U.S. sales of previously owned homes rise 6.8 in March

From the LA times 4/22/2010
Sales of previously owned U.S. homes jumped 6.8% in March, a national group said Thursday.
Real estate agents have been counting on a spring surge brought on by an expanded and extended federal tax credit for buyers. The March sales pace reached a seasonally adjusted annual rate of 5.35-million units, up from 5.01 million in February and 16.1% above the 4.61-million-unit pace in March 2009, according to the National Assn. of Realtors in Washington.
Lawrence Yun, chief economist for the group, said the federal tax credit that was to expire at the end of this month had been a “resounding success.”
Whether home sales will hold up after the expiration remains a question in debate.
“I'm fairly sanguine, frankly,” said Michael D. Larson, a housing and interest-rate analyst with Weiss Research. “While the credit expires April 30, more forces are at work here. Home prices are now reasonable in many parts of the country, and financing costs remain low.”
The national median home price was $170,700 last month, up 0.4% from the same month the prior year, the Realtors group said.
Regionally, sales of previously owned homes rose 6.6% in the West, 7.1% in the South, 7.2% in the Midwest and 6% in the East

California won't tax forgiven mortgage debt

Governor Schwarzenegger on Monday signed SB 401 (Wolk) into law providing distressed homeowners with state tax exemption on debt forgiven in a short sale, foreclosure, or loan modification. Effective immediately, this bill generally aligns California's tax treatment of mortgage debt relief income with federal law. For debt forgiven on a loan secured by a qualified principal residence, borrowers now will be exempt both from federal and state income tax consequences. The tax exemptions apply, with certain restrictions, to debts discharged from 2009 through 2012. Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment. Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions. Most notably, taxpayers who are bankrupt are exempt from debt relief income tax. Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.