Monday, November 30, 2009

What's brewing in Real Estate

Hello all,
I hope you all had a great Thanksgiving. Here are some items of interest I hope will answer any questions you may have.

Tax Credit Quandaries Answered - Here are answers to some of the most confusing questions related to the new home buyer tax credits:
How does a current home owner qualify for the $6,500 credit? Buyers must have lived in their homes for at least 5 out of the last 8 years. The home they buy must become their primary residence, but buyers don’t have to sell their previous home - they can use it as a rental or a second home and still claim the credit.
Does the new home have to be more expensive than the one the buyer currently owns? No, but if the property sells for more than $800,000, the buyers don’t qualify.
Can buyers who are building a new home claim the credit? Yes, although the contract must be in place by April 30 and the buyer must move in by July 1.
Can buyers claim the credit if they purchase a home from a relative? No.

NE Valley last to see effects of housing rebound - Valley home prices are beginning to recover, a report from ASU contends. However, the northeast part of the Valley, which was not hit as hard as other areas, appears to be the last to see the effects. Karl Guntermann's Repeat Sales Index, which measures changes in average Phoenix area home prices from year to year, has seen positive movement for the past five months. "The local housing market is regaining some measure of stability," Guntermann said. Prices may be up because of investors buying foreclosed homes and first-time homebuyers taking advantage of the federal tax credit, he said. Guntermann's data shows the turnaround began in March. In the northeast part of the Valley, which is most reflective of northeast Phoenix neighborhoods, prices are down far less than the rest of the Valley.

Be safe in your travels and God Bless