I have signed up to attend a Foreclosure Prevention/Loss Mitigation training session on November 14th. It is sponsored by the Federal Reserve Bank of San Francisco and the Arizona Foreclosure Prevention Committee. It will cover ways to avoid foreclosures by working with lending institutions and strategies to help homeowners stay in their homes.
Look for my post-training debrief here at the Blog.
Richard
Showing posts with label homes for sale. Show all posts
Showing posts with label homes for sale. Show all posts
Tuesday, October 28, 2008
Monday, September 22, 2008
August Statistics for Phoenix Home Market
Even though we are close to October, here are some statistics from August (the latest available) on new home permits,new home and resale sales. These are from RL Brown's newsletter. He is a long time and well respected real estate analyist who has been on the scene in the Phoenix area for many years.
Richard
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Relative to the following chart RL Brown says, “…the answers to the housing dilemma in Metro Phoenix in the days ahead are actually contained in this data, especially when coupled with a willingness to forget 2004-2005, and to look back at the market opportunities and solutions of the 2000-2003 period for strategies, structures, and business plans and positioning.”
NEW HOME CLOSINGS Aug 08
Sales for Month 1,634
Same Month Last Year 3,110
Percent Change -47.46%
Year to Date Closings 14,527
Year to Date Last Year 25,675
Percent Change -43.42%
PERMITS
Permits for Month 970
Same Month Last Year 2,705
Percent Change -64.14%
Year to Date Permits 10,708
Year to Date Last Year 25,927
Percent Change -58.70%
RESALES
Resales Last Month 5,285
Same Month Last Year 4,643
Percent Change 13.83%
Year to Date Resales 37,373
Year to Date Last Year 44,982
Percent Change -16.92%
The resale numbers reflect both Pinal and Maricopa and counts units by owner as well.
Richard
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Relative to the following chart RL Brown says, “…the answers to the housing dilemma in Metro Phoenix in the days ahead are actually contained in this data, especially when coupled with a willingness to forget 2004-2005, and to look back at the market opportunities and solutions of the 2000-2003 period for strategies, structures, and business plans and positioning.”
NEW HOME CLOSINGS Aug 08
Sales for Month 1,634
Same Month Last Year 3,110
Percent Change -47.46%
Year to Date Closings 14,527
Year to Date Last Year 25,675
Percent Change -43.42%
PERMITS
Permits for Month 970
Same Month Last Year 2,705
Percent Change -64.14%
Year to Date Permits 10,708
Year to Date Last Year 25,927
Percent Change -58.70%
RESALES
Resales Last Month 5,285
Same Month Last Year 4,643
Percent Change 13.83%
Year to Date Resales 37,373
Year to Date Last Year 44,982
Percent Change -16.92%
The resale numbers reflect both Pinal and Maricopa and counts units by owner as well.
Tuesday, September 16, 2008
Short Sale Homes
While short sales are fairly simple in theory, many Realtors and buyers are finding them very frustrating. The primary problem is the weeks and weeks it takes for the bank or lender to respond to offers from interested buyers.
You see listings that say they have "Short Sale Expeditors" on hand to help. My experience with these expeditors is that they are of little real assistance as they don't do anything but call and pester the bank to make a decision on the offer (something that any Realtor could do by themselves).
Well, a Realtor in my office has tackled that problem head on. He will be debuting his short sale service shortly. He has gotten to know the real decision makers at many of the local banks and knows how to put a presentation together that they can decide on in a couple of hours instead of waiting weeks and weeks for someone at a lower level to make a decision.
If you or someone you know are about to be or are in the middle of a short sale problem and would like some help, give me a call at 602-370-1450 and I will hook you up with this Realtor for a frank evaluation of your short sale situation.
Richard
You see listings that say they have "Short Sale Expeditors" on hand to help. My experience with these expeditors is that they are of little real assistance as they don't do anything but call and pester the bank to make a decision on the offer (something that any Realtor could do by themselves).
Well, a Realtor in my office has tackled that problem head on. He will be debuting his short sale service shortly. He has gotten to know the real decision makers at many of the local banks and knows how to put a presentation together that they can decide on in a couple of hours instead of waiting weeks and weeks for someone at a lower level to make a decision.
If you or someone you know are about to be or are in the middle of a short sale problem and would like some help, give me a call at 602-370-1450 and I will hook you up with this Realtor for a frank evaluation of your short sale situation.
Richard
Phoenix Home Market Update for September 2008
We got a briefing today from our affilated mortgage company regarding future trends for the Phoenix area.
Our home pricing trends will be affected by several recent news items. First is a news item I heard on the radio several days ago announcing that a record number of "foreclosure related" letters will be going out to Phoenix area homeowners this month.
Second, the federal downpayment assistance programs for first time homebuyers are going away on October 1 of this year. And third, about 5,000 adjustable rate mortgages in the Phoenix area will be resetting before December.
All this adds up to fewer buyers eligible for loans and mortgage payment increases for 5,000 additional home owners.
So, it ain't over yet. Predictions are currently that the downward pressure on home prices will continue through most of 2009.
Two bright spots showed up however. Since the Fanny Mae and Freddie Mac takeovers by the government, mortgage rates have fallen back into the high 5% area. And, there are a lot of very good buys out there for homes. You need to be selective but you can find very good buys on good homes if you look around.
You takes your positive news where you can get it.
Contact me if you have questions that are specific you your particular home or financial situation.
Richard
Our home pricing trends will be affected by several recent news items. First is a news item I heard on the radio several days ago announcing that a record number of "foreclosure related" letters will be going out to Phoenix area homeowners this month.
Second, the federal downpayment assistance programs for first time homebuyers are going away on October 1 of this year. And third, about 5,000 adjustable rate mortgages in the Phoenix area will be resetting before December.
All this adds up to fewer buyers eligible for loans and mortgage payment increases for 5,000 additional home owners.
So, it ain't over yet. Predictions are currently that the downward pressure on home prices will continue through most of 2009.
Two bright spots showed up however. Since the Fanny Mae and Freddie Mac takeovers by the government, mortgage rates have fallen back into the high 5% area. And, there are a lot of very good buys out there for homes. You need to be selective but you can find very good buys on good homes if you look around.
You takes your positive news where you can get it.
Contact me if you have questions that are specific you your particular home or financial situation.
Richard
New Home Caution
Dear Friends,
Here is a story I found about new home sales. The circumstances are actually what has to happen when you buy a new home. And, believe it or not, I am not blowing my own horn when I advise you to use a Realtor (which costs you nothing) when buying a new home. Not all builders will try and pull this kind of stunt but in today's market builders are in troubled financial times (like we homeowners are), so the old adage of Buyer Beware applies.
Here is the story:
"A salesperson for a new home community shared this horror story with me.
This associate told me that a buyer went directly to the builder to negotiate a deal without Realtor representation. This buyer negotiated what he assumed was a good deal and was set to close on his inventory property about 45 days from contract signing.
After receiving copies of the contract the buyer signed that day, he patiently waited for his new home to be built. When the time of closing arrives the builders developer mentions that they never signed the selling side of the contracts and thus there is not an executed contract and did not have to honor the terms that were agreed to previously.
Meanwhile this buyer had his moving truck parked outside of the driveway and no home to move into. Eventually the buyer and the developer worked things out and the buyer purchased the home but of course on the seller's terms.
If I didn't hear this story from my friend I would have not believed it happened, but these confirm the reasons why buyers need representation when involving any type of real estate."
Here is a story I found about new home sales. The circumstances are actually what has to happen when you buy a new home. And, believe it or not, I am not blowing my own horn when I advise you to use a Realtor (which costs you nothing) when buying a new home. Not all builders will try and pull this kind of stunt but in today's market builders are in troubled financial times (like we homeowners are), so the old adage of Buyer Beware applies.
Here is the story:
"A salesperson for a new home community shared this horror story with me.
This associate told me that a buyer went directly to the builder to negotiate a deal without Realtor representation. This buyer negotiated what he assumed was a good deal and was set to close on his inventory property about 45 days from contract signing.
After receiving copies of the contract the buyer signed that day, he patiently waited for his new home to be built. When the time of closing arrives the builders developer mentions that they never signed the selling side of the contracts and thus there is not an executed contract and did not have to honor the terms that were agreed to previously.
Meanwhile this buyer had his moving truck parked outside of the driveway and no home to move into. Eventually the buyer and the developer worked things out and the buyer purchased the home but of course on the seller's terms.
If I didn't hear this story from my friend I would have not believed it happened, but these confirm the reasons why buyers need representation when involving any type of real estate."
Wednesday, September 19, 2007
Will Fed Interest Rate Reduction Affect Mortgages?
Yesterday, the Federal Reserve voted to decrease the discount rate by half a point (50 basis points). Wall Street responded with a 300+ increase in the Dow Jones Industrial Average. (DJIA). Good news for the economy but is it good news for mortgages and the housing situation?
In a couple of words, not directly.
Mortgage rates are determined more by the Bond Market prices rather than the Stock Market (or interest rate reductions per se). However, when Stocks go up Bonds usually go down. This is because investors see a better opportunity to make money in the stock market and switch their money from bonds into stocks.
Also, when the stock market goes up, the value of 401Ks and other investments increase, improving the creditworthiness of potential borrowers.
So there is a beneficial effect but not a direct one.
It will take a couple of weeks to see how much of an effect the interest rate reduction will have on the availability of mortgage money. But it certainly is better than nothing.
Unfortunately, new home builders are still offering steep discounts on their new inventory homes if you can close quickly. Until that stops, resale homes will have to compete in this unusual market (see my post "Light At The End Of The Real Estate Tunnel?" on this Blog).
Comments welcome.
Richard
In a couple of words, not directly.
Mortgage rates are determined more by the Bond Market prices rather than the Stock Market (or interest rate reductions per se). However, when Stocks go up Bonds usually go down. This is because investors see a better opportunity to make money in the stock market and switch their money from bonds into stocks.
Also, when the stock market goes up, the value of 401Ks and other investments increase, improving the creditworthiness of potential borrowers.
So there is a beneficial effect but not a direct one.
It will take a couple of weeks to see how much of an effect the interest rate reduction will have on the availability of mortgage money. But it certainly is better than nothing.
Unfortunately, new home builders are still offering steep discounts on their new inventory homes if you can close quickly. Until that stops, resale homes will have to compete in this unusual market (see my post "Light At The End Of The Real Estate Tunnel?" on this Blog).
Comments welcome.
Richard
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