San Diego Homes for sale, San Diego Real Estate

Legislation to prevent the state from taxing forgiven mortgage debt cleared the state Assembly early Monday, offering potential tax relief to thousands of Californians who lost their homes in 2009.

"The feds don't do it and we're not going to do it, either," Assemblyman Charles Calderon, D-Montebello, said Monday before a 47-27 vote that sent the measure to Gov. Arnold Schwarzenegger.

Schwarzenegger's office signaled later that he may veto the measure. The governor opposes an unrelated provision in SBX8 32 concerning tax refunds sought by corporations.

"Our position hasn't changed," said Schwarzenegger spokesman Mike Naple.

The Assembly vote ratified earlier state Senate approval of a measure that aligns many California tax codes with those of the federal government. One clause would eliminate state tax penalties for those who received loan modifications last year or did short sales. In loan modifications, lenders sometimes forgive a few months of payments. In short sales, they agree to sales prices below what they're owed to avoid foreclosing. The differences in both are considered forgiven debt for the homeowner and typically taxed as extra income.

Vacaville homeowner Mark Mosley said Monday he received a $21,000 tax bill last week for a $59,000 loan modification he received in 2009. He said his lender notified him he owes $13,000 to the federal government and $9,000 to the state.

It's almost certain, however, that Mosley doesn't owe federal taxes. The federal government has banned the IRS from taxing forgiven mortgage debt through the end of 2012. The state government had similar bans in place for the 2007 and 2008 tax years. But it hasn't yet extended the ban to the 2009 tax year.

While every homeowner's case can be different, typically those who live in the homes they own can avoid being taxed for forgiven debt. Lawmakers called it a fairness issue Monday, arguing that people having mortgage hardships shouldn't also get hit with a big state tax bill.

"We should provide relief to those who are struggling and at risk of losing their homes," said Assemblywoman Mariko Yamada, D-Davis.

Schwarzenegger opposes a clause that penalizes businesses for seeking some tax refunds. Businesses say it's often hard to calculate what they owe the state, and thus, overpay to avoid stiff penalties. But Democrats say some companies unfairly seek state tax refunds that they aren't owed.

Vacaville homeowner Mark Mosley said Monday he received a $21,000 tax bill last week for a $59,000 loan modification he received in 2009. He said his lender notified him he owes $13,000 to the federal government and $9,000 to the state.

It's almost certain, however, that Mosley doesn't owe federal taxes. The federal government has banned the IRS from taxing forgiven mortgage debt through the end of 2012. The state government had similar bans in place for the 2007 and 2008 tax years. But it hasn't yet extended the ban to the 2009 tax year.

While every homeowner's case can be different, typically those who live in the homes they own can avoid being taxed for forgiven debt. Lawmakers called it a fairness issue Monday, arguing that people having mortgage hardships shouldn't also get hit with a big state tax bill.

"We should provide relief to those who are struggling and at risk of losing their homes," said Assemblywoman Mariko Yamada, D-Davis.

Schwarzenegger opposes a clause that penalizes businesses for seeking some tax refunds. Businesses say it's often hard to calculate what they owe the state, and thus, overpay to avoid stiff penalties. But Democrats say some companies unfairly seek state tax refunds that they aren't owed.

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Despite signs that the real estate market might be lurching forward, prices are expected to fall further this year and next.

The average home price in the United States will fall by about 6% by September 2011, according to a joint report between Fiserv and Moody's Economy.com. And that's after plunging more than 27% in the past three years.

Most of the projected home price decline will occur during the usually slow summer months of 2010. After that, prices should begin to stabilize, according to Fiserv, and stay almost flat through fall of 2011.

The main reason for continued decline, according to Mark Zandi, economist and co-founder of Economy.com, is foreclosures -- the same thing that's plagued markets for the past three years.

"Foreclosure sales will pick up this spring as mortgage servicers figure out who can qualify for a modification and who can't," said Zandi.

He figures there are at least 4.5 million mortgage loans either in foreclosure or clearly headed in that direction. When that additional inventory hits the market, it will provide numerous choices for buyers and encourage sellers to drop their listing prices.

Check the home price forecast in your city

The end of two federal programs, which have been propping up markets, will also tamp down prices.

The Federal Reserve has been purchasing mortgage-backed securities since early 2009, scooping up as much as $1.25 trillion worth. That has dampened rate increases by providing a ready market for the securities. But the Fed's program lapses on March 31, when it cedes the playing field to private investors, who will almost surely demand higher rates.

Any resulting rise in rates will cause some buyers to withdraw from the market and others to look for lower priced homes. Either way, demand for homes drops and so do prices.

A month after the Fed bows out of the mortgage-buying market, the homebuyer tax credit will start to expire. To qualify for the $8,000 credit, homebuyers must sign a contract before April 30 and close by June 30. When the first date passes, many buyers are expected to vacate the market, weakening the demand for homes.

In a broader sense, home prices are ultimately decided by employment. "If [the job market] improvement is stronger than expected, prices will get better. If it's weaker than expected, prices will be worse," Zandi said.

Worst of the worst

The worst performing market will be Miami, Fla. Moody's projects prices there to drop a heart-stopping 29.2% by Sept. 30. That follows a 47.7% decline the metro area recorded in the past three years. Grand total: 64% drop.

Other disastrous performances will be turned in by the Hanford, Calif., metro area, where prices are projected to plummet 27.2% through Sept. 30, 2010 following their 36.9% drop for the previous 36 months. Ft. Lauderdale and West Palm will also register steep drops.

There's some good price news coming out of California's Central Valley for a change; prices will begin to emerge from their free fall toward the end of this year.

In Merced, for example, which crashed and burned by 71.8% in the past three years (through last September), they'll only fall only another 6.2% in the next six months before bouncing back with a rise of 10.1% by Sept. 30, 2011. 

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NEW YORK (CNNMoney.com) -- Conservative radio host Rush Limbaugh is saying adios to the Big Apple and selling his Fifth Avenue penthouse, asking almost $14 million.

Limbaugh bought the 10-room condo at 1049 Fifth Ave. in 1994 under the name of R H Trust, according to city property documents. The pad sprawls across nearly 5,000 square feet and two of its terraces overlook Central Park and its famous reservoir.

The pre-war property features a double living room; a wood-paneled library; four terraces; enormous baths; and a maid's room. But it's not for the faint of heart -- or those afraid of a big renovation. The general appearance can be described as, well, ornate, with trompe l'oeil ceilings and mural-covered walls.

Other lavish features include gold leaf moldings, mahogany floors, upholstered walls and an Italian marble foyer.

Luxury broker Corcoran Group is listing the property, but the firm chose not to release photos or confirm the celebrity resident. Limbaugh was not available for comment.

So what's all that worth? Limbaugh hopes to get $13.95 million for his home. For the tax rolls, the city values the property at $1.56 million and says property would rent for more than $26,000 per month.

Limbaugh, host of "The Rush Limbaugh Show," has been a major voice in the conservative media arena for decades. In 2009, the pundit said he would sell his property after New York governor David Paterson proposed a so-called "millionaire's tax" on residents who make more than $500,000 a year. 

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There's more than chocolate to the big Day of Love (but hey, we're not crazy - everyone's favorite food of the gods is on this guide as well)

Thanks to the San Diego Union Truibune here are some fun things to think about for V-Day

 

- Union-Tribune file photo

Climb your way to a very special Valentine's Day by rock climbing.

Cupid's coming in for a landing quicker than you think. But before you reach for that dusty, heart-shaped box of chocolates in the gas station clearance bin, hold up in the name of a little creative Valentine's Day planning.

Contrary to popular belief, it's easier than you think.

Coastal romps that begin in the sand and end on the dance floor. A kiddie-free evening of adding to all that goes bump in the night at the Wild Animal Park. An intergalactic flashback to 1982 on the town's lone little big-screen. All-natural hot tubs up in the hills. Window-fogging at the drive-in. William Blake-inspired throat singing. Cocoafests. Ferries. Beer buses. Martinis and laundromats.

Anything but that lonely box of gas station chocolates.

More: Find restaurant specials for Valentine's Day at more than a dozen local eateries.

Get Creative

Climb through trust issues

One good way to build your relationship and work through any trust issues is to hand over your safety to your loved one. A great way to do that is to take turns belaying one another at a rock climbing gym. The only thing standing between you and a broken fibula if you slip is faith that your partner is paying attention to drawing in the slack on your line and not the shapely posterior scaling the next wall over. And, unlike other rock gyms across the country with state-of-the-art rubbery floors that absorb impact, the Solid Rock Gym has a gravel and stone landing pad that makes the idea of a fall that much more nerve-racking. There are Solid Rock Gyms in Old Town, Poway and San Marcos, or try Vertical Hold in Miramar. -- Tovin Lapan

San Diego cruising

It's called "The Sweethearts Sail." But what sexes up the San Diego Maritime Museum's multi-hour, tall-ship cruise around the bay isn't so much the possibility of seeing migrating whales; it's the open-water danger factor. Might the skipper shipwreck you with that special someone? You should hope not; cuddling castaways would only last so long on the snack bar's chips and sodas. Speaking of hunger, stop by Anthony's Fishette for the Mixed Treasures ($9.50): fish, shrimp, scallops, calamari and clams -- go overboard and get the side of Krab & Macaroni. Then take a sweet trip to the video shop. Some flicks to go with the day's theme: "The Blue Lagoon," "Titanic" and the Enterprise crew's voyage to find California's humpback whales, "Star Trek IV: The Voyage Home." -- Keli Dailey

Midnight Madness on Adams

On this day of lovey-dovey days we find ourselves midway through The Ken Cinema's two-month run of weekly cult film screenings. Up to bat is "E.T.," a movie that for some reason always makes me crave Pizza Hut. Probably because Elliot's kitchen looked just like that. Landmark flips the switch at midnight on Saturday the 13th, which is technically Sunday the 14th. -- Derrik Chinn

Get steamy

Drive to the hot springs

True love can probably survive the 414-mile drive (each way!) to the High Sierras, to Mammoth. But why push it? Do the hour-and-a-half drive to Warner Springs Ranch on Saturday night. Head right to the 100-degree hot springs for a night soak under the stars. Soak in something dry at the cantina. Stoke the romantic flames by the fireplace in your room. Then make a wholesome return journey through Julian on Sunday for pie. -- KD

Learn how to love through instinct

- AP

Valentine Hershey's kisses are shown in Moreland Hills, Ohio on Monday, Feb. 1, 2010. (AP Photo/Amy Sancetta)

Animals don't have the "Dummies Guide to Relationships." They use instinct to know how to keep their love lives wild and fresh. Learn from nature at the Wild Animal Park's adults-only sleepover that explores animal mating habits. Enjoy a romantic candlelit dinner, take an animal mating tour and play the Mating game while exploring the love lives of the diverse range of animals and the breeding that will keep them alive for future generations. Mating behaviors and animal anatomy are discussed openly, so try not to giggle like school girls in sex-ed class, OK? The special "Animal Amore" sleepover will be held Feb. 12, 13, and 14. -- TL

Arrington de Dionyso at Bar Pink

To the untrained ear it's the soundtrack to a human sacrifice out in the middle of the jungle. But it's actually Tuvan throat singing and bass clarinet improvisation, sung entirely in Indonesian. The lyrics -- chewing the bones of the tiger and boiling the skull of the raven-- are inspired by William Blake poems. -- DC

Single and proud of it

You're single. Have a dirty martini and do your laundry, 'cause it's a Sunday. Ideas for an Alcohol Soloist include the Dirty Blue Martini, made with Skyy Vodka, at the Kensington Grill, which doesn't open 'til 5 p.m. Time your clothes washing accordingly (The Corner Wash Laundromat, 3501 Adams Ave. (619) 284-6741). And while you're in the hood and feeling good, why not do something Oprah swears she would never do: See a movie alone. "Police Adjective" will be playing at the Ken Cinema -- KD

Cheers to the true love juice

Beer trumps chocolate, especially when it's winning big-time popularity contests across the country. All aboard the fun bus for a local brewery threesome: Ballast Point, San Diego Brewing and Stone. -- DC

Love Latin style

Gas up the Pontiac Grand Am (aka The Soulboat) and take the long way up to Solana Beach for the B-Side Players' Second Annual Valentine's Day Ball. By "long way" we mean eat sweets at Chuao Chocolatier (in the Encinitas Lumberyard), watch the sun set while sitting on your rear trunk spoiler at Beacon's Beach (Leucadia), then take your date to the Belly Up Tavern. The B-Side Players will bring the funky Latin soundtrack, some '70s/ '80s prom-party décor and a photo booth. You bring the mullet wigs and fingerless gloves. -- KD

Put some sauce on it

Put yourself in the right mood without succumbing to the contrived, boring, typical Valentine's date. The G. Love and Special Sauce show at the House of Blues on Feb. 12 is the perfect potion. The singer and guitarist from the City of Brotherly Love mixes R&B, rock, blues and a little bit of hip-hop into his tunes. The man has "love" in his name after all, and wrote perhaps one of the greatest pop declarations of affection ever, "Baby's Got Sauce." It's the perfect show for the couple that wants to have fun together but not look like they are on a cheesy Valentine's Day date. Some of the Philly singer's other singles include "Sweet Sugar Mama," "Booty Call" and "Kiss and Tell," so it's safe to assume the show will serve as an auditory aphrodisiac. -- TL

Tried and True

- AP

Red roses wrapped individually in cellophane wait for Valentine shoppers. Valentine's Day is the biggest selling day for fresh cut flowers, including roses, accounting for 40 percent of overall holiday sales, which also include Mother's Day, Easter and Christmas, according to the Society of American Florists, a trade group. (AP Photo/Carolyn Kaster, file)

At the drive-in, in the old man's Ford

'Tis the season for vintage movie viewing in South Bay or Santee, where two randomly paired flicks go for about half the cost of one at the megaplex. Disregard the fact that both are probably already out on DVD. What matters is the priceless perk of seeing them under the stars. If you find yourself with $600 to spare, blow it on a vintage hot rod rental. Showtime happens at sundown. -- DC

Love = Drama

"Twilight: Eclipse" doesn't open 'til June. Tide yourself over with a "love-so-intense" tale: San Diego Ballet's "Romeo & Juliet" (Feb. 12-14 at Lyceum Horton Plaza Theatre). -- KD

Chocoholics unite

If your love for chocolate is unconditional, and you must have anything that is made from the cocoa bean, then this is your event. The "For the Love of Chocolate" festival in downtown Escondido on Feb. 13 is sure to be a chocolate lover's delight. Chocolate-crazy couples can wander the streets of downtown Escondido sampling chocolate pairing with wine, champagne and beers (local breweries Port, Stone, Lost Abbey and Karl Strauss are all participating), take horse-and-carriage rides, try the chocolate fountain and explore the offerings of several local chocolatiers. -- TL

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 Which is one explanation for the growing signs that San Diego's economy, slowly and unsteadily, is creeping toward recovery.

The latest positive news came yesterday from the index of leading economic indicators by the Burnham-Moores Center for Real Estate at the University of San Diego. For the first time since April 2004, all of the economic criteria that USD uses to evaluate the local economy - housing permits, want ads, consumer confidence, the employment rate, local stock prices and national economic growth - were pointing up in December, suggesting a positive outlook for 2010.

"The indicators have been moving up for nine months in a row now," said USD economist Alan Gin, who compiles the index. "Last year, I was thinking that the indicators were pointing to a recovery beginning in the first half of 2010. But with the recent data, I'm thinking the recovery could start as soon as the first quarter. Even if there's a lull in January and February, once spring starts, the improvements in the economy could start getting more noticeable."

Murtaza Baxamusa, director of research and policy at the Center on Policy Initiatives in San Diego, said he was pleased with the index's findings.

"It's not quite time for a celebratory mood, but there's certainly more reason for hope than at the beginning of the year," he said. "We were previously expecting a very long and sluggish, U-shaped recovery. But now it's looking like we won't have to drudge through to the end of the year for signs of improvement. The signs of growth we're seeing are suggesting that our economic engine is warmed up and is ready to go."

Although the economy is still trudging and the local jobless rate has spent seven months in double digits, things have improved dramatically from a year ago, when the nation, state and county seemed poised on the edge of an abyss.

Throughout autumn, the pace of layoffs in San Diego County slowed, home prices stabilized or grew, and companies tentatively began to hire. The jobless rate ended 2009 with the first major improvement since the recession began, from a postwar record of 10.7 percent in October to 10.1 percent in December.

The big question is whether the improvements can withstand a new wave of home foreclosures, as laid-off workers default on their mortgages, and a pullback of the federal stimulus programs that have provided the recovery with its underpinnings.

"We're still in a somewhat fragile state," said Kelly Cunningham, economist for the National University System's Institute for Policy Research. "Even though the unemployment rate has come down a little, we don't yet have enough hiring to have a sustained or real big boom."

Gin said one positive sign is that new filings for unemployment in San Diego County were in the low 20,000s, not including jobless workers filing for benefit extensions. That's about the same as last December and half the rate when filings peaked in summer.

One area beginning to see growth is temporary hiring, which is viewed as a bellwether because employers often test the market by hiring temps. Such hiring has increased steadily since summer, from 26,500 temps in July to 30,300 in December.

Phil Blair, who heads the operations of temp firm Manpower Inc. in San Diego and Imperial counties, said business is up 25 percent over last year. Just yesterday, he said, he placed 40 workers, including 14 employed by a nonprofit with funding from the federal stimulus program. But the private sector has been tentatively hiring as well.

"Our larger customers are asking for five or 10 more workers a week than they were doing last year, and our smaller customers are asking for one or two more workers," Blair said.

He added that the increase in hiring "doesn't mean that an avalanche has started, but it looks like the beginning of good news. Employers are still being very cautious, trying to see if this is a trustable return of the economy. But I expect it will be a jobless recovery through 2010 before they start hiring people permanently in any big numbers."

Help-wanted postings in San Diego County - a criterion USD uses in its index - gave a mixed message at the end of 2009.

Although overall postings in the county dipped slightly from November through December, as measured by the Monster.com Employment Index, there were slight rises in ads for architects, engineers, construction workers and transportation workers. The biggest growth was for military-related jobs.

"The defense industry has been spending quite a bit, including a lot of money from the stimulus program," Cunningham said. "And we are starting to see some of the stimulus money ... come into highways, buildings and defense projects."

In construction, much of the weak but growing demand for workers may be related to stimulus programs, but there has also been a slight pickup in home building. Although 2009 will go down as the worst year for home construction in San Diego County history - 42 percent lower than the previous record-setting year, 2008 - the sector was showing new life by the end of the year, with nearly 300 residential permits filed in December. That's anemic by historic standards but much better than last January and February, which averaged 86 permits per month.

Cunningham said that even though home building remains weak, "right now there are so many bargains out there that at some point people are going to start bringing workers back, especially since San Diego is now getting underbuilt."

In the meantime, the sluggishness in construction is reducing the supply of homes for sale, which is helping revive the real estate market, once a key driver in the local economy. Real estate employment held steady during the fourth quarter with about 22,800 salaried workers in the fall, down from 31,100 at the market's peak. Both sales and pricing are showing increasing stability.

"Since after Christmas, we've really seen the tempo of home sales pick up," said Patti Mc-Kelvey, a Chula Vista real estate broker. "Properties that are priced at $600,000 or higher are still really challenged, but properties that are under $600,000 are going really well."

McKelvey said she just finalized a deal on a house in Chula Vista that had been priced at $400,000 and sold for $425,000. On another sale, involving a foreclosed home, the price rose from the $439,000 asking bid to $475,000, with 20 potential buyers submitting bids.

"That kind of thing used to be nothing to get excited about, but in this market it's not bad," Mc-Kelvey said.

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