Posts Tagged ‘tax credit’

(Please click on photo above for a downloadable PDF of the article written by Mike Orr of the Cromford Report; bullet points listed below)

Last month; in Metro Phoenix’s Real Estate Market we saw the supply of REOs increased substantially, short sales were stable and normal listings declined in number:

• REO listings grew 11% from 5,087 to 5,626 (Greater Phoenix, all types)
• Short Sales / Pre-foreclosure listings grew 1% from 16183 to 16,347 (Greater Phoenix, all types)
• Normal listings fell 5% from 18,123 to 17,226 (Greater Phoenix, all types)

• Because sales pricing is higher than last year, we saw a more significant 8.6% jump in dollar volume which is good news for the optimists.
• It seems likely that almost anyone who wants a "starter home" in 2010 and could get approved for a home loan has already purchased one before the Tax Credit expired at the end of April.
• Overall we can say with confidence that the luxury market is now showing strong signs of improvement while the low end end of the market is weakening significantly. The weakness in lender-owned homes is particularly noticeable, with REO sales volume down 36% year on year. 
• These annual charts are very slow to react to changes but confirm the bottom of the market is now over a year behind us.  The most important measures of real home pricing – the average price, median price and average $ per sq. ft. of homes that actually sell have been moving in a general upward direction for Greater Phoenix since April/May 2009.
• New notices of trustee sale dropped another 8% from April, to the lowest monthly number (6,471) since July 2008. Trustee sales also dropped 8% to 4,090, the lowest total since November 2009. 
• Nevertheless market distress remains very high and will dominate the market for at least the next two years. Short sales are becoming more significant as each month goes by, while lender-owned properties become gradually less so.
• The market is still fragile and although it has stabilized over the last year, we must caution that in the last several days the Cromford Market Index has been falling fast due to weakening demand matched with a fairly strong and stable supply.
• The biggest question we have right now:  Are the changes we have seen in the last month merely due to the end of the tax credit or are the result of more significant changes in the demand for housing??

Stay tuned for next months update and we hope to be able to answer that question for you.  In the meantime; if you’d like to discuss your particular situation with one of our very talented and experienced Realtors, please call us at 480-243-4242.

Click on photo of Dashboard for a downloadable PDF Summary written by Mike Orr, of the Cromford Report.

1. A highlight on the Chandler Market is that 46% of our active listings were Short Sales, which is a huge increase from same time last year.
2. Active price per sqft is highest for normal “equity” sales but the gap on closed sales between REO bank owned foreclosed homes and short sales is not nearly as great.  I believe due to a lot of sellers listing for too much and then accepting less at the closing table, partially due to appraisal issues and other competition.
3. We are still seeing record highs of distress, at 57.7% in Chandler, although it has come down about 5% since March which is a great sign for our area.
4. A lot less REO’s are active on the market since the banks are pushing sellers now to do Short Sales (in general but Lender specific still) rather than foreclosing at a Trustee sale and having to sell themselves which loses them an average of $38k per house.

If you are interested in a personal analysis of your situation, please contact us here or call 480-243-4242 for one of our Agents to answer your questions regarding homes for sale in your area.

You can also sign up free on our website for a Listingbook account which allows you to search live MLS data (updates every half hour) to research homes yourself for sale or that have sold in your area.  You just need to enter your name and email- it’s free and simple to use!

WE NEED TO FIND YOU A NEW HOME AND GET YOU UNDER CONTRACT BEFORE APRIL 30TH-  below is information directly from the IRS website, but here’s the link for more FAQ’s: http://www.irs.gov/newsroom/article/0,,id=206291,00.html.  
Please contact us immediately to set an appointment to go find you your next home!

First-Time Homebuyer Credit Questions and Answers: Basic Information

Updated Nov. 6, 2009, to note new legislation. The new legislation extends and expands the first-time homebuyer credit allowed by previous Acts. The new law:

• extends deadlines for purchasing and closing on a home
• authorizes the credit for long-time homeowners buying a replacement principal residence
• raises the income limitations for homeowners claiming the credit

Q. What is the credit?

A. The first-time homebuyer credit is a tax credit for individuals and couples who purchase a new home after April 8, 2008, and before May 1, 2010. There are several versions of the credit depending upon when the home was purchased:

• For homes purchased in 2008, the credit, with some exceptions, must be repaid and takes the form of a $7,500 interest-free loan.
• For homes purchased in 2009 prior to November 7, the credit is for a maximum of $8,000 and, with some exceptions, does not have to be repaid, but it’s only for new home owners who have not owned a home in the prior three years.
• Beginning November 7, 2009, an additional category of new homebuyers, long-time residents (who owned their own homes), was added. The credit for this group is a maximum of $6,500, which, with some exceptions, does not have to be repaid. (1/27/10)