Mark Finchem

How is Tucson doing?

The sub $175k market continues to show strong sales and low Months of Inventory figures for many areas of town. Above $175k we are still seeing a higher Months of Inventory. For your sellers, this is a critical piece of information. If they are in price range above $175k you should be reviewing this data and doing new CMAs every few weeks and honest dialogue with them about pricing. The next 90 days are a critical time to get an offer while buyers are trying to take advantage of the tax credit. If they wait to reduce and end up chasing the market, the buyers may not be there at a later date.

New release! The newest version of the Home Buyer Tax Credit is now taking aim at what some are calling "Movers". No matter if your moving up in size, down in size, across te country or just across the street you are a mover.

The site link is http://mfinchem.longrealty.com/Content/Content.aspx?CategoryID=558317 . The video contain a great explanation and visual aids on how this affects anyone who wants to buy a home using tis program.

With any new program there are questions about what can be done and what can't. here are a few relivant facts for both first Time Home Buyers and the group many professionals are calling "Mover's".

Fact #1...Existing homeowners can use the credit. The question I have had to answer several times is, "Must the new house cost more than the old house/" NO, thus for example individuals who move from a high cost area to a lower cost who meet all eligibility requirements will qualify for the $6,500 tax credit. (Source www.realtor.org)

Fact #2...Existing homeowner tax credit is equal to 10% of the home's purchase price up to a maximum of $6,500. Purchases of home over $800,000 are not eligible for the tax credit. (Source National Association of Home Builders)

Fact #3...Any home hat will be used as a principal residence, provided the purchase price is less than $800,000 will be eligible for the $6,500 Tax Credit. Tins includes single family detached homes, townhomes, condominimums, mobile homes and houseboats. However, the home cannot be purchased from family members including parents, grandparents, children, grandchildren, spouse or spouse's family members. (Source: National Association of Home Builders)

As mortgage money begins to tighten near the end for the 1st quarter of 2010 the pool of potential buyers will begin to diminish. This will continue to put pressure on sellers.

The Treasury Department has just released new rules to help simplify the 'short sale' process.
Visit https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf to view the full article.

This is a 43 page document that details what and how. The Supplemental Directive 09-09, "Help For America's Homeowners" provides agents with insight on how servicers are being instructed to heave to and help, not just profit from keeping short sales in the system.

The emphasis seems to be on turning the corner on short sales and preventing them from becoming foreclosures.

People buy homes for many reasons but nearly all view the purchase as an investment. As such confidence in value usually plays the biggest roll of all. I've heard it said often, "the buyer sets value". For if there is no buyer willing to pay what the seller wants, there is no transaction and the property sits on the market.

Consider this; if a buyer waits for prices in general to drop 10% and in the mean time the mortgage interest rate rises 1% the payment will be the same. If the seller waits for a higher price it si likely the interest rate will be higher and a prospective buyer might be squeezed out of the market. The house continues to sit.

Trying to time a purchase or sale to "beat the market conditions" often backfires in the peaks and valleys of the homes sales marketplace. This is especially true the longer we are in a down market. When home sales are humming along and prices are rising everyone is optimistic, even euphoric as we saw just a few years ago. But that is when risk is at its highest.

While some folks -sellers in particular- may still be in panic mode due to depressed value, most have hit the point of depressed. The good news is hope and optimism have begun to spring up just in time for the point of maximum opportuity.

In the Tucson Arizona homes market, pricing has leveled off and we now see relative price stability. The median home price for October 2009 was at $200,000. (For more see http://www.markfinchem.com.z57preview.com/custom5.shtml )

The draw to Tucson is primarily climate. Sun and relatively warm winter temperatures mean outdoor activities. Business Week ranked Tucson the #1 place to retire (http://images.businessweek.com/ss/09/07/0702_affordable_places_to_retire/index.h0tm). * Credit to Steve Harney, Case Shiller & West Court Funds