The Phoenix Real Estate Advisor

Some of the hot economic news we talked about last week has hit and … its interesting. 

-          Housing starts were down 4.5% and building permits were down 12%

-          CPI (measure of inflation) posted the largest decline in the 51 year history of the BLS

-          Average weekly earnings rose 1.4%

I am going to take a glass is half full stance on these numbers.  Obviously the lower inflation number is a big plus (we must see what the Fed does with rates to see where this will go), and the hike in earnings is positive.  The negative housing stats while “negative”, are helping to ease inventory or what inventory would be which is one of our core issues right now.  Low mortgage rates and a decreasing inventory will certainly not hurt our cause.

Mortgage rates are doing their best to break away from the 200-day moving average.  The problem is, they haven’t made up their mind what direction to go.  Mortgage Bonds (mortgage rates) have traded sideways and remained relatively unchanged for 11 straight days now.  That is something we haven’t seen in 2 years.  So, I am not complaining about this nice break from the volatility we have become accustomed to, but I am eagerly awaiting a break for the better.

We will be sure to keep you posted!  Please let me know if you have any questions!

Jay Otlewski, RE/MAX Integrity, 623.362.3060, Jay@valleyREadvisor.com

OK, I know you might be getting tired of hearing about proposal 100 but I need to write about it one more time. This proposal is really important to all of us. If this proposal doesn’t pass you could find yourself as a home seller or buyer paying a new tax. This new tax will hurt home sales in Arizona which does not need any help making it worse then it all ready is.

Example of tax-

If a home sold for $275,000, Arizona residents would pay an additional $5,418 and it could be worse. A YES vote on proposal 100 will protect you from:

• Double Taxation
• Loss of Equity
• Damage to the Real Estate market
• Punishment of homeowners
• An unfair impact on lower-income Arizonans

To learn more and to calculate what you might have to pay go to:

www.YES-ON-100.com

Wow!  This is an incredible hike.  A little crowded for the first half, but many people  didn’t go all the way to the end, so it got better.  This is the canyon that Zane Grey, the western author fell in love with.  The novel he wrote “The Call of the Canyon” was set in this little portion of Oak Creek Canyon.  The West Fork Trail follows along a creek that flows into the Oak Creek.  The hike is about six and a half miles with only a total slight elevation change of about 300 feet, but the entire trail goes up and down constantly, so you are actually accumulating a much higher incline if you consider the arobic effects.

West Fork is probably one of the most beautiful hikes we have taken yet, except maybe the Devils Bridge trail.  The entire trip you are deep in the red rock canyon that was carved by this little creek and wind over the millinium.

You will see early into the slide show some ruins.  These ruins were once home to Bear Howard, one of Sedona’s early and legendary settlers.  Years later they were improved to form the Mayhew Lodge which was a getaway for many celebrities and diplomats.

You will also see a rock formation that is light colored and seems very much out of place.  Look at the full series of this formation, as you may see:  a fish, a mummy, or a Native American warrior.  I see all three, depending on which I am looking for.

We travel deep into ponderosa pine forests, some of which feels like it gets very little sun.  The temperature variance was probably about 10 degrees in some areas.  The end of this trail is at an area of the canyon that narrows significanly, to become just about unpassable.

The deeper we went into this canyon, the more fall color we saw.  Keep in mind as you look at the slide show that I did not enhance any of the colors.  There are differences in the vibrance of some of the rock only because much of this was in shadow.  We also crossed over the creek 15 times on rocks and logs that are percariously placed for passing.  We got pretty good at it about half way through as we found our center of gravity to balance!

As you look at these cliffs, keep in mind that most of them soar about 500 to 700 feet.  Some of the formations further out in the pictures are probably 1000 feet at least.  We are right at the cliffs edge, and can reach out and touch them in most spots.  This is incredible.  I can only imagine what the early explorers thought when they first found this place…

Just to clearify a few things about Proposal 100 that we all need to take serious this November. I highly recommend that you consider how this proposal will effect all of us and vote YES.

What is a Real Estate Transfer Tax?
A real estate transfer tax (RETT) is a state or local government imposed tax that is collected when you transfer ownership of your home, land or commercial real estate. Typically, once the tax is initiated, the rate can be increased by the state, county or city at any time.
Why are Transfer Taxes Proposed?
Too often, this form of taxation serves as a new source of revenue to balance a government’s bloated budget caused by overspending. Once this type of tax is put in place, not matter how low the tax rate is in the beginning, it always ends up being raised. 
What are the Problems with a Transfer Tax ?
IT’S DOUBLE TAXATION!
Governments already collect taxes on your property based on the property’s value. This new tax would unfairly cause a second tax to impact your home or property.
DAMAGES YOUR EQUITY!
Since the tax is assessed against the total value including the amount you owe on your mortgage(s), the overall equity earned by the seller is decreased.
SLOWS AN ALREADY SLOW MARKET!
In the current slow market, a transfer tax would make it more difficult for people to buy or sell homes. Once a transfer tax is put in place, it can be raised at any time. This costs people buying or selling their homes even more money.
PUNISHES THE HOME OWNER!
A home is often the biggest and most important asset a person has in life. A transfer tax reduces the equity people have worked hard building. People already pay multiple taxes and fees on their homes. This tax will layer on one more significant closing cost you will have to pay.
IMPACTS LOWER INCOME THE MOST!
This tax imposes the higher tax burden on lower income households that typically spend a larger percentage of their income on their home.

This is one of the best analogy that I’ve ever heard. It clearly explains to you why staging a home is so important.

A great way to convince your sellers of the importance of staging is to compare it to buying fruit at the grocery store. Every apple costs the same but you are going to pick through and find the best looking one. Staging is the same concept. Buyers are going to buy the home, in their price range, that looks the best.

For more information on staging a home please listen to my podcast with Renee Felts from Staged by Renee. Click this link to access these podcast http://phoenix.mypodcast.com/200808_archive.html.

You can also contact me directly for more information or to obtain your Free, no obligation market analysis at 623.271.4234!