Although home loan rates overall remain fairly low, Fannie Mae and Freddie Mac--the two large government sponsored companies that form the framework for most conventional home loans--have announced a series of changes over the past sixty days. Many of these changes deal with stricter underwriting standards and guidelines, but several are price increases as they work to cover losses incurred based on previous loans.

Price increases are generally not paid in cash, but rather are reflected by a higher interest rate on a new loan - which is why it is crucial that you clearly understand the rates and terms that you qualify for, when you are shopping for a new mortgage.

-Stew

Relief is in sight!  Congress put its blessing Wednesday on the legislation called the Tax Relief On Forgiven Mortgage Debt. This will allow homeowners in foreclose or who have negotiated workouts or short sales with lenders, a three-year window during which they won't have to pay taxes on up to $2 million of forgiven debt.

The Senate's amendments to HR 3648 has now been approved by the House, which eliminate provisions of the bill opposed by the Bush administration. The original bill passed by the House on October 4th would have permanently changed the tax code to exempt forgiven debt on a primary residence from being taxed as income.

This previous exemption would have reduced tax revenues by about $2 billion over a 10-year period, therefore, the House bill wanted to tighten the rules for claiming deductions on the sale of a second home, vacation or rental property converted to a primary residence. The approved bill left the rules unchanged for claiming deductions on gains from the sale of a second home.

This is great new for all!

Stew
 

 

Recent reports from the local Arizona MLS show home "sale" prices in the general Phoenix metro area are only 5% less than the listing price but sales volumes are down considerably still and foreclosures are forecast on the rise.

What most people dont know is that the majority of the homes in foreclosure are not concentrated in the Phoenix area, but in the areas that surround Phoenix such as Chandler, Glendale, Peoria, Anthem, Laveen, Buckey and so on.

Central home locations closer to the inner city are popular and with the new light rail coming close to a finish and with gas prices still near the 3.00 mark buyers are looking to purchase closer to where they work in Phoenix. Phoenix is a large employer for government jobs.

Investors are also looking at this market for potential rental properties, so although the surrounding areas are in trouble, the central Phoenix homes are selling... very slowly... but they are selling.

Sone development golf communities sporting homes in the 1-3 million dollar range are near 1 year and more on the market with no sign of movement causing small custom home builders to think twice about constructing a home in an affluent subdivision then having it sit on the market for 1-2 years out, unless they have a contract in advance from a buyer to build.

Large builders like Pulte/Del Web are still moving forward with great communities in North Phoenix like Fireside in Desert Ridge and Fireside at Norterra (North Phoenix below Cave Creek) that offer affordability and lifestyle with freeways and shopping malls close by.

http://www.firesidebydelwebb.com/
All in all the market is still pretty good here and I seem to be doing well with buyers unlike other Realtors, but when you're good, you're good!

Enjoy the rest of the summer!

All The Best!

Stew

Hi Everybody,

I have always said that Scottsdale is the "Beverly Hills" of Arizona, and it looks like I may just be right...

Some that live here in Scottsdale have seen the signs popping up on Scottsdale Road and the 101 frwy and if you didn't see those then you had to see the two enormous cranes balancing themselves to the North.

In case you were wondering what was going on there, it's a new development for upscale affluent living that offers high end (aka Expensive) shopping and dining and mixes that with dwellings that conform to affluent taste and I'm sure will be priced as such.

With events such as the Barrett Jackson Auction and TPC Golf tournaments being held in Scottsdale I guess they had to have somewhere for those wealthy shoppers to stay and spend, spend, spend.

Well, I say, good for them. They are a great contributor to our local economy and being a resident of Scottsdale I want to thank them for their contributions and support for the lifestyle they come here to enjoy.

If you want the full story then go to http://www.onescottsdale.com/ and watch the well orchestrated presentation and video.

It will be interesting to watch it's construction and growth.

All The Best!

Stew

One of the things I do to get away from the hectic pace of being a busy Realtor is to take some time to get out on the open road on my motorcycle and visit some places known for motorcycle enthusiasts. Most of these people are very pleasant and it’s just seems easy to strike up a conversation about most anything. Here is a list of some of the places I like to stop at in case you are out here in Phoenix or Scottsdale.

"The Hideaway" http://www.hideaway-usa.com (Try the Pizza or Chilli-Fries – Awesome!)

"Harold's Corral" http://www.haroldscorral.com (Great Breakfast!)

"The Billett Bar" http://www.azbilletbar.com (great place to sit outside and check out the custom bikes)

"Sugar Daddy,s" http://www.sugardaddysaz.com (great lunch and you can sit outside in the shade trees)

"The Dirty Dawg Saloon" http://www.dirtydoggsaloonaz.com/DirtyDoggHome.html (night life is what this place promotes- WILD!)

I don’t have any affiliation with these folks but they are really just fun places to stop in town if you’re on a bike.

Keep The Rubber Side Down!

Stew

Our temperatures here in the valley have been up and down so far this year. As the middle of May approaches we are starting to get up towards those mid 90's and if you are in the sun for any extended length of time be sure to DRINK WATER!

One of the most frequent mistakes that visitors make when they come here to visit is that they don't drink enough water. You can usually tell when you don't get enought water because your body will tell you. Mine will usually tell me in the way of muscle spasms (like a charlie hourse but not as bad) and the other tell tale sign is "I'm Not Sweatting". Folks,,, It's hot here... You should be Sweatting!

When you get to Phoenix, grab a 6 pack of bottled water and put it in your hotel fridge or a small cooler in the car if you are traveling. Take a bottle with you when you are out walking around shopping or Especailly hiking! If you feel like you are overheating look for shade, rest, drink some water until you recharge.

Enjoy Yourself and Stay Hydrated!