A “housing start” is a new home on which construction has started.

The housing market has carried forward its year-end momentum.

This hasn’t happened in close to 2 years and is the latest in a series of strong data that suggests the beleaguered housing market has turned a corner — both nationally and locally in Arizona.

Although single-family starts slipped 1 percent from December, January’s annualized 508,000 figure represents a 16% spike from January 2011 and is the second-highest reading since April 2010 — the last month of 2010′s federal home buyer tax credit program.

The strength of January’s Housing Starts data surprised Wall Street analysts and is  responsible for an unexpected mortgage rate spike last week.

We should have seen this coming.

Earlier in the week, the National Association of Homebuilders announced that Homebuilder confidence has climbed to its highest point since 2007 amid builder reports of rising sales volume and the most foot traffic from buyers in more than 4 years.

In addition, builders expect to sell more homes in 2012 than in 2011.

The Builders are building and the Buyers are buying.

Meanwhile, as another sign of housing market strength, the Census Bureau reports that, in January, Building Permits moved to a multi-year high as well. Permits issued for single-family homes in January rose 1 percent from December, a statistic that suggests housing will continue its run through the spring season, at least.

86 percent of homes break ground within one month of permit issuance.

It’s a good time to be a home buyer. Mortgage rates and home prices are low. Housing market momentum, however, is building. If you’re on the fence about whether to buy a home in Arizona, ask your real estate agent for additional market information.

The cost of home-ownership may never be as low as it is today.

In his recent guest column regarding the impact of the health care bill, Paul Guppy of the Washington Policy Center claimed that a 3.8 percent tax on all home sales was a part of the recently passed legislation. This is inaccurate and needs to be corrected.

The truth about the bill is that if you sell your home for a profit above the capital gains threshold of $250,000 per individual or $500,000 per couple then you would be required to pay the additional 3.8 percent tax on any gain realized over this threshold.

Most people who sell their homes will not be impacted by these new regulations. This is not a new tax on every seller, and that correction needs to be made. This tax is aimed at so-called “high earners” – if you do not fall into that category you will not pay any extra taxes upon the sale of your home.

Below is a link to a report published by The National Association of Realtors that will help allay your fears.

Here is the report summarized:

Beginning January 1, 2013, a new 3.8 percent tax on some investment income will take effect. Since this new tax will affect some real estate transactions, it is important to clearly understand the tax and how it could impact you.

Understand that this tax WILL NOT be imposed on all real estate transactions, a common misconception. Rather, when the legislation becomes effective in 2013, it may impose a 3.8% tax on some (but not all) income from interest, dividends, rents (less expenses) and capital gains (less capital losses). The tax will fall only on individuals with an adjusted gross income (AGI) above $200,000 and couples filing a joint return with more than $250,000 AGI.

The New 3.8% Tax Rate

Applies to:

• Individuals with adjusted gross income (AGI) above $200,000
• Couples filing a joint return with more than $250,000 AGI

Types of Income: Interest, dividends, rents (less expenses), capital gains
(less capital losses)

Formula: The new tax applies to the LESSER of

• Investment income amount
• Excess of AGI over the $200,000 or $250,000 amount

Click here for specific scenarios:

• Capital Gain: Sale of a Principal Residence
• Capital Gain: Sale of a Non-Real Estate Asset
• Capital Gains, Interest and Dividends: Securities
• Rental Income: Income Sources Including Real Estate Investment Income
• Sale of a Second Home with No Rental Use (or no more than 14 days rental)
• Sale of an Inherited Investment Property (Residential or Commercial)
• Purchase and Sale of Investment Property (Residential or Commercial)

Be sure to check with your Tax Advisor for clarification.

Click here for the full online report.

Homebuilder’s Confidence is rising. The nation’s home builders are predicting a strong 2012 for new home sales. It may mean higher home prices as the spring buying season approaches.

For the sixth straight month, the National Association of Homebuilders reports that homebuilder confidence is on the rise. The Housing Market Index climbed four points to 29 in February; the index’s highest reading since May 2007.

The Housing Market Index is now up 8 points in 8 weeks. The last time that happened was June 2003, a month during which the U.S. economy was regaining its footing, much like this month. It’s noteworthy that June 2003 marked the start of a 4-year bull run in the stock market that took equities up 54%.

The NAHB’s Housing Market Index itself is actually a composite reading. It’s the end-result of three separate surveys sent to home builders monthly.

The association’s questions are basic:

1. How are market conditions for the sale of new homes today?
2. How are market conditions for the sale of new homes in 6 months?
3. How is prospective buyer foot traffic?

In February, builders reported marked improvement across all three areas. Builders report that current home sales climbed 5 points; that sales expectations for the next 6 months climbed 5 points; and that buyer foot traffic climbed 1 point.

Most notable of all of the statistics, though, is that the nation’s home builders report that there are now twice as many buyers setting foot inside model units as compared to just 6 months ago.

This data is supported by the monthly New Home Sales report which shows rising sales and a shrinking new home inventory.

Because of this, today’s new home buyers throughout Arizona should expect fewer concessions from builders at the time of contract including fewer price breaks on a home and fewer free upgrades. Builders are optimistic for the future and, therefore, may be less willing to “make a deal”.

If you are thinking of purchasing a new construction home, then this may be one of the most important times to have your own representation. Most people don’t realize that when they go to look at model homes that the agent greeting them and showing them the model homes is working for the builder, who in this case is the seller.

One of the best reasons to use a Buyer Representative when looking at new builds is that they have access to ALL of the builders and what they are building and where they are building.

Phoenix Median home price: $129,000
Growth:  Homes sold 27 percent faster in the fourth quarter compared to the same period in 2010.
A factor in the recovery:An improving job market: Unemployment dropped to 7.7 percent in November, which beats the national average and is a 1.1 percentage point improvement over 2010‘s rate in the city.

Read about how we rank along side the other Top Turnaround Towns…..

Source: “Top 10 Turnaround Towns,” CNNMoney (February 2012)

Florida cities are expected to see some of the biggest recoveries in housing prices in the coming months, according to a new report by Realtor.com that reveals the top turnaround towns. In fact, the signs are already there with drops in inventories and distressed homes, as well as higher listing prices and increases in sales.

The following are the top six housing markets expected to see the biggest turnaround, according to Realtor.com.

1. Miami, Fla.
Median home price: $185,000
Growth: Sales volume of existing single-family homes has jumped 51 percent in the third quarter compared to 12 months prior.
A factor in the recovery: International clients are snagging up Miami homes: In May, they purchased 60 percent of existing houses and condos and 90 percent of newly built homes.

2. Phoenix
Median home price: $129,000
Growth: Homes sold 27 percent faster in the fourth quarter compared to the same period in 2010.
A factor in the recovery: An improving job market: Unemployment dropped to 7.7 percent in November, which beats the national average and is a 1.1 percentage point improvement over 2010‘s rate in the city.

3. Orlando
Median home price: $145,000
Growth: Inventory of for-sale homes dropped 44 percent in the fourth quarter and homes that were on the market sold 37 percent faster than they did a year earlier.
A factor in the recovery: A strong tourist destination, Orlando is attracting international buyers, such as from South America, Canada, and Europe. Also, the job market is improving there, particularly aided by the development of a major medical complex.

4. Fort Myers, Fla.
Median home price: $115,000
Growth: Median listing prices here had the biggest increase in the nation last year, soaring 31 percent year-over-year.
A factor in the recovery: This retirement hot-spot is getting more attention from Canadians, who are taking advantage of a strong Canadian dollar and the fallen home values here.

5. Sarasota, Fla.
Median home price: $181,000
Growth: Sales volume here increased 17 percent during the three months ended Dec. 31 compared to year-over-year. Plus, home prices rose 2 percent in that time period.
A factor in the recovery: A drop in bank-owned homes and distressed sales is helping the housing market to recover, as well as an improving job market.

6. Boise, Idaho
Median home price: $120,000
Growth: A big drop in inventory: The number of homes for sale during the fourth quarter dropped by 40 percent compared to a year earlier.
A factor in the recovery: The metro area is seeing a growth in the diversity of its employers and the number of jobs its attracting, particularly in the tech industry and a growth in agricultural-based companies.

Here are some snippets:

“Executives of the Toronto Stock Exchange and investment bankers are in town to meet with CEOs and CFOs of entrepreneurial and fast-growing Valley businesses with the potential to go public.”

“TMX Group, which owns and operates the Toronto Stock Exchange, also brought with it a group of lawyers and accountants to help Valley companies sort through tax and structural issues associated with a foreign initial public offering.”

“The Canadian stock exchanges offer unique options and structures for taking smaller and midsize companies public that often aren’t available in the U.S.”

“That’s made the Canadian stock exchanges a viable alternative for companies in Arizona and across the nation. In 2011, 23 U.S. companies were new listings on the TSX Venture Exchange and Toronto Stock Exchange. That compares with 21 new U.S. listings on the TSX and TSX Venture Exchange in 2010.”

Read entire article written by: Jennifer A. Johnson

Las Sendas is a uniquely designed master planned community of 1800 acres. The desert where the homes have been built is preserved by large, dedicated open spaces.

View the ever changing textures and colors of the earth and sky as seasons pass in this beautiful Sonoran Desert foothills.

Amenities
The Trailhead Athletic Club & Spa – Your path to an Enriched Mind, Body and Community

• Massage therapy
• facials
• personalized fitness training
• nutrition guidance
• yoga
• aerobics

….just a few of the healthy lifestyle options available for a reasonable fee at the Trailhead Athletic Club.

Activities Department
Our Activities Director coordinates everything from tennis and swim team to youth and adult programs and other special community events. Special once in a lifetime or annual gatherings will find the perfect setting within the breathtaking indoor and outdoor banquet facilities with the over-sized sitting room, elegantly designed and decorated Clubhouse. Panoramic views of the city lights and Red Mountain await you at the upscale pool and tennis facility.
Parks and Trails

Sonoran Hills Tennis Courts at the Boulder Mountain Parke consists of four private courts including a stadium-style court. The Trailhead Members Club tennis center consists of two courts adjacent to the fitness center.

The Boulder Mountain and Trailhead Members Club multi-functional swimming facilities provide a play pool integrated with a lap pool, separate children’s wading pool and a luxurious spa with scenic views.

Boulder Mountain Parke, Sonoran Heights Parke and Desert Foothills Parke, totaling 28 acres, are completed with extensive amenities such as lighted basketball courts, lighted volleyball courts, large grassy play areas, softball or soccer field for daytime play, play stations and swing areas for children, covered Ramadas, barbecue grills, seating areas, bicycle racks, restroom facilities, drinking fountains as well as walking and biking areas.

Las Sendas Golf

Welcome to Las Sendas Golf Club, a Robert Trent Jones, Jr. design, renowned for its greens and sweeping views. The course has consistently been rated in the Top 10 in Arizona, the 12th most challenging, and one of the top 100 courses in the nation according to two ZAGAT Surveys. As a true desert course, being accurate and consistent will make your round one of the most satisfying.

The entire community is integrated by miles of natural desert and hard surface pathways for walking, biking or rollerblading as well as leading you to the recreational and school areas within Las Sendas. Some of the natural desert trails lead you to intimate settings where you may encounter a life-sized statue of an individual who has made an impact on the world – or you could even take a trail to the Tonto National Forest which, is Las Sendas’ northern
boundary.

Homes in Las Sendas

New Harp is expected to be available on March 19th. This program will offer relief for underwater homeowners by allowing them to refinance at low rates, thereby reducing their monthly mortgage payments.

Homeowners in Arizona and nationwide are gearing up to refinance.

HARP is an acronym. It stands for Home Affordable Refinance Program. HARP is the government’s loan product for “underwater homeowners”. HARP makes current mortgage rates available to households which would otherwise be unable to refinance because the home lacks equity.

This is a big deal — especially today. Mortgage rates are at an all-time low and millions of U.S. homeowners have been unable to take advantage. HARP aims to change that.

HARP originally launched in 2009. Its first iteration failed to reach a meaningful percentage of U.S. homeowners, however, because costs were high and loans were high-risk. With its re-release, the government has removed the hurdles to HARP, putting refinancing within reach for millions of U.S. households.

To qualify for HARP, homeowners must first meet 3 qualifying criteria.

First, their current mortgage must be backed Fannie Mae or Freddie Mac. FHA- and VA-backed loans are HARP-ineligible, as are jumbo loans and loans backed by portfolio lenders.

• To check if your loan if Fannie Mae-backed, click here.
• To check if your loan if Freddie Mac-backed, click here.

Second, the existing mortgage must have been securitized by Fannie Mae or Freddie Mac prior on, or before, May 31, 2009. If you bought your home or refinanced it after that date, you are HARP-ineligible.

There are no exceptions to this rule.

And, third, the existing mortgage must be accompanied by a strong repayment history. Mortgage payment must have been paid on-time for the last 6 months, at least, and there may not be more than one 30-day late payment in the last 12 months.

If these 3 qualifiers are met, HARP applicants should find the approval process straight-forward :

• Fixed rate mortgages allow unlimited loan-to-value
• The standard 7-year “waiting period” after a foreclosure is waived in full
• Except in rare cases, home appraisals aren’t required

Furthermore, HARP mortgage rates are expected to be on par with non-HARP rates, meaning that HARP homeowners in chandler will get the same rates and pay the same fees as everyone else. There’s no “penalty” for using HARP.

The revamped HARP is expected to be generally available beginning Monday, March 19, 2012.

To get a head-start on HARP, check with your loan officer for the complete list of HARP eligibility requirements.

Credit scores play a huge role in today’s mortgage market — larger than at any time in recent history. Blame it on the high default rates of the last half-decade. Lenders are reserving their lowest rates for the customers most likely to make on-time repayments.

Mortgage rates are at an all-time low in Arizona. However, the low rates you see advertised on TV and online are only available to the home buyers and homeowners wanting to refinance whose credit scores are pristine. Having a high credit score is often the difference between getting “the best rates” from your lender, and getting something worse.

The first part of improving your credit score is understanding how it works. In this 5-minute piece from NBC’s The Today Show, you’ll learn the basics :

• Why you shouldn’t close a credit card after you pay off a large debt
• What is the maximize balance to leave on your credit cards, relative to your credit limit
• What types of credit checks harm your credit scores, and which ones don’t

You’ll also learn how to shop for a mortgage with multiple lenders without having your credit score “dinged”, as well as several proven methods to raise your credit score quickly.

Click here for our recommendation of reliable Mortgage Lenders.

Traditionally, federal income taxes must be filed with the IRS on, or before, April 15 each year. The date has become such a part of U.S. culture that many people simply call it “Tax Day”.

This year, however, for the 3rd time in 7 years, your federal income taxes will not be due April 15. Instead, because of a combination of the calendar, a holiday, and tax law, Tax Day 2012 is delayed until Tuesday, April 17.

You will have two extra days to prepare and file your federal income taxes this year.

Here’s why.

First, April 15 is a Sunday and all federal offices are closed on Sundays. This means that that taxes can’t be filed on April 15, as regularly scheduled. Rather, the tax due date should roll over to the first available business day — Monday.

However, Monday, April 16 is Emancipation Day, a holiday in the District of Columbia since 2005.

Emancipation Day honors President Abraham Lincoln’s April 16, 1862 signing of the Compensation Emancipation Act. All of Washington, D.C. is closed for the local holiday — including the offices of the IRS. Taxes can’t be due on this date because there will be nobody at the Internal Revenue Service to receive them.

Therefore, Tax Day rolls over to the next available business day, and that’s Tuesday, April 17. Despite the 2-day change, as a reminder, the deadline to file a federal tax return with extension has not changed. That filing date remains October 15, 2012.

Also, note that most states have chosen to mirror the IRS’ tax deadlines this year even though Emancipation Day is a Washington, D.C-specific. Be sure to check with your accountant to confirm your local filing deadline.

Falling mortgage rates make owning a home more affordable.

It’s a money-saving time to buy a home in Arizona — or to refinance one. Mortgage rates have never been this low in history. Mortgage rates are directly tied to monthly mortgage payment so as mortgage rates drop, so does the cost of home-ownership.

According to Freddie Mac, last week, the average 30-year fixed rate mortgage fell to 3.87% nationwide for borrowers willing to pay an accompanying 0.8 discount points plus closing costs. 0.8 discount points is a one-time closing cost equal to 0.8 percent of your loan size, or $800 per $100,000 borrowed.

This represents an incredible value as compared to February of last year.

It was exactly one year ago that mortgage rates begin their long slide lower. On February 11, 2011, the 30-year fixed rate mortgage reached its peak for the year, reading 5.05% in Freddie Mac’s nationwide survey. If you are among the many U.S. households that bought or refinanced a home around that time, you could choose to replace your current home loan with a new one and save close to 13% on your monthly mortgage payment.

13 percent saved on your mortgage is a noteworthy statistic.

Look at this 30-year fixed rate mortgage payment comparison over the last 12 months :

• February 2011 : $539.88 principal + interest per $100,000 borrowed
• February 2012 : $469.95 principal + interest per $100,000 borrowed

Because of falling mortgage rates, a homeowner with a $250,000 30-year fixed rate mortgage would save at least $175 per month just by refinancing into a new loan at today’s mortgage rates. That’s $2,100 in savings per year.

Even after accounting for discount points and closing costs, the “break-even point” on a mortgage like that can come relatively quickly.

We can’t predict mortgage rates so there’s no promise rates will stay like this forever. If you’re planning to buy a home or refinance one, the best way to keep your monthly payments down is to lock your rate while rates are still low.

The market looks ripe for that now.