Are you interested in building a home at Trilogy at Vistancia? They are close to the end of construction, but may be expanding. Take a look at my update to get the details.
This is a portion of an article written by our broker, Jim Sexton in the Arizona Journal of Real Estate and Business for December. The first half of the article deals with variables to be resolved post election by the president. Jim’s predictions follow:
“2012 will have around 90,000 sales reported by ARMLS, which will be a 10-12% drop from 2011 numbers, but the overall dollar volume of those sales will be up almost 6% from 2011. The average price per square foot will be up over 13% for 2012. Using these trends, I believe that the number of sales in 2013 will remain around 90,000, although if I could give a range it would be 85,000-95,000 sales for the year. I think prices will continue to bounce back. I don’t expect another 13% increase, but I see a price improvement in the 5-8% range. I expect active inventory to rise from the current less than 3 month supply to the more balanced 3-4 month supply. Both short sales and REOs
will continue to decrease. Distressed properties made up 70% of the market 2 years ago, 65% 1 year ago and currently are at 41%. Look for that downward trend to continue to under 30%, with REOs below 10% and short sales dropping to around 20%. Also expect to seeArizona’s population continue to grow and the building industry inPhoenix‘rise from the ashes’. Both will continue the positive steps we’ve seen to our economic recovery for the region.”
Based on Jim’s experience, knowledge and his great batting average we are expecting that 2013 will be a successful and positive year for real estate in our Valley of the Sun.
How the “fiscal cliff” might impact you as a home seller.
One of the “Bush tax cuts” that might be falling off the cliff could hurt you as a home seller. Until Dec 31, 2012 the formula for paying tax on the sale of your principal residence is very favorable.
You take the ‘basis’ which is what you paid for the home initially plus major improvements you have made. (my very simplified explanation) Then subtract that ‘basis’ from today’s sale price. We think of that as profit on the sale. The existing tax break lets you take $250k off that profit if you are single and $500k if you are married (again simplified). The overage remaining is taxed as a capital gain, the rate depending on your tax bracket.
If that tax cut falls off the cliff, you will be paying capital gains tax on the entire proceeds over your ‘basis’. There will be no more $250k or $500k reduction. There is to be a raise in the capital gains tax from 15% to 25% (% is variable per your tax bracket). Plus there is a new medicare tax of 3.8% on capital gains.
PLEASE understand that my explanation is super simplified !
There are so many ins and outs and dozens of pages in the IRS books defining this formula that only your tax person will understand it fully. I am in no way qualified to explain more than the simplified basics to you. My purpose is to give you a heads up for your future home buying plans if they depend upon the proceeds from the sale of your existing home and to make the strong suggestion that you have a meeting with your tax person at your soonest.
A client of mine, recently asked me a great question; they asked me “How much a seller is willing to sell their home for, less than asking price?” To start the answer… there is no typical seller….
Every person selling their home has a different reason for selling; every person selling their home is in a different financial position.
The more important question is to ask What are the market and the market conditions telling you about where homes are selling?
· you need to consider the purchase price of the home you’re looking at
· the neighborhood the home is in
· as well as the sellers and what did they purchase the home for and was it financed
These items together will give a little better idea of where to start with your offer; and what the seller is likely to accept.
I still wish I had a crystal ball….
MountainBrook Village Active Adult Community is nestled into the foothills of the Superstitions It has detached single family homes, patio homes and twin homes. In addition to an award winning golf course with phenomenal views, there is a recreation center with a full time activities director, a community pool, spa, fitness center and tennis courts.
Sunland Spring Village Active Adult Community in east Mesa is one of the few communities offering a choice of block construction or 2×6 construction. It is also one of the few Active Adult Communities in the valley building condos as well as single family homes. Sunland Springs is convenient to shopping malls and local attractions. The communities location provides beautiful views of the Superstition Mountains, a 27 hole executive golf course, pools, tennis and amenities galore.
PebbleCreek is listed as one of the top 100 best master planned communities in the country. Resort living every day! For more information on PebbleCreek head over to ArizonaActiveAdult.com
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Here is the Market update for June. Have a great day, Irene
The day I headed out to take the photos, we had a big dust storm come in. So this is missing some of our beautiful blue skies. Sundance is also the name of the all-aged Master Planned community in Buckeye too. For more information on Sundance, check out ArizonaActiveAdult.com
The new 2012 USDA Plant Hardiness Zone Map is the standard by which gardeners and growers can determine which plants are most likely to thrive at a location. The map is based on the average annual minimum winter temperature, divided into 10-degree F zones.
The Phoenix valley has been assigned two zones, roughly the area east of 17 and south to the I-10 falls within the 10a zone which has an average minimum winter cold of from 30-35 degrees F, west of 17 the zone is a bit cooler with lows of from 25 to 30 and is designated as zone 9b.
No posters of the new USDA Plant Hardiness Zone Map have been printed. But state, regional, and national images of the map can be downloaded and printed in a variety of sizes and resolutions.
The Sunset magazine has assigned the section of Arizona surrounding the Phoenix valley a 13 designation, using a range of temperature wider than the USDA scale. We will refer to the Sunset magazine planting times and tips because we receive their information monthly while only annually do we hear from the USDA!
All of the Arizona zones are subject to extreme temperature variations for short periods, and any home gardener must pay attention to the weatherman and protect plants that are supposed to survive any given temperature either high or low.