Now that we have passed the April 30, 2010 homebuyer tax credit deadline to enter a qualified purchase contract, the question becomes "Is there life after the tax credit"?
Survey Says!
One way to get a perspective on where the housing market is heading in Arizona is to ask those that are working with buyer and sellers every day. Long Realty Company recently conducted a survey of its agents to find out what their perception is on how much impact the homebuyer tax credit has had and in what direction the housing market will go for the balance of 2010.
Here is some background information on the survey:
230 Survey Responses
846 closed transactions reported in the first 3 months of 2010 by the respondents
606 pended transactions (in escrow, not closed) reported in the first 3 months of 2010 by the respondents
Survey Results
What percentage of your buyers will take advantage of the home buyer tax credit program?
Your average sales price for all of your transactions in 2010 is:
After the homebuyer tax credit ends on April 30, do you think buyer activity in your marketplace will:
So What Does It Mean?
Almost half of the agent respondents said that the tax credit will impact 0-10% of their buyers, and 58% of the respondents said they thought that buyer activity will stay the same for the balance of the year. While it is certain that the homebuyer tax credit has had some impact to the market, it appears that, at least from a Long Realty agent perspective, that it may not have been the primary driver of business so far this year. Agents feel that the right house at the right price with low mortgage rates are driving buyer activity, and that the tax credit has been a secondary incentive. Which, if true, means that those primary drivers of the housing market remain after April 30, 2010.
.gif) If you are looking to find out what is happening in housing in Phoenix, download these easy to follow reports. Each report shows trends for active listing inventory, closed sales and months of inventory. In addition, view a breakdown of inventory, closed sales and months of inventory by price band, plus a year over year summary analysis.
The below reports are for May 2010, and reflect market activity through April 2010.
Phoenix Metro Area
Phoenix - Central
Phoenix - North
Phoenix - Scottsdale/Paradise Valley
Phoenix - Southeast Valley
Phoenix - Sun City
Phoenix - Southwest Valley
Phoenix - West Valley
To search homes currently on the market, click here.
If you are looking to find out what is happening in housing in Phoenix, download these easy to follow reports. Each report shows trends for active listing inventory, closed sales and months of inventory. In addition, view a breakdown of inventory, closed sales and months of inventory by price band, plus a year over year summary analysis.
The below reports are for April 2010, and reflect market activity through March 2010.
Phoenix Metro Area
Phoenix - Central
Phoenix - North
Phoenix - Scottsdale/Paradise Valley
Phoenix - Southeast Valley
Phoenix - Sun City
Phoenix - Southwest Valley
Phoenix - West Valley
To search homes currently on the market, click here.
If you are looking to find out what is happening in housing in Phoenix, download these easy to follow reports. Each report shows trends for active listing inventory, closed sales and months of inventory. In addition, view a breakdown of inventory, closed sales and months of inventory by price band, plus a year over year summary analysis.
The below reports are for March 2010, and reflect market activity through February 2010.
Phoenix Metro Area
Phoenix - North
Phoenix - Scottsdale/Paradise Valley
Phoenix - Southeast Valley
Phoenix - Sun City
Phoenix - Southwest Valley
Phoenix - West Valley
To search homes currently on the market, click here.
If you are looking to find out what is happening in housing in Phoenix, download these easy to follow reports. Each report shows trends for active listing inventory, closed sales and months of inventory. In addition, view a breakdown of inventory, closed sales and months of inventory by price band, plus a year over year summary analysis.
The below reports are for February 2010, and reflect market activity through January 2010.
Phoenix Metro Area
Phoenix - North
Phoenix - Scottsdale/Paradise Valley
Phoenix - Southeast Valley
Phoenix - Sun City
Phoenix - Southwest Valley
Phoenix - West Valley
To search homes currently on the market, click here.
As of December 2009 active inventory was 40,183, a 27% decrease from December 2008. There were 7733 closings in December 2009, a significant increase of 37% from December 2008. Months of Inventory was 5.2, down from 9.8 in December 2008.
Median price of sold homes was $126,500 for the month of December 2009, down 12% from December 2008.
The Phoenix Metro area is experiencing an increase in buyer activity, with new properties under contract up 67% from December 2008.
Get the complete Phoenix Housing Report for January 2010
With so many moving pieces in the housing market these days, it may get confusing to know what is more important for buyers - cost or price?
Are cost and price the same? Not necessarily. For an example, think in terms of buying a car. Most buyers can’t recall the actual "price" of the car they bought, what is more important is their cost - or the actual monthly payment.
The same applies to real estate. For a buyer, it is not just the "price" of the home that can impact cost, the interest rate on the mortgage is also an important factor. So while the "price" of the home may fall, if mortgage interest rates increase then the actual "cost" of the home may vary, depending on the magnitude of the price decline and rate increase.
Lots to consider here. If you are in the market to purchase a home - make sure you understand the difference cost and price and how that impacts your wallet. You may find that if you wait too long for prices to drop, your cost may actually increase with higher rates - and no one wants to increase their cost.
To keep up on mortgage rates and load programs visit www.longmortgage.com and to find a Long Realty agent who can help you look at your actual costs, visit www.longrealty.com
The government recently extended and expanded the homebuyer tax credit - which now has provisions for both first time home buyers and current homeowners. So you may have questions like "what does it mean?" or "how does it work?" or "does it apply to me" or even "should I buy now?"
Well, to help explain in simple terms what the homebuyer tax credit and how it applies to you, Long Realty recently produced a short video featuring nationally recognized real estate speaker and trainer, David Knox.
Watch the tax credit video now
Here are some key highlights of the tax credit:
The $8,000 first-time homebuyer tax credit is extended
- Now, qualified first-time home buyers would receive their $8,000 tax credit if they sign a purchase contract by April 30, 2010 and close by June 30, 2010
- The home purchased must be their primary residence
- Buyer cannot have owned a home during the past three years
- Tax credit is up to 10 percent of the home’s value (not to exceed $8,000)
- Annual income caps to qualify for the tax credit will increase ($125,000 for single filers / $225,000 for joint filers). Partial tax credit can be granted for incomes up to $145,000 for single filers / $245,000 for joint filers
New $6,500 tax credit for current homeowners purchasing a primary residence
- Eligible home buyers must have lived in their current home for five consecutive years of the past eight years
- The new home’s cost need not exceed the current home
- Eligible for homes with purchase agreements written by April 30, 2010 and that close between Nov. 6, 2009 and June 30, 2010
- Annual income caps to qualify for the tax credit will increase ($125,000 for single filers / $225,000 for joint filers). Partial tax credit can be granted for incomes up to $145,000 for single filers / $245,000 for joint filers
Get Answers to Frequently Asked Questions
And if you are ready to start shopping for a home, visit www.LongRealty.com
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