On Wednesday, the Senate voted unanimously in favor of a bill to extend and expand the homebuyer tax credit. On Thursday, the House voted 403-12 to pass the measure. Today, President Obama signed the bill – H.R. 3548 – into law. Totaling $24 billion, the law also provides extended jobless benefits for out-of-work Americans and tax cuts for struggling businesses.
The homebuyer tax credit provision, which was added to the stimulus bill by the Senate, extends the $8,000 first-time homebuyer credit through the end of June (for homebuyers who sign a binding contract by the end of April). It also expands the credit to include a $6,500 credit for existing homeowners to buy a new home (as long as they’ve lived in their current residence for at least five years). For more details on the homebuyer tax credit extension and expansion, check out yesterday’s post.
Supporters of the bill say that extending and expanding the tax credits are important to strengthen the fragile recovery that is taking hold in housing markets across the country. While housing market numbers have been strong of late, the unemployment rate is still high (higher than it’s been in 26 years) and consumer confidence is still low. This bill “is critical to maintaining the positive momentum we’ve been experiencing in the housing market and in the overall economy,” said one Realtors association.
What do you think? Do you plan to buy a new home and use the tax credit? Click on the “comments” link below and join the conversation!
Earlier today the House signed a bill that will extend (and expand) the first-time homebuyer’s tax credit and introduce a similar credit for people who already own their home but need to move.President Obama is expected to sign the bill into law on Friday.
Here’s what the law does:
Extends the $8,000 first-time homebuyer tax credit to May 1, 2010.
Creates a new credit of up to $6,500 for existing homeowners who buy a new residence if they have lived in their current one for at least five of the last eight years.
Expands both credits to include individuals making up to $125,000 a year and couples making up to $225,000 (the income limits used to be $75,000 and $150,000 respectively).After those limits are reached, the credits are phased out.
Looking for something to do? Gear up; the month of November is ready for you! Packed with fun filled events to keep everyone and anyone busy all month long. Check them out (and thanks, as always, to About.com for the listings):
What:Vehicles of all different makes, models and years. A judged event with trophies being awardedin various classes. Live entertainment. Food and spirits available. Held in conjunction with the Ahwa-Turkey Stomp to raise money, food and toys for various organizations. Fee to show your car or have a booth. Admission to attend is a frozen turkey, non-perishable food items or new unwrapped toys.
What:Primitives, ephemera, eclectic, glassware, pottery, collectibles, toys, advertising, military items, coins, early American linens, fine selections of vintage costume jewelry and fine estate jewelry.
What:The state's top wine makers showcase their finest wines at an interactive event where guests learn about Arizona wine production, walk through exhibits of the state's grape growing regions, taste dozens of wines and ultimately vote for their favorite.
What:Fine art, live music, international foods, and an interactive family area featuring hands-on art activities and creative challenges for children. Over 200 select contemporary artists and crafts people from across the nation will show and sell one-of-a-kind artwork. Free
What:Arts, crafts, entertainment, wine. Over 160 artists will have displays. This is Arizona's largest wine tasting event, featuring wines from Arizona, California, Australia, Germany, Austria, France and Italy. Sponsored by Thunderbird Artists.
What:A family-friendly street festival featuring members of Local First Arizona. About 60 vendors on hand with entertainment provided by Arizona musicians, bands and performers. Beer & Wine Garden, raffle and silent auction raise funds for Local First, activitiers for young kids, craft booth. When:In 2009: November 7
What:Desert Botanical Garden, Phoenix. Chili and chocolate products from local vendors, unique Southwest gifts, cooking demonstrations, Spanish Flamenco dance and Latin jazz.
What:Sample more than 70 wines from different regions of the world and talk with representatives from the different wineries. Hors d'oeuvres and desserts.
What:Festival Highlights include cultural show, parade, food fair, Clothes and Jewelry Bazaar, cooking and cultural Demos, children's meal. Free admission.
What:Visit different downtown Phoenix bars and restaurants and enjoy entertainment, food samples, and drink specials only available to Pub Crawl participants. Take part in the Pub Crawl competition by collecting beads from participating locations. Free Trolley buses available until 3:30 a.m. to move participants to and from participating locations. 21+ only.
What:At Gilbert's Freestone Park Amphitheater, located by the lake in Freestone Park. Bring a blanket or lawn chair. Free. Food and beverages are available to purchase.
What:Arizona's Ironman triathlon features a 2.4-mile swim, a 112-mile bike and a complete marathon (26.2 miles). Many vantage points for spectators to view the races, sports expo.
What:At 7:30 p.m. and 9 p.m. Entry fees to participate in Open Bull riding, Novice Riding Calf Riding (10 yrs & under), Sheep Riding (6 yrs & under). Admission fee to be a spectator.
What:A week-long celebration of Gilbert’s rich western heritage. Re-enactment of the historical Pony Express ride, Gilbert Days Parade, food, entertainment, Chili Cook Off, Gilbert Days Jackpot Roping, Competition Barrel Racing, Lil’ Dudes Rodeo, carnival and more family-friendly activities.
What:Features cooks and restaurants competing for the title of “Best in the West” gumbo and jambalaya. Competitors will bring their gumbo/jambalaya to the event already prepared and ready to serve in “tastes”. Live music, children's activities.
What:Nearly 70 of the Southwest's best Hispanic artists will show and sell their work at the annual Heard Museum Spanish Market. Artwork includes an array of Santos, furniture, jewelry, tile work, glitter art, tinwork, paintings, carvings, pottery and more. Admission is free.
What:World Champions will be crowned and Top Fuel Hydro drag boats will reach speeds approaching 250 miles per hour during the three-day event. Firebird Lake at Firebird International Raceway
What:Jazz ‘N the Plaza is a fall jazz concert series in partnership with Smooth Jazz 95.5 KYOT. It features a new jazz performance each week. The concerts are free and open to the public, seating is on a first come, first serve basis. Refreshments and food available for purchase. Montelucia Resort & Spa, Paradise Valley
What:Fine arts & crafts, live musical performances, festival fare and wine tasting. Located next in the heart of the historic Wigwam Resort, this unique outdoor festival features an Artisan's Village filled with over 300 Fine Arts and Crafts booths. Artist demonstrations, International food court, huge indoor Book and Antique sale and children's activities.
When:In 2009: November 7, 8
Where: Located next in the heart of the historic Wigwam Resort
MOO MOO Palooza What:Tour a dairy, hay rides, petting zoo, photo opportunities with Daisy the Cow, hay bale maze, Joann’s craft corner, soccer kick, Tractor Garden. The Agriculture Industry will be well represented through the dairy and answer questions. Live DJ, door prizes, milk and ice cream.
What:Independent and classic cinema and documentaries relating to art, artists, and works on view in the Museum, usually followed by discussion. Free with paid museum admission. First come, first seated.
What:These lunchtime concerts will feature local artists playing a variety of music including folk, country, jazz, Dixieland, oldies, and world music. Chairs and lawn seating are available, but guests are encouraged to bring stadium cushions and blankets. Brown bags and picnic baskets are welcome All Out to Lunch concerts are free and open to the public. Wells Fargo Garden at Mesa Arts Center. 12:30 to 1:30 p.m.
What:Guests enjoy access to some of the most talented architects, builders and interior designers in town, while sampling gourmet fare from top, local chefs. Fundraiser to Benefit Free Arts of Arizona.
When:In 2009: November 8
Where: 103 West Highland Avenue, Suite 200, Phoenix, AZ 85013
What:A festival celebrating the uniqueness and creativity of Greater Phoenix. Live music, street performances, visual arts, and the public procession of the Parade of the Arts with unique floats and costumes. Family appropriate with activities for children.
What:From Scottsdale Fashion Square to Scottsdale Waterfront to Southbridge. Two runways: a tented New York Fashion Week-style tent as well as a runway under the stars. Also includes a Luxury Pavilion (fine living purveyors of fashion, design, spas, and health care), and a Milan-style Wearable ArtWalk.
What:Live music, local Greek folk dancers, the professional Olympian Dance Troupe of Chicago, Greek cooking class, and other programs including Greek films, seminars, and pottery classes. Some activities are focused on children.
Looking for something to do? Gear up; the month of November is ready for you! Packed with fun filled events to keep everyone and anyone busy all month long. Check them out (and thanks, as always, to About.com for the listings):
What: Vehicles of all different makes, models and years. A judged event with trophies being awardedin various classes. Live entertainment. Food and spirits available. Held in conjunction with the Ahwa-Turkey Stomp to raise money, food and toys for various organizations. Fee to show your car or have a booth. Admission to attend is a frozen turkey, non-perishable food items or new unwrapped toys.
What: Primitives, ephemera, eclectic, glassware, pottery, collectibles, toys, advertising, military items, coins, early American linens, fine selections of vintage costume jewelry and fine estate jewelry.
What: The state's top wine makers showcase their finest wines at an interactive event where guests learn about Arizona wine production, walk through exhibits of the state's grape growing regions, taste dozens of wines and ultimately vote for their favorite.
What: Fine art, live music, international foods, and an interactive family area featuring hands-on art activities and creative challenges for children. Over 200 select contemporary artists and crafts people from across the nation will show and sell one-of-a-kind artwork. Free
What: Hundreds of craft beers from breweries across the globe, seminars, food pairing tips and celebrated brewers and beer experts. Live entertainment.
What: Arts, crafts, entertainment, wine. Over 160 artists will have displays. This is Arizona's largest wine tasting event, featuring wines from Arizona, California, Australia, Germany, Austria, France and Italy. Sponsored by Thunderbird Artists.
What: A family-friendly street festival featuring members of Local First Arizona. About 60 vendors on hand with entertainment provided by Arizona musicians, bands and performers. Beer & Wine Garden, raffle and silent auction raise funds for Local First, activitiers for young kids, craft booth. When: In 2009: November 7
What: Desert Botanical Garden, Phoenix. Chili and chocolate products from local vendors, unique Southwest gifts, cooking demonstrations, Spanish Flamenco dance and Latin jazz.
What: Sample more than 70 wines from different regions of the world and talk with representatives from the different wineries. Hors d'oeuvres and desserts.
What: Festival Highlights include cultural show, parade, food fair, Clothes and Jewelry Bazaar, cooking and cultural Demos, children's meal. Free admission.
What: Visit different downtown Phoenix bars and restaurants and enjoy entertainment, food samples, and drink specials only available to Pub Crawl participants. Take part in the Pub Crawl competition by collecting beads from participating locations. Free Trolley buses available until 3:30 a.m. to move participants to and from participating locations. 21+ only.
What: At Gilbert's Freestone Park Amphitheater, located by the lake in Freestone Park. Bring a blanket or lawn chair. Free. Food and beverages are available to purchase.
What: Arizona's Ironman triathlon features a 2.4-mile swim, a 112-mile bike and a complete marathon (26.2 miles). Many vantage points for spectators to view the races, sports expo.
What: At 7:30 p.m. and 9 p.m. Entry fees to participate in Open Bull riding, Novice Riding Calf Riding (10 yrs & under), Sheep Riding (6 yrs & under). Admission fee to be a spectator.
What: A week-long celebration of Gilbert's rich western heritage. Re-enactment of the historical Pony Express ride, Gilbert Days Parade, food, entertainment, Chili Cook Off, Gilbert Days Jackpot Roping, Competition Barrel Racing, Lil' Dudes Rodeo, carnival and more family-friendly activities.
What: Features cooks and restaurants competing for the title of "Best in the West" gumbo and jambalaya. Competitors will bring their gumbo/jambalaya to the event already prepared and ready to serve in "tastes". Live music, children's activities.
What: Nearly 70 of the Southwest's best Hispanic artists will show and sell their work at the annual Heard Museum Spanish Market. Artwork includes an array of Santos, furniture, jewelry, tile work, glitter art, tinwork, paintings, carvings, pottery and more. Admission is free.
What: World Champions will be crowned and Top Fuel Hydro drag boats will reach speeds approaching 250 miles per hour during the three-day event. Firebird Lake at Firebird International Raceway
What: Jazz ‘N the Plaza is a fall jazz concert series in partnership with Smooth Jazz 95.5 KYOT. It features a new jazz performance each week. The concerts are free and open to the public, seating is on a first come, first serve basis. Refreshments and food available for purchase. Montelucia Resort & Spa, Paradise Valley
What: Fine arts & crafts, live musical performances, festival fare and wine tasting. Located next in the heart of the historic Wigwam Resort, this unique outdoor festival features an Artisan's Village filled with over 300 Fine Arts and Crafts booths. Artist demonstrations, International food court, huge indoor Book and Antique sale and children's activities.
When: In 2009: November 7, 8
Where: Located next in the heart of the historic Wigwam Resort
MOO MOO Palooza What: Tour a dairy, hay rides, petting zoo, photo opportunities with Daisy the Cow, hay bale maze, Joann's craft corner, soccer kick, Tractor Garden. The Agriculture Industry will be well represented through the dairy and answer questions. Live DJ, door prizes, milk and ice cream.
What: Independent and classic cinema and documentaries relating to art, artists, and works on view in the Museum, usually followed by discussion. Free with paid museum admission. First come, first seated.
What: These lunchtime concerts will feature local artists playing a variety of music including folk, country, jazz, Dixieland, oldies, and world music. Chairs and lawn seating are available, but guests are encouraged to bring stadium cushions and blankets. Brown bags and picnic baskets are welcome All Out to Lunch concerts are free and open to the public. Wells Fargo Garden at Mesa Arts Center. 12:30 to 1:30 p.m.
What: Guests enjoy access to some of the most talented architects, builders and interior designers in town, while sampling gourmet fare from top, local chefs. Fundraiser to Benefit Free Arts of Arizona.
When: In 2009: November 8
Where: 103 West Highland Avenue, Suite 200, Phoenix, AZ 85013
What: A festival celebrating the uniqueness and creativity of Greater Phoenix. Live music, street performances, visual arts, and the public procession of the Parade of the Arts with unique floats and costumes. Family appropriate with activities for children.
What: From Scottsdale Fashion Square to Scottsdale Waterfront to Southbridge. Two runways: a tented New York Fashion Week-style tent as well as a runway under the stars. Also includes a Luxury Pavilion (fine living purveyors of fashion, design, spas, and health care), and a Milan-style Wearable ArtWalk.
What: Live music, local Greek folk dancers, the professional Olympian Dance Troupe of Chicago, Greek cooking class, and other programs including Greek films, seminars, and pottery classes. Some activities are focused on children.
On Tuesday I blogged about the fact that home prices rose in Phoenix for the third straight month since August 2006. But there's more good news: the number of home sales was up, too -- across the nation, actually -- leading one real estate expert to dub this a real estate "mini-boom."
Nationally, sales rose 9.4% in September - a higher increase than had been expected, according to the National Association of Realtors. Locally, sales were incredibly strong compared to last year - the number of homes sold in Phoenix was up 16% to 8,922. And the number of homes sold in Scottsdale was up 16.1% to 1,851.
If you're a buyer, the rapidly rising number of home sales means that we're moving ever closer to the point where demand and supply are once again in balance, and then to the point where demand outstrips supply and prices rise.
At the same time, with a still-high number of foreclosures on the market, there are great deals to be had, even in the centrally-located, established neighborhoods of Phoenix and Scottsdale. And, if you move fast, the homebuyer's tax credit is effectively an $8,000 rebate on the purchase of a home.
If you're a seller, the real estate "mini-boom" will afford you the opportunity to sell your home for a higher price, in less time. If Congress extends the homebuyer's tax credit, demand will continue to ramp up, and with the recession now "officially" over, consumers will likely soon regain confidence and loosen the purse strings.
What do you think? What's your prognosis for the "mini-booming" real estate market? Are you planning to buy or sell soon? Click on the "comments" link below and join the conversation!
Home prices rose in the Phoenix area for the third straight month in August – a sign that the real estate market may well have hit bottom and caught the recovery wind.
According to the S&P/Case-Shiller Home Price Index, the median price of resold homes in the Phoenix area was up 1.6% in August compared to July.Prices rose 1.1% in June – the first time they increased since the real estate bubble began to deflate in August 2006.
Relative affordability – the median price in August was just about the same as in May of 2001 – is driving buyers back into the Phoenix market in huge numbers.Local economist Elliott Pollack said that the residential real estate sector is “on its way to becoming a positive force in the economy” again.
What do you think?How have rising home prices affected you?Click on the “Comments” link below and join the discussion!
I’m listing a house for a friend in Queen Creek, one of Phoenix’s “bedroom” communities – hit particularly hard by the real estate crash.She’s short-selling her house because it’s worth about $150,000, but she owes $290,000.
When we were making a listing plan the other day, she asked how long she should expect the house to be on the market.We looked at the MLS for sales of similar houses in her neighborhood and found that two of the same model at about the same price had sold in the last week – one had been on the market for 12 days and the other had been on the market for 8 days.
That echoes the experience of many buyers and sellers in the areas hardest hit by the real estate crisis.In some Phoenix areas, buyers are once again entering bidding wars.One buyer I know entered 12 bids (all at market value) and was outbid every time.
So that’s the anecdotal evidence that buyers are once again buying.Do hard numbers back it up?
In another word: Yes!
The hard numbers
Active listings
Active listings is a measure of the number of homes currently listed for sale on the MLS.As demand heats up – as more buyers enter the market, the number of active listings falls.As the following charts show, active listings in both Scottsdale and Phoenix haven fallen dramatically over the course of the year.That’s great news!
Months supply
One indicator of the health of the housing market is “months supply” – basically the number of months it would take to sell all the homes currently on the market, at the current rate of sales.Months supply in Phoenix peaked at more than 20 months in early 2008 (as you can see from the chart below).Now it’s back to pre-boom/bust levels.In Scottsdale, months supply is down from its height-of-the-crisis peaks, but still a bit above pre-boom/bust levels.
So the hard numbers do bear out my anecdotal evidence that buyers are once again – yes, buying.
What do you think?Click on the “Comments” link below and join the discussion!
From Oktoberfest to Halloween, October in the Valley has events to please folks of every persuasion.Check them out (and thanks, as always, to About.com for the listings):
What: After the regular baseball season is over, there are six more weeks of baseball in October and November when each of the 30 Major League Baseball teams selects 6 prospects to play in the AFL.
Arizona's Ultimate Women's Expo What: More than 500 exhibits of products and services including fashion, beauty, health, fitness, home, careers, financial planning, education.. A full schedule of speakers on four stages, book signings, celebrity appearances, and cooking and design demonstrations, including design experts providing amazing tips on preparing your home for the holidays.
What: An event to promote heath, wellness, and fitness for kids of all ages. Free activities will get the kids playing and their minds active, while parents can explore the various booths on health, wellness, and fitness.
What: Special science-related activities for students age 5 and up, teachers, and anyone interested in exploring Earth and space alongside real scientists. This free family event provides hands-on educational activities related to current research, as well as public lectures, a visit from an astronaut and a guided field trip to Tempe Butte. Students get a "passport" that is stamped upon completion of an activity. Free teacher resources will be available such as hand-outs, supplies, and posters.
When: October 24
Where: School of Earth and Space Exploration at Arizona State University, Tempe
Empty Bowls What: For a donation, you select a unique, handcrafted ceramic bowl from thousands of beautiful donated bowls. The contents of the bowl, won't fill you up, but it is similar to the total amount of food consumed on a daily basis by many less fortunate around the world. You keep the commemorative bowl as a reminder that someone else’s bowl is always empty. Proceeds from the event benefit Waste Not.
When/Where: October 16 at Arizona Center and October 17 at AJ's Fine Foods (4 Locations)
Fall Concerts in the Park What: Bring a blanket or lawn chair. Free. Food and beverages are available to purchase.
Fall Plant Sale What: The Desert Botanical Garden Plant Sale offers a large variety of arid-adapted plants, pottery and other garden accessories. Garden professionals are on hand to answer questions and assist. No admission charge to enter the Fall Plant Sale.
When: October 16 - 18
Where: The Desert Botanical Garden in Phoenix
Fall Rhythm Fest What: The City of Chandler sponsors this event featuring music, food, activities and fireworks.
Where: Arizona Mineral Museum, 1502 W. Washington, Phoenix, AZ 85007
How much: Free
Feng Shui Festival What: Presentations by Certified Feng Shui Consultants, Asian food, demonstration of Asian exercise Tia Chi and Chi Gung. Hands on events for children, vendors and local artists.
Founders Day Celebration What: Food vendors, local businesses, artist village, Bark Park, local bands, activities for citizens of all ages, history displays, Maricopa High School Band.
Harvest Festival What: Rosson House exhibit, face painting for children and vendors in the park displaying artisan wares such as spinning, jewelry making, photography and painting.
Kokopelli Krush What: Teams of two will compete to see how much grape juice they can make in just two minutes - with their feet. Entertainment, art display, food and wine tasting--but not the wine stomped by the teams.
MACFest What: MACFest offers a consistent, easy, and affordable way for the many wonderful artists in Arizona to expose and sell their work. Only quality, original, handmade works of art may be exhibited.
What: Celebrates the art of storytelling, love of reading and power of the imagination. National, Regional and Youth talent gather to share a wide array of stories from folk tales to tall tales to tales from all over the globe. Food and vendor booths, live music.
Movies at the Museum What: Independent and classic cinema and documentaries relating to art, artists, and works on view in the Museum, usually followed by discussion.
When: October 7, 25
Where: Phoenix Art Museum
How much: Free with paid museum admission. First come, first seated.
Music on Mill What: A showcase of local musicians performing on the streets. Musicians and performers, covering various musical genres, will activate public space and give visitors a positive, unique experience. Musicians at Music on Mill can be identified by branded donation paint cans that will be placed at each of their locations. The public is encouraged to donate towards performances so musicians return week after week.
When: Every Thursday evening from 5 p.m. to 9 p.m.
Native American Connections Parade What: Share in the rich cultural Native American heritage as tribes from all over the Southwest showcase their traditional songs and dances on this years' parade route through downtown Phoenix. There will be a Pow Wow after the parade at the Central High School softball field.
When: October 10
Where: Downtown Phoenix
Native Foods and Craft Fair What: Features Native American farmers and artists from various local American Indian communities. Demonstrators and vendors display their arts and crafts, including gourd crafts, saguaro cactus jewelry, pottery, herbal products. Children’s craft area. Pumpkin patch and pumpkin decorating. Adult and a children’s watermelon eating contest.
When: October 17
Where: Pueblo Grande Museum, Phoenix.
How much: Free admission.Frybread available for sale.
Oktoberfest Celebrations What: There are several places around town where you can get that Oktoberfest spirit. Dress up in your Bavarian best, eat bratwurst and dance to the polka all day long, if you'd like.
How much: Admission to Railfair is free. Train rides are $2 and carousel rides are $1 each with children age three and younger riding free with a paying adult.
Scottsdale ArtWalk What: Every Thursday evening the Scottsdale Art District invites you to spend a casual evening walking downtown and enjoying fine art.
When: Every Thursday evening
Where: Scottsdale Art District
How much: Free
Sun Devil Football What: Arizona State University's football team competes for PAC-10 glory.
When: Home games on October 17 at 7:15 p.m. and October 31 (Homecoming)
What: Three days of Greek folk dancing and live music, plus Greek foods and pastries prepared daily by Greek Chefs.
When: October 23, 24, 25
Where: Peoria
Uncorked & Unplugged What: Uncorked & Unplugged is a casual yet sophisticated evening under the stars celebrating the foods from fine local area restaurants as well as fine wine and spirits. Live entertainment. A benefit for the Boys & Girls Clubs of Greater Scottsdale.
When: October 18
Where: Desert Ridge Marketplace.
Western ArtWalk What: Western art, live entertainment, food sampling and more along Main Street, Marshall Way and throughout downtown Scottsdale. More than 100 galleries will participate.
When: October 15
Where: Downtown Scottsdale
Wickenburg Fly-In & Classic Car Show What: Aircraft of all types flying in throughout the morning, displays, information, 75 classic cars, static airplane display.
When: October 10
Where: Wickenburg Municipal Airport
How much: Free admission
World Water Day Festival What: This family, fun day will feature hands-on activities on water quality monitoring, aquatic insects, watersheds, water magic tricks, ground water, recycling, games and hikes! Girl Scouts can earn their Water Drop Patch, Boy Scouts work on Merit Badges. Learn water conservation tips for use at home, money saving ways for recycling and saving water, and discover the importance of wetlands.
What: Help us in our scariest endeavor to find the mysterious creature haunting the zoo; Join us for a spooky train ride that even our youngest victims will be sure to enjoy; Ride the "Scare"-ousel for a web spinning good time; Take a seat and rest in peace with our ghost storytelling; Beware of those who try to take the treasure at the Pirates of the "Scare"-ibbean; Ride the wagon to the darkest corner of the zoo where even we don't dare to venture on our own; Find out what's in the coffin dropped off in the graveyard by the funeral carriage; DJ music and much more!
When: October 30 and 31 from 6:30 p.m. to 10:30pm
Where: Phoenix Zoo
How much: $6 for Phoenix Zoo members; $8 for non-members; Two years and younger are free
Did I miss one of your favorite October events?Click on the comments link below and share it with us!
These are problems that can arise, even in newly-built homes.
The solution?A home inspection.
Despite what many people think, a home inspection is a must, even when you’re buying a newly-built home.An inspection by a reputable, licensed home inspector will help you avoid buying one of the 17% of new homes with significant defects. Visit http://www.nabie.org/, the National Academy of Building Inspection Engineers, to find an inspector in your area.
Fortunately, you can take steps to help ensure that you don’t buy a home with significant defects, by hiring a reputable, licensed home inspector before you sign on the bottom line – whether the home you’re buying is brand new or 100 years old.
What do you think?Have you been affected by shoddy new home construction?Click on the “Comments” link below and join the discussion!
I’ve blogged before about strategic defaults – where a homeowner, who can afford his mortgage, intentionally stops paying and either lets the bank foreclose or tries to negotiate a short sale.The posts generated a lot of attention – a firestorm, really.Some people thought that strategically defaulting could be a sound business decision for some people.Others found it morally reprehensible.
Does it makes sense for those homeowners to continue to pay on their homes, or should they walk away?I must sound like a broken record, but I have to say that I’m not advocating for strategic defaults; nor am I condemning them.That said, there are a number of factors to consider when thinking about “walking away”:
1) How “upside down” are you?One of my newest clients is trying to negotiate a short sale for her home, even though she can still afford her mortgage.She lives outside of Phoenix where the bubble and bust were particularly dramatic.She owes almost twice what her home is worth.If we assume that the market will return to a normal rate of appreciation in the next few years, it would take her more than a decade to get out of the hole.
Contrast her situation to one of a North Scottsdale homeowner who owes just 5% more than his home is worth.Again, assuming that the market will return to a normal rate of appreciation in the next few years, it shouldn’t take this homeowner more than a year or two to get right-side up again.
2) Do you have to move?Even if you owe more on your home than its current market value, that’s all on paper – unless you need to sell today.My new client, in addition to being way upside down, needs to move because her husband has a new job in Desert Ridge (which means a three hour commute every day right now).
If you don’t have to move – and you likely won’t have to move in the near future, staying put is probably the best thing to do.
Clearly, answering the question, “Should you continue to pay for a home where you owe more than it’s worth?” is tough – and it should be.No matter your circumstances, a mortgage is a contract – a promise you made to the lender that, in exchange for the money to buy a home, you would repay that money as agreed.Breaking that promise, while it may be the right decision for some people in some circumstances, shouldn’t be taken lightly.
What do you think?Are there circumstances in which walking away is the right decision?Click on the “Comments” link below and join the discussion!
Knowledge is power. In that spirit, the MyPhoenixMLS Phoenix Real Estate Blog covers everything that's Phoenix-area real estate, with the goal of helping buyers and sellers navigate the market.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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