Gary and Claudia Scott - Scottsdale, AZ Real Estate

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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Our Arizona Real Estate search options: Looking for an Arizona real estate search vehicle?

Search the MLS directly from our web page AZ-real-estate-sales.com - your comprehensive resource for buying or selling real estate in the greater Phoenix metro area.

If you know the area and/or the specifics of what you are searching for, you can search by the traditional price range, # bedrooms, dwelling type etc. You also search by location / city. If you know more specific information, you can search by individual subdivision, MLS number or address by entering it to find the listing detail.

If you do not live in the greater Phoenix metro area and are unfamiliar with the cities encompassed within the Valley of the Sun, you can perform a simple map search. The map will provide the general layout of the metro area - here you can either click on the city you are interested in or you can scroll down to a listing of cities The list will provide the current volume of available properties and the average sales price for that city. These tools will give you the info you need to determine the areas most suited to your needs and price range.

To obtain additional information about a specific city - simply select the back to home page button . From the home page you can choose the Community Profile option to select the city(s) you want to research.

Once you have selected the city, you can quickly determine the volume of properties available and the average cost to buy or sell in a community by searching the Local Multiple Listing Service (MLS) from our Arizona Real Estate Web page.

Below is a sample of a result of a city search. You can then search by type of Home, Price Range, all properties in the city or the newest homes that have been added to the market - the results include - total listings available, Average Price, High Price, Low Price, average age of the properties and average price per square foot.

At this point, you have additional options available to further streamline your specific search - single story, number of bedrooms, pool etc.

These searches provide you with general and detailed information about the
current Phoenix / Scottsdale Real Estate Market!

What is happening in the real estate market? Many of the properties being sold in the greater Phoenix metro area are vacant. Approximately 17,000 homes currently listed for sale on the local Multiple Listing System (MLS) are vacant. This is more than half or about 55% of the total properties listed in the MLS. Interestingly enough the vacant homes are selling quickly as approximately 82% of the closed sales have been vacant. This means that the “seller” is probably not buying. In many cases the “seller” is the bank who is trying to clear property off their books. Banks do not like to ‘own’ property. So, where did all the sellers go???? Are there sellers that are turning in to real buyers?

Unfortunately there are the high number of home owners losing their property to short sale or foreclosure. The resulting decrease in there credit score combined with the more stringent requirements to obtain a real estate loan in today's market, has greatly reduced the previous homeowners ability to purchase another home.

We are witnessing the classic supply and demand. They say you never know where bottom is until you are past it. For the past 3 years volume was high and prices came down. But, the market appears to be on the rebound. The number of sales is up 50% from 2008 and 66% from 2007. The volume of properties available has dropped from a high of approximately 56,000 to 31,700 today. Prices seem to be stabilizing for the past few months. The average home price is currently around $171,000 up from a low of $159,000. The reporting companies are stating that the market hit bottom (lowest price) in the late March /early April of 2009. The majority of buyers in today’s market place are first time home buyers or investors with cash. So if you are qualified or have cash, it is a great time to pick up a ‘good deal’.

Volume of Homes Sold by month

Search the Phoenix/Scottsdale Multipe Listing System
AZ-real-estate-sales

The community of Arroyo Grande at Anthem Parkside is located in the foothills of northwest Phoenix metro area. This community is the last phase of Del Webb’s national, award-winning master-planned community of Anthem. This Pulte/Del Webb new build community which offers breathtaking views in a family oriented neighborhood is just minutes from beautiful Lake Pleasant and all of the activities of nearby Phoenix. A true retreat from the hustle and bustle of the large metro area. The homes are well constructed on large lots, many with view fencing. Homeowners in this community have access to all of the activities and amenities of the Community Center at Parkside. These amenities include a state of the art fitness center, indoor and outdoor basketball, Big Splash Water Park, swimming pools, sports fields and more!

Arroyo Grande is only about 9 miles from Lake Pleasant which is nestled in the Bradshaw Mountains about 30 miles north of Phoenix. This popular lake has 10,000 acres of water surface and over 50 miles of shoreline! The lake is primarily fed by the Aqua Fria River which carries rain and snow melt-off from the northern parts of Arizona including the Bradshaw Mountains. This lake was originally formed in the mid 1920’s when Waddel Dam was constructed. A new dam was built in 1992 which tripled the size of the lake.

On a warm summer day of 110 degrees the cool water can be quite refreshing! There are opportunities for a variety of water sports such as boating, jet skiing, water skiing, sailing, fishing and exploring the vast shoreline. There is also hiking, camping, picnicking and horse back riding. Something for everyone close to the metro area!

My buyers opted for a spec home in Arroyo Grande. Once we chose the spec home and executed a purchase contract, we investigated the Arroyo Grande community, the Anthem Community Center and were off to explore the surrounding area and the lake. They were very pleased to find such a beautiful home in an excellent community!

Check out the view from their back yard - surrouding this community is miles of open state land.