The Valley's
Leading Agent
Russell Shaw
April 2024
My team and I help more people move than any other agent or team in Arizona. I'm not bragging, I'm applying for a job. I want to be YOUR Realtor!

Are There Tax Advantages of Buying a Home?
If you’re thinking about becoming a homeowner any time soon, there are tax benefits to buying. In particular, tax deductions are one way to reduce your tax bill and income. Tax deductions are different from credits. Credits are money that gets taken off a tax bill. You can think of them somewhat like a coupon. A tax deduction reduces your adjusted gross income or AGI, reducing your tax liability.
      The following are key tax benefits and things to know for homebuyers or possible homebuyers.
      Mortgage Interest Deduction Homeowners can deduct  interest on their home mortgage for the first $750,000 of mortgage debt. That limit is $375,000 if
U.S. averages as of April 2024:

30 yr. fixed: 6.79%
15 yr. fixed: 6.11%
5/1 yr. adj: 6.46%

you’re married and filing separately. If you bought your home prior to December 16, 2017, an old limit of $1 million applies, and $500,000 if you’re married but filing
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Inspection vs. Appraisal: How Do They Compare?
     When you’re buying a home, you’ll need two types of inspections—one is the actual inspection, and the other is the appraisal. They seem similar at first glance because both, as you might guess, involve a walkthrough of the property. They have different purposes, however. The information obtained is also reported to different parties.
      What is a Home Inspection? An inspection is thorough and is done by a professional, qualified home inspector. The inspector will look at the safety elements of a home and the integrity of the structure.
      The systems and structural elements an inspector looks at include the plumbing, electrical, and HVAC systems, roofing, and siding.
      A home

What Are Cash Reserves and Why Do You Need Them?
     When people talk about closing costs, it typically means the direct costs of getting a new mortgage. But there are two primary types of closing costs, often times referred to as recurring and non-recurring charges. Recurring charges include things that will happen again and again as one owns the home. What might they be? Recurring charges are things such as property insurance, interest and property taxes. Those will come due each and every year.
      Non-recurring closing costs are one-time fees. The fees you’ll see on your settlement statement. These ‘one-offs’ are items such as a property appraisal fee, lender charges and other third party services such as attorney fees. These are one-time charges associated with your closing your loan.
      These fees are all added together to arrive at a ‘cash to close’ amount. This of course means including your downpayment. When lenders ask for your bank or investment

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Real Estate Realty

𝗧𝗵𝗲 𝗠𝗮𝗿𝗸𝗲𝘁 𝗯𝘆 𝘁𝗵𝗲 𝗡𝘂𝗺𝗯𝗲𝗿𝘀

Now that the peak home buying season is upon us – we have a little more data on how the market is performing. No pearl clutching headlines here, but still, we find it interesting (accusations of being a geek might be valid) and hope you will as well.

𝗦𝘂𝗽𝗽𝗹𝘆– Supply is up 14% over last year but still 31% below normal according to the Cromford Report. Compare the following numbers just for contrast. We have as of the writing of this report – 16,886 active listings vs. 4400 just 2 years ago. Wow. Below normal looks pretty normal by comparison. As usual though, the numbers need further examination. It is the top end of the market is where the supply is plentiful. Homes over 10 million currently have a2.6 year supply. Between 5-10 million – 16 months supply. Between 3-5 million, 8 months of supply. Like price, location also determines supply. Outlying areas have more supply such as Buckeye, Maricopa and Casa Grande. Butthat shifts the closer homes are to the city center as the Cromford Report explains:” … many cities that are closer to Phoenix and are dominated by homes under $1 million still have a tight supply and buyers outnumber sellers in most of these areas.” The moral: marketplaces are really a combination of micro markets that must be independently evaluated.

𝗗𝗲𝗺𝗮𝗻𝗱 - Not shockingly, higher interest rates are keeping buyer demand below normal levels. Depending on one’s view – this is not entirely bad news. Why? Price. With supply and demand somewhat in abeyance, pricing is fairlystable. As the Cromford Report shares: “…Those who have been keeping these updates over the past year have probably noticed that the median sales price has barely moved for 10 months. Starting at $440,000 from June-July 2023, stagnating at $435,000 from September-December, dropping to $430,000 from January-February 2024, and now back up to $441,000 in March. While the current appreciation rate from last March measures +5.8%, over the next 2 months this will start to move closer to 3%, which is in line with the rate of inflation. This 10-month stagnation in price, which has endured erratic mortgage rates ranging from 7-8%, has allowed some breathing room for annual incomes to catch up to prices”


“There is still no sign of a market crash in the short or medium term, but the market is struggling to gain traction. The healthy amount of incoming supply is not quite matched by a small improvement in demand and the balance between sellers and buyers only favors sellers by a small amount when considering the market as a whole. In many sectors of the market, buyers have more negotiating room, even though, judging by the recent price movements, most of them do not seem to realize this..” If the last few years have taught us nothing else – markets can shift sometimes unexpectedly. As always, we will keep you informed when we see it.

Russell & Wendy Shaw

(Mostly Wendy)

  Daily News and Advice

Read about the events shaping the Real Estate market today, find current interest rates, or browse the extensive library of advice and how-to articles written by some of the top experts in Real Estate. Updated each weekday.
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Russell Shaw, Realtor®
E-mail: [email protected]
Toll-Free 866-357-3604
Realty ONE Group
11211 N. Tatum Blvd., Ste. 100
Phoenix, AZ 85028

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