Arizona is home to more than 560,000 veterans, thanks in part to its terrestrial beauty and four military installations. Veterans nationwide, including in the Grand Canyon State, are taking notice of the overwhelming benefits in the Veterans Administration home loan program.
               
More than 6,300 home loans in Arizona are guaranteed by VA at a total value of $1.4 billion. Last fiscal year, VA covered about $68 billion in single-family loans. Lenders issue VA loans, while VA simply insures about one quarter of the loan against unlikely borrowers’ defaults. Because of this insurance, lenders are more than willing to help veterans get the loan they deserve.
               
Unfortunately, of the 24 million veterans less than 10 percent have utilized this program. That’s an astounding figure considering the unrivaled advantages of VA loans. In Arizona, veterans can pay no money down for a loan of up to $417,000. Borrowers also have the chance to negotiate interest rates, which are sure to be lower than those of conventional loans. Refinancing VA loans, either with a VA streamline or cash-out option, lets borrowers lower their interest rates. There are even more gains, such as:
               
-Ability to prepay a loan without penalty
-Borrowers in default get extensive assistance to avoid foreclosure
-Sellers can pay up to 6 percent of closing costs
-No private monthly mortgage insurance
               
Clearly, our nation’s heroes took notice of these upsides, causing VA loan volume to spike 80 percent last year. Renowned for its natural beauty, Arizona is surely a place for veterans to settle post-duty. Those who may qualify are usually in one of three categories:
               
-Military members who’ve served 181 days on active duty or three months during war time.
-People who have spent at least a half-dozen years in the National Guard or Reserves.
-Spouses of those killed in the line of duty.
               
Veterans then need to complete a Certificate of Eligibility to confirm that they can get a VA loan. Even though VA has no credit score criterion, lenders prefer a score around 620.
               
To read more about VA Mortgage Guidelines visit http://homeloans.va.gov/.

Here in the Active, Sold & New Listings chart, we can see that the number of active homes on the market has gone up slightly, but with the increased number of sales – slightly above last month’s numbers – the inventory calculation went down slightly to 4.81 months.

The Sold DOM vs. Units chart illustrates the elevated number of sales over the last month, and shows that there is still steam in this market.  This market has sold at least 7.5K homes every month since March of this year and has really put a dent into the days on market number.

When we look at the Volumes & Avg. Prices chart, we see that prices are down slightly – likely due to the lower list price – however the sales dollar volume has increased slightly for the third month in a row.

Moving to the Sold DOM vs. Sold Price chart, we again see the drop in sales price, but we also a steadily falling days on market number – now down under 90 days where we would love to see it stay.

As we look at the Price Change Trends chart, we can see that price reductions on active properties with price changes are actually on par with those of 2 years ago.  This represents a sort of climbing out of a race to the bottom mentality and a reclamation of value in real estate which is something that this market has lacked for the last couple of years now.

Though the numbers aren’t drastically different from the last couple of months, there is still much to be excited about and much to be concerned about as well.  On the one hand, the indicators that we are looking at in the above charts along with the new and improved $8,000 First Time Homebuyer Tax Credit (it actually includes something for existing homeowners as well) paint a very promising picture for the real estate market in the next 6 months, but on the other hand, unemployment numbers are on the rise and the economy remains in shambles giving us pause when we look to the future.  I always say that the real estate market does not happen in a vacuum, and sooner or later, one factor will always catch-up with the other; we just hope that reunion is a peaceful one.

Stay tuned to this space in the next month for the latest in Phoenix real estate, but feel free to check out our real estate resources section of our website – we update it frequently. Thanks again, and let me know what you think.

The real difference in this iteration is the fact that now the tax credit has been expanded to people who currently own homes, however that credit is $6,500, and in order to qualify, homeowners must have owned their current home for 5 consecutive years out of the last 8.  According to sources, this would now make up to 70% of current homeowners eligible for the expanded program.

There are income restrictions (they’ve actually been increased) that you should be aware of that apply both to first time homebuyers as well as current homeowners.  For individuals making an annual income of $125K or less, or couples making $225K or less, who have not owned a home in the last three years, you are now eligible to claim the $8,000 on your taxes provided that you have an accepted contract on a home by May 1, 2010 and have it closed by the end of June.  This applies to purchases of $800K or  less, and only applies to a primary residence.

People taking advantage of this program, whether a first time homebuyer or a current homeowner moving-up into a new home, would be able to claim this purchase on their 2009 taxes, even if the purchase was made in 2010 by filing an amended return.

Politics aside, this is a move that will certainly help keep a head of steam behind this market movement that we’ve been watching do some great things for the last 5 months.  This also eliminates much of the anxious speculation that has been going on in this industry for the last few months and allows those folks who have had trouble finding something breathe a little easier.

Remember, if you’ve got any questions about the current state of the expanded tax credit, or if you have questions about Phoenix real estate in general, please let us know, and thanks for reading.

2649 E. Cedar Pl. – Chandler, AZ 85249

We never know exactly what will happen in this buisness, but, as professionals, we’ve got a responsibility not to get ahead of ourselves when it comes to making calls on this stuff. So, before we start making official pronouncements here, let’s wait until we have all the facts. I know it’s unlike me to be so brief, but I wanted to get this out there as quickly as possible.

Remember, if you’ve got any questions about the current state of the $8,000 First Time Homebuyer Tax Credit, or if you have questions about Phoenix real estate in general, please let us know, and thanks for reading.

Short sale opportunity in award winning master planned community. Home is located within walking distance of Anthem’s incredible community park, schools, and shopping centers. Spacious open floor plan with open loft/den upstairs. Little custom touches such as real window sills and diagonally laid 18” ceramic tile, sunscreens on all windows, water features on the pool and two gazebos in the backyard make this a special home. Home is also equipped with 20 amp outlets in garage and plumbed for a solar heat pool cover. Newly painted exterior as well. Refrigerator, washer/dryer, swamp cooler is downstairs in living room, and Jacuzzi in backyard do not convey with sale of home. This is what living in Arizona is all about. Is this a home you might like to see in person? If so, please call Jerry Murphy at 602/334-3757, or send him an email at JWMurphy@Windermere.com, or call Ben Bailey at 480/220-8022, or send him an email at Ben@ArizonaPremiereLiving.com. Find your place in the sun.