Lake Havasu Lifestyle

The Lake Havasu housing stats for July 2009 are in and they are looking good. According to the Lake Havasu Association of REALTORS®, the sales of single-family homes, multi-family homes and vacant land in Lake Havasu City were up in July 2009 compared to the same time last year. Sales of single-family homes were up 43% (140 units sold in July 2009 vs 98 sold in July 2008), sales of vacant parcels of land were up 33% (12 lots sold in July 2009 vs 9 sold in July 2008) and sales of multi-family homes were up 150% (5 sold in July 2009 vs 2 sold in July 2008). Single-family and multi-family home sales are experiencing an upswing in year-to-date figures for 2009 compared to the same time period as last year as well, with single-family home sales up almost 25% and multi-family homes up almost 108%. Vacant land sales have remained almost the same. Even though the average sale price for a single-family home in Lake Havasu in July 2009 was much lower than the same time last year (currently at $187,627), it has actually increased from May and June. Is this a leveling out of the market? You would need a crystal ball to tell. But, I can tell you this for sure: with these prices and the expiration date for the $8000 First Time Home Buyers Tax Credit quickly approaching, now is the time to buy your Lake Havasu home. Contact me now so we can get you in that home as quickly as possible.

Donna Ball, Always on the Ball with Lake Havasu Real Estate

Time is running our for Lake Havasu first-time home buyers to take advantage of the First-Time Home Buyers Tax Credit. It is September already! This means you only have a few more weeks to locate a home and close escrow before the November 30, 2009 deadline.

Don't Wait or You May Lose Out

At this time, there is no extension to the tax credit, even if you are in escrow. Sometimes, delays occur and escrow extends the expected timeline. Loan processing may take a little longer than is expected or there may be some issue that would come up in escrow that would take time to resolve. No matter what the reason for the delay, you will lose the tax credit if escrow does not close on or before November 30. So, opening escow as soon as possible is critical.

Tax Credit Advantages

    * Dollar-for-dollar credit - the credit is deducted from the money you owe the IRS; any balance is refunded to you.
    * The money is free - there is no pay back required, ever.
    * In some cases, the tax credit can be applied towards your down payment or closing costs; any remaining funds will be credited to you.

Who is a First Time Home Buyer?

* Anyone who has not owned a home within the past three years.

How Much is the Tax Credit?

* 10% of the purchase price up to $8,000.

Income Limits

    * $75,000 for singles.
    * $150,000 for married couples filing a joint return.
    * The tax credit is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 (single) or $150,000 (married, filing a jointly).
    * There is a phase out tax credit for those earning more than the income limit - contact a qualified tax professional to see if you qualify.
    * Partial credits are available for some home buyers whose MAGI exceeds the phaseout limits - contact a qualified tax professional to see if you qualify.

Restrictions

* The home purchased must be your principal residence.
* You must live in the home for three (3) years - if you change residences before that time, you must repay the credit.

There has been much talk of extending or expanding the tax credit. But, as it stands for now, the opportunity to take advantage of the tax credit will soon go away. Remember, you must close escrow on or before November 30. The contract date will not matter. It is the closing date (the date you officially become the owner) that will determine your eligibility for the First-Time Buyers Tax Credit.

Donna Ball, Always on the Ball with Lake Havasu City real estate

The June reports are in and the results show that the real estate market in Lake Havasu continues on its upward trend.

June Reports:

Closed Escrows: 150
Total Sales Volume: $25,786,988

Total number of homes which have sold this year is 797. That is 143 homes more than last year at this time. The total sales volume for the month of June was also improved by over $250,000 from June 2008.

Foreclosures are still impacting our market, but it does seem to be stabilizing. The recovery will be slow in the months ahead. We will probably not return to normal market conditions for a year or two. However, home values are expected increase next year.

Many home buyers have been waiting for the bottom to of the real estate market to be reached. Reports nationally indicate that many markets have reached bottom, with prices now on an upward trend and inventories decreasing.

Phoenix area sales up 56% (DataQuick)
Phoenix ares sales prices up 3.5% (DataQuick)
Sales prices up nationally in key areas (Stand and Poors)
Sales activity up for four consecutive months (National Association of Realtors)
Sales activity up in Orlando by an amazing 206% (RealtyTimes.com)
Sales activity up in Riverside-San Bernardino 56% (RealtyTimes.com)

I am by no means trying to paint a rosy picture or stating that all is well and good. I am letting you know that the indicators are that the real estate market has begun to turn around and the real estate market is changing.

The number of foreclosures due to toxic loans are decreasing steadily and will continue to do so. However, foreclosures will remain a problem, continuing to impact impact home values for a while longer.

The availabilty of mortgage loans will also impact the market. Credit is still tight. Buyers must demonstrate a strong credit worthiness and underwriters are still combing through loan applications with a fine tooth comb. Speaking of mortgages; interest rates have dropped. The current interest rate is just a little over 5%.

Take advantage of today's market because it will not last forever and will eventually move back into the seller's favor.

Reasons to buy today:

Affordable pricing (median sales price: $148,750; foreclosed home median sale price: $137,000)
Low interest rates
First-time Buyers Tax Credit
New homeowner tax deductions
Homeowner tax deductions
Make Your Way Home, AZ

Donna Ball, Always "On the Ball" with Lake Havasu Real Estate

Foreclosures are still driving the market in Lake Havasu City as they are in many areas of the nation. There were 150 homes which closed escrow in June; almost half of these were foreclosed home sales.

June Foreclosure Median Sales Prices (single-family residence):

    * Lake Havasu City: $137,000
    * Bullhead City: $107,000
    * Kingman: $88,500

Arizonians who want to take advantage of today's affordable prices and the foreclosure market now have a new option available to them: Your Way Home, AZ.

A quote from The Arizona Department of Housing:
"Because access to homeownership is fundamental to Arizona's way of life, Your Way Home AZ is a financing tool that will make it easier for eligible, credit-worthy homebuyers to obtain mortgages. Funding is made available through the U.S. Housing and Urban Development Neighborhood Stabilization Program (NSP). The state of Arizona and nine other counties and communities received more than $121 million to help stabilize our hardest hit neighborhoods through a variety of efforts".

Your Way Home AZ is a down payment assistance program. The program offers homebuyers an interest-free loan which is forgiveable if the buyer remains in the home for 5 -15 years. The time requirement is based on the amount of the loan. Qualifying for a home loan is now easier with the Your Way Home AZ program and your mortgage payments will be more affordable.

Your Way Home AZ Highlights:

    * Down payment assistance of up to 22% of the purchase price.
    * 0% Interest.
    * A "silent" second mortage - No monthly payments.
    * Forgiveable loan - No repayment required (after time requirement elapses).
    * If home sells before time requirement is satisfied, only the loan amount must be repaid (interest-free).
    * Home must be a single-family foreclosed property.
    * The mortgage lender must be an approved lender.
    * Income restriction - buyer's income cannot exceed 120% of the average income for Mohave County.
    * First loan qualification is not impacted because the loan is a "silent second" mortgage.
    * Buyer must attend a home buyer seminar.

Forgiveable Down Payment Loan and Time Requirements:

    * 5 years for assistance of $15,000 or less
    * 10 years for assistance of $15,001 - $40,000
    * 15 years for assistance of more than $40,000

Your Way Home AZ truly makes homeownership affordable. Based on a sales price of $137,00, the median for forclosed properties in Lake Havasu City, you loan amount could be as low as $106,860. Your house payment would only be approximately $624 (principal and interest only). Wow! That is cheaper than rent.

Now is the time to buy a home in Lake Havasu City:

    * First-time home buyers can still qualify for the First-time Home Buyer Tax Credit.
    * Home buyers qualify for closing costs tax deductions.
    * Home buyers qualify for mortgage tax deduction every year.
    * Interest rates have dropped.

Not all counties or cities in Arizona qualify for the Your Way Home Program. The program does vary from one qualifing area to another. Call your real estate agent or lender for details. By the way, if you are already working with a lender, who is not on the approved list, don't change lenders. The Arizona Department of Housing, which adminsters the program, is willing to work with lenders, who are not on the approved list.

    * Approved Lenders
    * Income Eligiblity
    * Your Way Home Az Website

Donna Ball, Always on the Ball with Lake Havasu City real estate

If you are looking for a tax credit, Lake Havasu City may just be the place for you to invest your dollars while receiving a tax credit from the state of Arizona. Arizona residents have been given a great opportunity to help their community and to receive a tax credit.

Instead of raising taxes to help support extra-curricular school activites, the great state of Arizona is giving its residents a tax credit. Arizona's tax law (A.R.S. 43-1089.01) allows residents to deduct up to $400 when supporting school activities.

What an innovative idea! Instead of raising taxes to help support our schools, Arizona gives its residents a tax break. Remember, there is a big difference between a tax deduction and a tax credit. A tax credit is always dollar-for-dollar, which is much more beneficial to you. At tax time, if you file jointly and owe $400 in taxes, after your tax credit is applied, you will owe ZIP!

Your donation to the Lake Havasu Unified School District extracurricular activity programs and character educations programs today, becomes your tax credit tomorrow.

You can donate any amount you wish, large or small, and the State of Arizona will match you dollar-for-dollar at tax time in the form of a tax credit.

* $200 maximum for those filing individually
* $400 maximum for those filing jointly

Lake Havasu High School's athletic department is saying "thank you" to all who donate the maximum tax credit allowed with a family pass to all Lake Havasu High's 2009 - 2010 athletic events. You can donate to the athletic department or towards a scholarship for an individual athlete (not your child).

For all of you lucky enough to live in our great city, take advantage of this great tax credit because it benefits our students, community and you. For those of you who do not live in our beautiful sunny state, maybe it is time to think about a move!

Learn more about the Tax Credit at Contribution Online Form: http://www.havasu.k12.az.us. For more information, you may also speak to Jackie Taylor at the Lake Havasu Unified School District office by calling (928) 505-6917. Last year, the district raised more than $544,000 for school activities through the tax credit program.

Donna Ball, On the Ball About Lake Havau Real Estate

A few weeks ago, I posted a blog entitled Seize the Day – Lake Havasu Opportunities Won’t Last Forever. At that time, I did not realize that there would be a Part 2. But, after reading the latest real estate news, I found that there was good reason to write a Part 2, or "the rest of the story" (for all the Paul Harvey fans).

There is much happening on the real estate front. So, deciding what to post today was rather difficult. I decided to post what I believe is the most urgent news and disappearing opportunities for Lake Havasu home buyers:

* Interest Rates are UP!
* First-Time Home Buyers Tax Credit - Time is Running Out

Interest Rates are UP

* Wall Street affects Main Street once again - Treasury Yield Bonds are causing interest rates to rise.
* Interest rates have jumped in the past 3 weeks from all-time lows to today's current rates.

~April rates were as low as 4.75%
~May rates were as low as 4.91%
~Today's Arizona rates are 5.375% - 5.875%

In my first Seize the Day post, I made the following statement: "seize the day – take advantage of the opportunity to get the lowest interest rates in 40 years!"

o Unfortunately, that day may already have passed.
o Rates are still lower than last year's rates (6.5%).
o Following a quick rise in rates, many times there is a fall back. However it is very unlikely that rates will fall below 5%.
o Higher interest rates mean higher mortgage payments.
o Higher interest rates mean qualifying for a lower sales price.
o Buyers have lost more than $13,000 in purchasing power in less that two weeks.

First-Time Home Buyers Tax Credit - Time is Running Out

* Escrow must close on or before November 30, 2009 to qualify for the tax credit.
* Loan processing times have, in some cases, increased due to underwriter scrutiny. Don't wait too long.

Tax Credit Advantages

o Dollar-for-dollar credit.
o Any unused portion will be refunded to the taxpayer.
o Can be used as a down payment and/or to pay certain loan fess when using FHA financing.

Seize the day – the opportunities to buy Lake Havasu real estate at today’s affordable prices will change.

* Today's median price is $153,000 while, in 2008, the median price was $255,000.
* Today's median price is $153,000, up $3,000 from a month ago.

Seize the day – the opportunities to choose from a large inventory of homes in Lake Havasu will disappear.

* Lake Havasu continues to see a drop in the number of homes on the market.
* April 2009 Inventory: 1,022 homes
* May 2009 Inventory: 969 homes
* Today's Inventory: 934 homes

Seize the day – the opportunity to take advantage of today’s buyer's market will not last forever.

* The market is stabilizing nationally.
* The market is stabilizing locally.
* The economy is expected to recover in the fourth quarter.
* The foreclosure rates are still extremely high, but the numbers are beginning to decrease.
* The real estate market is expected to make a full recovery by 2011.
* As the market stabilizes, inventory will decrease.
* As the market stabilizes, home sales prices will increase.

It is time to forget the doom and gloom. It is time to seize the day.

Donna Ball, Always on the Ball with Lake Havasu real estate

Warren Buffet says take advantage of today's real estate and stock markets now.
I say seize the day - take advantage of the real estate investment opportunities in Lake Havasu. They won't last forever.

Federal Chairman Bernanke says that the real estate market is beginning to stabilize.
I say seize the day - the opportunities to buy Lake Havasu real estate at today's affordable prices will change.

Inman.com says the risk of a second depression are fading. Everything is getting back to normal.
I say seize the day - consumer confidence is up, buyers are returning to the market and the opportunity to take advantage of today's Lake Havasu real estate market place will be fading as well.

Senior Loan Officer Opinion Survey says that applications for prime mortgages have increased for the first time since April 2007.
I say seize the day - take advantage of the opportunity to get the lowest interest rates in 40 years!

RealtyTimes.com says reports from all over the nation indicate that the real estate market is turning around. Even the hardest hit areas are seeing double digit increases in homes sales and are experiencing multiple offers on "best buy" homes.
I say seize the day - the opportunities to chose from a large inventory of homes in Lake Havasu will disappear.

RealtyTimes.com reports that 71% of Americans feel that now is a good time to invest in real estate.
I say seize the day - the opportunity to take advantage of today's buyers market will not last forever.

Obama says the first-time buyer tax credit expires in six months.
I say seize the day - the opportunity for free money is disappearing rapidly.

Lake Havasu Assoication of Realtors says sales are on the rise in Lake Havasu.
I say seize the day - the opportunity to take advantage of the best real estate buys in Lake Havasu and Mohave County is now.

Donna Ball, Always "On the Ball" with your Lake Havasu real estate needs

The weather is not the only thing getting hot in Lake Havasu City. So is the Lake Havasu real estate market! April saw a 40% increase of sales over those in April of 2008. In addition, there are about 320 homes that are reported under contract. Closed sales for 2009 are fast approaching the "500 homes sold" mark.

Sales activity began to change in Lake Havasu around October of last year. Since then, sales have consistently been on the upswing over sales activity in 2008. Every month this year has also seen an increase in sales over each prior month.

    * January 2009: 79 homes sold in Lake Havasu; a 29.5% increase from 2008, when only 61 homes sold.
    * February 2009: 93 homes sold in Lake Havasu; a 7% decline from 2008, when 100 homes sold.
    * March 2009: 137 homes sold in Lake Havasu; a 31.7% increase from 2008, when 104 homes sold.
    * April 2009: 140 homes sold in Lake Havasu; a 40% increase from 2008 , when 100 homes sold.

According to the Lake Havasu Association of Realtors database, there are 1004 residential properties available on the market in Lake Havasu City. This would indicate that the excess supply of homes is beginning to dwindle. Only 87 of those currently for sale are listed as foreclosed properties. There are approximately 265 homes under the median home prices of $153,050.

Inventory is decreasing. The foreclosure market is declining. Sales are up. Things are getting hot here in Havasu!