Phoenix, AZ real estate has been shaky as of late, thanks to the nationwide recession as well Arizona’s recent immigration problems. Recently, Bloomberg Businessweek predicted a fog of financial woe. According to the magazine, Phoenix and Scottsdale homes for sale are expected to plunge within the next few months. Why?
Because a federal tax credit for home buyers will expire in 2010. MetroStudy also reported that sales contracts for new properties halted while contract cancellations suddenly spiked. The date in question was April 30, 2010. This was the last day that homebuyers were able to sign contracts and take advantage of federal tax credits. The credit could be as high as eight grand for first-time buyers.
However, not all hope is lost for new Phoenix and Scottsdale real estate and first-time buyers. Some real estate companies are already marketing to first-timers who were counting on that tax credit. For example, CBH Homes recently advertised a “Tax Credit After Party” sale offering a savings of $8,000.
The real estate industry knows that buyers in Phoenix, Arizona homes don’t want to feel slighted. They want that little extra “head start” so they can pay off their mortgage without having to worry about foreclosure in a year’s time. A little savings goes a long way in this industry.
All in all, real estate experts believe that the real estate industry is stabilizing. After all, the tax credit incentive boosted real estate purchases for the first four month of 2010. Now we are seeing a “leveling”, or a stabilizing of the real estate economy. Besides, with temporary decline comes the opportunity to sell more lower-cost properties.
So while Arizona real estate may be struggling for the time being, the rest of 2010 may prove to be promising nonetheless. We could see more incentives provided from the federal and state government, not to mention individual real estate companies hoping to attract new buyers.