In California, a new 35-year mortgage will cost you tens of thousands of dollars more in interest than a conventional 30-year mortgage over the life of the loan, but this special loan is packed with enough attractive provisions to offset that drawback. Realty Times columnist Broderick Perkins explains all the positives and negatives of this new type of loan in his story, "California Offers 35-Year Mortgage."

ZipRealty reports that Seattle is a brisk market for homes in "hot neighborhoods" and that these homes often sell in less than seven days, with inventory very low.

And finally, the Pending Home Sales Index, a new leading indicator for the housing market, shows home sales are firming, according to the National Association of Realtors. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

Realty Times' Market Conditions Reports

In Albuquerque, New Mexico, all our local real estate experts can say is "Wow! 2005 is smashing records!" February 2005, was the thirteenth consecutive month in which the number of sales reported by the local Multiple Listing Service was the highest number ever reported for home sales in the Albuquerque area in that month! There were 808 sales reported for February 2005. But, the number of active listings continue to decline. The average and median prices for single family homes continued to rise, compared to the corresponding values in 2004. It's a great seller's market!

In Victoria, British Columbia, the arrival of spring brought a very active real estate market to the Victoria area, with increases in both the average price for single family homes and the overall number of sales, say our local experts. The average price of single family homes in Greater Victoria hit a new record high of $436,000 in March. The number of sales of homes and other properties also rose to 924 -- the highest number of sales for March since 1991. The Victoria Real Estate Board reports that despite the surge in the overall average price of single family homes last month, almost 40 per cent of single family homes sold for under $350,000. Average prices are affected by high-end sales and we had 16 sales of over $1 million in March.

Switching to Mill Valley, California, our Realtors are all in agreement that since this spring market began, prices have continued to rise in the low end of Mill Valley and there doesn't seem to be an end in sight. Buyer demand is high and should remain so as more people discover the quality of life associated with this gem of a town. As of today, 31 percent of all listings are pending in Mill Valley, indicating a neutral market. The average list price is $1,522,000, though the median is closer to $1,300,000. Multiple offers still abound for well-priced properties in good locations. This is a great area with some of the best schools, great weather, little traffic, almost no crime, and close to several strong economic hubs... what's not to like!

This week, Realty Times TV' viewers asked:

Jennie from Ohio asks: My sister has four lots, a house is on two of them and a propane tank is partially on a third lot nearest the house. I'm hesitant about buying the two vacant lots because of the tank. Can I buy one and a half lots?

Answer: No. The lots are in the land records as individual properties. You could sub-divide the lot with the propane tank, but that would be expensive. A better choice -- and a necessary one -- is to immediately have the tank, valves and related equipment checked by a local propane distributor or fire department. Check out Federated Co-ops in Minnesota and Wisconsin -- they have a good general explanation regarding propane safety issues.

Mitch from Kansas asks: I own a four-plex rental property. I live in one unit and rent the rest. I'm tired of being a landlord, so I'd like to sell this place. If I sell, I can buy a single-family home for cash and without a mortgage. People have said not to buy that way, but I don't like paying all that interest. What do you think?

Answer: I think there are several core issues to consider:

• What is the market value of the property? Speak with local brokers.

• If you sell, what will you pay in taxes on the gain and on depreciation taken, or which should have been taken to date? Speak with a tax pro.

• Why sell? Would it make sense to refinance, move and buy another property? You would then get additional income from the rental of your unit to cover the larger mortgage.

No less important, let's think about "all that interest." Imagine that you have a $100,000 mortgage at six percent interest. Your interest cost would be roughly $6,000 in the first year. Now imagine that you spend $100,000 to pay off the mortgage. You no longer pay interest or get mortgage write-offs -- but the $100,000 used to pay down the loan no longer earns interest or produces other benefits. In effect, there is what economists call an "opportunity cost" for paying down the loan.

Jim from Austin asks: Is a seller required to pay for a property inspection? I already did a separate pest inspection, but my broker wants me to also pay for a home inspection. Isn't this an expense for the buyer?

Answer: A professional home inspection and a termite inspection are different. One is not a substitute for the other.

You could have a contract where the seller, as a condition of the transaction, agrees to pay for a home inspection and a pest inspection by inspectors named by the purchaser. However, in the usual case such inspections are underwritten by the purchaser and for a good reason, to assure that the inspectors are absolutely independent of the owner.