Signs of a recovering market! Private equity firms are looking at the U.S. housing market as a source of investment profits in the years to come from different angles, including distressed properties, home builders and other ancillary sectors. Big Investment firms and hedge fund managers are  snapping single-family residences from real estate owned (REO) bank portfolios at prices much lower than what small investors and first-time home buyers could expect to find.  As with any other recovering market, investors with fast access to cash and ample credit lines stand to gain the most from bargain opportunities. Real estate analysts expect to see increased activity from Wall Street investors who will be watching the foreclosure inventories like hawks in the months to come. Read more of this Niche Report article HERE.

The recovery in the housing market continues to pick up steam, as home prices posted the biggest percentage gain in more than two years. This latest rise comes as the housing market has shown numerous other signs of recovery in recent months. The improvement in housing market fundamentals has helped to lift the pace of both home sales and home building. But even with the latest rise in prices, the S&P/Case-Shiller index is still down 29% from the peak reached in June 2006. Read more of this CNN Money article HERE.

When the housing market imploded in 2007 and took the economy with it, experts said the real estate market would never look the same again. Homebuyers can expect a more competitive market in 2013, and should start the mortgage lending process at least three months before they plan to start seriously looking because experts expect the process to take several months under new lending standards. Still shudder at the thought of investing in real estate? It’s time to reconsider. HERE’S WHY

The tax deal worked out by Congress maintains the lower Bush-era tax rates for individuals earning less than $400,000 a year and for couples making less than $450,000. However, the payroll tax holiday was allowed to expire, redistributing 2% of the take-home pay of workers back to the government…MORE HERE

The legendary investor has been buying up real-estate brokerages around the country as he bets on a housing turnaround. Now, he is partnering with Brookfield Asset Management, a Canadian real-estate investor, to more than double the size of his brokerage business. “I am confident that these partners will deliver value to the residential real estate industry, and I am pleased to have Berkshire Hathaway be a part of the new brand.”  Read more

Despite the recent passage of Proposition 30, the California budget crises remains largely unresolved. Prop 30 revenues–additional sales taxes and income taxes–are estimated to be $8 billion for FY2013, producing the first surplus in the general fund budget in 7 years.  Read more about Energy Resources and the California Budget HERE.

Realtors should know these Top 10 things when it comes to the 3.8% tax that’s part of health care reform (see the entire list HERE).  We like #4:  “If you sell your principal residence, you will still receive the full benefit of the $250,000 (single tax return)/$500,000 (married filing joint tax return) exclusion on the sale of that home. If your capital gain is greater than these amounts, then you will include any gain above these amounts as income on your Form 1040 tax return. Even then, if your total income (including this taxable portion of gain on your residence) is less than the $200,000/$250,000 amounts, you will not pay this tax. If your total income is more than these amounts, a formula will protect some portion of your investment.” (via The National Association of Realtors)

A continued lack of housing inventory constrained California pending home sales in September, while the share of equity sales reached its highest level in four years, CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) recently reported.

Pending home sales data:

C.A.R.’s Pending Home Sales Index (PHSI)* fell 3 percent from a revised 119 in August to 115.4 in September, based on signed contracts.  Pending sales were up 0.8 percent from the 114.5 index recorded in September 2011.  Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market. Read more HERE.

The increase in new-home sales is a welcome boost to the Real Estate Market’s overall recovery. First Capital reports that the total home sales in September were up 27.1 percent compared to September of 2011.  Foreclosures have also fallen to a five-year low, reducing the supply of distressed homes available on the market. Read more HERE.

Good Real Estate news via First Capital: We’re on our way out of the housing bust, which means sales will soon be going up. Home sales in California’s biggest population centers climbed in August to the highest level since 2006, according to real estate research firm DataQuick. Read more HERE.