2 bedroom 2 bath lower unit of a 2-unit flat. Brand new kitcken and bathrooms. Separate water and utility meters. 1 car parking. Best location to all conveniences. Close to Saint Luke Hospital. Seller may consider carry the first loan. Seller re more.
Nancy Lee
DRE# 00599826

OPEN: 11/29/2009 2:00 PM to 4:00 PM
458 Athens St., San Francisco | $525,000
MLS#363443
2 bedroom, 1 bath | Single Family Residence | Map
Excelsior
Great home in convenient location with lots of potential. Tax record shows orignal 5 room home, but currently configured with numerous bonus rooms & baths (permit status unknown at this time), huge living room and huge kitchen. Full basement for storage, more.
Stephanie Klekas
DRE# 00838794

Upcoming Open Homes

OPEN: 11/29/2009 2:00 PM to 4:00 PM
35 Warmwood Way., Hillsborough | $1,895,000
MLS#362665
3 bedroom, 2 bath | Single Family Residence | Map
Hillsborough
Classic and well-maintained home w/a one-level floor plan. Spacious living & dining room ensemble + a large family room. Updated kitchen with top-of-the-line stainless steel appliances. The home’s 3 bedrooms and 2 bathrooms are located in a dedicated wing more.
David Verzello
DRE#

OPEN: 11/29/2009 2:00 PM to 4:00 PM
894 De Haro St., San Francisco | $1,149,000
MLS#357711
3 bedroom, 1.5 bath | Single Family Residence | Map
Potrero Hill
Charming No. Slope home on extra wide, level lot with lush garden. Extensive remodel in 2005. Beautiful chef’s kitchen w/Wolf range, Bosch d/w, SS refrig, travertine floors, maple cabinets, granite counters incl. center island & bkfst bar, french doors l more.
Jim Laufenberg
DRE# 01201131

OPEN: 11/29/2009 2:00 PM to 4:00 PM
845 Montgomery St., Unit C, San Francisco | $995,000
MLS#362026
2 bedroom, 2 bath | Condo / Townhome | Map
Financial District
Stunning Condo w/brick facade in Historic Jackson Square area of Financial Dist & No. Beach. Gem of a nghbrhd, feat. many local amenities, cafes, restaurants, Muni, Bart, major bus lines close by. This 2/2 unit features a Mstr Ste w/blcny, accessed thru f more.
Jim Laufenberg
DRE# 01201131

OPEN: 11/29/2009 1:00 PM to 4:00 PM
252 States St., San Francisco | $699,000
MLS#363922
2 bedroom, 1.5 bath | Condo / Townhome | Map
Corona Heights
2 level 2bedroom 1 1/2 bath condo with rear patio. Fabulous remodeled gourmet kitchen. Track lighting, glass staircase to 2nd level. Heated towel rack in master bath. 2nd bedroom has murphy bed and built-in office & bookcases. Lots of extra storage in more.
Jim Laufenberg
DRE# 01201131

OPEN: 11/29/2009 2:00 PM to 4:30 PM
1013 Cabrillo St., San Francisco | $679,000
MLS#363294
2 bedroom, 1 bath | Condo / Townhome | Map
Inner Richmond
Conveniently located near GG Park and trans, this newly-converted condo is a classic 1915 Edwardian flat in a 2-unit building w/low HOA dues. The 2BR/1BA/1PK flat has been restored w/an eye toward maintaining abundant period details including decorative f more.
Loida Sorensen
DRE# 1300820

OPEN: 11/29/2009 2:00 PM to 4:00 PM
1254 Rhode Island St., Unit 14, San Francisco | $559,000
MLS#363832
3 bedroom, 2 bath | Condo / Townhome | Map
Potrero Hill
Beautifully updated tranquil condo in sunny Potrero Hill. Town-home style, handicap accessible, with secure covered pkg. Nicely remodeled: new flooring, 2 updated bathrooms, new double-paned windows, freshly painted throughout, and new fixtures. Quiet sid more.
Renee Gonsalves
DRE# 01365295

OPEN: 11/29/2009 2:00 PM to 4:00 PM
215 Red Rock Way., Unit 301J, San Francisco | $549,000
MLS#362300
2 bedroom, 1 bath | Condo / Townhome | Map
Diamond Heights
Top to Bottom Renovation!! Open floor modern concept design. Top floor end unit w/twin peak view! Open beam ceiling throughout.Expanded Chef’s kitchen:Custom wood cabinets,16ft of granite slab countertops, S/S Appliances incl: Bertazzoni oven. Bathroom re more.
Jim Demourkas
DRE# 01315531

OPEN: 11/29/2009 1:00 PM to 3:00 PM
500 Bryant St., Unit 104, San Francisco | $480,000
MLS#358976
2 bedroom, 2.5 bath | Condo / Townhome | Map
South Of Market
Approved Short Sale! Back On Market, No Fault of Property! Come see this 3 level, 2 bedroom, 2.5 bathrooms, w/1 car parking and roof top deck. Unit details Granite counter tops both in Bathrooms and Kitchen, white appliances in kitchen, with cement floor more.
Randall Romero
DRE# 01348720

OPEN: 11/29/2009 2:00 PM to 4:00 PM
215 Red Rock Way., Unit 206J, San Francisco | $449,000
MLS#363938
1 bedroom, 1 bath | Condo / Townhome | Map
Diamond Heights
Bright 1 bedroom condo in Diamond Heights Village. This unit faces south which provides great light and views. Kitchen has lots of cabinets and big counter, great for entertaining. This condo also has double pane windows, gas fireplace, walkin closet and more.
Dan McLean
DRE# 01307929

OPEN: 11/29/2009 2:00 PM to 4:00 PM
63 Prospect, San Francisco | $369,000
MLS#352930
1 bedroom, 1 bath | Condo / Townhome | Map
Bernal Heights
Beautiful finishes in this bright TIC with high ceilings, Fridgidaire Stainless appliances in the kitchen, built in microwave, granite countertop. Bamboo floors throughout, tasteful stone bathroom, views of twin peaks. 16.76%TIC in 61-69 Prospect an exis more.
Susan Ferry
DRE#

New Listings | Week ending 11/28

4085 20th St., San Francisco | $1,295,000
MLS#363937
3 bedroom, 3 bath | Single Family Residence | Map
Dolores Park
This hilltop single family house is on desirable Dolores Heights. This 3 bedrooms, 3 baths and dramatic views of San Francisco. The top level consists of living room, dining room, remodeled kitchen and bath and master suite. Downstairs on the 2nd level is more.
Dan McLean
DRE# 01307929

252 States St., San Francisco | $699,000
MLS#363922
2 bedroom, 1.5 bath | Condo / Townhome | Map
Corona Heights
2 level 2bedroom 1 1/2 bath condo with rear patio. Fabulous remodeled gourmet kitchen. Track lighting, glass staircase to 2nd level. Heated towel rack in master bath. 2nd bedroom has murphy bed and built-in office & bookcases. Lots of extra storage in more.
Jim Laufenberg
DRE# 01201131

215 Red Rock Way., Unit 206J, San Francisco | $449,000
MLS#363938
1 bedroom, 1 bath | Condo / Townhome | Map
Diamond Heights
Bright 1 bedroom condo in Diamond Heights Village. This unit faces south which provides great light and views. Kitchen has lots of cabinets and big counter, great for entertaining. This condo also has double pane windows, gas fireplace, walkin closet and more.
Dan McLean
DRE# 01307929