There have been lots and lots of real estate headlines. If you read them all, I won't blame you for being confused.
Here are some basic facts about the Phoenix real estate market.
We currently have a surplus of inventory new homes. New home builders are offering large discounts to sell these homes. Best estimates of how long this oversupply will last is 6 months (it could be shorter).
This situation is unbalancing the housing market for resale homes as well. Buyers can afford to be more choosy.
Recent newspaper reports have created the impression that home prices may be declining. If buyers don't have to buy, they are waiting until prices stabilize rather than buy a house and risk loosing value in a declining market.
According to a recent Census Bureau review, Maricopa County has gained 313 people a day since 2000. This translates into more people needing places to live which will tend to keep an upward pressure on housing prices. This is a MUCH longer trend than recent ups and downs in the housing market and is the best guarantee that we will shortly return to a steady upward trend in home values that has been the hallmark of the Phoenix housing market for the past decade.
If you have questions about your particular housing situation, send me an email through www.freephoenixhomeinfo.com or give me a call at 602-370-1450.
Richard
Tuesday, June 27, 2006
Wednesday, June 07, 2006
New Home Builders Cutting Back
Several recent articles in the local newspaper have indicated that several major home builders are expecting a 25% or greater sales dip.
While that may be true, what is crucial here is which years are being compared.
2005 was a very different year. If we are to have a meaningful comparison, this year's housing figures must be looked at from a 2004 (or earlier) perspective.
So, when you see these scary headlines, read the article to find out which years are being compared. Don't let the headlines scare you.
Literally EVERYTHING in the housing industry is down from last year but we are close to the 2004 housing sales figures. That is a much more meaningful comparison.
Email me or call me if you have specific questions about your own situation.
The only people who are really hurting are those that bought new or resale homes last year (2005) between May and December.
Richard
While that may be true, what is crucial here is which years are being compared.
2005 was a very different year. If we are to have a meaningful comparison, this year's housing figures must be looked at from a 2004 (or earlier) perspective.
So, when you see these scary headlines, read the article to find out which years are being compared. Don't let the headlines scare you.
Literally EVERYTHING in the housing industry is down from last year but we are close to the 2004 housing sales figures. That is a much more meaningful comparison.
Email me or call me if you have specific questions about your own situation.
The only people who are really hurting are those that bought new or resale homes last year (2005) between May and December.
Richard
Sunday, June 04, 2006
Phoenix Market Update-June 2006
There are still plenty of (confusing) newspaper headlines about the housing market. From new home permits being down 20% (they are), to the Pinal County housing market cooling (it is), to the Northwest Valley home prices holding their own (they are), one could get confused by it all.
Our basic situation is an oversupply of new home inventory that is being offered with large buyer incentives and Realtor commissions topping out at 8%! A year ago, most builders were not paying any Realtor fees! Now I am seeing almost daily offers of Realtor fees of 6% - 8% with large buyer incentives to boot.
We (the housing market) need to work our way through this excess new home inventory before we get back to "normal" ( defined as the way the market was in 2004). How long will it take to do this? No one that I know of is predicting how long it will take. My own educated guess is no longer that 12 months.
New home permits are down, so builders are reigning themselves in until the excess new home inventory is down. The nice thing is that we still have far more people moving here than are leaving, so there is a continuing demand for housing, both resale and new.
The best indicator of returning to normal will be when I stop receiving the blizzard of emails offering 6-8% Realtor fees. I will definitely let you know when that happens.
Resale homes are selling. I sold one last week in 10 days. However, it was a very very nice home with a heated pool & spa that backed up to a common area. We priced it just below the market and it sold quickly. I have other listings that are languishing a bit.
THERE ARE BUYERS OUT THERE. They are just being choosy now because they can be.
Stay tuned for the next update.
If anyone has specific questions on their home, please email me through my web site at www.freephoenixhomeinfo.com. Or just give me a call at 602-370-1450.
Richard
Our basic situation is an oversupply of new home inventory that is being offered with large buyer incentives and Realtor commissions topping out at 8%! A year ago, most builders were not paying any Realtor fees! Now I am seeing almost daily offers of Realtor fees of 6% - 8% with large buyer incentives to boot.
We (the housing market) need to work our way through this excess new home inventory before we get back to "normal" ( defined as the way the market was in 2004). How long will it take to do this? No one that I know of is predicting how long it will take. My own educated guess is no longer that 12 months.
New home permits are down, so builders are reigning themselves in until the excess new home inventory is down. The nice thing is that we still have far more people moving here than are leaving, so there is a continuing demand for housing, both resale and new.
The best indicator of returning to normal will be when I stop receiving the blizzard of emails offering 6-8% Realtor fees. I will definitely let you know when that happens.
Resale homes are selling. I sold one last week in 10 days. However, it was a very very nice home with a heated pool & spa that backed up to a common area. We priced it just below the market and it sold quickly. I have other listings that are languishing a bit.
THERE ARE BUYERS OUT THERE. They are just being choosy now because they can be.
Stay tuned for the next update.
If anyone has specific questions on their home, please email me through my web site at www.freephoenixhomeinfo.com. Or just give me a call at 602-370-1450.
Richard
Thursday, May 04, 2006
Credit Scoring System May Change
In evident response to consumer complaints, the three main credit reporting agencies have decided to change the way your credit score is calculated and scored. In the past you could have different scores with all three companies (lenders would use the middle score). This system has been a thorn in the side of consumers for years and is largely hidden from view, which is its main problem.
No word yet on when this new system will be implemented (it may already be in place) but here are some details:
"The three major consumer credit reporting agencies recently unveiled a new way of calculating credit scores, introducing A through F letter grades designed to give consumers a better idea of where they stand.
With the new system, a single methodology will be used to create the scores for all three credit bureaus. Credit scores traditionally have been three- digit numbers that lenders used to evaluate the creditworthiness of borrowers. Current scores range from 300 to 850.
The new credit scores will be issued on a scale ranging from 501 to 990, with higher scores being better. To help consumers better understand the scores, they are also assigning them letter grades: A score between 901 and 990 is an A, 801 to 900 is a B, 701 to 800 is a C, 601 to 700 is a D, and 501 to 600 is an F."
Recent information indicates that this change is still a ways off. I'll pass along more information as it becomes available.
Richard
No word yet on when this new system will be implemented (it may already be in place) but here are some details:
"The three major consumer credit reporting agencies recently unveiled a new way of calculating credit scores, introducing A through F letter grades designed to give consumers a better idea of where they stand.
With the new system, a single methodology will be used to create the scores for all three credit bureaus. Credit scores traditionally have been three- digit numbers that lenders used to evaluate the creditworthiness of borrowers. Current scores range from 300 to 850.
The new credit scores will be issued on a scale ranging from 501 to 990, with higher scores being better. To help consumers better understand the scores, they are also assigning them letter grades: A score between 901 and 990 is an A, 801 to 900 is a B, 701 to 800 is a C, 601 to 700 is a D, and 501 to 600 is an F."
Recent information indicates that this change is still a ways off. I'll pass along more information as it becomes available.
Richard
Monday, May 01, 2006
Phoenix Market Update 5-1-2006
We still have plenty of real estate headlines - both good and bad sounding.
My recent personal favorite was "Phoenix loses home-building title but performs well". So, we lost our top billing nationally but overall things are back to what they were before last year's gold rush.
There are buyers out there and mortgage rates, while rising, are not yet too high. Inventory of resale homes on the market is up and is being described as "higher than ever". While true, that fact itself does not portend disaster.
Considering the number of people moving to the area each year and the number of new homes built over a 12 month period, there should be more homes on the market each year. Something would be wrong if there weren't more homes available.
So, overall, we are in about the same situation we were two years ago with a small but steady increase in the average home's value. Don't buy into comparisons of the market to a year ago; 2005 was a special case.
By the way, I still have California investors making offers on the listings I have. They are, I think, here to stay.
My recent personal favorite was "Phoenix loses home-building title but performs well". So, we lost our top billing nationally but overall things are back to what they were before last year's gold rush.
There are buyers out there and mortgage rates, while rising, are not yet too high. Inventory of resale homes on the market is up and is being described as "higher than ever". While true, that fact itself does not portend disaster.
Considering the number of people moving to the area each year and the number of new homes built over a 12 month period, there should be more homes on the market each year. Something would be wrong if there weren't more homes available.
So, overall, we are in about the same situation we were two years ago with a small but steady increase in the average home's value. Don't buy into comparisons of the market to a year ago; 2005 was a special case.
By the way, I still have California investors making offers on the listings I have. They are, I think, here to stay.
Friday, March 31, 2006
Phoenix Market Update - March 2006
If the number of headlines regarding real estate is any indication, it has been an active several months.
But just reading the various headlines could leave one awfully confused. From "Phoenix a buyer's market" to "Don't fret drop in new-home permits" to reports of the average home price still going up, headlines tell a confusing tale.
Here is what is happening in the Phoenix home real estate market from where I sit.
Yes, there are more homes on the market than in the last 12 months. Yes, new home builders are offering an increasing number of incentives to lure buyers for their existing homes (inventory homes).
But, the average price of a resale home is still increasing, and while days on the market to sell a home are up over last year, they still are reasonable (less than 60 days).
Overall, we have slowed down but it is still fundamentally a robust real estate market. Why? primarily because we have 100,000 people moving to Arizona each year, the bulk of whom come to the Valley of the Sun.
The only really valid comparsion for this year's sales figures is from TWO years ago. Last year was an exception. That is behind us now. But every indication I can see is that we have just returned to the way things were in 2004 and earlier - a slow steady increase in home values.
Why are there so many "Price Reduced" signs on homes you ask? More than a few sellers are stuck in last year's market. They begin a listing with an unreal price and, when they get no traffic and no offers, they bite the bullet and reduce the price.
This too shall pass.
Call me for additional information or for a market analysis for your home.
Richard
602-370-1450 cell
But just reading the various headlines could leave one awfully confused. From "Phoenix a buyer's market" to "Don't fret drop in new-home permits" to reports of the average home price still going up, headlines tell a confusing tale.
Here is what is happening in the Phoenix home real estate market from where I sit.
Yes, there are more homes on the market than in the last 12 months. Yes, new home builders are offering an increasing number of incentives to lure buyers for their existing homes (inventory homes).
But, the average price of a resale home is still increasing, and while days on the market to sell a home are up over last year, they still are reasonable (less than 60 days).
Overall, we have slowed down but it is still fundamentally a robust real estate market. Why? primarily because we have 100,000 people moving to Arizona each year, the bulk of whom come to the Valley of the Sun.
The only really valid comparsion for this year's sales figures is from TWO years ago. Last year was an exception. That is behind us now. But every indication I can see is that we have just returned to the way things were in 2004 and earlier - a slow steady increase in home values.
Why are there so many "Price Reduced" signs on homes you ask? More than a few sellers are stuck in last year's market. They begin a listing with an unreal price and, when they get no traffic and no offers, they bite the bullet and reduce the price.
This too shall pass.
Call me for additional information or for a market analysis for your home.
Richard
602-370-1450 cell
Tuesday, February 14, 2006
NAR Sees Cooling Trend
Here is an exerpt from a fourth quarter 2005 report from a National Assocation of Realtors economist focused on the Phoenix area.
While it is from December 2005 figures, it illustrates rather well what happened ( and is still happening) to the Phoenix market since we left the "boom days" of earlier in 2005.
Richard
Trends
But What Does a Slowing Market Mean?
Ken Fears, Economist
Newspaper pundits have been harkening a bubble in the housing market for years. For the first time the markets are actually starting to show signs of slowing. Sharp increases in prices in 2005 and a fifty basis point increase in the 30-year fixed rate mortgage in the fourth quarter of 2005 eroded affordability conditions leading to this cooling.
But the data indicates that it is just that; the market is cooling based on fundamental
factors. Days on the market have increased in roughly half of the metropolitan areas that NAR® Research monitors.
With affordability declining demand will shrink and homes will sit on the market longer. Compounding the problem, the stock of homes for sale will begin to build up. Consequently downward price pressure will develop forcing sellers to make concessions, causing a decline in the ratio of sale price to list price, in order to meet buyer’s ability to finance their purchase.
However, are we there yet? There are several reasons that may explain an increase in the concession. First, Realtors® may be listing prices high in an attempt to boost up the sale price by listing well above comparable sales prices and accepting a slightly lower selling price that is still above the current comparables.
Secondly, the market may be changing and Realtors® who are used to a certain quarterly increase can no longer use this guide for pricing. For example, a year ago when pricing a home a Realtor® may have taken a recent selling price and asked 3% more assuming prices where continuing to rise, but with demand flattening, only the recent selling price is realized, creating a 3% concession from the inaccurate list price.
Finally, if the market is truly oversaturated and has been stagnant for a protracted period, the only way to move homes may be to accept prices below recent realized sale prices…this last scenario is one in which there is a true concession.
While it is from December 2005 figures, it illustrates rather well what happened ( and is still happening) to the Phoenix market since we left the "boom days" of earlier in 2005.
Richard
Trends
But What Does a Slowing Market Mean?
Ken Fears, Economist
Newspaper pundits have been harkening a bubble in the housing market for years. For the first time the markets are actually starting to show signs of slowing. Sharp increases in prices in 2005 and a fifty basis point increase in the 30-year fixed rate mortgage in the fourth quarter of 2005 eroded affordability conditions leading to this cooling.
But the data indicates that it is just that; the market is cooling based on fundamental
factors. Days on the market have increased in roughly half of the metropolitan areas that NAR® Research monitors.
With affordability declining demand will shrink and homes will sit on the market longer. Compounding the problem, the stock of homes for sale will begin to build up. Consequently downward price pressure will develop forcing sellers to make concessions, causing a decline in the ratio of sale price to list price, in order to meet buyer’s ability to finance their purchase.
However, are we there yet? There are several reasons that may explain an increase in the concession. First, Realtors® may be listing prices high in an attempt to boost up the sale price by listing well above comparable sales prices and accepting a slightly lower selling price that is still above the current comparables.
Secondly, the market may be changing and Realtors® who are used to a certain quarterly increase can no longer use this guide for pricing. For example, a year ago when pricing a home a Realtor® may have taken a recent selling price and asked 3% more assuming prices where continuing to rise, but with demand flattening, only the recent selling price is realized, creating a 3% concession from the inaccurate list price.
Finally, if the market is truly oversaturated and has been stagnant for a protracted period, the only way to move homes may be to accept prices below recent realized sale prices…this last scenario is one in which there is a true concession.
Wednesday, February 01, 2006
Phoenix Housing Market Update for January
In January we were once again treated to a variety of headlines in the local press concerning our Phoenix housing market.
Chief among these was from a week ago where it was reported that the new-home market was staying on a "fast track". Noted local housing analyist, RL Brown, said that population growth, increasing number of jobs, relative affordability, moderate mortgage interest rates, available land, warm weather and retirement buyers all were positive influences that fueled the local housing market.
About the same time as Mr. Brown's predictions was an article indicating that, statewide, Arizona added 97,500 positions in 2005, the largest boost in the past 10 years. This places Arizona among the top states in the country for job growth.
Did you notice the article on the insurance company that is adding 1100 jobs at its headquarters here?
About the only thing that could seriously threaten the housing market here is a strong rise in interest rates. The Fed just raised their interest rate another 1/4 point yesterday but that is predicted to be the last increase for a while now that Alan Greenspan is stepping down as head of the Federal Reserve.
So far, so good for 2006. I'll keep you posted.
Richard
Chief among these was from a week ago where it was reported that the new-home market was staying on a "fast track". Noted local housing analyist, RL Brown, said that population growth, increasing number of jobs, relative affordability, moderate mortgage interest rates, available land, warm weather and retirement buyers all were positive influences that fueled the local housing market.
About the same time as Mr. Brown's predictions was an article indicating that, statewide, Arizona added 97,500 positions in 2005, the largest boost in the past 10 years. This places Arizona among the top states in the country for job growth.
Did you notice the article on the insurance company that is adding 1100 jobs at its headquarters here?
About the only thing that could seriously threaten the housing market here is a strong rise in interest rates. The Fed just raised their interest rate another 1/4 point yesterday but that is predicted to be the last increase for a while now that Alan Greenspan is stepping down as head of the Federal Reserve.
So far, so good for 2006. I'll keep you posted.
Richard
Ameriquest Mtg. customers due refund
According to a newspaper article last week, Arizona customers of Ameriquest Mortgage who took out loans with the company from 1999 to 2005 may be eligible for compensation to receive more than $600 each.
This results from a consumer protection legal action against Ameriquest alleging that the company engaged in several deceptive loan practices during the period in question that cost their customers additional money.
They are using company records to contact consumers who might be eligible to participate in the settlement. If you think you might be entitled to part of the settlement or you have recently done business with Ameriquest , you can contact the Arizona Attorney General's Office in Phoenix to check. Ask about the Ameriquest settlement.
Ameriquest is instituting new lending policies as part of the settlement.
Richard
This results from a consumer protection legal action against Ameriquest alleging that the company engaged in several deceptive loan practices during the period in question that cost their customers additional money.
They are using company records to contact consumers who might be eligible to participate in the settlement. If you think you might be entitled to part of the settlement or you have recently done business with Ameriquest , you can contact the Arizona Attorney General's Office in Phoenix to check. Ask about the Ameriquest settlement.
Ameriquest is instituting new lending policies as part of the settlement.
Richard
Monday, January 16, 2006
Jan. 2006 Phoenix Real Estate Update
If you have been reading the newspapers recently, you have been treated to a variety of headlines and articles giving contrary messages. "Homeowners cash in, hope market cools off" and "Home prices, sales hit highs" were two of the more recent stories.
It turns out that the first article about homeowners cashing in was about one couple who sold their home at what they thought was the market maximum and were living in an apartment waiting for the next opportunity.
The second article was better and was from the Arizona Real Estate Center at ASU which tracks sales numbers and trends in the Phoenix residential real estate market. As a lot of us know by now, the real estate market is tapering off. There are more homes on the market and they are taking longer to sell than 6 months ago. Price reductions are becoming common as sellers realize that the bull market in homes is over.
Predictions from knowledgable experts still indicate that our housing prices will increase from 1% to 1.5 % per month for 2006. Not the blistering pace of 2005 but still nothing to be worried about.
The main factor in housing still appears to be interest rates. That determines how many families will be able to afford our higher priced homes. The average price for a valley home is about $260,000 presently with the figure bouncing around some from month to month.
So, don't panic despite the headlines. We had 200,000 people move to Arizona in 2005 according to state records. Sure we lost some too, but with that many people coming in, the demand for housing should be healthy.
You can always contact me directly for a detailed analysis of your home's value and trends in your neighborhood.
Richard
It turns out that the first article about homeowners cashing in was about one couple who sold their home at what they thought was the market maximum and were living in an apartment waiting for the next opportunity.
The second article was better and was from the Arizona Real Estate Center at ASU which tracks sales numbers and trends in the Phoenix residential real estate market. As a lot of us know by now, the real estate market is tapering off. There are more homes on the market and they are taking longer to sell than 6 months ago. Price reductions are becoming common as sellers realize that the bull market in homes is over.
Predictions from knowledgable experts still indicate that our housing prices will increase from 1% to 1.5 % per month for 2006. Not the blistering pace of 2005 but still nothing to be worried about.
The main factor in housing still appears to be interest rates. That determines how many families will be able to afford our higher priced homes. The average price for a valley home is about $260,000 presently with the figure bouncing around some from month to month.
So, don't panic despite the headlines. We had 200,000 people move to Arizona in 2005 according to state records. Sure we lost some too, but with that many people coming in, the demand for housing should be healthy.
You can always contact me directly for a detailed analysis of your home's value and trends in your neighborhood.
Richard
"Gas Pack" Recall Notice
I received an Alert recently from a home inspection company called "Pillar to post". It concerned a Gas Pack recall notice from the U.S. Consumer Product Safety Commission.
A Gas Pack is a roof mounted heating unit added to air conditioning units (not heat pumps) that allows the unit to produce heat when needed. These installations are fairly common in Arizona. Certain units are being recalled due to a possible overheating problem that may result in a fire.
The manufacturer is International Comfort Products, LLC of Lewisburg, Tenn.
According to the Alert, the following brand names are involved. Airqust, Arcoaire, Comfortmaker, Heil, Keeprite, Kenmore, ICP Commercial and Tempstar. The recall includes configuratoins of "A" chassis units with a 3-ton or 5-ton cooling capacity manufactured between the 42st week of 2000 and the 26th week of 2003. These units were sold between October 2000 and September 2005
You can contact your A/C company or the manufacturer of your unit to see if your unit is included in the recall.
For more information, contract ICP at (800) 649-4706 anytime or visit the ICP website at www.icpusa.com
Richard
A Gas Pack is a roof mounted heating unit added to air conditioning units (not heat pumps) that allows the unit to produce heat when needed. These installations are fairly common in Arizona. Certain units are being recalled due to a possible overheating problem that may result in a fire.
The manufacturer is International Comfort Products, LLC of Lewisburg, Tenn.
According to the Alert, the following brand names are involved. Airqust, Arcoaire, Comfortmaker, Heil, Keeprite, Kenmore, ICP Commercial and Tempstar. The recall includes configuratoins of "A" chassis units with a 3-ton or 5-ton cooling capacity manufactured between the 42st week of 2000 and the 26th week of 2003. These units were sold between October 2000 and September 2005
You can contact your A/C company or the manufacturer of your unit to see if your unit is included in the recall.
For more information, contract ICP at (800) 649-4706 anytime or visit the ICP website at www.icpusa.com
Richard
Thursday, December 15, 2005
Headlines, Schmedlines - Don't Get Caught Believing Them
"Valley home market 'extremely' overvalued" screamed one headline. This pronouncement came from a Cleveland based mortgage lender who, evidently, did no on the ground research to reach its conclusions. Reading down in the article, long-time local housing experts said that they don't expect home values to decline.
Less than a month before the headline read "Rush is on for land in Pinal (county)". Developers are evidently paying record prices for raw land in Pinal. Hardly a sign of declining prices or declining demand.
"Housing slump is forecast" read the early December headline. But the article reported that October new home permits were running about 5% ahead of last year's record pace. Go figure!
The key to reading newspaper articles about real estate is to ignore the headline - good or bad. It is there to sell newspapers and is usually sensational, not accurate. Read the entire article as reporters usually feel honor bound to at least ask someone for a contrary view to the one contained in the headline.
Our real estate market is cooling off but cooling off from a white-hot year. So, the predictions of increases in home values of 1 to 1.5% per month in 2006 look pretty accurate now.
Also, remember to check with your insurance agent to be sure your policy limits cover the increased value of your home. If you are unsure of your home's current value, I can get you a pretty accurate figure from recent sales.
Richard
Less than a month before the headline read "Rush is on for land in Pinal (county)". Developers are evidently paying record prices for raw land in Pinal. Hardly a sign of declining prices or declining demand.
"Housing slump is forecast" read the early December headline. But the article reported that October new home permits were running about 5% ahead of last year's record pace. Go figure!
The key to reading newspaper articles about real estate is to ignore the headline - good or bad. It is there to sell newspapers and is usually sensational, not accurate. Read the entire article as reporters usually feel honor bound to at least ask someone for a contrary view to the one contained in the headline.
Our real estate market is cooling off but cooling off from a white-hot year. So, the predictions of increases in home values of 1 to 1.5% per month in 2006 look pretty accurate now.
Also, remember to check with your insurance agent to be sure your policy limits cover the increased value of your home. If you are unsure of your home's current value, I can get you a pretty accurate figure from recent sales.
Richard
Sunday, November 27, 2005
An Expensive Change For Air Conditioner Repair
In mid January 2006, Federal energy efficiency standards will mandidate that any air conditioner unit that is rated at 12 SEER (Seasonal Energy Effeciency Rating) or less, be repaired only with existing spare parts. The manufacture of all 12 SEER units will stop in January as well as the manufacturing of all spare parts for existing 12 SEER or less A/C unitsl
After mid January 2006, all 12 SEER air conditioning units that stop working and for which there are no longer spare parts will have to be replaced by units with at least a 13 SEER rating.
If you are buying a new home, be sure you are getting a 13 SEER unit at a minimum.
If you are a homeowner with a 12 SEER or less A/C unit (such as I have), once repair parts are exhausted you will have to foot the bill for a complete replacement 13 SEER unit. So, sooner or later (probably sooner) you will have to pay for a 13 SEER unit.
Some A/C units can be retrofitted with 13 SEER compressors, some will have to be replaced. Either way, homeowners will be facing a pretty large outlay.
If you have a home warrantee in place (recommended), check with your warrantee company to see how they are going to handle the costs of upgrading. My company, America Home Shield (AHS), is going to help with the costs of this upgrades for their customers.
AHS is going to sell upgraded coverage that will cover replacing/upgrading your A/C to the new standards for about a $60 additional policy premium. Their service charge will also increase from $35 per service call to $50 per call.
Other companies may handle this situation differently.
If you haven't heard from your Home Warrantee company on this, give them a call as soon as possible and see how much they are going to charge to continue your policy coverage on your A/C unit (repair/replace) service.
If what they tell you they will be charging for A/C coverage shocks you, shop around and see if another company is less expensive. Be sure to give yourself enough time to get this done before January.
The silver lining in all this is that your cooling bills will go down with the new units.
You can call me for more details at 602-370-1450.
Richard
After mid January 2006, all 12 SEER air conditioning units that stop working and for which there are no longer spare parts will have to be replaced by units with at least a 13 SEER rating.
If you are buying a new home, be sure you are getting a 13 SEER unit at a minimum.
If you are a homeowner with a 12 SEER or less A/C unit (such as I have), once repair parts are exhausted you will have to foot the bill for a complete replacement 13 SEER unit. So, sooner or later (probably sooner) you will have to pay for a 13 SEER unit.
Some A/C units can be retrofitted with 13 SEER compressors, some will have to be replaced. Either way, homeowners will be facing a pretty large outlay.
If you have a home warrantee in place (recommended), check with your warrantee company to see how they are going to handle the costs of upgrading. My company, America Home Shield (AHS), is going to help with the costs of this upgrades for their customers.
AHS is going to sell upgraded coverage that will cover replacing/upgrading your A/C to the new standards for about a $60 additional policy premium. Their service charge will also increase from $35 per service call to $50 per call.
Other companies may handle this situation differently.
If you haven't heard from your Home Warrantee company on this, give them a call as soon as possible and see how much they are going to charge to continue your policy coverage on your A/C unit (repair/replace) service.
If what they tell you they will be charging for A/C coverage shocks you, shop around and see if another company is less expensive. Be sure to give yourself enough time to get this done before January.
The silver lining in all this is that your cooling bills will go down with the new units.
You can call me for more details at 602-370-1450.
Richard
Tuesday, November 15, 2005
November '05 Market Report
Headlines, Headlines, more and more headlines. Real Estate in the Phoenix area is still front page news.
Don't believe the headlines you are seeing in the local press or at least read the entire article before making up your mind.
We have seen everything from "Housing prices dropping" to (today) the National Association of Realtors saying that Phoenix house prices have increased 55% since this time last year (average national increase in home values was 15% for the same period).
What it boils down to is this. While marketing time is increasing along with the number of available homes, almost all the knowledgable people are predicting a robust 2006 for real estate with conservative monthly increases in value around 1.5%
We are still ahead of where we were last year in number of resale home sales. I spent all last weekend looking at new homes with out of town buyers. Most builders had some lots available but everyone was predicting that monthly (and sometimes weekly) price increases were going to continue with their builders. That means that the price of resale homes will be going up as well. If interest rates spike up, this could change.
SUMMARY: The frantic pace of last summer is cooling off. Home prices are still going up and are forecast to do so for this coming year. The pace of home sales is still brisk but not as frantic as this past Spring and Summer. Real estate is still a very good investment.
Richard
Don't believe the headlines you are seeing in the local press or at least read the entire article before making up your mind.
We have seen everything from "Housing prices dropping" to (today) the National Association of Realtors saying that Phoenix house prices have increased 55% since this time last year (average national increase in home values was 15% for the same period).
What it boils down to is this. While marketing time is increasing along with the number of available homes, almost all the knowledgable people are predicting a robust 2006 for real estate with conservative monthly increases in value around 1.5%
We are still ahead of where we were last year in number of resale home sales. I spent all last weekend looking at new homes with out of town buyers. Most builders had some lots available but everyone was predicting that monthly (and sometimes weekly) price increases were going to continue with their builders. That means that the price of resale homes will be going up as well. If interest rates spike up, this could change.
SUMMARY: The frantic pace of last summer is cooling off. Home prices are still going up and are forecast to do so for this coming year. The pace of home sales is still brisk but not as frantic as this past Spring and Summer. Real estate is still a very good investment.
Richard
Sunday, October 16, 2005
Headlines Of "Slowdown" Not Necessarily True
The headlines this past week warned that resale home prices are "peaking" and the rising interest rates "may slow sales of homes". Don't believe it.
If you read down into the stories you see that in August of this year, more resale homes were sold in the Phoenix market than August of a year ago. And while interest rates area up, they aren't up that much.
We do have increasing inventory in resale homes and increasing days on the market but the median home price reached an all time high last month of $263,000.
So, while things have cooled off, prices are still increasing and there is quite a bit of buyer pressure still out there in the market.
Richard
If you read down into the stories you see that in August of this year, more resale homes were sold in the Phoenix market than August of a year ago. And while interest rates area up, they aren't up that much.
We do have increasing inventory in resale homes and increasing days on the market but the median home price reached an all time high last month of $263,000.
So, while things have cooled off, prices are still increasing and there is quite a bit of buyer pressure still out there in the market.
Richard
Thursday, September 29, 2005
Phoenix Real Estate Numbers Up
According to the just-released RL Brown Phoenix Housing Market Letter, Phoenix home sales numbers are up across the board.
Compared to the first 8 months of last year (2004), residential resales are up 27%, new home sales are up 18.8% and residential building permits are up by 6.6%.
With the new high for the average price of a Phoenix home (see my earlier post), the real estate market here is apparently still healthy and strong.
Richard
Compared to the first 8 months of last year (2004), residential resales are up 27%, new home sales are up 18.8% and residential building permits are up by 6.6%.
With the new high for the average price of a Phoenix home (see my earlier post), the real estate market here is apparently still healthy and strong.
Richard
Thursday, September 22, 2005
Mortgage Rates Inch Up For Second Week
Mortgage rates nationally posted a small weekly increase of 4/100's of a point. Here is the story.
NEW YORK, Sept 22, 2005 /PRNewswire-FirstCall via COMTEX/ -- Mortgage rates increased slightly as the Federal Reserve raised short-term interest rates for the eleventh consecutive time, and oil prices remained volatile. The average 30-year fixed rate mortgage increased from 5.84 percent to 5.88 percent, according to Bankrate.com's weekly national survey of large lenders. The 30-year fixed rate mortgages in this week's survey had an average of 0.36 discount and origination points.
NEW YORK, Sept 22, 2005 /PRNewswire-FirstCall via COMTEX/ -- Mortgage rates increased slightly as the Federal Reserve raised short-term interest rates for the eleventh consecutive time, and oil prices remained volatile. The average 30-year fixed rate mortgage increased from 5.84 percent to 5.88 percent, according to Bankrate.com's weekly national survey of large lenders. The 30-year fixed rate mortgages in this week's survey had an average of 0.36 discount and origination points.
Saturday, September 17, 2005
Polybutylene (PB) plumbing help
If you own or have owned a home that has PB pipe for its plumbing, you might be eligible for money from a country-wide settlement fund. PB pipe was found to be unsuitable for homes and businesses because of its limited life and tendency to leak.
Money is available to help with the cost of re-plumbing a home where PB pipe was used.
You must have owned the home between 1978 and 1995 to be eligible for your part of the settlement money. There are other requirements that you can check out at the recovery website. Click here for the recovery website and then go to the "Guidelines" link.
Richard
Money is available to help with the cost of re-plumbing a home where PB pipe was used.
You must have owned the home between 1978 and 1995 to be eligible for your part of the settlement money. There are other requirements that you can check out at the recovery website. Click here for the recovery website and then go to the "Guidelines" link.
Richard
Thursday, September 15, 2005
Phoenix Home Market Update - Sept 2005
The headline (correctly) reads:
"Demand is still strong, but Valley home frenzy calming".
According to ASU Real Estate Department figures, the average monthly increase in overall residential real estate values has slowed to 1.4% per month. This is down from around 5% per month earlier this year.
Average time on the market for resale homes is at just over 25 days versus 5.6 days in January 2005.
But, the median price for an existing home in the Valley climbed to $258,700 in August, a new record, showing that we are still headed in an upward direction.
Resale home inventory (number of homes on the market) is increasing as well.
Although there is no way to directly monitor this, it appears that investor money in the real estate market is becoming less of a factor. Investors are still here but not in the numbers they were earlier in the year.
So, we are still in a relatively strong uptrend in prices but the pace of that increase has slowed.
Stay tuned.
Richard
"Demand is still strong, but Valley home frenzy calming".
According to ASU Real Estate Department figures, the average monthly increase in overall residential real estate values has slowed to 1.4% per month. This is down from around 5% per month earlier this year.
Average time on the market for resale homes is at just over 25 days versus 5.6 days in January 2005.
But, the median price for an existing home in the Valley climbed to $258,700 in August, a new record, showing that we are still headed in an upward direction.
Resale home inventory (number of homes on the market) is increasing as well.
Although there is no way to directly monitor this, it appears that investor money in the real estate market is becoming less of a factor. Investors are still here but not in the numbers they were earlier in the year.
So, we are still in a relatively strong uptrend in prices but the pace of that increase has slowed.
Stay tuned.
Richard
We Are Changing Our Corporate Name
As things go in the corporate real estate world, changes are pretty common. The latest is the acquisition of Coldwell Banker Success Realty by a national company called NRT.
Just so you won't be confused if you call the office, our new name is Coldwell Banker Residential Brokerage. Nothing changes in our day to day operation or our people, just the new name.
Here is part of the press release from today:
PARSIPPANY, N.J. and SCOTTSDALE, Ariz. – September 15, 2005 — NRT Incorporated, the nation’s largest residential real estate brokerage company, today announced it has acquired the assets of CMLB, Ltd., which operates as Coldwell Banker Success Realty in Scottsdale, Ariz. With this announcement, Coldwell Banker Success Realty, one of the largest Coldwell Banker® franchisees, will now be owned and operated by NRT.
Just so you won't be confused if you call the office, our new name is Coldwell Banker Residential Brokerage. Nothing changes in our day to day operation or our people, just the new name.
Here is part of the press release from today:
PARSIPPANY, N.J. and SCOTTSDALE, Ariz. – September 15, 2005 — NRT Incorporated, the nation’s largest residential real estate brokerage company, today announced it has acquired the assets of CMLB, Ltd., which operates as Coldwell Banker Success Realty in Scottsdale, Ariz. With this announcement, Coldwell Banker Success Realty, one of the largest Coldwell Banker® franchisees, will now be owned and operated by NRT.
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