Morro Bay - Spring/Summer update

Hi Everyone!

Spring has sprung. Summer is around the corner. The howling March winds arrived in April downing a few trees, but....we live in paradise, so who cares? Glorious sun for a few more months, green hills fading to brown, wildflowers abound, no hoards of tourists (though we sure need their money) yet, but who cares, we live in paradise! The real estate market is lousy but who cares we live in paradise! At least we tell ourselves that, but we do have some foreclosures, some people have lost jobs and are behind in their house payments. Even though we think we live in paradise, we are wondering, like the rest of the country, when this miserable economic situation will turn around. Having read the papers and listened to economic pundits and real estate guru's the consensus seems to be that those with cash or who can get a loan with good down payment, will benefit from today's real estate market, but only until early 2010, then prices should flatten out for a year, then begin to rise again. Million dollar + homes were selling in 2006, so prices on them were high; low end and foreclosures sold in 2008 dragging those prices down; but not many of either in 2009 so far. However, the high end isn't selling, so prices are now dropping. Everyone wants a bargain and sellers who need to sell can offer them that bargain. It's a great time to buy if you can and plan on holding for 5 years or so. Where else are you going to put your money? The stock market, CD's, or T-Bills? NOT!

FYI

Tax break for widowed homeowners You now have up to two years following a spouse's death to sell your jointly owned home and keep up to $500,000 in profits tax-free. Previously a homeowner had to sell his, or her principal residence in the same year as a spouse's death to qualify for the exclusion. If they waited longer they could only deduct up to $250,000, the same as a single person. Check with your tax advisor before making any such decision however.