Arizona Real Estate News

 

Dec. 30, 2017

December Arizona Real Estate Market Update

 

 “A central theme for the 2018 housing market will be the continuing erosion of housing affordability”, according to Frank Nothaft, Chief Economist of Core Logic. Nothaft is basing his concerns on three economic factors he believes will further weaken affordability in the coming year: rising interest rates, rising home prices and the low inventory of starter homes for sale. Nothaft does not give his opinion on the other side of the affordability equation: household income. If the economy grows jobs and increases wages, this of course would have a positive impact on home affordability. What happens to interest rates, home prices, job creation and wages in 2018 are all speculation at this point and my time traveler friend is not talking. The one thing I do know is the 8% to 9% price growth we’ve seen in the median sales price over the last three Novembers is not sustainable. To put this in perspective we’ll employ the rule of 70. The rule of 70 is a way to estimate the number of years it takes for a certain variable to double by taking the number 70 and dividing it by the appreciation rate. At the 8.5% annual appreciation we’ve seen over the last three years in median price growth in November (70/8.5), prices would double in less than 8 years and three months. Conclusion: Our current market is in balance and our median sales price is in line with our reported median household incomes. Our current appreciation rates will need to fall back in-line with our long-term appreciation rate. Last month STAT projected a median sales price for November of $239,900. The actual median sales price was $245,000. Our algorithm in October was spot on. November… not so good. Our November projection missed the mark by $5,100 (or 2.1% lower than the actual median), by far the worst forecast in modern history. We’ve sent the November algorithm to stand in the corner and think about what it did. We projected that home closings would be comparable to the 2016 total of 6,804. The final sales volume was 7,074. There were 270 more sales this year than last year. Looking ahead to December, we anticipate the median sales price will be $243,000. In other words, expect the December median sales price to see little to no movement. A repeat of last month’s $245,000 would not be out of the realm of possibility. Sales volume for the first 11 months of 2017 was 6.30% higher than 2016, with 86,817 sales in 2017 compared to 81,677 in 2016. Following the pattern of the previous 6 months, we enter December with fewer residential listings practically under contract this year. We begin December with 5,645 pending contracts (3,337 UCB listings and 392 CCBS) giving us a total of 9,374 residential listings practically under contract. This compares to 9,395 of the same type of listings one year ago. Even with fewer “pending” listings this year compared to last and with one less business day this year compared to last, I still expect sales in December to exceed the 2016 volume. ARMLS reported 7,036 sales in December of 2016. Our bold December 2017 forecast of 7,350 sales may be joining the November algorithm in the corner" - 

Read the full report here--- 

http://armls.com/docs/2017-November-STAT.pdf

Posted in Market
Nov. 18, 2017

November Real Estate Market Update

November market update! 
"We’re now entering the holiday season, which means over the next four months our monthly
sales volume will drop to the lowest numbers of the year. Historically, our lowest sales volume occurs
in November, January and February. We should see an uptick in December as year-end tax strategies
come into play, but overall, we’re officially entering our slow season. While our supply of active listings
increased in October, the overall listings are 7.9% lower than a year ago. This is characterized by too
few homes for sale at the low range and too many for sale at the top. As a result, prices continue to rise
quickly at the bottom of our market while dropping slightly at the high end."

Read the full Report Here- 
http://armls.com/docs/STAT-October-2017.pdf

 

#EricWilliamsonRealtor #SellForTopDollar

Posted in Market
Oct. 15, 2017

October 2017 Market update

October 2017 market update----

 

#EricWilliamsonRealtor

 

 

 

-----full ARMLS report here

October ARMLS report

Posted in Market
Sept. 23, 2017

August Market Update

August Market Update. Read the full report hear!
http://armls.com/docs/STAT-August-2017.pdf
www.AZAgentPro.com
#EricWilliamsonRealtor
Posted in Buying
Sept. 10, 2017

The Bridges in Gilbert

 

-Search all Gilbert homes here

 

-Search all New Homes in Gilbert here

 

Below is all remaining inventory remaining at Meritage Bridges North. We only have 1 Yosemite left and it’s the great room floor plan lot 232. We are also giving up to 7K towards closing costs with MTH Mortgage. Our home of the week is lot 15 the Shasta and we are offering an additional 5K off the price of this home. Our homes below already have incentives taken off of them but this home has an additional 5K on top of the already low price J

 

 

Edgewater at Bridges North - Meritage Specs

 

 

 

 

Lot

Plan

E

Stories

Sq ft

Bed

Den/Loft

Bath

Garage

Retail

COE

 

 

 

 

 

 

 

 

 

 

 

15

Shasta

C

1

3046

4

Teen

3

3

$474,495

Completed

2

Gallatin

C

2

3222

4

Lofts

3.5

3

$481,495

October

21

Shasta

A

1

3046

4

Teen

3

3

$465,995

Completed

27

Broadmoor

C

1

2320

3

Teen

2.5

3

$440,495

Completed

23

Broadmoor

A

1

2320

3

Den

2.5

3

$430,495

Oct

80

Broadmoor

C

1

2320

3

Den

2.5

3

$430,995

Oct

20

Sierra

C

1

2415

4

No

3

3

$432,995

Dec

82

Sierra

D

1

2415

4

Yes

3

2

$433,495

Dec

 

 

 

 

 

 

 

 

 

 

 

 

Lakeview

 

Specs

Below

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

232

Yosemite

B

1

3772

4

Teen

3.5

3

$572,995

Completed

 

 

 

 

 

 

 

 

 

 

 

Posted in Buying
Sept. 2, 2017

Hurricane Harvey Relief

Our office has teamed up with a group that will be driving an 18 Wheeler to the Houston area, they will be picking up donations from our office on Friday, September 8th, please have all donations at the office by Thursday. ( contact me for details- 602.435.6708) 
We are also accepting cash donations of $10, every little bit helps, you can make this donation to the charity of your choice via pay pal HERE
Items for donation:
Non perishable food items
cases of water
diapers

underwear

gently used or new clothing
blankets
WE CAN MAKE A DIFFERENCE IN SOMEONES LIFE. 

Posted in Communities
Aug. 29, 2017

What is a 1031 Exchange


IRS tax code section 1031 allows for a properly structured "1031 exchange" to take place, which for an investor is a great way for them to avoid and deffer all capital gains on real estate sales and transactions. 

 IRC Section 1031 (a)(1) states:

“No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like-kind which is to be held either for productive use in a trade or business or for investment.”

To better understand here is an example: 

Let's say an investor sells a home they have owned for 10 years as an investment property. Her tax basis is $300,000.00 If she sells for $1,200,000.00 the IRS will require her to recognize capital gains of $900,000.00 If she acquires a new property then she will be able to defer the capital gains and taxation until she sells the new property.

There are elements to the 1031 exchange that must be met.                                  

- Qualifying property; "While Section 1031 exchanges, which are often called “like-kind” exchanges, are commonly associated with real property, such exchanges are not limited to real property ; rather, all but the following types of property are eligible:  “stock in trade or other property held primarily for sale, stocks, bonds, or notes, other securities or evidences of indebtedness or interest, interests in a partnership, certificates of trust or beneficial interests, or chose in action.” 26 U.S.C. § 1031(a)(2)." 

-Like kind; "Property acquired in a 1031 exchange must be of “like-kind” to the relinquished property. But exactly what does “like-kind” mean? Unfortunately, the provisions of Section 1031 do not provide much guidance as to determining those properties that are “like-kind;” however, one section of the Treasury Regulations, § 1.1031(a)-1(b), which was published to aid in the interpretation of Section 1031, sets forth the following definition of “like-kind”:  “As used in section 1031(a), the words like kind have reference to the nature or character of the property and not to its grade or quality. One kind or class of property may not, under that section, be exchanged for property of a different kind or class. The fact that any real estate involved is improved or unimproved is not material, for that fact relates only to the grade or quality of the property and not to its kind or class.” In other words, the condition or quality of property is not of consequence when determining a property’s kind or class; rather, it is the intrinsic nature of the property that is of consequence. The same section of the Treasury Regulations later provides examples of various “like-kind” exchanges:  “No gain or loss is recognized if (1) a taxpayer exchanges property held for productive use in his trade or business, together with cash, for other property of like kind for the same use, such as a truck for a new truck or a passenger automobile for a new passenger automobile to be used for a like purpose; or (2) a taxpayer who is not a dealer in real estate exchanges city real estate for a ranch or farm, or exchanges a leasehold of a fee with 30 years or more to run for real estate, or exchanges improved real estate for unimproved real estate; or (3) a taxpayer exchanges investment property and cash for investment property of a like kind.”

-Qualifying purpose; "In order for property to eligible for exchange treatment, the property must be either “held for productive use in a trade or business or for investment.” 26 U.S.C. § 1031(a). While this definition may seem to prohibit exchanges of property held for productive use in a trade or business for property held for investment, Treasury Regulations § 1.1031(a)-1(a) provides otherwise, in particular it provides that qualifying property held for productive use in a trade or business may be exchanged for property held for investment and, likewise, qualifying property held for investment may be exchanged for property held for productive use in a trade or business."

-Timing; "A qualified 1031 exchange can be either a:  1. Simultaneous Exchange, 2. Delayed Exchange, or 3. Reverse Exchange.  Simultaneous Exchange. In terms of timing, a simultaneous exchange requires that the exchange of the relinquished property for  the replacement property is, just that, simultaneous. Delayed Exchange. A delayed exchange requires that the replacement property must be identified within 45 days after ownership of the relinquished property is transferred and the exchange must “be completed not more than 180 days after transfer of exchanged property.” However, Treasury Regulations § 1.1031(k)-1 provides that in a deferred exchange “gain or loss may be recognized if the taxpayer actually or constructively receives money or property which does not meet the requirements of section 1031(a) before the taxpayer actually receives like-kind replacement property.” As a result, taxpayers seeking deferred exchange treatment often employ the services of a “qualified intermediary” to hold any money or property from the sale of the relinquished property so as not to run awry of such restrictions. Reverse Exchange. A reverse exchange can permit exchange treatment in the event that replacement property is acquired before the sale of the relinquished property. While there are a number of additional requirements for reverse exchanges, in terms of timing Rev. Proc. 2000-37 requires that relinquished property must be identified no later than 45 days after title of the replacement property is transferred to an Exchange Accommodation Titleholder (“EAT”) and that the replacement property must be transferred to the taxpayer, a person who is not the taxpayer, or a disqualified person no later than 180 days after the transfer of the replacement property to the EAT. Further, the combined time period that the relinquished property and the replacement are held in a qualified exchange accommodation arrangement. cannot exceed 180 days."

++++This is only a brief overview of a 1031 exchange, this is not a complete guide and you should always  seek the advice of a competent professional when making important financial and legal decisions++++

sources- https://www.efirstbank1031.com/documents/DepreciationGuidanceonLike-KindExchanges_Regulation032007_.pdf

https://cooklaw.co/blog/what-is-a-1031-exchange

http://jamescolincampbell.com/1031-exchange/

https://apiexchange.com/replacement-property-calculation/ 

https://www.forbes.com/2010/01/26/capital-gains-tax-1031-vacation-home-personal-finance-robert-wood.html 

 

Posted in Buying
Aug. 28, 2017

FHA flipping rule

Property Flipping is indicative of a practice whereby recently acquired property is resold for a considerable profit with an artificially inflated value.
 
The term Property Flipping refers to the purchase and subsequent resale of a property in a short period of time.  The eligibility of a property for a Mortgage insured by FHA is determined by the time that has elapsed between the date the seller acquired title to the property and the date of execution of the sales contract that will result in the FHA-insured Mortgage.  FHA defines the seller’s date of acquisition as the date the seller acquired legal ownership of that property.  FHAdefines the resale date as the date of execution of the sales contract by all parties intending to finance the Property with an FHA-insured Mortgage. 
 
Resales Occurring within 90 Days or Fewer After Acquisition: 
A property that is being resold within 90 days or fewer following the current owner’s date of acquisition is not eligible for an FHA-insured Mortgage. 
 
Resales Occurring Between 91-180 Days After Acquisition:
A Mortgagee must obtain a second appraisal by another appraiser if: 

  • the resale date of a property is between 91 and 180 days following the acquisition of the property by the seller's; and 
  • the re-sale price is 100 percent “over the purchase price” paid by the seller to acquire the property.

The required second appraisal from a different appraiser must include documentation to support the increased value. 
 

If the second appraisal supports a value of the property that is more than 5 percent lower than the value of the first appraisal, the lower value must be used as the property value in determining the adjusted value.  The cost of the second appraisal may not be charged to the borrower.  The Mortgagee must obtain a 12-month chain of title documenting compliance with time restrictions on resales.

 
Exceptions to FHA property flipping restrictions are made for:

  • properties acquired by an employer or relocation agency in connection with the relocation of an employee; 
  • resales by HUD under its real estate owned (REO) program; 
  • sales by other U.S. government agencies of Single Family Properties pursuant to programs operated by these agencies; 
  • sales of properties by nonprofits approved to purchase HUD-owned Single Family properties at a discount with resale restrictions; 
  • sales of properties that are acquired by the seller by inheritance; 
  • sales of properties by state and federally-chartered financial institutions and Government-Sponsored Enterprises (GSE); 
  • sales of properties by local and state government agencies; and 
  • sales of properties within Presidentially Declared Major Disaster Areas (PDMDA), only upon issuance of a notice of an exception from HUD. 

The restrictions listed above and those in 24 CFR 203.37a do not apply to a builder selling a newly built house or building a house for a borrower planning to use FHA-insured financing.

 

https://hudgov.prod.parature.com/link/portal/57345/57355/Article/8336/Does-FHA-have-a-Prohibition-on-Property-Flipping

Posted in Mortgage
Aug. 24, 2017

Dog Etiquette in Real Estate – Selling a Home

 

source- http://dogetiquette.info/dog-etiquette-in-real-estate-selling-a-home/

Posted in Selling
Aug. 24, 2017

Dog-Friendly Breweries, Pubs, Taprooms, Taverns, and Distilleries

Dog-Friendly Breweries, Pubs, Taprooms, Taverns, and Distilleries

 


This list is subject to change by the establishment or local ordinances. Some places only allow dogs in the outdoor seating areas so please check with the business before visiting with your dog.

 

 

1912 Brewing Co. http://1912brewing.com/ Tucson AZ
Pueblo Vida Brewing Co. http://www.pueblovidabrewing.com/ Tucson AZ
Borderlands Brewing Co http://borderlandsbrewing.com/ Tucson AZ
McFadden's Restaurant and Saloon http://www.mcfaddensglendale.com/ Glendale AZ
Gordon Biersch http://www.gordonbiersch.com/locations/gilbert?action=view Gilbert AZ
Mother Road Brewing Company http://www.motherroadbeer.com/ Flagstaff AZ
Wren House Brewing Company https://www.wrenhousebrewing.com/ Phoenix AZ
Prison Hill Brewing Co. http://www.prisonhillbrewing.com/ Yuma AZ
North Mountain Brewing http://www.northmountainbrewing.com/ Phoenix AZ
Oro Brewing Company http://orobrewing.com/ Mesa AZ
Iron John's Brewing Company http://ironjohnsbrewing.com/ Tucson AZ
1702 http://www.1702az.com/ Tucson AZ
The Beer Research Institute http://www.thebeerresearchinstitute.com/ Mesa AZ
Desert Eagle Brewing http://www.deserteaglebrewing.com/ Mesa AZ
The Phoenix Ale Brewery http://phoenixale.com/

Phoenix

 

 

source-

http://dogetiquette.info/dogfriendlybreweries/ 

 

 

 
Posted in Communities