2009 to be 3rd best year in last decade for Phoenix homes for sale

2009 is in position to be the 3rd best year in last decade for Phoenix homes for sale. The housing market forecast in the Phoenix area is looking very promising going into 2010. As of November 12, over 79,500 residential home sales have been completed in the metropolitan Phoenix area. Homes sales should easily reach 90,000 by the end of December. The only years that were better were the boom years of 2004 and 2005.

Housing sales in 2007 and 2008 averaged 56,754 residential homes. 2009 home sales will be an estimated 58% higher than in the two previous years. We can clearly signal the end of the buyer's market in the Phoenix area.

There were plenty of doomsayers to begin this year. The Phoenix housing market forecast was uncertain and many home buyers debated what to do. Continuing lower prices and the first-time home buyers tax credit helped people to a decision. It was also very helpful that mortgage interest rates stayed very low.

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Phoenix Area Home Sales Increase Slightly in October 2009

Phoenix Area Home Sales Increase Slightly in October 2009

The increase was slight, but October 2009 home sales in Phoenix surpassed those of September by about 200 sales. These numbers continue to be evidence of confidence from buyers looking for homes in the Phoenix area.
The confidence can be attributed lower housing prices and the first-time home buyers credit. It also helps that the number of active listings in Phoenix has remained stable thereby keeping the balance between a "buyers" and "sellers" market in check.

This is great news for the housing market in Phoenix. Increased sales always stimulates the overall economy. People who have "gotten off the fence" and contributed to Phoenix home sales are making this the 3rd best sales year in the last decade.

As seen in the charts, 8,145 homes sold in October of 2009. Only four months had higher sales in the Phoenix area. It is also important to note that in the previous two years home sales were already tapering off by October. However, Phoenix area sales over the last three months have been stable.

if you are comfortable with housing prices, president Obama's policies, and interest rates -- this may be your time to consider homes for sale in the Phoenix area.

$8000 / $6500 Home Buyer Tax Credit is alive and well

The $8000 / $6500 Home Buyer Tax Credit is alive and well. As anticipated, President Obama signed the $8,000 first-time home buyer tax credit extension into law on Friday. You can now collect the credit if your home purchase is under contract by April 30, 2010 and is complete by June 30, 2010. The good news for current owners: The extension also offers a tax credit for people who are purchasing a new residence, but aren't first-time homeowners.

Tax Credit is Refundable

A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.

For example:

• A first-time home buyer who qualifies for the full $8,000 credit who owes $4,000 in federal income taxes would pay nothing to the IRS and receive a $4,000 payment from the government
• A first-time home buyer who was to receive a $3,000 refund would receive $11,000 ($3,000 plus the $8,000 first-time homebuyer tax credit)
• A repeat buyer who owes $4,000 would pay nothing to the IRS and receive $2,500 back from the government
• A repeat buyer who was due to get a $2,000 refund would get $8,500 ($2,000 plus the $6,500 repeat buyer tax credit)

All qualified homebuyers can take the tax credit on their 2009 or 2010 income tax return.

Payback Provisions

The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.

Summary Details of TAX CREDIT:

• Under contract by April 30, 2010
• Close escrow by June 30, 2010
• $8,000 for 1st time buyers
• $6,500 for current homeowners who have lived in their house 5 of the past 8 years
• $125,000 individual income limit
• $225,000 joint income limit

History of the $8,000 tax credit
Detailed Tax Credit Explanation
IRS Rules about the $8,000
Calculating the Tax Credit
Put the $8,000 tax credit on line 69 of this form

Frequently asked questions about the home buyers tax credit

Selecting the Best Arizona Mortgage Company

Selecting the Best Arizona Mortgage Company

How to do it right:

Use these questions to determine the expertise of Arizona Mortgage Lenders. The largest financial transaction of your life is too important to risk with someone or a company who is not capable of advising you properly on the best options for your specific mortgage loan situation. But how can you tell?

Here are four simple questions your Arizona Mortgage Company absolutely must be able to answer correctly. If they do not know the answers, run -- don't walk -- to a lender who does.

1. What are interest rates based on?
   
   The only correct answer is Mortgage Backed Securities or Mortgage Bonds, NOT the 10-year Treasury Note. The 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds. It can also move in completely opposite directions. DO NOT work with Arizona lenders who have their eyes on the wrong indicators.
2. What is the next Economic Report or event that could cause interest rate movement?
   
   Professional lenders will have this information at their fingertips. Ask about a current calendar of weekly economic reports and events that may cause rates to fluctuate.
3. When Bernacke (formerly Greenspan) and the Fed “change rates”, what does this mean...
   
   ...and what impact does this have on home loan interest rates? The answer may surprise you. When the Fed makes a move, they are changing a rate called the “Fed Funds Rate”. This is a very short-term rate that impacts credit cards, credit lines, auto loans and the like.  Interest rates most often will actually move in the opposite direction as the Fed change, due to the dynamics within the financial markets. For more information and an explanation on how this affects your lending situation, just give us a call.
4. What is happening in the market today and what do you see in the near future?
   
   If a lender cannot explain how Mortgage Bonds and interest rates are moving at the present time, as well as
   
   what is coming up in the near future, you are likely NOT talking to a professional lender or lending company. Be smart... ask questions… get answers!

This is one of the largest and most important financial transactions you will ever make. You may take this voyage only two - five times your entire life. Professional mortgage lenders cruise these waters every single day. It’s your home and your future in Arizona. Place them in the hands of a professional loan officer and Arizona Mortgage Company.

Thanks to my good friend and trusted lender, Craig Bohall, for helping to put these words onto virtual paper.

Understanding the Mortgage Loan Process

Help with Phoenix Homes for Sale and the Mortgage Lending Processs

Phoenix foreclosures snapshot to begin November 2009

Phoenix Foreclosures Snapshot - November 2009

Phoenix foreclosures comprise 30.8% of all real estate listings in the metropolitan area. Foreclosure listings are comprised of REO property (bank owned) and short sales. REO property used to be the majority of active listings in the foreclosure arena. However, bank owned properties have been on a decline for most of 2009. They are being replaced by short sales because more distressed homeowners are seeing short sales as a better alternative to foreclosure.

The chart indicates 12,539 foreclosure listings in the Phoenix real estate market to begin November 2009. Since there are 32,351 total listings in the Phoenix market (seen in my last post), foreclosure listings make up almost 39% of all listings in the area. Of that 39%, 35.2% (4,417) are REO listings and 64.8% (8,122) are short sales. There are several reasons for the decline in REO property listings over the last year:

• the federally mandated foreclosure moratorium
• banks for selling more properties in bulk to large-scale investors
  
• banks are taking chunks of foreclosure properties and turning them into rentals
• more properties are being sold at public-type auctions

Homeowners are increasingly seeing short sales as a viable alternative to foreclosure. Although the short sale process can take between three and five months to complete, buyers in the Phoenix area real estate market are paying much more attention to short sales. The percentage of completed short sale transactions continues to grow each month in the Phoenix area.

Days on Market for Phoenix Foreclosures

Foreclosure listings have been on the market for an average of 80 days less than their counterparts -- "normal" listings -- during 2009. The second chart indicates that current foreclosure-type listings have been on the market for 105 days, while normal listings have been on the market for 182 days. The obvious reason is the difference in price between two categories of listings. REO property and short sales are always priced much lower than normal sales making them much more attractive to home buyers.

It can also be seen by the chart that overall days on the market has been steadily trending downwards for Phoenix area foreclosures. However, if we were to isolate REO properties we would find that the average sold home would be on the market for less than 60 days. The longer selling cycle for short sales is what keeps the foreclosure "days on the market" higher.

Short sale your home

Homes for sale in Phoenix increase slightly to begin November 2009

Homes for sale in Phoenix increase slightly to begin November 2009

MLS listings in the Phoenix area were up slightly for the second consecutive month to begin November 2009 (highlighted in orange).  This is a contrast to the previous nine months when active homes on the market dropped a whopping 23,500 properties from 54,538 in December 2008 to 30,995 in September 2009 (highlighted in yellow). There are currently 32,351 active residential listings in the Phoenix area real estate market.  This includes both "normal" and foreclosure homes for sale.

This slight increase in homes for sale will do little to impact the demand in our current real estate market, especially for foreclosures. The Phoenix real estate market has averaged about 8,700 home sales in the six-month period from April through September 2009. Phoenix home sales for October are expected to be right around 8,300 properties. Much of this demand in Phoenix is due to affordable home pricing and the $8,000 tax credit. The $8,000 tax credit is currently set to expire at the end of this month, but the federal government is evaluating extending it into 2010.

Phoenix Area Foreclosures

The number of Metro Phoenix foreclosures increased to begin November 2009. The total increase was about 550 homes.  This includes both real estate short sales and REO property (bank owned homes).  Look for the number of foreclosures to increase further as short sales continue to be increasingly popular and banks have inventory they have yet to release.  The chart indicates approximately 38% of all active homes for sale over the last six months have consisted of foreclosure-properties (highlighted in blue).

My next post will look deeper into the foreclosure market and compare the number of short sales versus the number of bank owned properties currently for sale in the Phoenix real estate market.

Learn about the short sale process

Maricopa homes for sale in Tortosa - 2787 sq ft Short Sale

Welcome to another in a series of video tours brought to you by ValleyWideHomes.com and Metro Phoenix Homes LLC. Today's tour focuses on Maricopa Homes for Sale and brings us to the subdivision of Tortosa in the Town of Maricopa.  Maricopa is approximately 30 miles south of Phoenix Sky Harbor Airport, but only 20 miles south of the Phoenix Township of Ahwatukee, Arizona.

Maricopa rapidly changed from a rich agricultural area to vibrant and exciting new city with master planned communities.  On average, there were just under 700 active homes for sale in Maricopa during each month of 2009. Maricopa calls itself "a city with something for everyone and opportunities for all where a handshake is still honored, community involvement is welcomed, and a small town feel is ever present."

The subdivision of Tortosa is heralded by a dramatic entryway as well as several common areas with large and expansive views. Today we will be visiting a home for sale in the subdivision of Tortosa that first became available in November of 2009.

Built by Shea Homes in 2006, this home sits on an a corner lot that's just over one quarter acre. If you're interested in more information about this Maricopa home for sale --  contact information will be provided at the end of the video as well as in this blog.  This house has 2,787 square feet with three bedrooms three full bathrooms a living room, family room, a three-way fireplace, dining room and a two-car garage.  But there's MORE. Watch the video and learn about the three bonus rooms. Let's have a look at this Maricopa home for sale in Tortosa...

Learn about the Real Estate Short Sale Process