Existing-home sales weakened against a backdrop of an eroding economy, according to the National Association of Realtors®.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – fell 8.6 percent to a seasonally adjusted annual rate of 4.49 million units in November from a downwardly revised level of 4.91 million in October, and are 10.6 percent below the 5.02 million-unit pace in November 2007.
“The quickly deteriorating conditions in the job market, stock market, and consumer confidence in October and November have knocked down home sales to another level," says Lawrence Yun, NAR's chief economist. "We hope the home sales impact from the stock market crash turns out to be short-lived, as was the case in 1987 and 2001.”
What Needs to Be Done
Yun says it's imperative to provide incentives for homebuyers to rebound the market. "It also depends on how effectively Congress and the new administration can help facilitate the short sales process and unclog the mortgage pipeline – impediments remain for some buyers with good credit,” Yun says.
NAR President Charles McMillan says it’s crucial to enact sufficient housing stimulus to spark an economic recovery.
"We need more than low interest rates to encourage enough buyers to enter the market and meaningfully draw down inventory, which would stabilize home prices – that, in turn, would help the economy to recover,” he says. "We should extend the first-time buyer tax credit to all homebuyers and eliminate the repayment feature, and make permanent the higher loan limits that are vital in high-cost markets – the faster we do this, the faster housing and the economy can recover."
Yun cautions that there will be negative consequences if housing stimulus is delayed. “Falling home prices would lead to faster contraction in consumer spending and further deterioration in bank balance sheets," he says. "More importantly, falling home values would lead to higher loan defaults, including those recently modified distressed mortgages."
McMillan says NAR is grateful that the Treasury, the Federal Housing Finance Agency and the Federal Reserve have been working to bring interest rates down on most mortgages to historic lows.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 6.09 percent in November from 6.20 percent in October. The rate was 6.21 percent in November 2007. Last week, Freddie Mac reported the 30-year rate fell to 5.19 percent — the lowest on record since the series began in 1971.
A Closer Look at the Numbers
*Inventory: Total housing inventory at the end of November rose 0.1 percent to 4.2 million existing homes available for sale, which represents an 11.2-month supply at the current sales pace, up from a 10.3-month supply in October.
*Prices: The national median existing-home price for all housing types was $181,300 in November, down 13.2 percent from November 2007 when the median was $208,800. There remains a significant downward distortion in the current price from a large number of distress sales at discounted prices; the median is where half of the homes sold for more and half sold for less.
*Single-family home sales: fell 8.0 percent to a seasonally adjusted annual rate of 4.02 million in November from a level of 4.37 million in October, and are 8.8 percent below a 4.41 million-unit pace a year ago. The median existing single-family home price was $180,800 in November, down 12.8 percent from November 2007.
*Existing condominium and co-op sales: dropped 13 percent to a seasonally adjusted annual rate of 470,000 units in November from 540,000 in October, and are 23.1 percent below the 611,000-unit pace in November 2007. The median existing condo price was $185,400 in November, down 15.5 percent from a year ago.
Despite an overall softening in sales, there has been a solid trend of rising activity in California, Nevada, Arizona and Florida markets. “Sales are rising only in areas with large numbers of distressed properties as bargain hunters take advantage of discounted home prices,” Yun says.
By Region
*Northeast: existing-home sales dropped 12 percent to an annual pace of 730,000 in November, and are 18 percent lower than a year ago. Median price: $257,700, down 0.1 percent from November 2007.
*Midwest: existing-home sales fell 7.4 percent in November to a pace of 1 million and are 16 percent below November 2007. Median price: $142,400, down 11.2 percent from a year ago.
*South: existing-home sales dropped 10.9 percent to an annual pace of 1.64 million in November, and are 17.6 percent below a year ago. Median price: $154,500, which is 10.6 percent lower than November 2007.
*West: sales declined 4.3 percent to an annual rate of 1.12 million in November but are 17.9 percent higher than November 2007. Median price: $242,500, down 25.5 percent from a year ago.
Source: NAR
About Me
- Shielamarie Suttle, ASP CNE REALTOR®
- I am a Licensed REALTOR dedicated to providing the highest level of service to buyers and sellers. I strive to be known by other real estate agents as a true professional and a pleasure to do business with. My mission is to treat each and every client as an individual and to always put that client's needs first. My goal is to get the job done with as little hassle as possible. I am aware that most clients want even more than just a no hassle transaction, what they really want is someone who will listen to their needs and desires. That is what I am great at! I have been an Arizona resident for over 22 years and am deeply familiar with most every area across The Valley. I specialize in servicing Mesa, Gold Canyon, Apache Junction, Gilbert, Higley, Queen Creek and Chandler. Most importantly, I am a full-time, full-service real estate professional. Our real estate market is ever-changing and working with an agent like me who is embedded in the industry on a daily basis will ensure a winning experience when buying or selling your next home.
Monday, December 29, 2008
Tuesday, December 23, 2008
Existing Home Sales Fall by 8.6 Percent
WASHINGTON - Sales of existing homes plunged far more than expected last month as buyers recoiled from October's financial wreckage on Wall Street. The median sales price fell by the largest amount on record.
The National Association of Realtors said Tuesday existing home sales fell 8.6 percent to an annual rate of 4.49 million in November, from a downwardly revised pace of 4.91 million in October.Sales had been expected to fall to a pace of 4.9 million units. according to Thomson Reuters.
The median sales price plunged 13.2 percent in November to $181,300, from $208,000 a year ago. That was the lowest price since February 2004, the biggest year-over-year drop on records going back to 1968 and most likely the biggest drop since the Great Depression.
Lawrence Yun, the normally upbeat chief economist of the Realtors group, found few positive spots in the month's dismal data. But he did note that after prior stock market crashes home sales usually rebounded within a few months.
"We hope that, similarly, the current slowdown in home sales activity is a short-term phenomenon," Yun said, noting that people in the real estate industry are "crossing our fingers" that the market will recover. Sales fell around the country, with the largest drop - of 12 percent - in the Northeast.
Nationally, the Realtors group estimates that sales of distressed properties made up 45 percent of all property sales in November.
There were 4.2 million unsold homes on the market in last month. At the current sales pace, it would take 11.2 months to sell all the properties, matching a record set last spring.
The glut is being driven by a massive wave of mortgage foreclosures. And until the inventory of homes falls to more normal levels, analysts say, the housing slump is likely to persist.
Source: AZCentral.com
The National Association of Realtors said Tuesday existing home sales fell 8.6 percent to an annual rate of 4.49 million in November, from a downwardly revised pace of 4.91 million in October.Sales had been expected to fall to a pace of 4.9 million units. according to Thomson Reuters.
The median sales price plunged 13.2 percent in November to $181,300, from $208,000 a year ago. That was the lowest price since February 2004, the biggest year-over-year drop on records going back to 1968 and most likely the biggest drop since the Great Depression.
Lawrence Yun, the normally upbeat chief economist of the Realtors group, found few positive spots in the month's dismal data. But he did note that after prior stock market crashes home sales usually rebounded within a few months.
"We hope that, similarly, the current slowdown in home sales activity is a short-term phenomenon," Yun said, noting that people in the real estate industry are "crossing our fingers" that the market will recover. Sales fell around the country, with the largest drop - of 12 percent - in the Northeast.
Nationally, the Realtors group estimates that sales of distressed properties made up 45 percent of all property sales in November.
There were 4.2 million unsold homes on the market in last month. At the current sales pace, it would take 11.2 months to sell all the properties, matching a record set last spring.
The glut is being driven by a massive wave of mortgage foreclosures. And until the inventory of homes falls to more normal levels, analysts say, the housing slump is likely to persist.
Source: AZCentral.com
Monday, December 15, 2008
Low Prices, Low Rates Mean Opportunity
Housing prices have fallen dramatically all over the country and rates on 30-year fixed-rate mortgages are already close to 5.5 percent. Experts say it's possible, with government encouragement, that rates will fall as low as 4.5 percent.
Now is the time for first-time buyers to step up. Here are some things to consider:
Prices have always softened in the winter. As temperatures fall, bargain hunters will have bigger then usual opportunities.
New homes are likely to become scarce. Ian Shepherdson, chief United States economist for the research firm High Frequency Economics, said he believes that a steep drop-off in inventory of new homes is coming soon, due to a rapid decrease in home builder activity.
Location, location, location. Buying the best-priced house in a really good neighborhood is still smart.
Will values go up? You may have to live in a house for 10 years, but over time, buyers will almost certainly make money.
Source: The New York Times, Ron Lieber (12/05/08)
Now is the time for first-time buyers to step up. Here are some things to consider:
Prices have always softened in the winter. As temperatures fall, bargain hunters will have bigger then usual opportunities.
New homes are likely to become scarce. Ian Shepherdson, chief United States economist for the research firm High Frequency Economics, said he believes that a steep drop-off in inventory of new homes is coming soon, due to a rapid decrease in home builder activity.
Location, location, location. Buying the best-priced house in a really good neighborhood is still smart.
Will values go up? You may have to live in a house for 10 years, but over time, buyers will almost certainly make money.
Source: The New York Times, Ron Lieber (12/05/08)
NAR: Pending Home Sales Holding Steady
Pending home sales eased against a deteriorating economic backdrop but remain in a stable range, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in October, slipped 0.7 percent to 88.9 from an upwardly revised reading of 89.5 in September. It is 1 percent below October 2007 when it was 89.8.
“Despite the turmoil in the economy, the overall level of pending home sales has been remarkably stable over the past year, holding in a generally narrow range,” says Lawrence Yun, NAR chief economist. “We did see a spike in August when mortgage conditions temporarily improved, which underscores two things – there is a pent-up demand, and access to safe, affordable mortgages will bring more buyers into the market.”
Conditions remain uneven around the country, but some areas that are showing healthy gains in pending home sales from a year ago include many Florida and California markets; Providence, R.I.; Lansing, Mich.; Oklahoma City; and Las Vegas.
By the Region
Here's what the PHSI showed across the country:
* South: jumped 7.8 percent to 95.9 in October but remains 2.9 percent below a year ago.
* Northeast: rose 0.6 percent to 68.1 but is 14.1 percent below October 2007.
* Midwest: declined 4.3 percent to 79.7 in October and is 6.8 percent below a year ago.
* West: fell 8.7 percent to 103.7 but is 17.4 percent higher than October 2007.
The Economic Forecast
New-home sales: for 2008 should total 486,000 this year, decline to 393,000 in 2009 and then grow to 446,000 in 2010. Housing starts, including multifamily units, are projected at 934,000 units in 2008 and 731,000 next year before rising to 772,000 in 2010.
Existing-home sales: looking at middle-ground assumptions, existing-home sales are forecast to total 4.96 million this year, and then increase to 5.19 million in 2009 and 5.55 million in 2010.
Home prices: “Price projections are challenging in an environment with so many variables and divergent local conditions,” Yun says. “The home price correction to date has brought prices in line with fundamentals, but buyer pessimism could cause prices to overshoot downward, resulting in further economic deterioration.” NAR’s housing affordability index is likely to remain quite favorable, averaging 138 in 2009.
Unemployment rate: is estimated at 7.2 percent in the first quarter, rising to 8.3 percent by the end of 2009.
Inflation: as measured by the Consumer Price Index, is seen at 0.7 percent in 2009. Inflation-adjusted disposable personal income is expected to grow 1.5 percent in 2009.
GDP: Yun expects growth in the U.S. gross domestic product (GDP) to contract through the first half of 2009, then stabilize and expand in latter part of the year – lifted by a home sales recovery.
“Given the critical role of housing in an economic recovery, we’re confident sufficient stimulus will be offered to bring more buyers to the market,” he says.
Could a Drop in Interest Rates Help?
The 30-year fixed-rate mortgage will probably decline to 5.6 percent in the first quarter, rise slowly to 6 percent by the end of 2009, and average 6.2 percent in 2010.
NAR President Charles McMillan says he’s hopeful about considerations by the U.S. Treasury to help the housing market.
“Efforts to bring down mortgage interest rates demonstrate a clear understanding of the role housing plays in stabilizing the economy,” McMillan says. “We’re very encouraged by all of the proposals getting serious consideration in Washington to help home buyers. More sales will stabilize home prices by bringing down inventory, and would lessen foreclosure pressure.”
Source: NAR
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in October, slipped 0.7 percent to 88.9 from an upwardly revised reading of 89.5 in September. It is 1 percent below October 2007 when it was 89.8.
“Despite the turmoil in the economy, the overall level of pending home sales has been remarkably stable over the past year, holding in a generally narrow range,” says Lawrence Yun, NAR chief economist. “We did see a spike in August when mortgage conditions temporarily improved, which underscores two things – there is a pent-up demand, and access to safe, affordable mortgages will bring more buyers into the market.”
Conditions remain uneven around the country, but some areas that are showing healthy gains in pending home sales from a year ago include many Florida and California markets; Providence, R.I.; Lansing, Mich.; Oklahoma City; and Las Vegas.
By the Region
Here's what the PHSI showed across the country:
* South: jumped 7.8 percent to 95.9 in October but remains 2.9 percent below a year ago.
* Northeast: rose 0.6 percent to 68.1 but is 14.1 percent below October 2007.
* Midwest: declined 4.3 percent to 79.7 in October and is 6.8 percent below a year ago.
* West: fell 8.7 percent to 103.7 but is 17.4 percent higher than October 2007.
The Economic Forecast
New-home sales: for 2008 should total 486,000 this year, decline to 393,000 in 2009 and then grow to 446,000 in 2010. Housing starts, including multifamily units, are projected at 934,000 units in 2008 and 731,000 next year before rising to 772,000 in 2010.
Existing-home sales: looking at middle-ground assumptions, existing-home sales are forecast to total 4.96 million this year, and then increase to 5.19 million in 2009 and 5.55 million in 2010.
Home prices: “Price projections are challenging in an environment with so many variables and divergent local conditions,” Yun says. “The home price correction to date has brought prices in line with fundamentals, but buyer pessimism could cause prices to overshoot downward, resulting in further economic deterioration.” NAR’s housing affordability index is likely to remain quite favorable, averaging 138 in 2009.
Unemployment rate: is estimated at 7.2 percent in the first quarter, rising to 8.3 percent by the end of 2009.
Inflation: as measured by the Consumer Price Index, is seen at 0.7 percent in 2009. Inflation-adjusted disposable personal income is expected to grow 1.5 percent in 2009.
GDP: Yun expects growth in the U.S. gross domestic product (GDP) to contract through the first half of 2009, then stabilize and expand in latter part of the year – lifted by a home sales recovery.
“Given the critical role of housing in an economic recovery, we’re confident sufficient stimulus will be offered to bring more buyers to the market,” he says.
Could a Drop in Interest Rates Help?
The 30-year fixed-rate mortgage will probably decline to 5.6 percent in the first quarter, rise slowly to 6 percent by the end of 2009, and average 6.2 percent in 2010.
NAR President Charles McMillan says he’s hopeful about considerations by the U.S. Treasury to help the housing market.
“Efforts to bring down mortgage interest rates demonstrate a clear understanding of the role housing plays in stabilizing the economy,” McMillan says. “We’re very encouraged by all of the proposals getting serious consideration in Washington to help home buyers. More sales will stabilize home prices by bringing down inventory, and would lessen foreclosure pressure.”
Source: NAR
Monday, December 8, 2008
Economists Ponder Future of Home Prices
When will home prices go back up again?
Economists surveyed by The Wall Street Journal say that home prices won’t hit bottom until the second half of 2009 at the earliest and some say the downward trend will continue until 2011 or 2012. After that they may rise again, but not nearly as fast as they have in the last decade. Instead they will rise just a little faster than inflation and stay in line with increases in household income.
William Wheaton, a professor of economics and real estate at the Massachusetts Institute of Technology, says he expects house prices to increase at a rate roughly 1-percentage point higher than inflation over the long term.
Celia Chen, director of housing economics at Moody’s Economy.com is more optimistic, expecting home values to rise an average of 4 percent per year over the next couple of decades.
Demographer William Frey predicts that growth will continue in coastal and Southern cities while populations in rustbelt areas like Michigan, Ohio, Western Pennsylvania and Upstate New York will continue to decline.
The great unknown is the impact aging baby boomers will have. While retirees in the past have often headed for warmer and suburban areas, boomers have tended to confound expectations. They could well show a propensity for staying put or moving to urban areas for the cultural life or to be near friends and family, shunning sun-dappled retirements communities.
Source: The Wall Street Journal, James R. Hagerty (12/02/08)
Economists surveyed by The Wall Street Journal say that home prices won’t hit bottom until the second half of 2009 at the earliest and some say the downward trend will continue until 2011 or 2012. After that they may rise again, but not nearly as fast as they have in the last decade. Instead they will rise just a little faster than inflation and stay in line with increases in household income.
William Wheaton, a professor of economics and real estate at the Massachusetts Institute of Technology, says he expects house prices to increase at a rate roughly 1-percentage point higher than inflation over the long term.
Celia Chen, director of housing economics at Moody’s Economy.com is more optimistic, expecting home values to rise an average of 4 percent per year over the next couple of decades.
Demographer William Frey predicts that growth will continue in coastal and Southern cities while populations in rustbelt areas like Michigan, Ohio, Western Pennsylvania and Upstate New York will continue to decline.
The great unknown is the impact aging baby boomers will have. While retirees in the past have often headed for warmer and suburban areas, boomers have tended to confound expectations. They could well show a propensity for staying put or moving to urban areas for the cultural life or to be near friends and family, shunning sun-dappled retirements communities.
Source: The Wall Street Journal, James R. Hagerty (12/02/08)
NAR-Backed Rate Buydown Gains Traction
An effort by the NATIONAL ASSOCIATION OF REALTORS® to spur home sales through a mortgage-interest rate buydown appears to be gaining traction.
Reports in major news media like the Washington Post and Wall Street Journal today quote sources familiar with a meeting between U.S. Treasury officials and NAR in November in which the buydown proposal was discussed.
"Treasury officials told the REALTORS® that the [buydown] plan could be a more effective way to help home owners than focusing solely on borrowers who are struggling to meet their monthly payments," the Washington Post story says.
Under the Treasury plan, lenders would sell newly issued mortgage-backed securities to the government provided the interest-rate on the loans collateralizing the securities was no higher than 4.5 percent. Although NAR supports a buydown, it does not take a position on how low interest rates should go.
To pay for the plan, Treasury would issue bonds at 3 percent, creating a 1.5-percent spread that it could use for buying the securities. Those securities would then be purchased by secondary mortgage market companies Fannie Mae and Freddie Mac, which are under federal conservatorship.
NAR has been calling for a buydown and other measures to help stimulate housing sales as part of a four-point plan it showcased at its annual meeting in Orlando last month.
To date, tens of thousands of REALTORS® have sent letters to their members of Congress asking for quick action to help housing, which is widely considered a crucial first step to a broader economic recovery.
Other parts of the four-point plan include making 2008 high-cost conforming loan limits, which are now $729,750, permanent, and improving the home buyer tax credit by expanding it to all buyers, not just first-timers, and eliminating the repayment requirement.
Some analysts have calculated that an interest-rate buydown could help as many as 2.5 million households.
"We strongly encourage the Treasury to move quickly with its plan to lower interest rates to encourage current buyers to act rather than continue to wait," said NAR President Charles McMillan in a public statement on the Treasury's most recent action with the plan. "We are pleased to see that the leadership of the Treasury Department is seriously considering the actions we discussed to lower interest rates. The result of such action will help the nation’s economic recovery and bring stability to the housing market."
Source: REALTOR® Magazine Online
Reports in major news media like the Washington Post and Wall Street Journal today quote sources familiar with a meeting between U.S. Treasury officials and NAR in November in which the buydown proposal was discussed.
"Treasury officials told the REALTORS® that the [buydown] plan could be a more effective way to help home owners than focusing solely on borrowers who are struggling to meet their monthly payments," the Washington Post story says.
Under the Treasury plan, lenders would sell newly issued mortgage-backed securities to the government provided the interest-rate on the loans collateralizing the securities was no higher than 4.5 percent. Although NAR supports a buydown, it does not take a position on how low interest rates should go.
To pay for the plan, Treasury would issue bonds at 3 percent, creating a 1.5-percent spread that it could use for buying the securities. Those securities would then be purchased by secondary mortgage market companies Fannie Mae and Freddie Mac, which are under federal conservatorship.
NAR has been calling for a buydown and other measures to help stimulate housing sales as part of a four-point plan it showcased at its annual meeting in Orlando last month.
To date, tens of thousands of REALTORS® have sent letters to their members of Congress asking for quick action to help housing, which is widely considered a crucial first step to a broader economic recovery.
Other parts of the four-point plan include making 2008 high-cost conforming loan limits, which are now $729,750, permanent, and improving the home buyer tax credit by expanding it to all buyers, not just first-timers, and eliminating the repayment requirement.
Some analysts have calculated that an interest-rate buydown could help as many as 2.5 million households.
"We strongly encourage the Treasury to move quickly with its plan to lower interest rates to encourage current buyers to act rather than continue to wait," said NAR President Charles McMillan in a public statement on the Treasury's most recent action with the plan. "We are pleased to see that the leadership of the Treasury Department is seriously considering the actions we discussed to lower interest rates. The result of such action will help the nation’s economic recovery and bring stability to the housing market."
Source: REALTOR® Magazine Online
Mortgage Rates Take a Big Dip
For the week ended Dec. 3, Freddie Mac reported the lowest interest on 30-year fixed home loans since late January.
The rate came in at an average of 5.53 percent, down from 5.97 percent the previous week and 5.96 percent a year ago; while 15-year fixed mortgages settled at 5.33 percent compared to 5.74 percent last week and 5.65 percent in the year-earlier period.
Borrowing costs for short-term loans also were lower, with one-year adjustable-rate mortgages dipping to 5.02 percent from 5.18 percent a week ago and 5.46 percent a year ago.
Five-year hybrid ARMs, meanwhile, fell to 5.77 percent from 5.86 percent last week and 5.75 percent during the same period of last year.
Source: Realty Times (12/05/08)
The rate came in at an average of 5.53 percent, down from 5.97 percent the previous week and 5.96 percent a year ago; while 15-year fixed mortgages settled at 5.33 percent compared to 5.74 percent last week and 5.65 percent in the year-earlier period.
Borrowing costs for short-term loans also were lower, with one-year adjustable-rate mortgages dipping to 5.02 percent from 5.18 percent a week ago and 5.46 percent a year ago.
Five-year hybrid ARMs, meanwhile, fell to 5.77 percent from 5.86 percent last week and 5.75 percent during the same period of last year.
Source: Realty Times (12/05/08)
Monday, November 3, 2008
Reverse Mortgages Get Boost from Uncle Sam
Starting on Nov. 1, the limit on FHA-backed reverse mortgages, dubbed Home Equity Conversion Mortgages (HECMs), will rise to $417,000 nationwide.
The new rules also will institute a 2-percent cap on origination fees for the first $200,000 of the loan amount or a 1-percent ceiling for higher amounts, with a $6,000 inflation-adjustable limit.
Additionally, seniors will be allowed to use such loans to purchase a new property and extract equity from co-operative properties, and lenders will no longer be allowed to sell annuities and other financial products along with the mortgage.
Presently, 99 percent of new reverse mortgages are HECMs.
Source: Christian Science Monitor, Margaret Price (10/27/08)
The new rules also will institute a 2-percent cap on origination fees for the first $200,000 of the loan amount or a 1-percent ceiling for higher amounts, with a $6,000 inflation-adjustable limit.
Additionally, seniors will be allowed to use such loans to purchase a new property and extract equity from co-operative properties, and lenders will no longer be allowed to sell annuities and other financial products along with the mortgage.
Presently, 99 percent of new reverse mortgages are HECMs.
Source: Christian Science Monitor, Margaret Price (10/27/08)
Monday, October 27, 2008
Mortgage Market Still Open for Business
Lenders emphasize that loans continue to be available for a range of potential home buyers, not just those who are putting down 20 percent and have a credit score higher than 720.
Although credit underwriting is tougher and loan terms stricter, borrowers can still put down 3 percent (3.5 percent after Jan. 1) on an FHA-insured mortgage and 5 percent on some Fannie Mae and Freddie Mac loan programs with private mortgage insurance.
FHA standards are designed to help people with problem credit and those with scores in the upper 600s can still qualify for loans with reasonable rates offered by Fannie Mae and Freddie Mac.
Maximum loans in high-cost markets are capped at $729,750 through December. In June, they are expected to fall to approximately $625,000.
"I don't think consumers really know how free-flowing capital is right now in the residential mortgage market. There are no shortages, no breakdowns. People ought to be aware of that," says Jeff Lipes, president of Family Choice Mortgage.
Source: Washington Post Writer’s Group, Kenneth R. Harney (10/18/08)
Although credit underwriting is tougher and loan terms stricter, borrowers can still put down 3 percent (3.5 percent after Jan. 1) on an FHA-insured mortgage and 5 percent on some Fannie Mae and Freddie Mac loan programs with private mortgage insurance.
FHA standards are designed to help people with problem credit and those with scores in the upper 600s can still qualify for loans with reasonable rates offered by Fannie Mae and Freddie Mac.
Maximum loans in high-cost markets are capped at $729,750 through December. In June, they are expected to fall to approximately $625,000.
"I don't think consumers really know how free-flowing capital is right now in the residential mortgage market. There are no shortages, no breakdowns. People ought to be aware of that," says Jeff Lipes, president of Family Choice Mortgage.
Source: Washington Post Writer’s Group, Kenneth R. Harney (10/18/08)
NAR: Home Sales Rise as Affordability Improves
Existing-home sales increased last month as buyers responded to improved housing affordability conditions, according to the National Association of Realtors®.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 5.5 percent to a seasonally adjusted annual rate of 5.18 million units in September from a level of 4.91 million in August. Home sales are 1.4 percent higher than the 5.11 million-unit pace in September 2007.
Lawrence Yun, NAR chief economist, said more markets are seeing year-over-year gains.
“The sales turnaround which began in California several months ago is broadening now to Colorado, Kansas, Minnesota, Missouri, and Rhode Island,” he says. “The South was hampered by much lower home sales in Houston in the aftermath of Hurricane Ike.”
NAR President Richard F. Gaylord says low home prices and low interest rates have helped attract buyers.
“This is the first time since November 2005 that home sales have been above year-ago levels,” Gaylord says. “Credit tightened at the end of September, but the improvement demonstrates that buyers who’ve been on the sidelines want to get into the market to make a long-term investment in their future.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 6.04 percent in September from 6.48 percent in August; the rate was 6.38 percent in September 2007.
Yun says there may still be market disruptions.
“The credit markets are not settled yet, although the mortgage market stabilized with the government takeover of Fannie Mae and Freddie Mac," Yun says. "Inventory remains high, and price declines are pressuring owners."
Yun says that an additional housing stimulus would stabilize prices more quickly and help bring faster stability to Wall Street.
"Removing the repayment feature on the [$7,500] first-time buyer tax credit and permanently raising loan limits would bring more buyers into the market and further reduce inventory,” Yun says.
A Closer Look at the Numbers
* Total housing inventory: at the end of September fell 1.6 percent to 4.27 million existing homes available for sale, which represents a 9.9-month supply at the current sales pace, down from a 10.6-month supply in August. This marks two consecutive monthly declines since inventories peaked in July.
* National median existing-home price: $191,600 in September, for all housing types. That's down 9 percent from a year ago when the median was $210,500.
“Compared to a fairly small share of foreclosures or short sales a year ago, distressed sales are currently 35 to 40 percent of transactions," Yun says. "These are pulling the median price down because many are being sold at discounted prices. The current market is not being dominated by speculative investors. Rather, 80 percent of current buyers are purchasing a primary residence, which is a bit higher than historic norms.”
* Single-family home sales: increased 6.2 percent to a seasonally adjusted annual rate of 4.62 million in September from a pace of 4.35 million in August, and are 3.8 percent above the 4.45 million-unit level a year ago. The median existing single-family home price was $190,600 in September, which is 8.6 percent below September 2007.
* Existing condominium and co-op sales: were unchanged at a seasonally adjusted annual rate of 560,000 units in September, but are 15.7 percent below the 664,000-unit pace in September 2007. The median existing condo price was $199,400 in September, down 10.2 percent from a year ago.
By Region
Here's a breakdown across the country of existing-home in September:
* West: sting-home sales in the West jumped 16.8 percent to an annual rate of 1.25 million in September, and are 34.4 percent higher than September 2007. Median price: $253,600, down 18.5 percent from a year ago.
* Midwest: sales increased 4.4 percent to an annual pace of 1.19 million in September, but are 2.5 percent below a year ago. Median price: $152,500, which is 7.9 percent lower than September 2007.
* South: sales rose 2.2 percent in September to a pace of 1.9 million but remain 7.8 percent below September 2007. Median price:$167,200, down 4.1 percent from a year ago.
* Northeast: sales slipped 1.2 percent to an annual pace of 840,000 in September, and are 7.7 percent lower than a year ago. Median price: $246,800, down 5.4 percent from September 2007.
Source: NAR
Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 5.5 percent to a seasonally adjusted annual rate of 5.18 million units in September from a level of 4.91 million in August. Home sales are 1.4 percent higher than the 5.11 million-unit pace in September 2007.
Lawrence Yun, NAR chief economist, said more markets are seeing year-over-year gains.
“The sales turnaround which began in California several months ago is broadening now to Colorado, Kansas, Minnesota, Missouri, and Rhode Island,” he says. “The South was hampered by much lower home sales in Houston in the aftermath of Hurricane Ike.”
NAR President Richard F. Gaylord says low home prices and low interest rates have helped attract buyers.
“This is the first time since November 2005 that home sales have been above year-ago levels,” Gaylord says. “Credit tightened at the end of September, but the improvement demonstrates that buyers who’ve been on the sidelines want to get into the market to make a long-term investment in their future.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 6.04 percent in September from 6.48 percent in August; the rate was 6.38 percent in September 2007.
Yun says there may still be market disruptions.
“The credit markets are not settled yet, although the mortgage market stabilized with the government takeover of Fannie Mae and Freddie Mac," Yun says. "Inventory remains high, and price declines are pressuring owners."
Yun says that an additional housing stimulus would stabilize prices more quickly and help bring faster stability to Wall Street.
"Removing the repayment feature on the [$7,500] first-time buyer tax credit and permanently raising loan limits would bring more buyers into the market and further reduce inventory,” Yun says.
A Closer Look at the Numbers
* Total housing inventory: at the end of September fell 1.6 percent to 4.27 million existing homes available for sale, which represents a 9.9-month supply at the current sales pace, down from a 10.6-month supply in August. This marks two consecutive monthly declines since inventories peaked in July.
* National median existing-home price: $191,600 in September, for all housing types. That's down 9 percent from a year ago when the median was $210,500.
“Compared to a fairly small share of foreclosures or short sales a year ago, distressed sales are currently 35 to 40 percent of transactions," Yun says. "These are pulling the median price down because many are being sold at discounted prices. The current market is not being dominated by speculative investors. Rather, 80 percent of current buyers are purchasing a primary residence, which is a bit higher than historic norms.”
* Single-family home sales: increased 6.2 percent to a seasonally adjusted annual rate of 4.62 million in September from a pace of 4.35 million in August, and are 3.8 percent above the 4.45 million-unit level a year ago. The median existing single-family home price was $190,600 in September, which is 8.6 percent below September 2007.
* Existing condominium and co-op sales: were unchanged at a seasonally adjusted annual rate of 560,000 units in September, but are 15.7 percent below the 664,000-unit pace in September 2007. The median existing condo price was $199,400 in September, down 10.2 percent from a year ago.
By Region
Here's a breakdown across the country of existing-home in September:
* West: sting-home sales in the West jumped 16.8 percent to an annual rate of 1.25 million in September, and are 34.4 percent higher than September 2007. Median price: $253,600, down 18.5 percent from a year ago.
* Midwest: sales increased 4.4 percent to an annual pace of 1.19 million in September, but are 2.5 percent below a year ago. Median price: $152,500, which is 7.9 percent lower than September 2007.
* South: sales rose 2.2 percent in September to a pace of 1.9 million but remain 7.8 percent below September 2007. Median price:$167,200, down 4.1 percent from a year ago.
* Northeast: sales slipped 1.2 percent to an annual pace of 840,000 in September, and are 7.7 percent lower than a year ago. Median price: $246,800, down 5.4 percent from September 2007.
Source: NAR
Monday, October 20, 2008
10 Ways to Cut Energy Bills This Fall
Staying warm doesn't have to cost a fortune. Here are some ideas from the U.S. Department of Energy for conserving heat and saving money.
When the leaves start falling, you know that the heating bills are about to start rising. But keeping your home warm and cozy on chilly autumn nights doesn't have to break the bank.
The U.S. Department of Energy offers these simple tips and relatively inexpensive home improvements that will help ensure cold gusts stay out and your furnace doesn't have to work harder than it should.
The goal: Conserve energy and keep more of your hard-earned dollars in your pocket.
Share these ideas with customers and use them for your own house. After all, who doesn't need to save a little money these days?
1. Plug air leaks with caulking, sealing, or weather stripping. Save 10 percent ($190 per year) or more on energy bills. Focus on windows, doors, outlets or switch plates on exterior walls.
2. Properly maintain the heating system. Heating accounts for half the average family's energy bill (approximately $950 per year). Make sure the furnace or heat pump receives professional maintenance each year. The small cost (about $75-100 for most service calls) will pay back in better performance all year long.
3. Install a programmable thermostat. Programming the thermostat from 72ºF to 65ºF for eight hours a day while no one is home, or everyone is tucked in bed, will cut the heating bill up to 10 percent ($90 per year), paying for a basic unit in less than a year.
4. Seal and insulate heating ducts. A system can lose up to 60 percent of its warmed air before it reaches the register (wasting $570 in warmed air per year) if ducts are not properly insulated in unheated areas such as attics and crawlspaces.
5. Insulate, insulate, insulate. Adequate insulation in the attic, ceilings, exterior and basement walls, floors, and crawlspaces can save up to 30 percent on home energy bills ($630 per year). Focus on the attic. (Heat rises.) Most homes should have between R-30 and R-49 insulation in the attic. Learn more at www.eere.energy.gov/consumer.
6. Close fireplace dampers when not in use. When in use, reduce heat loss by opening dampers in the bottom of the firebox (if provided) or open the nearest window about an inch, close doors to the room, and lower thermostat setting to 50-55ºF.
7. Let the sun shine in. Open curtains on south facing windows during the day to allow sunlight to naturally heat the home, and close them at night to reduce the chill from cold windows.
8. Stay out of hot water. Water heating accounts for 15 percent of household energy use. Reduce water heating costs by lowering the water heater’s thermostat setting. Each 10ºF reduction can save between 3-5 percent in energy costs. Also insulate the hot water heater and hot water pipes.
9. Install storm windows over single-pane windows or replace them with Energy Star qualified windows. Storm windows reduce heat loss by 25 to 50 percent, and storm windows with low-e coating that reflect heat back into the room during the winter months save even more energy. Look for the Energy Star label to maximize savings. Energy Star qualified windows reduce heating and cooling bills by an average of $345, but could be higher in cold and hot climates, compared with uncoated, single-pane windows. Can’t afford new windows just now? Tape clear plastic sheeting to the inside of window frames if drafts, water condensation, or frost are present.
10. Net big savings with a little label. When replacing appliances, light bulbs, electronics, or heating and cooling systems, cut energy bills by up to 30 percent ($600 per year) with Energy Star labeled products. Use compact fluorescent light bulbs (CFLs) in place of comparable incandescent bulbs. Find retailers at www.energystar.gov.
These and other improvements that impact the energy efficiency of a home can save home owners money in the short term and serve as a selling point to potential buyers later. Be sure to save receipts, documentation, and manufacturer’s information.
Not sure where to begin? Try the Department of Energy's online energy audit tool at www.hes.lbl.gov. In the long run, a whole-house energy audit is a fool proof way to make a plan to address wasted energy and make a home operate efficiently for years to come. Visit www.natresnet.org to find a qualified auditor in your neck of the woods.
(Source: REALTOR® magazine, Kelly Quigley)
When the leaves start falling, you know that the heating bills are about to start rising. But keeping your home warm and cozy on chilly autumn nights doesn't have to break the bank.
The U.S. Department of Energy offers these simple tips and relatively inexpensive home improvements that will help ensure cold gusts stay out and your furnace doesn't have to work harder than it should.
The goal: Conserve energy and keep more of your hard-earned dollars in your pocket.
Share these ideas with customers and use them for your own house. After all, who doesn't need to save a little money these days?
1. Plug air leaks with caulking, sealing, or weather stripping. Save 10 percent ($190 per year) or more on energy bills. Focus on windows, doors, outlets or switch plates on exterior walls.
2. Properly maintain the heating system. Heating accounts for half the average family's energy bill (approximately $950 per year). Make sure the furnace or heat pump receives professional maintenance each year. The small cost (about $75-100 for most service calls) will pay back in better performance all year long.
3. Install a programmable thermostat. Programming the thermostat from 72ºF to 65ºF for eight hours a day while no one is home, or everyone is tucked in bed, will cut the heating bill up to 10 percent ($90 per year), paying for a basic unit in less than a year.
4. Seal and insulate heating ducts. A system can lose up to 60 percent of its warmed air before it reaches the register (wasting $570 in warmed air per year) if ducts are not properly insulated in unheated areas such as attics and crawlspaces.
5. Insulate, insulate, insulate. Adequate insulation in the attic, ceilings, exterior and basement walls, floors, and crawlspaces can save up to 30 percent on home energy bills ($630 per year). Focus on the attic. (Heat rises.) Most homes should have between R-30 and R-49 insulation in the attic. Learn more at www.eere.energy.gov/consumer.
6. Close fireplace dampers when not in use. When in use, reduce heat loss by opening dampers in the bottom of the firebox (if provided) or open the nearest window about an inch, close doors to the room, and lower thermostat setting to 50-55ºF.
7. Let the sun shine in. Open curtains on south facing windows during the day to allow sunlight to naturally heat the home, and close them at night to reduce the chill from cold windows.
8. Stay out of hot water. Water heating accounts for 15 percent of household energy use. Reduce water heating costs by lowering the water heater’s thermostat setting. Each 10ºF reduction can save between 3-5 percent in energy costs. Also insulate the hot water heater and hot water pipes.
9. Install storm windows over single-pane windows or replace them with Energy Star qualified windows. Storm windows reduce heat loss by 25 to 50 percent, and storm windows with low-e coating that reflect heat back into the room during the winter months save even more energy. Look for the Energy Star label to maximize savings. Energy Star qualified windows reduce heating and cooling bills by an average of $345, but could be higher in cold and hot climates, compared with uncoated, single-pane windows. Can’t afford new windows just now? Tape clear plastic sheeting to the inside of window frames if drafts, water condensation, or frost are present.
10. Net big savings with a little label. When replacing appliances, light bulbs, electronics, or heating and cooling systems, cut energy bills by up to 30 percent ($600 per year) with Energy Star labeled products. Use compact fluorescent light bulbs (CFLs) in place of comparable incandescent bulbs. Find retailers at www.energystar.gov.
These and other improvements that impact the energy efficiency of a home can save home owners money in the short term and serve as a selling point to potential buyers later. Be sure to save receipts, documentation, and manufacturer’s information.
Not sure where to begin? Try the Department of Energy's online energy audit tool at www.hes.lbl.gov. In the long run, a whole-house energy audit is a fool proof way to make a plan to address wasted energy and make a home operate efficiently for years to come. Visit www.natresnet.org to find a qualified auditor in your neck of the woods.
(Source: REALTOR® magazine, Kelly Quigley)
New Stimulis Package Under Discussion
Capitol Hill legislators are busy hammering out another economic stimulus plan to help ordinary Americans. But their chances of gaining support from the president and lawmakers on both sides of the aisle is not certain.
The problem is that Democrats and Republicans have very different views of how a stimulus package should be structured, and the White House has signaled its opposition to some of the key ideas now being circulated.
Senate Majority Leader Harry Reid (D-Nev.) took the wraps off a $150 billion package similar to a stimulus proposal made by Democratic presidential nominee Sen. Barack Obama (D-Ill.) earlier in the week.
That proposal includes spending on infrastructure projects, providing energy assistance to low-income families, and a mandate for the federal government to be more aggressive in using its authority to push lenders to reduce foreclosures by renegotiating mortgage loans.
Republicans, by comparison, favor suspending the capital gains levy, lowering the corporate tax rate, and providing federal guarantees on interbank lending.
[Editor's note: The National Association of REALTORS® has called on Congress to pass a new stimulus bill during the lame-duck session of Congress later this year and to include four consumer-oriented housing provisions in the bill that would:
1. Make the temporary high-cost conforming loan limit of $729,750 permanent.
2. Eliminate the repayment requirement in the $7,500 homeownership tax credit and also expand eligibility for that tax credit to all buyers, not just first-timers.
3. Ensure the $700 billion in federal assistance to Wall Street gets filtered to lenders for new loan originations and refinancings, and not just be used to shore up investment banks' bottom lines.
4. Permanently keep banks out of real estate brokerage and management to ensure long-term protection of consumers.]
Source: Los Angeles Times, Jim Puzzanghera and Richard Simon (10/16/08)
The problem is that Democrats and Republicans have very different views of how a stimulus package should be structured, and the White House has signaled its opposition to some of the key ideas now being circulated.
Senate Majority Leader Harry Reid (D-Nev.) took the wraps off a $150 billion package similar to a stimulus proposal made by Democratic presidential nominee Sen. Barack Obama (D-Ill.) earlier in the week.
That proposal includes spending on infrastructure projects, providing energy assistance to low-income families, and a mandate for the federal government to be more aggressive in using its authority to push lenders to reduce foreclosures by renegotiating mortgage loans.
Republicans, by comparison, favor suspending the capital gains levy, lowering the corporate tax rate, and providing federal guarantees on interbank lending.
[Editor's note: The National Association of REALTORS® has called on Congress to pass a new stimulus bill during the lame-duck session of Congress later this year and to include four consumer-oriented housing provisions in the bill that would:
1. Make the temporary high-cost conforming loan limit of $729,750 permanent.
2. Eliminate the repayment requirement in the $7,500 homeownership tax credit and also expand eligibility for that tax credit to all buyers, not just first-timers.
3. Ensure the $700 billion in federal assistance to Wall Street gets filtered to lenders for new loan originations and refinancings, and not just be used to shore up investment banks' bottom lines.
4. Permanently keep banks out of real estate brokerage and management to ensure long-term protection of consumers.]
Source: Los Angeles Times, Jim Puzzanghera and Richard Simon (10/16/08)
Tuesday, October 14, 2008
Certified Negotiation Expert (CNE)
Shielamarie Suttle Receives New Certified Negotiation Expert Designation
Real estate negotiation skills a must for all home buyers/sellers, especially in current market
I have been awarded the Certified Negotiation Expert (CNE) designation, achieved by real estate professionals who have successfully completed formal training in the art of negotiation. Agents who receive this certification are in the top 1% of all agents nationally.
With professional negotiation skills, agents will typically obtain better results for their clients. CNE agents have a powerful competitive edge because of their ability to uncover information effectively, get more and give less during sales/purchase negotiations, and retain control over desired outcomes. Bottom line, CNE agents know how to influence and persuade others more effectively than agents without professional negotiation training.
The certification training is provided by Negotiation Expertise, LLC, a national negotiation training and coaching company based in Peoria, AZ. Tom Hayman, the President and owner, is a professional negotiator with 35+ year’s experience, including 25 years with Procter and Gamble, a Fortune 50 company. Hayman asserts “Any Buyer or Seller who hires a CNE agent can feel confident that they have the best trained agent in the business. They will get superior results and have better resolution of any issues when hiring a CNE agent.”
If you are looking to Sell or Buy real estate, please visit my website at www.ShielaSuttle.com. I invite you to contact me at any time! And remember, I'm never too busy for your referrals.
Monday, September 15, 2008
Why This Autumn is a Great Time to Buy
This fall could be a particularly great time for first-time or buyers long out of the market to jump in, say a variety of real estate professionals.
Here are the reasons why:
Here are the reasons why:
- Prices are probably as low as they are going to go as the market stabilizes, thanks to the government takeover of Freddie Mac and Fannie Mae.
- Interest rates are likely to decline as Freddie and Fannie get government help.
- The Federal Housing Administration recently boosted its loan limits to $729,750 in expensive areas. It's going to take some of that back come Jan. 1, when the loan limit will shrink to $625,500.
The FHA allows down payments of as little as 3 percent, but that will rise to 3.5 percent as of Oct. 1. People scraping dollars together for a down payment should try to set their closing for the end of this month.
- The tax credit will shave $7,500 off a first-time buyer’s federal tax bill due April 15. Buyers who don't owe tax, will get the money as a refund.
The government's definition of a first-time buyer is anyone who hasn’t owned a home in the last three years.
Source: The Washington Post, Elizabeth Razzi (09/07/08)
Wednesday, September 10, 2008
Government Takeover of Fannie & Freddie
What is happening to Fannie and Freddie?
Major Points
Major Points
- Fannie and Freddie have been placed in conservatorship. (Federal government has taken 79.9 percent of common stock and all dividends in return for buying $1 billion of preferred shares.)
- Treasury Department says both are open for business with no major changes in operations.
- Top Fannie/Freddie executives have been replaced.
- Fannie/Freddie can grow their guaranteed mortgage book with no limits and grow their retained portfolios with limits. Ultimately, the government plans to shrink their portfolios (10% per year starting in 2010).
- The federal government will provide capital to keep Fannie/Freddie’s net worth positive (up to $100 billion). In return, the Treasury will receive new senior preferred stock and warrants on the GSEs’ common stock.
- The federal government will begin buying Fannie/Freddie mortgage-backed securities (MBS) on the open market.
- Treasury Department will create a Secured Lending Credit Facility, a liquidity backstop for GSEs.
Initial Reactions
- Rates drop half a point!
- World markets respond positively to news: stocks up on Monday, September 8, 2008.
- Federal Reserve Chairman Ben Bernanke: “These necessary steps will help to strengthen the U.S. housing market and promote stability in our financial markets.”
- Investor Warren Buffett: “Secretary Paulson has made exactly the right decision for the country. He is minimizing the problem of moral hazard and maximizing the benefits for the housing market and for the smooth functioning of financial markets.”
Anticipated Results
- Increased confidence in financial markets.
- Rates to possibly stabilize, due to reassurance given by government intervention.
- Loan term changes possible (FICO, LTV).
- More loan workouts possible due to increased government pressure on lenders to create solutions that prevent foreclosures.
Monday, September 8, 2008
Where Are Lenders Getting Credit Scores?
Consumers often mistakenly believe that mortgage lenders use only credit scores from Equifax, Experian, TransUnion, and Fair Isaac's myfico.com to gauge creditworthiness.
However, Consumer Reports recently found that lenders also use NextGen FICO scores, FICO Expansion Scores, and Industry Option FICO scores — which take car loans into consideration — as well as custom formulas.
Given that these credit scores or scoring models are not available to consumers, experts say that consumers should not rely solely on available credit scores to determine their likelihood of getting a loan. They would be wise to make timely bill payments, make more than the minimum payment, hold down credit card balances, and retain old accounts.
Additionally, experts say it might be worth keeping tabls on other credit scores, such as Experian's PLUS scores, which are not yet sold to lenders but could be in the future.
Source: Allentown Morning Call (PA) (09/02/08)
However, Consumer Reports recently found that lenders also use NextGen FICO scores, FICO Expansion Scores, and Industry Option FICO scores — which take car loans into consideration — as well as custom formulas.
Given that these credit scores or scoring models are not available to consumers, experts say that consumers should not rely solely on available credit scores to determine their likelihood of getting a loan. They would be wise to make timely bill payments, make more than the minimum payment, hold down credit card balances, and retain old accounts.
Additionally, experts say it might be worth keeping tabls on other credit scores, such as Experian's PLUS scores, which are not yet sold to lenders but could be in the future.
Source: Allentown Morning Call (PA) (09/02/08)
Tuesday, September 2, 2008
Is the Worst Over? Analysts Have Mixed Views
Some analysts reacting to the news that home sales rose a healthy 3.1 percent in July compared to June say the increase predicts further improvement. Others are more pessimistic.
"We are not yet ready to call the current levels a bottom but clearly most of the declines are behind us," says Adam York, a Wachovia Corp. economist.
"The good news is the trough is behind us," says Harm Bandholz, a New York-based economist with UniCredit, but Bandholz warns that tighter lending standards and rising foreclosures will continue to put pressure on housing prices.
Real estate consultant John Burns, who advises large builders and investment firms, says he thinks supply and demand will remain out of whack until there is a 46 percent decline in the inventory of homes on the resale market.
Burns, who is president of John Burns Real Estate Consulting, estimates that by 2010 the most stable markets will reach equilibrium and by 2011, the national market will move into better balance. Overall, he believes that it will take until 2014 for it to be business as usual.
Sources: The Wall Street Journal, Kelly Evans (08/26/2008) and Business Week, Amy Feldman (08/18/2008)
"We are not yet ready to call the current levels a bottom but clearly most of the declines are behind us," says Adam York, a Wachovia Corp. economist.
"The good news is the trough is behind us," says Harm Bandholz, a New York-based economist with UniCredit, but Bandholz warns that tighter lending standards and rising foreclosures will continue to put pressure on housing prices.
Real estate consultant John Burns, who advises large builders and investment firms, says he thinks supply and demand will remain out of whack until there is a 46 percent decline in the inventory of homes on the resale market.
Burns, who is president of John Burns Real Estate Consulting, estimates that by 2010 the most stable markets will reach equilibrium and by 2011, the national market will move into better balance. Overall, he believes that it will take until 2014 for it to be business as usual.
Sources: The Wall Street Journal, Kelly Evans (08/26/2008) and Business Week, Amy Feldman (08/18/2008)
Tuesday, August 12, 2008
How the New First-Time Buyer Tax Credit Works
Under the new housing bill, home buyers who have not owned a home in the last three years will be eligible for a tax credit equal to 10 percent of the property up to a maximum of $7,500.
Here’s how it works:
* The credit is $3,750 for married couples filing separately. Unmarried people who jointly purchase a home will be able to divide the $7,500 credit.
* This program is actually a loan, which home buyers must repay over 15 years at zero percent interest beginning in the second year after they purchase the home. A home buyer who qualified for the whole credit would pay $500 for 15 years or about $41.67 per month.
* The credit applies only to homes purchased on or after April 9, 2008, and before July 1, 2009.
* High-income home buyers don’t qualify: Eligibility begins phasing out for single filers with adjusted income of more than $75,000 and $150,000 for joint filers. It completely phases out at $95,000 for singles and $170,000 for married couples filing jointly.
Source: The Washington Post, Michelle Singletary (07/03/08)
Here’s how it works:
* The credit is $3,750 for married couples filing separately. Unmarried people who jointly purchase a home will be able to divide the $7,500 credit.
* This program is actually a loan, which home buyers must repay over 15 years at zero percent interest beginning in the second year after they purchase the home. A home buyer who qualified for the whole credit would pay $500 for 15 years or about $41.67 per month.
* The credit applies only to homes purchased on or after April 9, 2008, and before July 1, 2009.
* High-income home buyers don’t qualify: Eligibility begins phasing out for single filers with adjusted income of more than $75,000 and $150,000 for joint filers. It completely phases out at $95,000 for singles and $170,000 for married couples filing jointly.
Source: The Washington Post, Michelle Singletary (07/03/08)
Monday, August 4, 2008
President Signs Housing Rescue Bill
President George W. Bush signed into law a bipartisan housing stimulus bill Wednesday that is expected to bring greater stability to housing markets nationwide.
The bill, strongly supported by the NATIONAL ASSOCIATION OF REALTORS®, will help some 400,000 home owners refinance into affordable, government backed loans and offer a temporary first-time home buyer tax credit, which is expected to serve as an attractive incentive to buyers and help reduce high inventories of unsold homes.
The temporary first-time home buyer tax credit would offer $7,500 for the purchase of any home and can be used for purchases between April 9, 2008, and July 1, 2009.
The bill — H.R. 3221, the Housing and Economic Recovery Act of 2008 — also includes reform of Fannie Mae and Freddie Mac, FHA modernization, and permanent increases in conforming and FHA loan limits.
"These are all designed to help the housing and mortgage industries and boost the U.S. economy," NAR President Dick Gaylord said in a statement. “NAR has been a leading advocate for many of these changes long before the current housing and economic downturn. We are pleased that the president and Congress worked together to enact meaningful legislation that protects and enables families in this country to continue to strive for and enjoy the dream of homeownership.”
Source: NAR, Associated Press (7/30/08)
The bill, strongly supported by the NATIONAL ASSOCIATION OF REALTORS®, will help some 400,000 home owners refinance into affordable, government backed loans and offer a temporary first-time home buyer tax credit, which is expected to serve as an attractive incentive to buyers and help reduce high inventories of unsold homes.
The temporary first-time home buyer tax credit would offer $7,500 for the purchase of any home and can be used for purchases between April 9, 2008, and July 1, 2009.
The bill — H.R. 3221, the Housing and Economic Recovery Act of 2008 — also includes reform of Fannie Mae and Freddie Mac, FHA modernization, and permanent increases in conforming and FHA loan limits.
"These are all designed to help the housing and mortgage industries and boost the U.S. economy," NAR President Dick Gaylord said in a statement. “NAR has been a leading advocate for many of these changes long before the current housing and economic downturn. We are pleased that the president and Congress worked together to enact meaningful legislation that protects and enables families in this country to continue to strive for and enjoy the dream of homeownership.”
Source: NAR, Associated Press (7/30/08)
Monday, July 28, 2008
8 Quick Fixes to Increase Value
With buyers scarcer, sellers must up the ante to convince them that their property offers what many want most — top value for dollar expended. Here are eight fast fixes:
1. Buff up curb appeal. You’ve heard it before, but it’s critical to get buyers to want to look on the inside. Be objective. View listings from the street. Check the condition of the landscaping, paint, roof, shutters, front door, knocker, windows, house number, and even how window treatments look from the outside. Add something special—such as big flower pots or an antique bench — to help viewers remember house A from B.
2. Enrich with color. Paint’s cheap, but forget the adage that it must be white or neutral. Just don’t get too avant-garde with jarring pinks, oranges, and purples. Recommend soft colors that say “welcome,” lead the eye from room to room, and flatter skin tones. Think soft yellows and pale greens. Tint ceilings a lighter shade.
3. Upgrade the kitchen and bathroom. These make-or-break rooms can spur a sale. But besides making each squeaky clean and clutter-free, update the pulls, sinks, and faucets. In a kitchen, add one cool appliance, such as an espresso maker. In the bathroom, hang a flat-screen TV to mimic a hotel. Room service, anyone?
4. Add old-world patina. Make Andrea Palladio proud. Install crown molding at least six to nine inches in depth, proportional to the room’s size, and architecturally compatible. For ceilings nine feet high or higher, add dentil detailing, small tooth-shaped blocks used as a repeating ornament. It’s all in the details, after all.
5. Screen hardwood floors. Buyers favor wood over carpet, but refinishing is costly and time-consuming. Screening cuts dust, time, and expense. What it entails: a light sanding, not a full stripping of color or polyurethane, then a coat of finish.
6. Clean out, organize closets. Get sorting—organize your piles into “don’t need,” “haven’t worn,” and “keep.” Closets must be only half-full so buyers can visualize fitting their stuff in.
7. Update window treatments. Buyers want light and views, not dated, fancy-schmancy drapes that darken. To diffuse light and add privacy, consider energy-efficient shades and blinds.
8. Hire a home inspector. Do a preemptive strike, since busy home owners seek maintenance-free living. Fix problems before you list the home and then display receipts and wait for buyers to offer kudos to sellers for being so responsible.
1. Buff up curb appeal. You’ve heard it before, but it’s critical to get buyers to want to look on the inside. Be objective. View listings from the street. Check the condition of the landscaping, paint, roof, shutters, front door, knocker, windows, house number, and even how window treatments look from the outside. Add something special—such as big flower pots or an antique bench — to help viewers remember house A from B.
2. Enrich with color. Paint’s cheap, but forget the adage that it must be white or neutral. Just don’t get too avant-garde with jarring pinks, oranges, and purples. Recommend soft colors that say “welcome,” lead the eye from room to room, and flatter skin tones. Think soft yellows and pale greens. Tint ceilings a lighter shade.
3. Upgrade the kitchen and bathroom. These make-or-break rooms can spur a sale. But besides making each squeaky clean and clutter-free, update the pulls, sinks, and faucets. In a kitchen, add one cool appliance, such as an espresso maker. In the bathroom, hang a flat-screen TV to mimic a hotel. Room service, anyone?
4. Add old-world patina. Make Andrea Palladio proud. Install crown molding at least six to nine inches in depth, proportional to the room’s size, and architecturally compatible. For ceilings nine feet high or higher, add dentil detailing, small tooth-shaped blocks used as a repeating ornament. It’s all in the details, after all.
5. Screen hardwood floors. Buyers favor wood over carpet, but refinishing is costly and time-consuming. Screening cuts dust, time, and expense. What it entails: a light sanding, not a full stripping of color or polyurethane, then a coat of finish.
6. Clean out, organize closets. Get sorting—organize your piles into “don’t need,” “haven’t worn,” and “keep.” Closets must be only half-full so buyers can visualize fitting their stuff in.
7. Update window treatments. Buyers want light and views, not dated, fancy-schmancy drapes that darken. To diffuse light and add privacy, consider energy-efficient shades and blinds.
8. Hire a home inspector. Do a preemptive strike, since busy home owners seek maintenance-free living. Fix problems before you list the home and then display receipts and wait for buyers to offer kudos to sellers for being so responsible.
Monday, July 14, 2008
Make Sure Your House Sells!
The housing inventory has dipped in Phoenix by 2.6%. That's good news! This is a great sign that things are looking up in our neck of the woods. It means less inventory for buyers to choose from & less competition for sellers. Less competition gives a better chance to actually sell!
There are 3 major components to consider when selling your home: Price, Appearance & Location. The very first thing buyers will look at is the price. You should price your home according to the comparables in your neighborhood. For a quicker sale, price it below the comps! 5% below is a good place to start.
Appearance is how well your property shows. Remember, once you list the house on the market, it is no longer your home. It is now a product that should be displayed accordingly. That means all personal photos should be taken down & the property should be de-cluttered. Having a garage sale or renting a storage unit are great ways to do so. Neutral paint colors on the wall also appeal to buyers. Think taupes & light browns. It helps to have an outside opinion of what needs to be done (ie: a RE Agent or an ASP). Both are professionals and know what needs to be done in order to make the house presentable.
Even with the decline in our housing inventory, there is still a lot of competition. Make sure your property stands out by pricing it well & making it shine!
- Shielamarie Suttle
For more advice & information, visit my website at www.ShielaSuttle.com!
There are 3 major components to consider when selling your home: Price, Appearance & Location. The very first thing buyers will look at is the price. You should price your home according to the comparables in your neighborhood. For a quicker sale, price it below the comps! 5% below is a good place to start.
Appearance is how well your property shows. Remember, once you list the house on the market, it is no longer your home. It is now a product that should be displayed accordingly. That means all personal photos should be taken down & the property should be de-cluttered. Having a garage sale or renting a storage unit are great ways to do so. Neutral paint colors on the wall also appeal to buyers. Think taupes & light browns. It helps to have an outside opinion of what needs to be done (ie: a RE Agent or an ASP). Both are professionals and know what needs to be done in order to make the house presentable.
Even with the decline in our housing inventory, there is still a lot of competition. Make sure your property stands out by pricing it well & making it shine!
- Shielamarie Suttle
For more advice & information, visit my website at www.ShielaSuttle.com!
Monday, July 7, 2008
Price Reduced!
435 N Loma Vista, Mesa 85213
MLS: 2951386
JUST REDUCED! PRICED TO SELL QUICK! $259,900
JUST REDUCED! PRICED TO SELL QUICK! $259,900
Over 2,000 sq.ft. of living space! Situated on an oversized corner lot, this home has it all. Diving Pool, RV Salb, grassy area, brick fireplace. You name it! Home has been renovated in 2007. New 2 Car Garage conversion, added bedroom, updated floors, newer roof, newer AC, dual pane windows, and more. Eat-In kitchen features breakfast bar and is open to the family room. Large laundry room with storage cabinets. All appliances are negotiable. You'll be sure to fall in love with the character in the family room with high vaulted ceilings. Seller are motivated! Make an offer today!
For more information on this property & many more, visit www.ShielaSuttle.com!
Monday, June 30, 2008
Existing-Home Sales Show Modest Gain
Sales of existing-home sales increased in May with buyers responding to lower home prices, NAR says.
Existing-home sales — including single-family, townhomes, condominiums and co-ops — increased 2 percent to a seasonally adjusted annual rate of 4.99 million units in May from a level of 4.89 million in April, but are 15.9 percent below the 5.93 million-unit pace in May 2007.
NAR President Richard F. Gaylord says buyers are seeing value in the current housing market. “Home buyers are starting to get off the fence and into the market, drawn by drops in home prices in many areas and armed with greater access to affordable mortgages,” he says. “Today’s buyer plans to stay in a home for 10 years, which is a good strategy for building long-term wealth.”
The national median existing-home price for all housing types was $208,600 in May, down 6.3 percent from a year ago when the median was $222,700.
Housing Inventories
Lawrence Yun, NAR chief economist, says there’s still a lot of inventory in the market. “The large supply of homes on the market clearly favors buyers, and it should take several months to draw the inventory down,” he says. “Stabilization in home prices can only occur with buyers returning to the market, so we are encouraged by rising home sales, particularly in distressed markets. Foreclosures and short sales appear to be a larger part of the market, particularly in California, and are creating a drag on current home prices.”
Total housing inventory at the end of May fell 1.4 percent to 4.49 million existing homes available for sale, which represents a 10.8-month supply at the current sales pace, down from a 11.2-month supply in April.
Sales Activity Picks Up
Although conditions remain mixed around the country, unpublished snapshot data shows a number of areas are experiencing much higher sales activity than May 2007, including Sacramento, the San Fernando Valley and Monterey County in California; Sarasota, Fla.; and Battle Creek, Mich.
“Keep in mind that the volume of home sales is the primary driver of economic activity that is tied to housing,” Yun says. “It’d be premature to say the improvement marks a turnaround. The market is fragile, so a first-time home buyer tax credit and a permanent raise in loan limits would be important steps to get the housing engine humming.”
Single-family home sales rose 1.6 percent to a seasonally adjusted annual rate of 4.41 million in May from 4.34 million in April, but are 14.5 percent below the 5.16 million-unit pace in May 2007. The median existing single-family home price was $206,700 in May, which is 6.8 percent below a year ago.
Existing condominium and co-op sales increased 5.5 percent to a seasonally adjusted annual rate of 580,000 units in May from 550,000 in April, but are 24.6 percent lower than the 769,000-unit level a year ago. The median existing condo price was $223,400 in May, down 2.1 percent from May 2007.
By Region
Here's how existing-home sales fared across the country:
*Midwest: rose 5.5 percent in May to a pace of 1.16 million but are 16.5 percent lower than a year ago. Median price: $165,300, which is 0.7 percent below May 2007.
*Northeast: rose 4.6 percent to an annual rate of 910,000 in May, but are 15.0 percent below May 2007. Median price: $278,000, down 2.4 percent from a year ago.
*West: increased 2 percent to an annual pace of 1.02 million in May, but are 12.8 percent below a year ago. Median price: $286,600, which is 16 percent lower than May 2007.
*South: slipped 0.5 percent to an annual rate of 1.91 million in May, and are 17 percent below May 2007. Median price: $175,000, down 4.3 percent from May 2007.
Source: NAR
With the inventory going down & home sales going up, this is a clear sign that the market is starting to pick up. The current trend right now is picking up the bank owned properties (REO's) for a fraction of what they're really worth. Those REO's are affordable so the competition is getting fierce. It's not rare that homes priced well below market value are getting multiple offers on the table within days of being listed.
I've said it before and I'll say it again... It's not a "down market", it's just a different one! Times are changing and it's time to start picking up the pieces. You may get a good deal out of it!
~Shielamarie
For more information, please visit my website at www.ShielaSuttle.com!
Existing-home sales — including single-family, townhomes, condominiums and co-ops — increased 2 percent to a seasonally adjusted annual rate of 4.99 million units in May from a level of 4.89 million in April, but are 15.9 percent below the 5.93 million-unit pace in May 2007.
NAR President Richard F. Gaylord says buyers are seeing value in the current housing market. “Home buyers are starting to get off the fence and into the market, drawn by drops in home prices in many areas and armed with greater access to affordable mortgages,” he says. “Today’s buyer plans to stay in a home for 10 years, which is a good strategy for building long-term wealth.”
The national median existing-home price for all housing types was $208,600 in May, down 6.3 percent from a year ago when the median was $222,700.
Housing Inventories
Lawrence Yun, NAR chief economist, says there’s still a lot of inventory in the market. “The large supply of homes on the market clearly favors buyers, and it should take several months to draw the inventory down,” he says. “Stabilization in home prices can only occur with buyers returning to the market, so we are encouraged by rising home sales, particularly in distressed markets. Foreclosures and short sales appear to be a larger part of the market, particularly in California, and are creating a drag on current home prices.”
Total housing inventory at the end of May fell 1.4 percent to 4.49 million existing homes available for sale, which represents a 10.8-month supply at the current sales pace, down from a 11.2-month supply in April.
Sales Activity Picks Up
Although conditions remain mixed around the country, unpublished snapshot data shows a number of areas are experiencing much higher sales activity than May 2007, including Sacramento, the San Fernando Valley and Monterey County in California; Sarasota, Fla.; and Battle Creek, Mich.
“Keep in mind that the volume of home sales is the primary driver of economic activity that is tied to housing,” Yun says. “It’d be premature to say the improvement marks a turnaround. The market is fragile, so a first-time home buyer tax credit and a permanent raise in loan limits would be important steps to get the housing engine humming.”
Single-family home sales rose 1.6 percent to a seasonally adjusted annual rate of 4.41 million in May from 4.34 million in April, but are 14.5 percent below the 5.16 million-unit pace in May 2007. The median existing single-family home price was $206,700 in May, which is 6.8 percent below a year ago.
Existing condominium and co-op sales increased 5.5 percent to a seasonally adjusted annual rate of 580,000 units in May from 550,000 in April, but are 24.6 percent lower than the 769,000-unit level a year ago. The median existing condo price was $223,400 in May, down 2.1 percent from May 2007.
By Region
Here's how existing-home sales fared across the country:
*Midwest: rose 5.5 percent in May to a pace of 1.16 million but are 16.5 percent lower than a year ago. Median price: $165,300, which is 0.7 percent below May 2007.
*Northeast: rose 4.6 percent to an annual rate of 910,000 in May, but are 15.0 percent below May 2007. Median price: $278,000, down 2.4 percent from a year ago.
*West: increased 2 percent to an annual pace of 1.02 million in May, but are 12.8 percent below a year ago. Median price: $286,600, which is 16 percent lower than May 2007.
*South: slipped 0.5 percent to an annual rate of 1.91 million in May, and are 17 percent below May 2007. Median price: $175,000, down 4.3 percent from May 2007.
Source: NAR
With the inventory going down & home sales going up, this is a clear sign that the market is starting to pick up. The current trend right now is picking up the bank owned properties (REO's) for a fraction of what they're really worth. Those REO's are affordable so the competition is getting fierce. It's not rare that homes priced well below market value are getting multiple offers on the table within days of being listed.
I've said it before and I'll say it again... It's not a "down market", it's just a different one! Times are changing and it's time to start picking up the pieces. You may get a good deal out of it!
~Shielamarie
For more information, please visit my website at www.ShielaSuttle.com!
Price Reduced!
2131 E Forge Ave, Mesa, 85204
MLS: 2956129
NOW REDUCED TO $180,000!
*Property was appraised for $195,000 in the last 4 months...That's Instant Equity in your pocket!
For more information on this listing & many more, visit my website at www.ShielaSuttle.com.
Wednesday, June 25, 2008
Price Reduced!
5347 E 10th Ave, AJ
MLS: 2880975
NEW PRICE! REDUCED TO $590,000!
For more information on this property & many more, visit my website at http://www.shielasuttle.com/!
Tuesday, June 24, 2008
Just Listed!
914 E Harmony Ave, Mesa - $249,000
MLS: 3015268
This property is move-in ready! Jump into the newly replastered diving pool as soon as you step foot into your new home. Completely renovated kitchen boasts new cabinets, new counters, & stainless steel appliances. Washer & Dryer is also included. This 3 bedroom, 2 bath home features neutral paint throughout, ceiling fans, 2-car garage with cabinets, extra storage room, french doors in Master, tile floors throughout, sunken living room, water softener, satellite dish, RV Gate, storage shed, & large ramada in the back. No disappointments! Bring us those offers today!!!
For more information on this property & many more, please visit my website at http://www.shielasuttle.com/!
Monday, June 23, 2008
FHA Waives 9--Day Waiting Period
The Federal Housing Administration is lifting the mandatory 90-day waiting period it instituted in 2003 that delays the sale of REO properties.
The waiting period, which never applied to properties sold by Fannie Mae, Freddie Mac, or state- and federally chartered financial institutions, was imposed to make flipping more difficult. But as the number of REO homes has grown, it has had the effect of flooding neighborhoods with properties.
The change may help reduce the impact of foreclosures on some neighborhoods, but it won’t have as significant an impact as some might think, says Glen Daniels director of real estate-owned properties for Foreclosure.com. Many of the REO properties don’t meet FHA standards and will require rehabilitation before they can be sold to an FHA borrower, he points out.
Source: Reuters News; Inman News, Matt Carter (06/13/08)
This is great news in the real estate world! FHA loans are making a huge comeback right now with the increased loan limits. The majority of my buyers have an FHA loan & it's the easiest way to obtain financing for first time home buyers.
Lifting the 90-Day waiting period means banks & investors can sell the property as soon as they obtain it. There used to be a 90-day probation period where it had to be in their name during that time (this was FHA's way of trying to avoid immediate flipping & turn arounds). But now that it's gone, that means buyers can obtain those properties right away without having to wait for 3 months. Good news, right? Right!
~Shiela
For more information on the current market trends, visit my website at www.ShielaSuttle.com!
The waiting period, which never applied to properties sold by Fannie Mae, Freddie Mac, or state- and federally chartered financial institutions, was imposed to make flipping more difficult. But as the number of REO homes has grown, it has had the effect of flooding neighborhoods with properties.
The change may help reduce the impact of foreclosures on some neighborhoods, but it won’t have as significant an impact as some might think, says Glen Daniels director of real estate-owned properties for Foreclosure.com. Many of the REO properties don’t meet FHA standards and will require rehabilitation before they can be sold to an FHA borrower, he points out.
Source: Reuters News; Inman News, Matt Carter (06/13/08)
This is great news in the real estate world! FHA loans are making a huge comeback right now with the increased loan limits. The majority of my buyers have an FHA loan & it's the easiest way to obtain financing for first time home buyers.
Lifting the 90-Day waiting period means banks & investors can sell the property as soon as they obtain it. There used to be a 90-day probation period where it had to be in their name during that time (this was FHA's way of trying to avoid immediate flipping & turn arounds). But now that it's gone, that means buyers can obtain those properties right away without having to wait for 3 months. Good news, right? Right!
~Shiela
For more information on the current market trends, visit my website at www.ShielaSuttle.com!
Saturday, June 21, 2008
Price Reduced!
7931 E Jan Ave - $115,000
For more information on this property & many more, visit my website at www.ShielaSuttle.com.
For more information on this property & many more, visit my website at www.ShielaSuttle.com.
Friday, June 20, 2008
Just Listed!
8602 E Pueblo Ave, Mesa - $68,900
9,631 sq.ft. Vacant Corner Lot
Available parcel in great location. Easy access to the 202 & 60 freeways. Close to Superstition Springs Mall with plenty of shopping & Dining nearby. Make an offer today!
For more information on this property and many others, visit my website at www.ShielaSuttle.com!
9,631 sq.ft. Vacant Corner Lot
Available parcel in great location. Easy access to the 202 & 60 freeways. Close to Superstition Springs Mall with plenty of shopping & Dining nearby. Make an offer today!
For more information on this property and many others, visit my website at www.ShielaSuttle.com!
Wednesday, June 11, 2008
Most Common Mortgage Scams
Scam artists may promise to save cash-strapped home owners from foreclosure but then, instead, steal their money or any remaining home equity. Such scams are becoming more prevalent, and some states are fighting back.
In Florida, one of the nation's foreclosure capitals, State Attorney General Bill McCollum has filed suit against National Foreclosure Management, a mediation company, for allegedly defrauding troubled home owners. Fraudulent rescue companies in Illinois have been increasingly penalized, while in Massachusetts the for-profit practice of foreclosure rescue transactions has been banned.
Here are the most common ploys scammers use to prey on desperate home owners:
Bait and switch. The home owner is presented with what appears to be an application for refinancing, but in reality it's title transfer papers. Once the home owner signs, he loses his home.
Upfront fees. Scammers ask for money to be used for locating rescue funding. Once the home owner pays, the scam artist disappears.
Bankruptcy ploys. An attorney – or someone who pretends to be – persuades the home owner that filing for bankruptcy will save the house. The only one who wins is the person who pockets the fees he charges to file.
Rent-to-buy. Fraudsters offer to buy the property with a provision that the home owner will pay rent while building equity. Once the title is transferred, the former home owner is locked out.
Fraudulent refinance deals. A scammer offers to use his higher credit score to secure a refinance deal, but first the home owner has to hand over title to the house.
Source: Forbes, Matt Woolsey
In Florida, one of the nation's foreclosure capitals, State Attorney General Bill McCollum has filed suit against National Foreclosure Management, a mediation company, for allegedly defrauding troubled home owners. Fraudulent rescue companies in Illinois have been increasingly penalized, while in Massachusetts the for-profit practice of foreclosure rescue transactions has been banned.
Here are the most common ploys scammers use to prey on desperate home owners:
Bait and switch. The home owner is presented with what appears to be an application for refinancing, but in reality it's title transfer papers. Once the home owner signs, he loses his home.
Upfront fees. Scammers ask for money to be used for locating rescue funding. Once the home owner pays, the scam artist disappears.
Bankruptcy ploys. An attorney – or someone who pretends to be – persuades the home owner that filing for bankruptcy will save the house. The only one who wins is the person who pockets the fees he charges to file.
Rent-to-buy. Fraudsters offer to buy the property with a provision that the home owner will pay rent while building equity. Once the title is transferred, the former home owner is locked out.
Fraudulent refinance deals. A scammer offers to use his higher credit score to secure a refinance deal, but first the home owner has to hand over title to the house.
Source: Forbes, Matt Woolsey
Bank-Owned Homes Continue to Surge
The number of foreclosed home owned by lenders is rising, even though banks are increasingly willing to do what it takes to sell properties.
Lenders and investors in mortgages owned about 660,000 foreclosed homes in April, up from 493,000 in January and 231,000 in January 2007, according to First American CoreLogic, a research firm. That’s one in seven previously owned homes currently for sale nationwide.
Some lenders are cutting prices as often as every 20 days on homes that aren't selling, says David McCarthy, chief executive officer of Integrated Asset Services LLC, a Denver-based company that helps banks value and sell REO homes.
Source: The Wall Street Journal, James R. Hagerty
Lenders and investors in mortgages owned about 660,000 foreclosed homes in April, up from 493,000 in January and 231,000 in January 2007, according to First American CoreLogic, a research firm. That’s one in seven previously owned homes currently for sale nationwide.
Some lenders are cutting prices as often as every 20 days on homes that aren't selling, says David McCarthy, chief executive officer of Integrated Asset Services LLC, a Denver-based company that helps banks value and sell REO homes.
Source: The Wall Street Journal, James R. Hagerty
30-Year Rates Continue to Climb
Freddie Mac reports a slight gain in the 30-year fixed mortgage rate to 6.09 percent during the week ended June 5 from 6.08 percent the prior week, marking a nearly three-month high.
The increase can be attributed to concerns about inflation, with investors and analysts interpreting recent comments by Federal Reserve Chairman Ben Bernanke to mean an end to interest-rate cuts as the central bank moves to prevent out-of-control inflation.
Source: Baltimore Sun
The increase can be attributed to concerns about inflation, with investors and analysts interpreting recent comments by Federal Reserve Chairman Ben Bernanke to mean an end to interest-rate cuts as the central bank moves to prevent out-of-control inflation.
Source: Baltimore Sun
Where McCain, Obama Stand on Housing
As the race for the presidency shapes up as a contest between Sen. John McCain, the presumptive Republican nominee, and Sen. Barack Obama, who will claim the Democratic nomination, here are their initial positions on housing and related economic issues.
McCain:
1. Proposes to spend up to $10 billion to allow some home owners to trade high-interest, adjustable-rate mortgages for fixed-rate loans.
2. Proposes a suspension of the 18.4-cent federal gas tax and 24.4-cent diesel tax during the summer.
3. Supports a middle-class tax cut by doubling the personal tax exemption for dependents to $7,000.
4. Calls for a simpler tax system with two tax rates and a generous standard deduction.
5. Supports making permanent the 2001 and 2003 income tax cuts and proposes cutting the corporate tax rate to 25 percent from 35 percent and allowing businesses to immediately write off capital expenses.
6. Maintains that government assistance to the banking system should focus on preventing systemic risk that would endanger the financial system and the economy.
Obama:
1. Calls for greater government regulation of the U.S. financial system and proposes a new $30 billion economic stimulus plan to help home owners, including a $10 billion foreclosure prevention fund to help people keep their homes and $10 billion in relief for state and local governments hit hardest by the housing crisis.
2. Outlines six "core principles for reform" that would give the Federal Reserve supervisory authority over any financial institution to which it might make credit available and calls for reform and streamlining of financial regulatory agencies.
3. Wants to repeal a provision in the bankruptcy law so ordinary families can modify terms of home mortgages.
4. Proposes a 10 percent mortgage tax credit for middle-class Americans.
Source: Reuters News
McCain:
1. Proposes to spend up to $10 billion to allow some home owners to trade high-interest, adjustable-rate mortgages for fixed-rate loans.
2. Proposes a suspension of the 18.4-cent federal gas tax and 24.4-cent diesel tax during the summer.
3. Supports a middle-class tax cut by doubling the personal tax exemption for dependents to $7,000.
4. Calls for a simpler tax system with two tax rates and a generous standard deduction.
5. Supports making permanent the 2001 and 2003 income tax cuts and proposes cutting the corporate tax rate to 25 percent from 35 percent and allowing businesses to immediately write off capital expenses.
6. Maintains that government assistance to the banking system should focus on preventing systemic risk that would endanger the financial system and the economy.
Obama:
1. Calls for greater government regulation of the U.S. financial system and proposes a new $30 billion economic stimulus plan to help home owners, including a $10 billion foreclosure prevention fund to help people keep their homes and $10 billion in relief for state and local governments hit hardest by the housing crisis.
2. Outlines six "core principles for reform" that would give the Federal Reserve supervisory authority over any financial institution to which it might make credit available and calls for reform and streamlining of financial regulatory agencies.
3. Wants to repeal a provision in the bankruptcy law so ordinary families can modify terms of home mortgages.
4. Proposes a 10 percent mortgage tax credit for middle-class Americans.
Source: Reuters News
JUST LISTED!
377 S Prospectors Rd, Apache Junction, AZ 85219
$649,000 - 3 Bedrooms + Den / 2.5 Baths
MLS: 3006800
Gorgeous custom home on a fully landscaped 1-Acre lot. Located at the base of the Superstition Mountains, this home boasts incredible mountain views & stunning city lights. Many features include 10' ceilings, fireplace, hydraulic toilets, solar hot water heater, multi-pane windows, pine doors & more. The kitchen features hickory cabinets, breakfast bar & stainless steel appliances. Retreat into the Master suite, complete with wood floors, coffered ceilings, huge walk-in closet & a private escape to an amazing oasis out back. Pebbletec salt water pool with waterfall, vegetable garden, citrus trees & spiral staircase leading to the upper deck with amazing panoramic views!
For more information on this listing and many more, please visit www.ShielaSuttle.com
Tuesday, June 3, 2008
Just Listed!
7931 E Jan Ave, Mesa 85209 - $130,000 - Manufactured
3 Bedrooms / 2 Full Baths / 1,188 sq.ft.
Pride of Ownership! This home has been well taken care of. Vaulted ceilings, upgraded fixtures, dual pane windows, oak cabinets, inside laundry, split master floorplan. Master bath features a separate tub & shower with double sinks and walk-in closet in master bedroom. All rooms have ceiling fans to keep you extra cool. Covered patio is screened in. There are also 2 storage sheds in the back which gives you plenty of storage. Refrigerator stays! Call today to make an appointment to view this wonderful home!
Thursday, May 22, 2008
Accredited Staging Professional = ASP
Got it done! I finished my ASP designation course today. It was a good time for sure. Met some awesome new people in my class and learned more than I thought I would. It gives you a more in depth look at what it takes to make the house presentable.
For those of you who are unaware of what an ASP is, it's an Accredited Staging Professional. Say hello to Arizona's newest ASP RE Agent! Accredited ASP Stagers and ASP Real Estate Agents are true Professionals trained under strict guidelines using proven Staging techniques developed for over 30 years. When you bring your home on the market and prepare your house for sale always hire an ASP because they are the true leaders in the Home Staging and Real Estate Industries.
Home Staging is the very best proven way to get top dollar for your home as you prepare it for sale. Homes that are Staged with an ASP Professional Home Stager sell faster and for more money! This is because Staging sets the scene throughout the house to create immediate buyer interest in your property. This will then lead to your home selling for the highest possible price in today's market. Remember, "The way you live in your home, and the way you market and sell your house are two different things."
So when you are ready to list your home, please give me a call so that we can start the process of getting your house Sold!
For more information on Home Staging, visit StagedHomes.com & don't forget to check out my website a www.ShielaSuttle.com Happy Staging!
Monday, May 19, 2008
Fannie Mae Scraps Declining Markets Policy
Fannie Mae will no longer require borrowers to put up an extra 5 percent down payment when purchasing homes in areas deemed "declining markets," the country’s largest secondary mortgage market company said Friday.
Fannie Mae had been hearing concerns from REALTORS® and others for months that its declining-markets policy was bad for the housing market because it discouraged consumers from buying homes in markets hardest-hit by foreclosures.
"It stigmatized communities with lower sales and prices," said Dick Gaylord, president of the NATIONAL ASSOCIATION OF REALTORS®.
NAR met several times this spring with Fannie Mae officials and sent letters reflecting members' unease with the policy. “We heard the concerns of NAR and we reviewed and determined that changes in our policy were needed,” Gwen MuseEvans, Fannie Mae vice president for credit policy and controls, said in a statement Friday.
Fannie Mae's announcement comes as more than 8,000 REALTORS® are gathered in Washington, D.C., where Fannie Mae is headquartered, for NAR's 2008 Midyear Legislative Meetings & Trade Expo.
Under the policy change, borrowers can get loans up to 95 percent loan-to-value, even in markets in which prices have been falling. Prior to the change, borrowers could only get loans up to 90 percent to give lenders a 5-percentage-point cushion to protect against possible price declines in the future.
“This new down payment policy reinforces our goal to support successful home-owning,” says Marianne Sullivan, Fannie Mae's senior vice president of credit policy and risk management for single-family homes.
The new policy takes effect June 1.
— By Robert Freedman for REALTOR® magazine online
Fannie Mae had been hearing concerns from REALTORS® and others for months that its declining-markets policy was bad for the housing market because it discouraged consumers from buying homes in markets hardest-hit by foreclosures.
"It stigmatized communities with lower sales and prices," said Dick Gaylord, president of the NATIONAL ASSOCIATION OF REALTORS®.
NAR met several times this spring with Fannie Mae officials and sent letters reflecting members' unease with the policy. “We heard the concerns of NAR and we reviewed and determined that changes in our policy were needed,” Gwen MuseEvans, Fannie Mae vice president for credit policy and controls, said in a statement Friday.
Fannie Mae's announcement comes as more than 8,000 REALTORS® are gathered in Washington, D.C., where Fannie Mae is headquartered, for NAR's 2008 Midyear Legislative Meetings & Trade Expo.
Under the policy change, borrowers can get loans up to 95 percent loan-to-value, even in markets in which prices have been falling. Prior to the change, borrowers could only get loans up to 90 percent to give lenders a 5-percentage-point cushion to protect against possible price declines in the future.
“This new down payment policy reinforces our goal to support successful home-owning,” says Marianne Sullivan, Fannie Mae's senior vice president of credit policy and risk management for single-family homes.
The new policy takes effect June 1.
— By Robert Freedman for REALTOR® magazine online
Tuesday, May 13, 2008
What You Need to Know For Your Credit
What You Need To Know:
1. What is the credit score range? Generally, scores range between 350 and 850.
2. What is a good credit score? Usually a score of 720 or higher is best.
3. What makes up a FICO, or credit score? The breakdown of a FICO score is as follows:
35% - Payment History
30% - Amounts owed
15% - Length of credit history
10% - Types of credit
10% - New Credit
4. Should a person pay off their debt? If you are pursuing a loan, then you should pay off any unsecured, or credit card debt.
5. How many credit cards should a person have? New credit users should have no more than two to three. Seasoned credit users with good history can have anywhere from 5-7 and be safe, although not recommended. Opening too many accounts over a short period of time red flags your file.
6. What balance should I carry on my credit cards to maximize my credit score? You should have a very low or zero balance on your credit cards. If you do carry a balance, it should be no more than 30% of the card limit.
7. Should I close any of my credit cards? It may seem like a good idea to open all credit cards offered to you. But creditors look at your potential for debt when considering you for credit. However, once the account is open, the damage is done. Closing credit card accounts will bring DOWN your credit score. When and if you do close credit card accounts, close the newest ones with the lowest limits first.
8. How do inquires affect your credit score? An inquiry can affect your score anywhere from 2 to 30+ points, depending on other factors in the report. But only inquires you make for new credit affect your score.
9. Is your FICO score affected if you run a personal credit report? No, Personal credit checks, as well as credit inquires by potential employers or businesses who want to offer you goods appear on your report as inquires, but do not affect your score.
If you are in need of a Mortgage Consultant, please feel free to Contact Me for a list of reliable referrals.
1. What is the credit score range? Generally, scores range between 350 and 850.
2. What is a good credit score? Usually a score of 720 or higher is best.
3. What makes up a FICO, or credit score? The breakdown of a FICO score is as follows:
35% - Payment History
30% - Amounts owed
15% - Length of credit history
10% - Types of credit
10% - New Credit
4. Should a person pay off their debt? If you are pursuing a loan, then you should pay off any unsecured, or credit card debt.
5. How many credit cards should a person have? New credit users should have no more than two to three. Seasoned credit users with good history can have anywhere from 5-7 and be safe, although not recommended. Opening too many accounts over a short period of time red flags your file.
6. What balance should I carry on my credit cards to maximize my credit score? You should have a very low or zero balance on your credit cards. If you do carry a balance, it should be no more than 30% of the card limit.
7. Should I close any of my credit cards? It may seem like a good idea to open all credit cards offered to you. But creditors look at your potential for debt when considering you for credit. However, once the account is open, the damage is done. Closing credit card accounts will bring DOWN your credit score. When and if you do close credit card accounts, close the newest ones with the lowest limits first.
8. How do inquires affect your credit score? An inquiry can affect your score anywhere from 2 to 30+ points, depending on other factors in the report. But only inquires you make for new credit affect your score.
9. Is your FICO score affected if you run a personal credit report? No, Personal credit checks, as well as credit inquires by potential employers or businesses who want to offer you goods appear on your report as inquires, but do not affect your score.
If you are in need of a Mortgage Consultant, please feel free to Contact Me for a list of reliable referrals.
Monday, May 12, 2008
Expect a Summer Rise in Home Sales
A flat pattern in home sales activity should continue for the next couple of months before improving over the summer, according to the latest forecast by the NATIONAL ASSOCIATION OF REALTORS®.
Lawrence Yun, NAR chief economist, said the extent of an expected recovery hinges on better access to affordable loans. “Things are beginning to improve, but the availability of affordable mortgages is uneven around the country and sometimes within metropolitan areas,” he says. “As anticipated, we continue to look for a soft first half of the year, for both housing and the economy, before notable improvements in the second half. Some time is needed for FHA and new conforming jumbo loans to become widely available.”
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, edged down 1.0 percent to 83.0 from a downwardly revised level of 83.8 in February, and was 20.1 percent lower than the March 2007 index of 103.9.
NAR President Richard F. Gaylord says additional costs in many markets are hindering a recovery. “Our members are telling us that more buyers are looking at homes but are slow in signing contracts, and that’s contributing to the weakness in pending home sales,” he says. “In many cases buyers are waiting for greater access to affordable credit, especially in higher cost areas, but some are disappointed with what appears to be unnecessarily restrictive lending requirements. The good news this week is there is some discussion toward relaxing some of the burdensome lending practices.”
The PHSI in the Northeast jumped 12.5 percent in March to 80.8 but remains 15.4 percent below a year ago. In the South, the index slipped 0.1 percent to 84.9 and is 26.7 percent lower than March 2007. The index in the West declined 1.4 percent in March to 91.2 and is 9.5 percent below a year ago. In the Midwest, the index fell 10.4 percent in March to 74.1 and is 22.3 percent below March 2007.
Existing-home sales are projected to rise from an annual pace of 4.95 million in the first quarter to 5.82 million in the fourth quarter. For all of 2008, existing-home sales are likely to total 5.39 million, and then rise 6.1 percent to 5.72 million next year. “Although more than half of local markets are expected to see price growth this year, the aggregate existing-home price will decline 2.4 percent in 2008, driven by a relatively few markets that are very oversupplied,” Yun says. The median price is forecast at $213,700 this year before rising 4.1 percent to $222,600 in 2009.
Some areas already are seeing sales increases, underscoring that all real estate is local. In March, unpublished snapshot data shows sales in Bakersfield, Calif., and Jackson, Miss., were higher than a year ago. At the same time, price gains were noted in markets such as Buffalo-Niagara Falls, and Cedar Rapids, Iowa.
On May 13, NAR will report first-quarter data on metropolitan area home prices, covering about 150 metro areas, and state home sales. “Although some market adjustments are necessary, a downward overshooting of the housing market would cause unnecessary loss in economic output, income, and jobs,” Yun says. “It is critical to stimulate housing demand by inducing fence sitters back into the market. A home buyer tax credit on any home purchase would accomplish that.”
Here are some highlights from NAR's report:
*New-homes. Sales of new homes are expected to fall 30.9 percent to 536,000 this year before rising 10.1 percent to 590,000 in 2009. Housing starts, including multifamily units, will probably drop 29.5 percent to 955,000 in 2008, and then rise 1.3 percent to 967,000 next year. The median new-home price is estimated to fall 3.7 percent to $238,000 this year, and then rise 5.4 percent in 2009 to $250,900.
*Rates. The 30-year fixed-rate mortgage is likely to rise gradually to 6.2 percent by the end of the year, and then average 6.3 percent in 2009.
Affordability. NAR’s housing affordability index is expected to rise 10 percentage points to 127.0 for all of 2008.
*GDP. Growth in the U.S. gross domestic product (GDP) should be 1.5 percent this year and 2.3 percent in 2009. The unemployment rate is projected to average 5.3 percent in 2008 and 5.5 percent next year.
*Inflation. Inflation, as measured by the Consumer Price Index, is seen at 3.4 percent this year and 2.2 percent in 2009. Inflation-adjusted disposable personal income is forecast to grow 1.2 percent in 2008 and 3.0 percent next year.
Source: NAR
www.ShielaSuttle.com
Lawrence Yun, NAR chief economist, said the extent of an expected recovery hinges on better access to affordable loans. “Things are beginning to improve, but the availability of affordable mortgages is uneven around the country and sometimes within metropolitan areas,” he says. “As anticipated, we continue to look for a soft first half of the year, for both housing and the economy, before notable improvements in the second half. Some time is needed for FHA and new conforming jumbo loans to become widely available.”
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, edged down 1.0 percent to 83.0 from a downwardly revised level of 83.8 in February, and was 20.1 percent lower than the March 2007 index of 103.9.
NAR President Richard F. Gaylord says additional costs in many markets are hindering a recovery. “Our members are telling us that more buyers are looking at homes but are slow in signing contracts, and that’s contributing to the weakness in pending home sales,” he says. “In many cases buyers are waiting for greater access to affordable credit, especially in higher cost areas, but some are disappointed with what appears to be unnecessarily restrictive lending requirements. The good news this week is there is some discussion toward relaxing some of the burdensome lending practices.”
The PHSI in the Northeast jumped 12.5 percent in March to 80.8 but remains 15.4 percent below a year ago. In the South, the index slipped 0.1 percent to 84.9 and is 26.7 percent lower than March 2007. The index in the West declined 1.4 percent in March to 91.2 and is 9.5 percent below a year ago. In the Midwest, the index fell 10.4 percent in March to 74.1 and is 22.3 percent below March 2007.
Existing-home sales are projected to rise from an annual pace of 4.95 million in the first quarter to 5.82 million in the fourth quarter. For all of 2008, existing-home sales are likely to total 5.39 million, and then rise 6.1 percent to 5.72 million next year. “Although more than half of local markets are expected to see price growth this year, the aggregate existing-home price will decline 2.4 percent in 2008, driven by a relatively few markets that are very oversupplied,” Yun says. The median price is forecast at $213,700 this year before rising 4.1 percent to $222,600 in 2009.
Some areas already are seeing sales increases, underscoring that all real estate is local. In March, unpublished snapshot data shows sales in Bakersfield, Calif., and Jackson, Miss., were higher than a year ago. At the same time, price gains were noted in markets such as Buffalo-Niagara Falls, and Cedar Rapids, Iowa.
On May 13, NAR will report first-quarter data on metropolitan area home prices, covering about 150 metro areas, and state home sales. “Although some market adjustments are necessary, a downward overshooting of the housing market would cause unnecessary loss in economic output, income, and jobs,” Yun says. “It is critical to stimulate housing demand by inducing fence sitters back into the market. A home buyer tax credit on any home purchase would accomplish that.”
Here are some highlights from NAR's report:
*New-homes. Sales of new homes are expected to fall 30.9 percent to 536,000 this year before rising 10.1 percent to 590,000 in 2009. Housing starts, including multifamily units, will probably drop 29.5 percent to 955,000 in 2008, and then rise 1.3 percent to 967,000 next year. The median new-home price is estimated to fall 3.7 percent to $238,000 this year, and then rise 5.4 percent in 2009 to $250,900.
*Rates. The 30-year fixed-rate mortgage is likely to rise gradually to 6.2 percent by the end of the year, and then average 6.3 percent in 2009.
Affordability. NAR’s housing affordability index is expected to rise 10 percentage points to 127.0 for all of 2008.
*GDP. Growth in the U.S. gross domestic product (GDP) should be 1.5 percent this year and 2.3 percent in 2009. The unemployment rate is projected to average 5.3 percent in 2008 and 5.5 percent next year.
*Inflation. Inflation, as measured by the Consumer Price Index, is seen at 3.4 percent this year and 2.2 percent in 2009. Inflation-adjusted disposable personal income is forecast to grow 1.2 percent in 2008 and 3.0 percent next year.
Source: NAR
www.ShielaSuttle.com
Monday, May 5, 2008
Record High of Vacant Homes for Sale
The number of vacant homes for sale in the United States set a new record in the first quarter of 2008, the U.S. Census Bureau reported Monday.
The Census Bureau reported that 2.9 percent of U.S. homes or 2.28 million properties, not including rentals, were vacant and for sale. It was the highest quarterly number as far back to 1956 when records of such vacancies were first kept.
The West had the biggest gain in vacancy rates among home owners, rising to 3.2 percent in the January-March period from 2.6 percent in the same quarter a year earlier. Vacancy rates inched up in the Northeast and remained steady in the Midwest and South.
Source: The Associated Press, Alan Zibel (04/28/08)
The Census Bureau reported that 2.9 percent of U.S. homes or 2.28 million properties, not including rentals, were vacant and for sale. It was the highest quarterly number as far back to 1956 when records of such vacancies were first kept.
The West had the biggest gain in vacancy rates among home owners, rising to 3.2 percent in the January-March period from 2.6 percent in the same quarter a year earlier. Vacancy rates inched up in the Northeast and remained steady in the Midwest and South.
Source: The Associated Press, Alan Zibel (04/28/08)
Tuesday, April 29, 2008
30- Year Rates Jump to 6.03%
Freddie Mac reports a jump in the 30-year fixed mortgage rate to 6.03 percent during the week ended April 24, from 5.88 percent the prior week, marking the first time in six weeks that mortgage rates rose above 6 percent.
The 15-year fixed mortgage rate climbed during the same period, edging up to 5.62 percent from 5.40 percent.
The five-year adjustable mortgage rate increased to 5.68 percent from 5.48 percent, while the one-year adjustable rate shot up to 5.28 percent from 5.10 percent.
Freddie Mac chief economist Frank Nothaft attributes the gains to heightened inflationary concerns.
Source: Baltimore Sun (04/25/08)
The 15-year fixed mortgage rate climbed during the same period, edging up to 5.62 percent from 5.40 percent.
The five-year adjustable mortgage rate increased to 5.68 percent from 5.48 percent, while the one-year adjustable rate shot up to 5.28 percent from 5.10 percent.
Freddie Mac chief economist Frank Nothaft attributes the gains to heightened inflationary concerns.
Source: Baltimore Sun (04/25/08)
Existing Home Sales Slip in March
Existing-home sales edged down in March, remaining within a narrow range of sales activity that has persisted since last September, NAR says.
Existing-home sales, which include single-family, townhomes, condominiums, and co-ops, were down 2.0 percent to a seasonally adjusted annual rate of 4.93 million units in March from a level of 5.03 million in February, and remain 19.3 percent below the 6.11 million-unit pace in March 2007.
A rise in condo sales in March was offset by a drop in single-family sales. Regionally, sales rose in the Northeast and West but fell in the Midwest and South.
Lawrence Yun, NAR chief economist, says the market is performing unevenly.
“Though mortgage rates are at historically low levels, some borrowers are facing restrictive lending practices in declining markets,” he says. “At the same time, many buyers continue to bide their time with a large number of homes to choose from, while other potential buyers remain on the sidelines.”
The national median existing-home price for all housing types was $200,700 in March, down 7.7 percent from a year ago when the median was $217,400. Because the slowdown in sales from a year ago is greater in high-cost areas, there is a downward pull to the national median with relatively higher sales activity in low-cost markets.
A mix of market conditions continues around the country, but areas showing healthy price gains include Des Moines, Iowa; Austin, Texas; and Durham, N.C.
NAR President Richard F. Gaylord says there are problems with the implementation of mortgage guidelines.
“It appears there is some over-reaction on the part of some lenders now in requiring higher downpayment percentages than may be necessary,” he says. “On the other hand, buyers in many parts of the country are able to take advantage of more lenient policies for FHA loans. However, because lenders don’t have enough underwriting experience with FHA loans in high-cost areas, there are localized bottlenecks in loan processing."
Yun offers a caution. “With elevated inflation, the Federal Reserve should be extra careful about further rate cuts,” he says. “Mortgage interest rates, which do not move directly with Fed funds rates, may rise measurably and hurt the housing recovery if inflation gets out of hand. Monetary stimulus is plentiful – what is needed more at this point is a home buyer tax credit to get buyers off the sidelines and prevent the market from overshooting on the downside.”
— REALTOR® magazine online
Existing-home sales, which include single-family, townhomes, condominiums, and co-ops, were down 2.0 percent to a seasonally adjusted annual rate of 4.93 million units in March from a level of 5.03 million in February, and remain 19.3 percent below the 6.11 million-unit pace in March 2007.
A rise in condo sales in March was offset by a drop in single-family sales. Regionally, sales rose in the Northeast and West but fell in the Midwest and South.
Lawrence Yun, NAR chief economist, says the market is performing unevenly.
“Though mortgage rates are at historically low levels, some borrowers are facing restrictive lending practices in declining markets,” he says. “At the same time, many buyers continue to bide their time with a large number of homes to choose from, while other potential buyers remain on the sidelines.”
The national median existing-home price for all housing types was $200,700 in March, down 7.7 percent from a year ago when the median was $217,400. Because the slowdown in sales from a year ago is greater in high-cost areas, there is a downward pull to the national median with relatively higher sales activity in low-cost markets.
A mix of market conditions continues around the country, but areas showing healthy price gains include Des Moines, Iowa; Austin, Texas; and Durham, N.C.
NAR President Richard F. Gaylord says there are problems with the implementation of mortgage guidelines.
“It appears there is some over-reaction on the part of some lenders now in requiring higher downpayment percentages than may be necessary,” he says. “On the other hand, buyers in many parts of the country are able to take advantage of more lenient policies for FHA loans. However, because lenders don’t have enough underwriting experience with FHA loans in high-cost areas, there are localized bottlenecks in loan processing."
Yun offers a caution. “With elevated inflation, the Federal Reserve should be extra careful about further rate cuts,” he says. “Mortgage interest rates, which do not move directly with Fed funds rates, may rise measurably and hurt the housing recovery if inflation gets out of hand. Monetary stimulus is plentiful – what is needed more at this point is a home buyer tax credit to get buyers off the sidelines and prevent the market from overshooting on the downside.”
— REALTOR® magazine online
Wednesday, April 23, 2008
JUST LISTED!
918 E Whitten St in Chandler
$205,000
Beautiful single level home in Chandler. This 3
bedroom home is move in ready! Vaulted ceilings,
plants shelves, ceiling fans throughout, wood blinds, &
extended back patio. The bright eat-in kitchen features
an island, walk-in pantry & track lighting. Spacious
Master is complete with walk in closet & double sinks
in the master bath. Don't miss out on this great deal!
bedroom home is move in ready! Vaulted ceilings,
plants shelves, ceiling fans throughout, wood blinds, &
extended back patio. The bright eat-in kitchen features
an island, walk-in pantry & track lighting. Spacious
Master is complete with walk in closet & double sinks
in the master bath. Don't miss out on this great deal!
You can find more details and pictures at www.ShielaSuttle.com
Tuesday, April 22, 2008
Why Are Short Sales So Troublesome?
Short sales seem like a win-win for everyone involved, but as real estate professionals know, short sales can be hard to pull off. It can take months for the mortgage company to respond to an offer, and the lender or lenders often balk at the price.
Why doesn’t the process go more smoothly when it seems like a much better deal for everyone than foreclosure?
* Paperwork. Gathering all the information needed to evaluate a short-sale offer can take time, says Patrick Carey, an executive vice president with Wells Fargo. The loan servicer must first determine whether the homeowner really can't continue meeting the loan payments, then get an appraisal or broker's opinion of the home's value.
* Many steps, approvals. Mortgage servicers also try to ensure that the proposed sale is an "arm's length" transaction between two parties rather than something like a sale to a relative on sweet terms. They must also determine whether the buyer has sufficient funds or the ability to get a loan. If all those hurdles are cleared, the servicer may still need to get approval from the investor that owns the loan and provide an analysis showing that the investor will be better off with a short sale than with another solution.
* Complications often arise. There are additional complications if the borrower has a mortgage and a home-equity loan. In that case, both parties must approve the deal – which is a challenge when the sales price may not even be enough to cover the mortgage balance.
* Minimize delays. Carey suggests that home owners contemplating a short sale immediately call the loan servicer to get the approval process started, rather than wait for an offer.
Source: The Wall Street Journal, Ruth Simon and James R. Hagerty (04/17/2008)
Why doesn’t the process go more smoothly when it seems like a much better deal for everyone than foreclosure?
* Paperwork. Gathering all the information needed to evaluate a short-sale offer can take time, says Patrick Carey, an executive vice president with Wells Fargo. The loan servicer must first determine whether the homeowner really can't continue meeting the loan payments, then get an appraisal or broker's opinion of the home's value.
* Many steps, approvals. Mortgage servicers also try to ensure that the proposed sale is an "arm's length" transaction between two parties rather than something like a sale to a relative on sweet terms. They must also determine whether the buyer has sufficient funds or the ability to get a loan. If all those hurdles are cleared, the servicer may still need to get approval from the investor that owns the loan and provide an analysis showing that the investor will be better off with a short sale than with another solution.
* Complications often arise. There are additional complications if the borrower has a mortgage and a home-equity loan. In that case, both parties must approve the deal – which is a challenge when the sales price may not even be enough to cover the mortgage balance.
* Minimize delays. Carey suggests that home owners contemplating a short sale immediately call the loan servicer to get the approval process started, rather than wait for an offer.
Source: The Wall Street Journal, Ruth Simon and James R. Hagerty (04/17/2008)
Bargain Home Prices Boost Sales
In cities where housing prices have fallen dramatically, bargain hunters are swooping in and pushing sales upward.
Boston, Cleveland, Detroit, Sacramento, and San Diego have all seen sales increases recently after a period of price declines, according to a March report by Radar Logic, a real estate data and analytics firm. In Detroit, sales of homes and condos rose 12.8 percent in February compared with a year ago, according to Realcomp.
The most aggressive shoppers include investors, particularly nationally based ones who are cherry-picking single-family homes in good neighborhoods all over the country.
International buyers also see U.S. home prices as a bargain. With the dollar down against the Euro, European buyers get particularly good deals, but buyers from Asia and Canada also are active, according to international real estate practitioners.
First-time homebuyers are finding this a good time to dip toes in the water. In November 2007, 39 percent of purchasers were first-time homebuyers, according to the NATIONAL ASSOCIATION OF REALTORS®.
Source: USA Today, Stephanie Armour (04/17/2008)
Boston, Cleveland, Detroit, Sacramento, and San Diego have all seen sales increases recently after a period of price declines, according to a March report by Radar Logic, a real estate data and analytics firm. In Detroit, sales of homes and condos rose 12.8 percent in February compared with a year ago, according to Realcomp.
The most aggressive shoppers include investors, particularly nationally based ones who are cherry-picking single-family homes in good neighborhoods all over the country.
International buyers also see U.S. home prices as a bargain. With the dollar down against the Euro, European buyers get particularly good deals, but buyers from Asia and Canada also are active, according to international real estate practitioners.
First-time homebuyers are finding this a good time to dip toes in the water. In November 2007, 39 percent of purchasers were first-time homebuyers, according to the NATIONAL ASSOCIATION OF REALTORS®.
Source: USA Today, Stephanie Armour (04/17/2008)
Why Selling Now Makes Sense!
Home owners who are reluctant to sell because prices have fallen, should do the math, and realize that the market downturn could work in their favor, say practitioners in hard-hit, but still pricey Boston.
Their reasoning may work in many other parts of the country as well.
"People are finding houses at prices they thought they'd never see again," says David W. O'Neil of Century 21 Spindler & O'Neil Associates in suburban Boston.
O’Neil points out to potential sellers that if the house a buyer covets used to be $500,000 but its price has fallen 20 percent to $400,000, it is a deal, even if the buyer’s own home also has lost 20 percent of its value.
In general, the toughest sell is people who bought about four years ago at the height of the market, says Zur Attias of The Attias Group at Barrett & Co. in Concord, Mass. But even for these home owners, selling now may make sense as long as they can at least break even.
He argues that almost everyone forgoes something, and probably several things, that he or she wanted when buying a house. For instance, the home may be in the right school district, but on a busy street. Or it may in a great neighborhood, but it's a Cape, not a Colonial. These are things Attias calls "unchangeables."
He says it’s a good time to sell if a seller can get rid of the most negative unchangeables in his current home, and replace them with better unchangeables in a new home. Once the market really turns around, the growth will be bigger in the better house, he predicts.
Source: The Boston Globe, Vanessa Parks and Jonathan Wiggs (04/13/2008)
Their reasoning may work in many other parts of the country as well.
"People are finding houses at prices they thought they'd never see again," says David W. O'Neil of Century 21 Spindler & O'Neil Associates in suburban Boston.
O’Neil points out to potential sellers that if the house a buyer covets used to be $500,000 but its price has fallen 20 percent to $400,000, it is a deal, even if the buyer’s own home also has lost 20 percent of its value.
In general, the toughest sell is people who bought about four years ago at the height of the market, says Zur Attias of The Attias Group at Barrett & Co. in Concord, Mass. But even for these home owners, selling now may make sense as long as they can at least break even.
He argues that almost everyone forgoes something, and probably several things, that he or she wanted when buying a house. For instance, the home may be in the right school district, but on a busy street. Or it may in a great neighborhood, but it's a Cape, not a Colonial. These are things Attias calls "unchangeables."
He says it’s a good time to sell if a seller can get rid of the most negative unchangeables in his current home, and replace them with better unchangeables in a new home. Once the market really turns around, the growth will be bigger in the better house, he predicts.
Source: The Boston Globe, Vanessa Parks and Jonathan Wiggs (04/13/2008)
Consequences for "Walk-Away" Borrowers
The government and the lending industry are taking aim at “walk-away” home owners who stop making payments and months later send the house keys back to their lender.
Such borrowers will not be able to get another mortgage through Fannie Mae for five years, unless there are “documented extenuating circumstances.” In that case, the prohibition is three years. Even after the prescribed time has elapsed, a borrower with a foreclosure in his file will have to make at least a 10 percent down payment and have a FICO credit score of at least 680 to qualify for a Fannie Mae loan.
Freddie Mac, which counts foreclosures as major credit black mark for seven years, is now aggressively pursuing walk-away borrowers where permitted under state law, a senior official said.
Federal legislation enacted last year allows home owners who negotiate loan modifications with lenders and have portions of their principal debt eliminated to escape income tax liability for the amount forgiven.
Walk-away borrowers, by contrast, have nothing forgiven, and the Internal Revenue Service may demand taxes on the balance they never paid, the IRS says.
Source: Washington Post Writers Group, Kenneth R. Harney (04/12/2008)
Such borrowers will not be able to get another mortgage through Fannie Mae for five years, unless there are “documented extenuating circumstances.” In that case, the prohibition is three years. Even after the prescribed time has elapsed, a borrower with a foreclosure in his file will have to make at least a 10 percent down payment and have a FICO credit score of at least 680 to qualify for a Fannie Mae loan.
Freddie Mac, which counts foreclosures as major credit black mark for seven years, is now aggressively pursuing walk-away borrowers where permitted under state law, a senior official said.
Federal legislation enacted last year allows home owners who negotiate loan modifications with lenders and have portions of their principal debt eliminated to escape income tax liability for the amount forgiven.
Walk-away borrowers, by contrast, have nothing forgiven, and the Internal Revenue Service may demand taxes on the balance they never paid, the IRS says.
Source: Washington Post Writers Group, Kenneth R. Harney (04/12/2008)
Housing Permits Signal Market Is Bottoming Out
Home-building permits in metro Phoenix were flat again in March as the housing market continued to search for a bottom.
Last month, 1,278 new-home permits were issued Valley-wide, RL Brown's Phoenix Housing Market Letter reports. That compares with 1,297 building permits in February and 1,370 in January.
"We think that the evidence is building that we are seeing the bottom of the new-home market in the metro Phoenix area," Brown said.
If the pace of permits stays in this range, metro Phoenix could have an annual tally of 12,000 for 2008 - the Valley's lowest level for home-building since the real-estate recession of 1990.
(source: AZCentral.com)
Last month, 1,278 new-home permits were issued Valley-wide, RL Brown's Phoenix Housing Market Letter reports. That compares with 1,297 building permits in February and 1,370 in January.
"We think that the evidence is building that we are seeing the bottom of the new-home market in the metro Phoenix area," Brown said.
If the pace of permits stays in this range, metro Phoenix could have an annual tally of 12,000 for 2008 - the Valley's lowest level for home-building since the real-estate recession of 1990.
(source: AZCentral.com)
Friday, April 18, 2008
Refueling The Housing Bubble?
The Federal Reserve has been aggressively cutting rates recently and the question is being raised about parallels to the past. Back in 2001, in the aftermath of the internet stock bubble collapse and the September 11 terrorist attacks, Alan Greenspan - then the Fed chairman - made deep cuts in interest rates in order to stave off a possible economic collapse by keeping the rates too low for too long.
Now in early 2008, with the economy possibly heading into a recession - as evidenced by the GDP growth rate slowing from 4.1 percent in third quarter to 0.6 percent in the fourth quarter - the current Fed Chair, Ben Bernanke, has been following a very similar step of sharply cutting Fed funds rates in order to revive economic growth - partly by making home buying financially enticing. Though there is never a direct correction between the Fed funds rate and mortgage rates, which are outside of the Fed's control and determined by the global bond market, the current 30-year mortgage rates have come down to essentially 45-year low levels. Aside from a few months in 2003, mortgage rates have never been this low since the early 1960s. A drop in the average mortgage rate from nearly 7% in mid-2005 to the current 5.7% would reduce monthly mortgage payments from $1330 to $1160 on a $200,000 mortgage. The average savings would be $340 per month or $4,000 per year on a $400,000 mortgage.
Therefore, could the Fed be simply refueling the bubble by dangling financial incentives to buy a home?
(source: AZROnline)
Now in early 2008, with the economy possibly heading into a recession - as evidenced by the GDP growth rate slowing from 4.1 percent in third quarter to 0.6 percent in the fourth quarter - the current Fed Chair, Ben Bernanke, has been following a very similar step of sharply cutting Fed funds rates in order to revive economic growth - partly by making home buying financially enticing. Though there is never a direct correction between the Fed funds rate and mortgage rates, which are outside of the Fed's control and determined by the global bond market, the current 30-year mortgage rates have come down to essentially 45-year low levels. Aside from a few months in 2003, mortgage rates have never been this low since the early 1960s. A drop in the average mortgage rate from nearly 7% in mid-2005 to the current 5.7% would reduce monthly mortgage payments from $1330 to $1160 on a $200,000 mortgage. The average savings would be $340 per month or $4,000 per year on a $400,000 mortgage.
Therefore, could the Fed be simply refueling the bubble by dangling financial incentives to buy a home?
(source: AZROnline)
Postage Increase May 12
Consistent with a new law, prices for mailing services will be adjusted annually each May. The price for a one-ounce First-Class stamp will increase from 41 to 42 cents on May 12. Prices for other mailing servies, such as Standard Mail, Periodicals, Package Services (including single-piece Parcel Post), and Special Services will also change. The Postal Service plans to provide 90 days' notice before the price changes each year. Prices for all postal products and services are available at usps.com/prices.
Buy Forever Stamps at today's rate before May 12 and save money after the new rate goes into effect. The first-class Forever Stamps will be accepted any time as the current first-class rate.
(source: Arizona REALTOR)
Buy Forever Stamps at today's rate before May 12 and save money after the new rate goes into effect. The first-class Forever Stamps will be accepted any time as the current first-class rate.
(source: Arizona REALTOR)
Thursday, April 17, 2008
I Can Feel The Change
Do you hear the buzz? Can you feel the change in the air? .... I can!
I'm talking about changes in the current real estate market. It feels like it's finally starting to shift gears! My phone rings on a daily basis from buyers asking about new listed properties. Buyers are definitely out there. They realize there are so many good deals and good rates to take advantage of. If you're going to act, now's the time to do it!
Queen Creek is an example I have used many times. I've made people aware on numerous occasions that Q.C. has around 2,200 Active listings, not even including new builds. But even here, there is a rumble going on. If a home is priced tremendously well, it has a deal on the table within a few days. If this is happening in Queen Creek, it gives us hope for a better market in the coming months. Hold on. Be strong. We may be leveled by next year. In all reality, next year really isn't that far away. You and I both know how fast time passes us by.
As a seller, price your home aggressively and make it presentable, and the buyers will come. They're out there. Now is not the time to be greedy with so much inventory & competition.
For the buyers: Now is definitely the time to consider that new home! With aggressive prices and low mortgage rates, there area good deals to be made. If you're waiting until next year to purchase, please keep in mind that rates may go back up making your loan even higher than you anticipated. Not to mention you may be missing out on a super great bank owned deal today.
So the next time you ask me what I think about the future market, I'll tell you ... "Things are lookin up, babe!"
I'm talking about changes in the current real estate market. It feels like it's finally starting to shift gears! My phone rings on a daily basis from buyers asking about new listed properties. Buyers are definitely out there. They realize there are so many good deals and good rates to take advantage of. If you're going to act, now's the time to do it!
Queen Creek is an example I have used many times. I've made people aware on numerous occasions that Q.C. has around 2,200 Active listings, not even including new builds. But even here, there is a rumble going on. If a home is priced tremendously well, it has a deal on the table within a few days. If this is happening in Queen Creek, it gives us hope for a better market in the coming months. Hold on. Be strong. We may be leveled by next year. In all reality, next year really isn't that far away. You and I both know how fast time passes us by.
As a seller, price your home aggressively and make it presentable, and the buyers will come. They're out there. Now is not the time to be greedy with so much inventory & competition.
For the buyers: Now is definitely the time to consider that new home! With aggressive prices and low mortgage rates, there area good deals to be made. If you're waiting until next year to purchase, please keep in mind that rates may go back up making your loan even higher than you anticipated. Not to mention you may be missing out on a super great bank owned deal today.
So the next time you ask me what I think about the future market, I'll tell you ... "Things are lookin up, babe!"
Wednesday, April 16, 2008
PRICE REDUCTION!
435 N Loma Vista, Mesa 85213
Price has just be reduced from $280,000 to $269,900! Check out all the details and photos at www.ShielaSuttle.com!
Price has just be reduced from $280,000 to $269,900! Check out all the details and photos at www.ShielaSuttle.com!
JUST LISTED!
8457 E Peralta Ave, Mesa 85212 - $215,000 - 1,344 sq.ft.
Immaculate home that shows like a brand new model! Be amazed at the charm and beauty of this newer single leve home. Upgraded fixtures, ceiling fans, 9' ceilings, wood blinds, custom neutral paint, neutral carpet & tile, water softener. Upgraded kitchen features staggered extended cabinets, island with breakfast bar & walk-in pantry. Split master is complete with walk-in closet, double sinks & oversized tub/shower. Extended patio in back. Even the garage is immaculate with built in storage cabinets and epoxy floors. All Appliances Included. This home can be sold with all furnishings. Everything is negotiable. HOA takes care of front yard maintenance, cable & roof repair! Please contact me directly for a personal tour.
You can check out full details and pictures at www.ShielaSuttle.com!
Immaculate home that shows like a brand new model! Be amazed at the charm and beauty of this newer single leve home. Upgraded fixtures, ceiling fans, 9' ceilings, wood blinds, custom neutral paint, neutral carpet & tile, water softener. Upgraded kitchen features staggered extended cabinets, island with breakfast bar & walk-in pantry. Split master is complete with walk-in closet, double sinks & oversized tub/shower. Extended patio in back. Even the garage is immaculate with built in storage cabinets and epoxy floors. All Appliances Included. This home can be sold with all furnishings. Everything is negotiable. HOA takes care of front yard maintenance, cable & roof repair! Please contact me directly for a personal tour.
You can check out full details and pictures at www.ShielaSuttle.com!
Arizona Average Rates for 4/16/08
April 16, 2008
30 Year Fixed - 5.68%
3/1 ARM - 5.24%
3/1 ARM Interest Only - 5.13%
30 Year Fixed - 5.68%
3/1 ARM - 5.24%
3/1 ARM Interest Only - 5.13%
1,000 homeowners sue developer Del Webb
On Monday, 375 homeowners filed a lawsuit in Maricopa County Superior Court against Del Webb Communities Inc. seeking repairs. An additional 158 plan to join the suit and 471 other homeowners are seeking arbitration.
On Monday, 375 of those owners filed lawsuit against Del Webb Communities Inc., now part of Pulte Homes, seeking repairs to their homes. The rest are either planning to file a lawsuit or are required to seek arbitration instead based on their purchase contracts. The 1,000-plus residents are seeking one of the largest construction defects actions in the state. It is estimated that each home requires between $50,000 and $100,000 in repairs. The lawsuit affects homes built between 2000 and 2006.
Before filing a lawsuit, based on state law, the complainants first issued a formal request for repairs and gave 60 days for a response. No offer was made, but Pulte Homes, which merged with Del Webb Corp. in 2001, issued a statement via e-mail on Tuesday that in part read, "If a homeowner believes their home is experiencing a problem, we work hard to support our customers and reach a resolution."Pulte also stated, "We understand that the law firm solicited residents from more than 7,000 homes." There are more than 9,600 homes in Sun City Grand.
Alleged problems provided by the law firm include:
• Stucco - Some homes do not have "weep screeds." A weep screed is part of stucco wall construction that allows rainwater to drain out of the walls and prevents mold growth.
• Acoustics - Noise levels are too high inside some Sun City Grand households, which fall within the noise impact zone of Luke Air Force Base.
• Concrete - Foundations are deteriorated due to corrosive salts and desert weathering.
• Soils - Expansion of the soils has resulted in cracking in the foundations, slabs, tile floors, walls, ceilings and drywall.
(source: Arizona Republic)
On Monday, 375 of those owners filed lawsuit against Del Webb Communities Inc., now part of Pulte Homes, seeking repairs to their homes. The rest are either planning to file a lawsuit or are required to seek arbitration instead based on their purchase contracts. The 1,000-plus residents are seeking one of the largest construction defects actions in the state. It is estimated that each home requires between $50,000 and $100,000 in repairs. The lawsuit affects homes built between 2000 and 2006.
Before filing a lawsuit, based on state law, the complainants first issued a formal request for repairs and gave 60 days for a response. No offer was made, but Pulte Homes, which merged with Del Webb Corp. in 2001, issued a statement via e-mail on Tuesday that in part read, "If a homeowner believes their home is experiencing a problem, we work hard to support our customers and reach a resolution."Pulte also stated, "We understand that the law firm solicited residents from more than 7,000 homes." There are more than 9,600 homes in Sun City Grand.
Alleged problems provided by the law firm include:
• Stucco - Some homes do not have "weep screeds." A weep screed is part of stucco wall construction that allows rainwater to drain out of the walls and prevents mold growth.
• Acoustics - Noise levels are too high inside some Sun City Grand households, which fall within the noise impact zone of Luke Air Force Base.
• Concrete - Foundations are deteriorated due to corrosive salts and desert weathering.
• Soils - Expansion of the soils has resulted in cracking in the foundations, slabs, tile floors, walls, ceilings and drywall.
(source: Arizona Republic)
Subscribe to:
Posts (Atom)
You can find great local Mesa, Arizona real estate information on Localism.com Shielamarie Suttle is a proud member of the ActiveRain Real Estate Network, an online community to help real estate professionals grow their business.