July 23, 2007

Trivia: ”The Mediterranean climate and salt water of Santa Cruz made it a natural location for turn-of-the-century therapeutic resorts. By 1864 hot saltwater bathhouses appeared on Beach Street offering rheumatism and neuralgia treatment.” This quote is from “Images of America Santa Cruz California” by Sheila O’Hare and Irene Berry.

Real Estate: People who keep statistics argue whether the median price or the average price is a better indicator. The average price is calculated by totaling the sales prices and dividing by the number of sales. The median price is that price where an equal number of sales occurred at a higher price and a lower price than the median. The median price of a single family home in Santa Cruz County in May, 2007 was $760,000 while the average price was $817,000. Quoted from Gary Gangnes’ website: ROR.com.

Sales Corner: Here is a tax tip that your real estate agents need to know: Home owners may only deduct the mortgage interest on their acquisition debt (the loan obtained when purchasing the property) plus the mortgage interest on an additional $100,000. If a home buyer pays cash for his principal residence, acquisition debt is zero; however, if he then refinances within 90 days after purchase, the new mortgage becomes acquisition debt. As principal is paid off over the years, acquisition debt decreases. Check with your tax advisor for details.

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