Scottsdale Real Estate Demand Surges as Tax Credit Got a New Lifeline

Scottsdale, November 13, 2009–The Scottsdale real estate market is again soaring high, thanks to Pres. Obama, and his decision to extend the tax credit deadline on the home deals for the first time home buyers till April 30, 2010. The original deadline for the $8,000 tax credit break was November 30, 2009. The Obama administration has also made some changes in American Recovery and Reinvestment Act of 2009 to enable existing home owners avail the tax credit on the purchase of a bigger primary residence.

The updated version of the tax credit has announced a tax break of 10% of the total purchase price of the home amounting to maximum $8,000 for the first time home buyer. It also includes a tax break of $6,500 for the existing home owners who want to shift to a bigger primary residence. To qualify for the first time home buyers’ tax credit, the applicant has to show that he or she has not owned a home in last three years. To qualify for the existing home owners’ tax credit, the applicant needs to show ownership and occupancy of a primary residence for at least 5 consecutive years in the last 8 years.

“In Scottsdale, since the news came, we are seeing a significant rise in the inflow of buyers,” said Morgan H Hodges, a managing partner of MoJo Realty Group. He further added, “The first phase of the credit break pulled the first time home buyers into the market, and this new extension worked as a magnet to pull those who always wanted to move into a bigger and better house. Scottsdale real estate is hot now.”

Any single tax payer or married couple filing joint return can apply for the tax credit. The single filer should have gross earnings of less than $125,000, and joint filers should have gross earnings of up to $225,000 to avail a full tax credit under the updated American Recovery and Reinvestment Act of 2009. A single filer earning between $125,000 and $145,000, and a joint filers earning between $225,000 and $245,000 will be eligible for the partial tax credit only. Any single filer earning more than $145,000, and any joint filers earning more than $245,000 are not eligible for any tax credit.

One should keep in mind that a property of more than $800,000 sale price will not qualify for the tax credit, and to qualify for the tax credit, the property contract needs to be signed on or before April 30, 2010 and the sale should be finalized on or before June 30, 2010. “Everyone in Scottsdale is happy with this extension and inclusion of existing home buyers in the tax credit,” said Josh W. Hintzen, managing partner of MoJo Realty Group. “These changes have brought many buyers into the market. The demand for single family homes is one the rise, and the home prices are steady. As of now, we are not seeing any sign of decline in the Scottsdale real estate market in the coming months.”

Relocating to Scottsdale Arizona

The tax break proposed by the government in the beginning of 2009 for the first-time home buyers has brought the Scottsdale real estate market back on its feet. Moreover, the extension to the tax credit deadline until April 30, 2010, as well as the inclusion of the existing home owners (on the purchase of bigger primary residence) in the tax break has made Scottsdale a real estate heaven. Scottsdale real estate search is on the rise, and given the price point at which the homes are available, its great time to buy in Scottsdale.

If you are planning to relocate then let me tell you that Scottsdale presents itself as a very attractive destination to move to. The city is located adjacent to Phoenix, in the eastern part of Maricopa County. The city is famous among tourists who want to witness the charm of Western American life. The nightlife in the city is as colorful as in south Miami Beach. The New York Times has called it "a desert version of Miami's South Beach"

Living in Scottsdale Arizona (benefits)

Ask any Scottsdale realtor and he will tell you about the fun and excitement of living in any of the four parts of the city: Downtown (Old Town), Central (the "Shea Corridor), North and South Scottsdale (McKellips Road north to Thomas Road).

• The art and cultural amenities of the city has made it hot among both national as well as international tourists. It has 125 art galleries, museums, and hosts many art festivals. Downtown Scottsdale has the highest concentration of art galleries, and the most notable among them is Scottsdale Museum of Contemporary Art (SMoCA), which is the only museum of contemporary art in Arizona.
• The main attraction of Scottsdale includes Scottsdale Museum of Contemporary Art (SMoCA), the Scottsdale Center for Performing Arts, The Phoenix Zoo, Frank Lloyd Wright's Taliesin West, and Cosanti, the pace where famous architect Paolo Soleri lived and worked.
• The nightlife of the city is very exciting. In the Downtown Scottsdale alone, there are 50 wine bars, dance clubs, lounges, and performing art venues to keep you entertained.
• The city has given around 200 acres for the golf courses, which has witnessed the legends like, Phil Mickelson, Tom Weiskopf, Kirk Triplett, and Tiger Woods deliver their best.
• The city with more than 5500 retail stores, outlets, boutiques, and malls is the shopper's paradise. At Scottsdale Fashion Square alone, the city has 225 stores spread across 2 million square feet of upscale shopping, entertainment, and dining space.
• The city has more than 70 resorts with a combined capacity of 15,000 rooms. In 2005, the city has witnessed an in-flow of 7.5 million visitors that spent $3.1 billion in the city.

These along with countless other things make the life so exciting in Scottsdale. Given the quality of amenities available in the city, Scottsdale realtors are quite confident that the real estate search will touch new height in the coming months. Hence, if you are planning to move to Scottsdale then now is the great time to buy, as the real estate price is still low, and government is already offering tax credit of up to $8,000 to the first-time home owners as well as those who want to shift to bigger house. Do not miss the chance, cash in on the opportunity provided by the Scottsdale.

First Timers Boost Scottsdale Housing Sale

Thanks to the stimulus package, housing sales in cottsdale market has returned with the full gusto. The first-time home buyers who are riding on the wave of $8,000 credit break announced by the U.S. Government earlier this year has brought the upsurge in the housing sale in the Scottsdale real estate market.

The first wave of good news started coming in when real estate investors in the region began pouring in their money, which was duly followed by the first-time home buyers.

The party is on since then, but not everyone is invited. The sales boost had primarily been in the houses with affordable price tags. The high-end, expensive homes with hefty price tags have still to join the party. Scottsdale realtors and industry analysts have termed this “posh predicament.”

In March alone, 4,000 bank-owned houses hit the market giving the lucky buyers, who didn’t buy homes inside the bubble, a chance to get the same properties at a lower price.

To the benefit of the buyers, the price of the houses nosedived from where it was a few years earlier. The homes that couldn’t be bought for less than $300,000 was now available with affordable price tags of $120,000, and the homes that originally flashed the price tags of $200,000 could be bought for a mere $60,000.

Scottsdale realtor, Josh Hintzen, feels that this sudden drop in price ,ap.has brought market back on its feet, and people are now resisting the desire to invest in these homes.

In Maricopa County alone, around 52,600 sales transaction was recorded between January 1 and august 31, as reported by Valley Home Values data. During the same period last year, the home sales were meager 35,400.

The sudden decline in price had made the purchase of bank-owned houses worth the effort, but still the Federal Housing Administration-guaranteed loan was essential to make the purchase. Because FHA required only 3.5 percent down payment, whereas, private lenders asked for 10 percent down payment, and jumbo lenders had set the down-payment requirement to 20 percent.

“What Scottsdale is waiting for is the surge in demand for the houses with steep price tags,” said a Scottsdale real estate expert, Morgan H Hodges, adding that neither buyers nor banks are interested in top-end houses with hefty price tags because the big-dollar mortgage market is not operational at all, since 2007.

The study released by The National Association of Realtors in May attributed this lack of interest in high-end housing sale and loan refinancing to the draconian terms for obtaining mortgages valued at $400,000 or more.

“The higher-end market needs a federal program to boost mortgage borrowing and lending,” said Arizona Association of Realtors Chief Executive Officer Tom Farley who further added that securing finance for houses with a price tag of $399,000 is very expensive, and still it is not easy.

Scottsdale real estate expert Josh Hintzen said that getting cheaper foreclosed home is not easy as the real-estate investors have snatched whatever they can from the hands of the first-time buyers, and even banks are foreclosing largely on expensive homes only.