August Casa Grande Real Estate Market Update

    The market is showing even more improvement in the average price per square foot – a large increase of nearly 40% from July 2011 to July 2012 in closed sales! That’s an increase of $17 per square foot on average and July 2012 marks the highest average price per square foot in over 2 years. You may not see a direct increase in your value right away since appraisals and the news tend to be 3 to 6 months behind the current trends, but we have the data and statistics to back up the trends. If you’d like more information about your specific home, just let me know – even if you’re looking to refinance or are just curious about your home’s value – I can help.

    On the flip side, we are seeing a slowing in activity when it comes to purchases, however this was somewhat expected with the coming of summer – July and August have historically been slower months for housing in Casa Grande. This is largely due to the heat and the fleeing winter residents.

    Something else to be aware of is that the USDA Rural Housing loan is coming to its end here in Casa Grande. For years Casa Grande and its surrounding communities have been eligible for this type of loan, however with our growing population – things aren’t looking good for another exception. You may be asking yourself why this matters to you… well if you know of someone with moderate income that would like to purchase a home with no down payment, the time is coming to an abrupt end.

    Another housing related item coming to an end… the Mortgage Debt Relief Act of 2007. This bill went into effect in 2007 to help struggling homeowners who lost their primary residence either to foreclosure or short sale. If homeowners met the qualifications of the provision, they were not obligated to pay income tax on the forgiven debt. For example, if Sally sold her home in a short sale for $100,000 but still owed $250,000 to her mortgage company, the residual $150,000 would have to be claimed as income on her tax return, thus catapulting Sally into a much larger tax bracket. Under the Mortgage Debt Relief Tax Act, as long as Sally met the qualifications, the IRS would not be required to pay income tax on the $150,000 deficiency. This bill is due to expire on December 31, 2012 if another extension is not passed.

    If you have any questions that are real estate or mortgage related – please don’t hesitate to ask. I am always here to help. We have a team of specialists designed to make your next real estate transaction as easy as possible. Until next month! =)

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