Pat Palmer-Realtor, Upland, CA 91786

Southern California is seeing steady, month over month gains in housing appreciation. If you enjoy reading that as much as I do, I'll write it again, just so you don't have to go back.

Southern California is seeing steady, month over month gains in housing appreciation.

What is even more impressive is that these gains were realized in what has historically been two of the worst months for sales, November and December. The link below is from today's Los Angeles Times. Positive headlines are incrementally, but steadily showing up more and more. Keep your head's up. You just might see the price of your home doing the same thing.

Southern California housing market strengthens in December - latimes.com

How many of you have been out house hunting and seen some bank owned properties that look like this:

They are usually the ones that the "creative" REO agent describes with terms like " Needs a little TLC" or "Handyman's Delight". In reality, the description should be "Bring your own hand sanitizer. This ones a dump".

The problem is that if an investor buys that lil gem,fixes it up and sell it, he's labeled as a "flipper". In today's market that's equivalent to sporting a scarlet letter A from years past. The punishment for such a heinous act is that, as a flipper, you aren't allowed to re-sell that renewed, improved property for 90 days. If your reaction is ...HUUUHHHHHHH???... you're not alone.Luckily, FHA has come to its senses..well at least on this point. Starting 2/1/2010, and with a couple of minor exceptions, a flipper can buy, fix up, and re-sell that property to you immediately. If you qualify, you can get an FHA loan to buy it. So instead of needing some "elbow grease" on the above property, you can now put an offer in on something like this:

Several months ago when it originally came to light,I addressed this problem in a previous blog post:

Why We Need More Investors In This Market

In a surprising move, The Federal Reserve of New York has apparently hired all forward thinking rocket scientists currently available in the U.S. Further proof of this was an article appearing in today's Wall Street Journal. To the shock of the banking world, home loan modifications are actually more successful when a permanent solution like...ohhh, I don't know...balance reduction is granted.

I know what you're thinking, "God, it must surely take those of superior intellect to come up with a solution we mere mortals couldn't !" Below is the article that backs up my Rocket Scientist proof:

http://blogs.wsj.com/developments/2010/01/04/ny-fed-most-successful-mortgage-modifications-reduce-borrowers-principal/

Dear Santa,

Please see the link below:

Tax credit spurs rush of November home buyers - MarketWatch

I really hope Rudolph and The Boys are rested, 'cause it looks like you have a lot more stops to make.

Because there has been no viable alternative, I have been a supporter of the First Time Home Buyers Tax Credit, and now The Extension. Naysayers will immediately point to the raw cost of this program, and they have a point. But the link shows, the tax credit is motivating people to buy.

Perhaps just as importantly, the tax credit is also generating positive headlines. Call me an optimist, but I feel that this program is having a motivating effect on new buyers. And over time, it will lead to buyers starting home improvements, hiring contractors and buying large ticket home appliances. If there is a viable, workable alternative, I welcome any discussion you may have. In the mean time, enjoy a positive headline. I promise, it won't kill you.