Best Decade ever for some!

Summer movies in the Park, brought to you by the City of Maricopa.

It is always free.

Here is the movie schedule starting 4/5/08

Movies start at dusk!

4/5 Karate Kid             Hi-Yaa!

4/12 Goonies

5/3 Raiders of the Lost Ark!

5/17 Big

6/7 One Crazy Summer

6/14 Footloose

8/9 Back to the Future

9/13 Ferris Bueller's day off!

Don't forget your lawn chair & blankets!

Dallas-Fort Worth added more than 162,000 residents between July 2006 and July 2007, more than any other metro area. Three other Texas areas — Houston, Austin and San Antonio — also cracked the top 10.

Atlanta saw the second-largest population jump with just over 151,000 new residents. Phoenix was third with more than 132,000, and was followed by Houston, Riverside, Calif., Charlotte, N.C., Chicago, Austin, Las Vegas and San Antonio.

From MSNBC.com

Thanks to my client John for this.

Good informationa, FAQ's about Canadians buying in the US.

Here is a link to it: http://www.cra-arc.gc.ca/E/pub/tg/p151/p151-07e.pdf   This actually is understandable.

As always, please seek advice from Attorneys and Accountants.

First off a definition:

A spec can be one of two things:

1. A completed home

2. A dirt lot

A dirt lot? Yes. That definition of spec is a lot that the builder has chosen a model, elevation, structural options and sometimes they even colorize the interior. It just means that the builder has chosen the floor plan and the lot. They usually wont make any major changes to it, as the lot "spec" has already received it's building permits.

A completed home... The home is completed for a client and the loan fell through or the client backed out. A completed spec can also be from a "dirt lot spec" that no one bought during the building process and now it is finished.

Found some completed specs today:

Pictures, prices and upgrades

http://www.postlets.com/res/563315

http://www.postlets.com/res/563314

http://www.postlets.com/res/563301

http://www.postlets.com/res/563294

http://www.postlets.com/res/563287

http://www.postlets.com/res/563273

http://www.postlets.com/res/563222

http://www.postlets.com/res/563211

http://www.postlets.com/res/563203

http://www.postlets.com/res/563154

http://www.postlets.com/res/563115

http://www.postlets.com/res/563091

http://www.postlets.com/res/563071

http://www.postlets.com/res/563056

Why not use a buyer Representative? Doesn't cost you a penny.

Wouldn't it be good information to know that 3 weeks ago, the builder was selling the same home that you are considering for $10,000 less?

Brian Petersheim

800.207.6919 

I received this testimonial today from my clients Jake & Teri

This is exactly why you need a New Home Specialist. I am very proud of this one especially coming from two out of state Realtors.  

My husband and I were Real Estate agents from Utah moving to the great city of Maricopa, Arizona.  We had not yet gotten our new Real Estate Licences in AZ and knew that we wanted a great Realtor at our side...even if we were buying new construction.  I found Brian on the internet, actually on Craigslist.  He kept posting wonderful deals on the internet and seemed to be the first to find them.  I knew there were great deals in Maricopa and I wanted someone who would help us find the best. 

 

Well, to make a long story short... Brian showed us a lot of models and spec homes.  We actually chose one to be built with a 4-6 month wait.  We were happy with the home, but just kept looking in case another smokin deal came along.  Plus, we wanted to move as soon as possible.  We ended up finding just that deal.  Brian found us a wonderful Spec that closed 2 months sooner than our new constuction.  This home was a huge 3569 sq ft...had granite counters, awesome upgraged cabinets, the perfect layout, as well as in the community we had fallen in love with.  We were so thrilled with Brian.  He was great at negotiating with the builder.  He helped us bring an already rock bottom price down another $20,000.00.  At closing our home appraised for almost $50,000.00 more than we paid for it. 

 

He helped us through the entire process, kept looking even when he didn't have to, and really just was an exceptional Realtor.  He is in constant communication with you and won’t ignore you like some agents out there. He’ll answer all of your questions and make sure you are very comfortable with the home buying process.

 

I had friends that asked if I woud have rather represented myself....and the answer is no.  Brian did a great job, and helped us find our dream home.  I would recommend Brian to anyone wanting to buy a home in the Maricopa area.  He will find you the best deal out here!  There is no doubt Brian will be the right choice for you too. Thanks Brian,

 

Market-at-a-Glance

In-Depth Analysis

March 2008

Market-at-a-Glance

The Market-at-a-Glance section contains an overall summary of the trends described in our detailed articles.

A recap of the current market indicators are as follows:

 

• 1. Resale Listings – 57,305

• a. The February listing count climbed again after the typical fall off in the final two months of 2007. The increase from January to February was 431 (.8%). The trend of this metric shows that listings have been increasing for the past 32 months. The February increase fits the normal calendar cycle.

• 2. Resale Sales – 3,445 - 2,907

• a. Resale sales volume is down from this month in 2007 by 1,502.

• b. Resale sales volume is down 2,448 sales from this month in 2006.

• c. Resale sales volume is down 4,336 from this month in 2005 (the 2005 figure was very inflated by speculator activity).

• d. Resale sales volume is down 2,751 from this month in 2004 (the 2004 figure was very inflated by speculator activity).

• e. Resale sales volume is down 2,048 from this month in 2003.

• f. Resale sales volume is down 958 from this month in 2002.

• g. Resale sales volume is down 1,164 from this month in 2001.

• 3. Resale Sales Price - $213,400

• a. The median January sales price is down by $6,600 from January 2008.

• b. The median sales price has declined $41,600 in the last five months.

• c. The median sales price is $46,600 below the September 2005 level.

• d. The appreciation rate for the last twenty-eight months (September 2005 to present) is a negative 7.4% on an annualized basis.

• 4. New Home Market

• a. The number of New Home specs in February decreased by 86 from the January count to 3,628. The record level was in October 2006 at 4,692. Prior to February 2006 the record was 2,400 homes.

• b. The number of new home subdivisions selling declined for the third straight month; down by 14 to 1,082 (the largest number ever recorded prior to 2006 was 813 in May 2003).

The spec inventory remains far above norm. That level is currently nearly double the level that has historically been healthy for our market. What will it take to get the inventory level back into a normal range for our market?

Sales have now been below the 2002 level for eleven months. I believe that a major portion of the drop in sales through August from the2002 level can be attributed to three factors:

1. Potential buyers waiting to be able to sell their homes

2. Buyers concern about the magnitude and timing of the market price correction

3. Tightening in mortgage qualification criteria.

Much of the driver for the major drop from September to present can be attributed to lack of consumer confidence.

This is not true of the drop from 2004 - 2006 which can be almost totally attributed to drastically reduced speculator buying.

The general press is reporting housing market information that is six to nine months old. The In-Depth Analysis Newsletter provides current information that you need to serve your buyers and sellers and to help them understand what is happening in today’s market.

Side Note

I personally believe the quantity of New Home specs we are reporting is only about one half of the true number – making the actual count 6,000 - 7,000. Because of this huge quantity of specs and the fact that many of these are completed or very near completion, the typical pattern of the resale market leading the new home market has disappeared. Since completed specs and resale homes appeal to much of the same buying public, parts of the two markets have, in essence, become one market (excluding the geographic factor). In my opinion the spec market is actually leading the resale market in the pricing arena because builders have the ability to make price changes much more rapidly (and are doing so) than the resale market as a whole. This supposition leads me to the belief that sales volume in the new home market will recover sooner than the resale market.

With the market favoring buyers, are the builders slowing down? Are they still building.

Permit info provided by the City of Maricopa

Please note : "Building SFR"= Building Single Family Residence <---------- Homes!!!!

Permits Issued Report.

Permits Issued for the 2007-2008 Fiscal Year.

Permit Type	Jul	Aug	Sep	Oct	Nov	Dec	Jan	Total
Building SFR	245	161	144	154	127	98	110	1039
Building Non-Residential	8	32	24	4	16	7	8	99
Demolition	0	0	2	0	0	0	1	3
Electrical	6	14	15	9	25	5	5	79
Engineering	6	12	5	7	7	2	5	44
Grading/Drainage	3	1	2	5	3	1	1	16
Plumbing	19	17	10	7	7	11	11	82
Pool	52	47	20	51	34	16	20	240
Sign	2	4	6	2	5	1	3	23
Total	341	288	228	239	224	141	164	1625

This author brought up a great point!

Say you bought a 200k house today at 6% 30 year fixed.

Whoops... Prices drop by 10% as the bottom of the market is hitting. Problem is... Interest rates are now 6.5%

Guess what payment is the same in both homes. Even though you invested at the very bottom of the market, payments are still the same as the gent that bought a year ago. If the "waiter" was paying rent, he lost money!

Here is the article!

Ignore The Headlines

^{By Dan Kadlec}

^{http://www.time.com/time/magazine/article/0,9171,1713483,00.html}

 

Famed Money Manager Edmund Lynch is perhaps best known for his timeless wisdom that you can beat the pros by focusing on stocks of companies where you either work or shop or have some other edge. But a more relevant Lynchism today is this gem: Ignore the headlines.

That's no easy thing. How do you tune out all the chatter and ink on recession, housing, subprime woes, the credit crunch, rogue traders, insolvent bond insurers, $100 oil and nukes in Iran? It's enough to make you sit on your thumbs and wait before making any big moves. But what, exactly, are you waiting for?

There has rarely been a moment in history when you couldn't scare yourself into doing nothing. And yet, as Lynch observed nearly 20 years ago, "in spite of all the great and minor calamities that have occurred ... all the thousands of reasons that the world might be coming to an end--owning stocks has continued to be twice as rewarding as owning bonds."

A top reason to not buy stocks, in Lynch's view, is if you don't already own a home--in which case, that should be your first investment, since an owner-occupied home is nearly always profitable. Through a spokesman, Lynch reaffirmed these views to me--housing debacle and all.

When prices are falling, few people have the discipline to buy stocks, a house, gold, art or any other asset. But those who do pull the trigger excel in the long run. As John D. Rockefeller famously said, "The way to make money is to buy when blood is running in the streets."

And the streets are stained crimson. Start with stocks. They have been pummeled this year. GDP braked sharply last quarter, and there has been plenty of panic about a recession. The Federal Reserve is slashing short-term interest rates at the fastest clip in decades. But if you stick to your steady, diversified plan while everyone else is retreating, you will be happy years from now. For one thing, Fed rate cuts always lift the economy eventually, and the stock market typically starts responding just as headlines get gloomiest. Sure, the market could fall again before recovering. But the recession may be half over already--or we may avoid one altogether. You just never know.

As for housing, certainly some skepticism is in order. Formerly sizzling markets in Florida, Nevada, Arizona and California probably haven't seen the worst headlines just yet, though they may well be close. And "jumbo" mortgages, those more than $417,000, are likely to remain artificially high for a few more months while banks work through their credit issues.

But let's say you are emotionally ready to be a homeowner. You have good credit, plan to stay put for five years and have been waiting for the perfect entry point. It's time to get serious--before an inevitable rise in interest rates wipes out your advantage. "The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher," says Jim Svinth, chief economist at mortgage firm Lending Tree. So anything you gain by a further drop in prices might be offset by rising financing costs.

Consider a typical home that sells for $218,900. You put down 20% and get a 30-year fixed-rate mortgage at today's rate of 5.5%. Monthly principal and interest come to $994.31. Let's say that 12 months from now the same house goes for 10% less, or $197,010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise a point, to 6.5%, your monthly payment would be $994.94 and you'd have saved nothing. Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living someplace you'd rather not be.

It's more complicated if you must sell before you can buy. But that logjam won't persist forever--and if it appears you'll be trapped for a few years, try to refinance at today's lower rates. Risks always seem most acute when the headlines give you ulcers. But that's exactly when you should think long term--and get off your thumbs.

 

Gerald Paquette and Gerald Dratch share first names and almost identical views of the Gulf.

Their Siesta Key condominiums have the same number of rooms and are worth the same amount of money.

They are separated by one floor and taste. Paquette, 65, has an eight-foot stuffed blue marlin hanging on his dining room wall. Dratch, 77, prefers sketches of American Indians.

But Paquette paid about $5,700 in countywide taxes last year; Dratch paid about $2,300.

The $3,400 difference is typical of how Florida's decade-old Save Our Homes constitutional amendment has riddled neighborhoods across the state with discrepancies and inequalities.

Taxes on virtually identical houses often differ by thousands, even tens of thousands of dollars.

And it's not just neighbors. Save Our Homes deals the biggest tax breaks to longtime residents living in the wealthiest areas. New owners in modest neighborhoods often pay the same tax bill as millionaire homeowners near the beach.

In the decade since Floridians revolted against years of double-digit tax hikes and passed the amendment, it has created numerous tax castes that have as much to do with determining tax bills as the value of property.

At the bottom are snowbirds, businesses and landlords, property owners who don't even qualify for Save Our Homes. The rest of the castes depend on how long you live in your home and how fast property values in your neighborhood are increasing.

Dratch bought his Whispering Sands unit in 1995, eight years before Paquette, so he gets a bigger tax break.

Even those who have enjoyed Save Our Homes tax breaks for years run afoul of the system if they sell. Selling a home voids a resident's tax break, no matter how long the homeowner has lived in Florida.

"I don't think it's fair," Dratch said, despite his Save Our Homes benefits. "I would support something based on income, something that is fair and equitable."

Despite all the inequities, the amendment remains immensely popular, saving millions of state residents billions of dollars in property taxes,, especially as the real estate market exploded in recent years.

Tax revolt

Florida's system of giving state residents a property tax break began in 1934, when a $5,000 homestead exemption became part of the state constitution.

Its architects wanted to attract Northerners to a swampy, mosquito-infested wilderness.

Gradually, air conditioners replaced attic fans, golf courses replaced swamps and pesticides made insects manageable. Jimmy Buffett made his fortune singing of the state's tropical seductions.

Millions responded. By the mid-1980s, the flood of arrivals drove up prices -- and taxes -- so fast that it threatened to force many from their homes.

Taxable property values skyrocketed because of the rising values and a state mandate that counties start assessing property at full market value. As values increased, local governments didn't lower tax rates enough to prevent double digit increases in taxes.

The homestead exemption, by then worth $25,000, provided little relief.

Led by activists in Charlotte and Lee counties, Floridians revolted.

In 1992, they approved the Save Our Homes amendment to protect residents, especially those on fixed incomes, from being taxed out of their homes.

The amendment capped annual increases in the taxable value of residents' homes at no more than 3 percent, regardless of how much the real value increased. It ensured that any resident who qualified for the homestead exemption would be protected from massive increases in property values.

It also ensured that those who are unprotected by the amendment -- snowbirds, business owners, investors, landlords and second-home owners -- picked up a disproportionate share of taxes.

In 2004, homesteaders owned about half of the property in Florida but paid about 38 percent of property taxes; non-homesteaders paid 62 percent.

Same home, different tax bill

A decade after Florida's tax revolt, the inequities it created can be found in virtually every neighborhood and subdivision in the state.

In 1995, some of the first residents of Manatee County's Lakewood Ranch development moved into homes around Meandering Way.

There were three models to chose from, all with three or four bedrooms.

Today, the sapling live oaks planted in the front lawns have grown into shade trees, but the homes haven't changed. Yet the taxes paid from one house to the next differ wildly.

Larry Zunica moved from Chicago into the subdivision earlier this year. He stood in his driveway with two of his sons recently and looked up and down Meandering Way, knowing many of his neighbors will pay $2,000 less in taxes than he will.

"It certainly isn't fair," he said. "I'm paying the market price and they are reaping all the benefit."

Last year, he paid about $3,800 in countywide taxes on his home and his taxes could be several hundred dollars higher this year.

Down the street and around a bend, Jim Hallman's taxes were less than half that and probably won't change much this year.

"I look around and this one sold, that one sold, and they all paid a good price," Hallman said. "Bless them all; they are pushing up my value.

"I love Lakewood Ranch. But I'll tell you, if my taxes started going up that much, I'd be outta here."

Scales tilt toward the wealthy

While millions of Florida's homeowners enjoy breaks like Hallman's, Save Our Homes reserves the biggest breaks for homes in the wealthiest communities.

Residents near the water in Charlotte, Sarasota and Manatee counties often receive two or three times the Save Our Homes tax benefit of residents living in inland subdivisions.

As a result, residents buying relatively modest homes inland often pay more in property taxes than owners of waterfront homes worth millions.

Andrew Marchese lives about a mile west of Interstate 75 in a subdivision off Proctor Road in Sarasota County. He will pay about $5,100 in countywide taxes on his $525,000 home this year.

At least 448 county residents with homes valued at $1 million or more will pay less.

"It's pretty upsetting," he said. "They oughtta be paying their fair share."

Marchese said he moved to Florida from a Maryland suburb of Washington, D.C., in 1999, and had no idea that Florida law offered substantial tax breaks to residents.

"We came from one of the most affluent counties in the country and our taxes didn't seem so high. I am amazed how high they are here in Sarasota."

Others in similar positions, however, are more forgiving.

Venice resident Edward Feldman doesn't begrudge some owners the disproportionate breaks they receive. "It's a lot like the real estate market," he said. "If I had bought a couple of years earlier, I would be so much better off."

Super-sized tax breaks

The disproportionate benefit the wealthy get from Save Our Homes comes into particularly sharp focus in areas where the state's wealthiest residents live.

Last year, 1,000 Florida homeowners saved more than $25,000 each in countywide property taxes because of the amendment. The values of their homes ranged from $1.5 million to $42.5 million.

The list includes gilded heirs and industry moguls. Others are among the state's most recognizable citizens, including golfer Greg Norman on Hobe Sound, singer Gloria Estefan in Miami Beach and Palm Beach residents Rush Limbaugh, Tampa Bay Buccaneers owner Malcolm Glazer and Jimmy Buffett.

In 2004, the 500 biggest Save Our Homes tax breaks in Dade and Palm Beach counties totaled a combined $22 million in taxes -- more than the tax revenue for 25 of Florida's 67 county governments.

Former ITT Chairman Rand Araskog will save about $145,000 in county property taxes on his $18 million Palm Beach mansion this year -- up from $120,000 in 2004.

But he is troubled that some of his neighbors seem to take advantage of Florida's tax system, claiming they live in Palm Beach yet spending little time there.

Many of Araskog's neighbors shutter their mansions for much of the year. During a recent visit to Palm Beach, the only activity in some of the compounds near his home was the yard work being done by immigrant workers.

Yet the properties are legally homesteaded.

"People who have a commitment down here should have the benefit," he said. "I think, to be able to homestead, you should be (here) six months a year."

In fact, there is no requirement that property owners spend any time in a home to qualify for an exemption, provided that, on paper, it has been designated as their primary residence on Jan. 1.

In Boca Raton, former Tyco International president Dennis Kozlowski's compound sits on the Intracoastal Waterway.

While he was on trial earlier this year in New York on charges he looted $600 million in company funds, he was enjoying a $40,000 break on Palm Beach taxes.

And while he appeals his June conviction on the charges, including grand larceny and falsifying business records, his 2005 tax break could top $72,000.

The trustee of his Florida estate, Robert Murdoch, refused to comment on Kozlowski's homestead.

Kozlowski bought the house in 2001, while splitting time between Tyco's Exeter, N.H., Princeton, N.J. and Boca Raton offices.

"I'm not troubled from the standpoint that they are entitled to it," Palm Beach County Property Appraiser Gary Nikolits said.

"Do I like the fact that they are not here? I live here full time. And I think people who live here full time ought to be the people who get the exemption."

Breaks can be fleeting

Regardless of the size of a resident's break, state law revokes homeowners' Save Our Homes benefit if they sell their homes.

Those hit especially hard are parents with growing families who want more space, or empty nesters who want a smaller home after the children grow up. People who must move for a job can end up saddled with a tax bill that is double or triple what they paid on their old home.

Earlier this summer, the Sivitz family packed up the $300,000 Sarasota home they had lived in for 11 years and moved one mile to a subdivision near Proctor Road.

"We wanted something bigger and newer and we wanted a pool," Beth Sivitz said.

Before buying, however, they had to decide whether to give up a $1,300 annual tax bill.

Sivitz expects taxes on her family's new home, which they bought for about $480,000, to be about $4,500.

The value of their new home is about 60 percent more than that of their old house; their taxes would jump by about 240 percent.

"That's a big jump and we're not happy about it," she said.

Supporters undeterred

Despite inequities, Save Our Homes provides a substantial tax break for millions of middle-class homeowners.

Beginning in 2003, Floridians saved more on their taxes because of Save Our Homes than because of the homestead exemption.

Last year, Save Our Homes saved Floridians $2.9 billion in countywide property taxes.. The homestead and all other exemptions saved them another $2.2 billion.

In Dade County, the owner of a modest $170,000 home saved more than $1,300 because of Save Our Homes in 2004. A typical Broward County owner saved about $1,200; Palm Beach and Manatee residents saved about $1,000; Sarasota residents saved about $800; and Charlotte residents saved about $700.

Supporters of Save Our Homes remain unapologetic despite the disproportionate tax burden paid by newcomers and those unprotected by the amendment -- snowbirds, business owners and landlords.

"I am one of the proud fathers," said Lee County Property Appraiser Ken Wilkinson, one the most vocal advocates for the amendment.

Sitting behind his desk in Fort Myers recently, Wilkinson bounced up and down in his chair with glee when discussing it.

"We did not do this willy nilly."

It all started with the postulates that "all growth is evil" and residents deserve a tax break, he said.

Coming from that perspective, Wilkinson easily justifies the disproportionate burden on different groups of residents.

He argues that newcomers should pay more taxes so they can defray the cost of building new roads, libraries and other expenses associated with their arrival.

It's not fair to put those costs on longtime residents, especially those on fixed incomes, he said.

Wanda Strickland lives on the edge of Sarasota Bay, in a neighborhood canopied with live oaks and hemmed by tropical bushes and decorative palms.

Forty-three years ago, the retired teacher's three-bedroom, airy bungalow was a secluded refuge. Today, it's dwarfed by nearby mini-mansions.

In many ways, she personifies who the amendment was intended to protect.

Her house was valued at $933,000 in 2004. Largely because of the amendment, however, her taxes were calculated as if it was worth $133,000. She paid about $2,000 in county taxes, saving her about $11,000.

"I would not be able to live here if I had to pay those taxes," she said.

Still, she is also troubled by the seemingly limitless benefit she and other residents receive. "They don't put a limit on one end. There should be some kind of cutoff, something reasonable."

Database: Use this searchable map to see how taxes compare

Interactive graphics: Find out how to qualify for Save Our Homes protection, why similar homes get different tax rates, why tax revenues have incresased and what your county is worth

Last modified

Lot of folks coming down to view homes, many just passing through, maybe taking their sand rails out to the dunes.

Either way, please be aware of the police presence in Maricopa. I would estimate they have given out 200+ speeding tickets in the past 4 weeks.

They set up photo radar on the 347 into town, and also have mobile radars running on most busy thoroughfares. (By the way, the speed limit drops pretty quickly just as you enter town.)

Please take your time and don't speed.

 Instead of just posting certain graphs and charts. I decided to just cut and paste the Newsletter that I subscribe to. That way YOU can choose which articles you would like to read.

By the way, I do have permission to repost this only on my blog!

IN-DEPTH ANALYSIS

February 2008

 

Spec Home vs. Resale Prices

 

This article offers an overview of the spec home list pricing trend and the resale sales price trend over the last couple of years. Contrasting these two trends provides valuable insight into pricing issues.

 

During most of this time period the median resale sales price has been basically flat, while for the past 15 months the new spec home list price has been steadily falling.  It would be beneficial to look at both of these trends over the full time period, but unfortunately our source of spec pricing data is not available prior to June 2006.  However, the presentation of these 19 months of data does offer these valuable insights:

1. Spec list pricing has been falling for the last 15 months.

2. Spec list pricing is down 14.7% in the last 15 months.

3. Resale sales price has fallen for only six out of the last eight months.

4. Spec pricing began declining about nine months before resale pricing.

Resale Home Sales Price vs. Historical Norms

Resale Home Sales Price vs. Historical Norms

 

 

The source of the data for our spec pricing study is the specs that are listed in the Ultimate New Homes Database.  This is not an all inclusive list of specs, but is fairly representative of whole.  Some, but not all, of the spec pricing data includes some of the incentives being offered by the builders.  The source of the resale pricing data is ARMLS.