Gary and Claudia Scott - Scottsdale, AZ Real Estate

Whether you have poor credit or excellent credit - there is never a bad time to improve your credit score!

Your credit score is an extremely important financial tool. It provides access to the financing you need in order to buy a car, a home, or pay for college tuition, among other things.

When applying for a mortgage, every point in your credit score can make a big difference. Make Plans now to ensure your credit is accurate and begin to make increases on your score over time.

So, where to you begin?? First, at a minimum, you should review your current credit report for accuracy. Make sure the information on your report is about You. If you find something on your credit report that is incorrect or missing, you should dispute the mistake by contacting the credit bureaus directly. Take the initiative to begin the process of a dispute investigation. Free Trad Commission - Protecting You

Assuming that your credit report is accurate, look for ways to improve your score:

• Payment History: 35% impact Paying debt on time and in full has a positive impact. Late payments, judgments, and charge-offs have a negative impact. Missing a high payment has a more serious impact than missing a low payment. Delinquencies that have occurred in the last two years carry more weight than older items. If you’re struggling to catch up, contact your creditors to work out a payment schedule.
• Outstanding Credit Balances: 30% impact. Outstanding Credit Balances: 30% impact.Of course, attempt to keep your balances reasonable. A high average balance will negatively affect your score.
• Credit History: 15% impact. This marks the length of time since a particular credit line was established. A seasoned borrower is stronger in this area.
• Type of Credit: 10% impact A mix of auto loans, credit cards, and mortgages is more positive than a concentration of debt from credit cards alone.
• Inquiries: 10% impact Every time a lender runs your credit, an inquiry is recorded. This quantifies the number of inquiries (or requests for credit) that have been made on a consumer's credit history within a six month period.

If you do not have a credit card, get one. Unfortunately, it is one of the ways that the credit bureaus can monitor that you are able to handle credit effectively. Creditors need to determine how much of a risk you are and want to know how likely you are to repay the money they loan you. Your credit history helps them understand your payment history.
Do not however, get extended, Use it strategically, make small purchases that can easily be paid off monthly. In this somewhat depressed economy, it is sometimes difficult to not live on credit. Byt, at least, attempt to make the minimum payment required. Definitely pay more than the minimum if possible. it is better to attempt to pay off revolving debt rather than moving it around.

Unfortunately, negative credit items can remain on your credit report for up to 7 years (up to 10 years for a bankruptcy). But, it is never too late to begin the repair your credit. Keep all of your current accounts in order and pay them down as quickly as possible.

Your credit has improved??? Now is an excellent time to purchase real estate!

Home buying in the greater Phoenix metro area - search for your home here!

Homebuyers have been given a gift! The extension and expansion of the tax credit provides time to still jump in to this ripe real estate market. And, there are some excellent choices available.

The FHA option of putting only 3 1/2% down is an excellent opportunity for those buyers who are 'cash poor' but certainly able and qualified to make the monthly mortgage payments. Often the final monthly mortgage payment is less than the cost of rent even without the additional benefit of deductible interest at tax time.

Now buyers have until April 30, 2010 to sign a purchase contract and until June 30, 2010 to close escrow.

HOW IT WORKS TAX CREDIT: Ten percent of the purchase price of a primary residence, up to a maximum of $8,000 for first-time buyers and $6,500 for others.

DEADLINE: Purchase agreements must be signed by April 30 and closings must be final by June 30. MILITARY: The deadline is extended by a year for those who have served outside the United States for at least 90 days from Jan. 1, 2009, to May 1, 2010.

INCOME LIMITS: Individuals who make up to $125,000 and joint filers with incomes up to $225,000 qualify for the full credit. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.

HOW TO APPLY: Taxpayers can claim the credit on their federal tax returns. If the credit exceeds the tax bill, the government will issue a payment. Taxpayers who want immediate refunds can amend their 2008 returns.

The new deadline will

probably NOT be extended again. The market may never be as ripe as it is today. And the interest rates will continue to rise.

Actually, there is another gift - the gift of a ripe real estate market with many reasonably priced options to choose from.

Checkout the local Phoenix metro area market place and
begin your shopping now while these gifts are available.

Search the Local MLS by Map

The Arizona Regional MLS statistics for Quarter 3 2009 in Maricopa County compute an average sales price of properties across the valley of $ 182,200 in Quarter 3 2009. This was an increase from the average sales price of $ 174,900 in Quarter 2 of 2009.The market values are finally increasing. The numbers indicate that the bottom of the market was April 2009. The first time home buyer tax credit, low prices and historically low interest rates have all contributed to an increased consumer confidence stimulating the real estate recovery.

Below are the zip codes with the top 10 highest Average Prices for Quarter 3—2009.

AZ Regional Multiple Listing System (ARMLS)
Top 10 Most Expensive Zip Codes Quarter 3, 2009
(more than 20 sales in the quarter)

City Zip Average price

1. Paradise Valley 85253 @ $1,711,400
2. Scottsdale 85262 @ $ 724,000
3. Scottsdale 85266 @ $ 638,200
4. Scottsdale 85255 @ $ 572,600
5. Scottsdale 85257 @ $ 557,900
6. Scottsdale 85268 @ $ 372,100
7. Phoenix 85045 @ $ 364,100
8. Scottsdale 85258 @ $ 360,700
   
9. Scottsdale 85260 @ $ 351,100
10. Scottsdale 85263 @ $ 350,500

Prices by zip code as computed by ARMLS are available for all zip codes in Maricopa and Pinal Conties.
Feel free to contact us for details of the other zip codes

The extension and expansion of the Tax Credit will continue to stimulate the real estate market with a goal of creating housing market self-sustainability. Today the pool of renters that can qualify to purchase a median priced home is over 16 million. This is definitely enough potential buyers to put a significant dent in to home value stabilization. It is a win-win situation for both buyers and sellers.

Search the Arizona MLS for properties in:

• Paradise Valley 85253
• Scottsdale 85262
• Scottsdale 85266
• Scottsdale 85255
• Scottsdale 85257
• Scottsdale 85268
• Phoenix 85045
• Scottsdale 85258
• Scottsdale 85260
• Scottsdale 85263
• The Phoenix Metro Area Map Search

November is here! Where do the years go anyway?

There is good news on the real estate front as the market is very active. Of course, the most active market remains in the lower price ranges but as these properties sell, the more expensive market will become the new hot spot.

Its official – President Obama signed the Homebuyers Tax Credit extension and expansion on Nov 6, 09.

So what about the numbers for October 2009? Do not believe everything you read in the newspapers or hear on the news as the data they receive lags the current market by about 3 months. We have access to the latest statistics on a daily basis and would be happy to furnish detailed info for a zip code, city or even subdivision. Do not hesitate to contact us for specific info.

Regarding the overall Phoenix metro market::

• October 2009 research shows closings +8000 which is 50% above October 2008.

• With 12,000 transactions still in Pending status, and with the First Time Homebuyer Tax Credit thatwas scheduled to end this month, November should close a similar number.

• If we top the high of 8,071 sales of November 2004 – this will be the most November closings ever.

• At 78,000 YTD closings; 2009 is on track to rank as the 3rd highest year on record (should reach by Thanksgiving). We are already 30% above the total for 2008 and should end the year up about 50%.

Besides the YTD numbers, let’s look at the trends. The percentage of REO’s (Foreclosures) continues to drop both with Closed transactions at 44% and the Pending Sale category of 35%. There is currently a 38-day supply of Active REO’s. Short Sales (SS), on the other hand, continue to increase. SS Active Listings make up 25% of all Actives with another +6000 in the Active Under Contract status. October’s Closings were at 20%. But, with SS Pending’s totaling 31%, the closed % will increase. A further look at SS shows that the Days on Market (DOM) is approximately double of the non-SS DOM numbers. SS are slow to sell, as banks are overwhelmed with the volume and sluggish to review any offers. Unfortunately, many simply go to foreclosure auction before the SS sale is approved. However, the Good News is that the DOM for Closed SS has improved by almost 3 weeks in the last quarter.

The price numbers are continuing to ‘bump around’ with no consistent trend line. October’s Average Sales price was down about $4,000 to $171,000 and the Median Sales price was down $2,000 to $128,000. Both of these numbers are considerably above the yearly low of $159,000 and $115,000 respectively. The Average has been up and down for the past 4 months, with the Median down for the first time since April.

Overall Inventory – as you can see the inventory for the lower priced properties is minimal as compared to the highest priced homes. This graph supports the sales numbers showing that 90+ % of the sales are priced under $400,000. Homes priced under $300K are now considered a Buyers Market.

The Supply of Lender Owned Single Family properties priced under $300K is 27 Days
while the Supply of ALL Single-Family homes priced under $300K is now only 2.4 months.

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Specific numbers vary across the cities of the metro area. We can provide the details for the area you are interested n, just send an email or give us a call.

We are proud of our Broker Jim Sexton as he is always on the leading edge of the real estate community:
Congratulations Jim Sexton ...
Recipient of Phx Assn Realtors’ Continuing Service Award

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It's Official --- President Obama signed the Homebuyers Tax Credit extension and expansion

Two Ways to Qualify for the Tax Credit

First-Time Homebuyers: First-time homebuyers (a person who has not owned a home for the last 3 years) may be eligible for the tax credit. The credit for first time home buyers is 10% of the purchase price of the home, with a maximum available credit of $8,000. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five years during the last eight years. Again, single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Higher Income Caps

The amount of income someone can earn and qualify for the full amount of the credit has been increased. Single tax filers who earn up to $125,000 are eligible for the total credit amount. The previous tax credit limited this income to $75,000. Those who earn more than this cap can receive a partial credit. Joint filers who earn up to $225,000 are eligible for the total credit amount. Previously the income limit for married couples was $150,000. Those who earn more than this cap can receive a partial credit.

Maximum Purchase Price

Qualifying buyers may purchase a property with a maximum sale price of $800,000. The previous tax credit had no limit on the purchase price of a home.

The National Association of Realtors provides some excellent information to questions you may have:

• Compare the differences between the current tax credit and extended and expanded version. (PDF: 30KB)
  

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