California’s Median Price: First Year-to-Year Gain in Two Years
Median price has been an improving situation: Following a 59% peak-to-trough decline, California’s median price surpassed the $300,000 thredhold in November, an increase of 2.4% in month-to-month comparisons, and the first year-to-year increase since August 2007.
Sales also in healthy territory: Home sales in California returned to pre-peak levels in late 2008, and sustained them throughout 2009.
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Housing may be headed for double dip
A recent real estate report indicates that consumers may be taking their time house hunting this winter, which some economists believe could lead to a “double dip” in home prices.  A recent report from  the NATIONAL ASSOCIATION OF REALTORS® (NAR) showed that its pending home sales index declined 16 percent in November to a reading of 96, the first decline after nine consecutive months of gains.
Read more: MSNBC

Schwarzenegger proposes new round of home buyer tax credits
Gov. Arnold Schwarzenegger yesterday proposed a new round of $10,000 state tax credits for buyers of new and existing homes in California. 
Read more: Sacramento Bee

NY Fed: Most successful mortgage modifications reduce borrowers’ principal
Borrowers who receive loan modifications that reduce loan balances and not simply interest rates are far less likely to redefault on their loans, according to a new study from the Federal Reserve Bank of New York.
Read more: WSJ

Losing a home? A tax bite may be next
You might avoid debt-relief taxes if your lender forecloses on your house and cancels your mortgage. But you could still wind up owning a lot of money to the IRS.
Read more: MSN Money

Homeowners forced to buy flood insurance after FEMA redraws maps
Tens of thousands of homeowners in Southern CA are being forced to buy costly flood insurance because new maps issued by a federal agency say they live in a high-risk flood area.
Read more: Los Angeles Times

Real estate faces tough recovery slog
Real estate, which sparked the global economic downturn in 2008, struggled to recover in 2009. But the path to a full return to health is littered with land mines that could send the sector spiraling downward again, possible upending the nascent economic revival.
Read more: The Wall Street Journal