Close to half of all homes with mortgages in Arizona were upside down in the third quarter, CoreLogic reported Tuesday. In Arizona, 47.1 percent, or 617,876 residential properties with a mortgage had negative equity in the third quarter, according to CoreLogic. Nevada, at 58.3 percent, was the only state with a higher negative equity rate than Arizona.
Negative equity, often referred to as “underwater” or “upside down,” means borrowers owe more on their mortgages than their homes are worth. Nationally, 22.1 percent, or 10.7 million, of all residential properties with a mortgage were underwater at the end of the third quarter. This was down a bit from 22.5 percent, or 10.9 million properties, in the second quarter. "Negative equity remains very high, and renders many borrowers vulnerable when negative economic shocks occur, such as job loss or illness," said Mark Fleming, chief economist with CoreLogic. "The nearly $700 billion mortgage debt overhang has touched many corners of the market, and this overhang is holding back the recovery of the housing market and broader economy.”
Consequently, we believe the current pace of short sales and foreclosures will continue through 2012. No quick fix is on the way.
Wednesday, December 7, 2011
Tuesday, December 6, 2011
Bulk Short Sales May Be The Answer
The foreclosure crisis has had a long and destructive run – five years and counting, with millions put out of their homes. According to the Center for Responsible Lending ( CRL), we’re not even halfway through the devastation.
Foreclosures are going to go up before they go down,” according to Craig Nickerson, president of the National Community Stabilization Trust. Nickerson says estimates put foreclosure tallies at 850,000 this year, as high as 1.5 million in 2013, and then back to the levels we’re at today by 2015.
With all these distressed properties potentially making their way to an already stressed marketplace, Nickerson, along with a panel of industry professionals advocate for bulk short sales.
HUD has a $7 billion program created to facilitate the rehabilitation of properties in communities challenged with high levels of foreclosures and property vacancies – aptly named the Neighborhood Stabilization Program ( NSP ).
Selling one house at a time, means 10 years from now we’ll still be in the midst of this crisis. Lenders need to pool their short sales and tailor services that are geared toward investors and nonprofit groups to facilitate bulk purchases of short sale properties. Areas such as Maricopa County , that are a target of the Neighborhood Stabilization Program, should be the front runners in bulk short sales.
The benefits of a short sale vs. a foreclosure are astounding. Because the public is now understanding these advantages, the number of short sales in the Arizona MLS is on the rise and the number of foreclosures are decreasing. There has been little to no movement in the number of loan modifications being accepted by homeowners.
The biggest hurdle we are seeing in the acceptance of short sales is the homeowner waiting too long to contact a real estate agent and initiate the sale. The typical short sale takes 3-4 months to complete. If you have 45 days or less until your property's auction date, it will be extremely difficult to negotiate a successful short sale.
Don't think of a short sale as your last resort. Think of a short sale as your most viable option and wisest business choice to maneuver out of your current mortgage predicament. Sadly, if you are at least 2-3 months behind on your mortgage payments, odds are you will need to move out of the property. The quicker you realize that you will need to move and contact a real estate agent, the better your chance of a successful short sale.
We are always here to help.
Foreclosures are going to go up before they go down,” according to Craig Nickerson, president of the National Community Stabilization Trust. Nickerson says estimates put foreclosure tallies at 850,000 this year, as high as 1.5 million in 2013, and then back to the levels we’re at today by 2015.
With all these distressed properties potentially making their way to an already stressed marketplace, Nickerson, along with a panel of industry professionals advocate for bulk short sales.
HUD has a $7 billion program created to facilitate the rehabilitation of properties in communities challenged with high levels of foreclosures and property vacancies – aptly named the Neighborhood Stabilization Program ( NSP ).
Selling one house at a time, means 10 years from now we’ll still be in the midst of this crisis. Lenders need to pool their short sales and tailor services that are geared toward investors and nonprofit groups to facilitate bulk purchases of short sale properties. Areas such as Maricopa County , that are a target of the Neighborhood Stabilization Program, should be the front runners in bulk short sales.
The benefits of a short sale vs. a foreclosure are astounding. Because the public is now understanding these advantages, the number of short sales in the Arizona MLS is on the rise and the number of foreclosures are decreasing. There has been little to no movement in the number of loan modifications being accepted by homeowners.
The biggest hurdle we are seeing in the acceptance of short sales is the homeowner waiting too long to contact a real estate agent and initiate the sale. The typical short sale takes 3-4 months to complete. If you have 45 days or less until your property's auction date, it will be extremely difficult to negotiate a successful short sale.
Don't think of a short sale as your last resort. Think of a short sale as your most viable option and wisest business choice to maneuver out of your current mortgage predicament. Sadly, if you are at least 2-3 months behind on your mortgage payments, odds are you will need to move out of the property. The quicker you realize that you will need to move and contact a real estate agent, the better your chance of a successful short sale.
We are always here to help.
Wednesday, November 9, 2011
Short Sales Lead the Way to Phoenix Real Estate Recovery
Short Sales Lead The Way to Recovery
By Mary Drefs, GRI, CRS, CDPE
At a recent forum regarding distressed homes in the Phoenix area, bank excecutives and housing market experts agreed that short sales would continue to climb and Phoenix and foreclosures would continue to fall. This trend should lead to a rise in the median home value as soon as 2012.
Lenders are now favoring short sales because they realize that the loss to the bank is less with a short sale than the loss in a foreclosure. The average price per square foot in Phoenix sold in a short sale is $71 per foot. The average price per square foot of a lender owned home is $60 per foot. Lenders also revealed that the shadow inventory that could drive real estate values down, is actually in check.
The number of pending foreclosures in metro Phoenix is half of what is was last year, according to Information Market. The number of bank owned homes for sale is almost a fourth of what it was a year ago, according to the Cromford Report. Because Phoenix has seen a record number of short sale closings in the past 3 months, the number of houses listed as short sales in down 72% from October 2010.
According to Tom Ruff, a housing analyst for the Information Market, "The foreclosure crisis appears to be finally behind us. The shift to short sales is a great sign the housing market is moving toward a recovery. I am just not sure why it took lenders so long to see short sales are better for everyone."
By Mary Drefs, GRI, CRS, CDPE
At a recent forum regarding distressed homes in the Phoenix area, bank excecutives and housing market experts agreed that short sales would continue to climb and Phoenix and foreclosures would continue to fall. This trend should lead to a rise in the median home value as soon as 2012.
Lenders are now favoring short sales because they realize that the loss to the bank is less with a short sale than the loss in a foreclosure. The average price per square foot in Phoenix sold in a short sale is $71 per foot. The average price per square foot of a lender owned home is $60 per foot. Lenders also revealed that the shadow inventory that could drive real estate values down, is actually in check.
The number of pending foreclosures in metro Phoenix is half of what is was last year, according to Information Market. The number of bank owned homes for sale is almost a fourth of what it was a year ago, according to the Cromford Report. Because Phoenix has seen a record number of short sale closings in the past 3 months, the number of houses listed as short sales in down 72% from October 2010.
According to Tom Ruff, a housing analyst for the Information Market, "The foreclosure crisis appears to be finally behind us. The shift to short sales is a great sign the housing market is moving toward a recovery. I am just not sure why it took lenders so long to see short sales are better for everyone."
Thursday, November 3, 2011
4 Big Lenders Support HARP 2
Bank of America, Chase, Citigroup and Wells Fargo have expressed interest in participating in the HARP 2 Program announced by President Obama.
See yesterday's blog for the details of program.
HARP 2 will best help homeowners who have a high adjustable rate mortgage or an interest only loans. These loans will be replaced with low interest fixed rate loans, ultimately reducing the monthly payments.
HARP 2 will not help the unemployed or those who have missed a mortgage payment in the past year.
See yesterday's blog for the details of program.
HARP 2 will best help homeowners who have a high adjustable rate mortgage or an interest only loans. These loans will be replaced with low interest fixed rate loans, ultimately reducing the monthly payments.
HARP 2 will not help the unemployed or those who have missed a mortgage payment in the past year.
Wednesday, November 2, 2011
HARP 2 recently announced by Obama
Those Americans who will be helped by HARP 2 are:
1)borrowers whose loans were backed by Fannie Mae, Freddie Mac or the FHA 2) who are current on their mortgage
3) who have made the last 6 payments
4) who have not missed a payment in the last year
5) who can prove adequate employment or other income
6) and those borrowers who have been caught in the Catch 22 of not being able to refinance their loan because they owe more than the house is worth.
The previous HARP said these borrowers could only be 125% or less underwater. The new HARP 2 says it does not matter how underwater the borrower is. They must, however, meet all the criteria above.
Harp 2 basically addresses those borrowers who were strategically defaulting on their loans. Meaning, the borrower does have the means to keep paying the mortgage, but chooses not to because they believe they will never gain any equity on the property. They would rather cut their losses and begin again. Now, instead of conducting a short sale, these borrowers MAY be able to refinance IF their lender cooperates with the program.
Harp 2 does NOT address the millions of Americans who have lost their jobs or are now underemployed and are seeing their savings dwindle. Consequently, with HARP 2, we will not see a slowdown in the number of foreclosures and short sales in 2012. Harp 2 reaches those who are employed and not satisfied with their current interest rate and those who plan on living in their homes long enough to absorb the costs of refinancing...basically a few Middle Americans.
If you have questions regarding short sales, give Mary a call at 623-694-0354.
1)borrowers whose loans were backed by Fannie Mae, Freddie Mac or the FHA 2) who are current on their mortgage
3) who have made the last 6 payments
4) who have not missed a payment in the last year
5) who can prove adequate employment or other income
6) and those borrowers who have been caught in the Catch 22 of not being able to refinance their loan because they owe more than the house is worth.
The previous HARP said these borrowers could only be 125% or less underwater. The new HARP 2 says it does not matter how underwater the borrower is. They must, however, meet all the criteria above.
Harp 2 basically addresses those borrowers who were strategically defaulting on their loans. Meaning, the borrower does have the means to keep paying the mortgage, but chooses not to because they believe they will never gain any equity on the property. They would rather cut their losses and begin again. Now, instead of conducting a short sale, these borrowers MAY be able to refinance IF their lender cooperates with the program.
Harp 2 does NOT address the millions of Americans who have lost their jobs or are now underemployed and are seeing their savings dwindle. Consequently, with HARP 2, we will not see a slowdown in the number of foreclosures and short sales in 2012. Harp 2 reaches those who are employed and not satisfied with their current interest rate and those who plan on living in their homes long enough to absorb the costs of refinancing...basically a few Middle Americans.
If you have questions regarding short sales, give Mary a call at 623-694-0354.
Tuesday, November 1, 2011
The Better Your Credit Score, the Better Your Mortgage Rate
The higher your credit score, the lower your mortgage rate will be.
What Is A Credit Score?
History has shown that the best way to predict a person’s behavior over the near-term future is to look at that person’s behavior in the recent past. It’s a concept similar to the First Rule of Physics — an object in motion tends to stay in motion.
We can apply this theory to consumer credit, too. A person who has recently paid his bills on-time should continue to pay his bills on-time in the near-future.
This is the basis of credit scoring; using your past to predict your future.
To mortgage lenders, your credit score represents your likelihood of making on-time mortgage payments for the next 90 days. “90 days” matters because, after 90 days without payments, a homeowner falls into default.
Higher credit scores correlate with lower default risk which explains why people with high credit scores tend to receive lower mortgage rates than people with low credit scores. This is true across all loan types, including conventional, jumbo, and FHA mortgages.
Like most else in finance, those with the lowest risks get to pay the lowest rates.
Lenders Use The FICO Scoring Model, Exclusively
There are three main credit bureaus in the United States. They are Equifax, Experian and TransUnion. Each offers a bevy of credit-scoring products, available for purchase on their respective websites. Prices range from “free” to several hundred dollars.
None, however, are particularly relevant in the home-buying process. This is because the nation’s mortgage lenders rely on a different credit model — the FICO model.
FICO is named for the Fair Isaac Corporation. It was “invented” in the 1950s and has become the mortgage industry standard for credit ratings. Today, FICO scores are omnipresent to the point that people generically refer to all credit scores as “FICO scores”.
FICO scores range from 300-850.
Credit Scores Change Mortgage Rates
Your FICO score has always influenced the mortgage rate for which you’re eligible. In 2008, though, it began to change your loan fees.
In response to major mortgage market losses, in April 2008, both Fannie Mae and Freddie Mac introduced something called Loan-Level Pricing Adjustments (LLPA). Loan-level pricing adjustments are “discount points” added to a mortgage rate, based on a specific borrower’s risk to the lender.
A discount point is a loan fee, paid at the time of closing. 1 discount point is equal to 1 percent of your loan size.
Example : A $300,000 mortgage that’s assessed 1 discount point will have $3,000 in extra fees due at closing.
Fannie Mae and Freddie Mac know that low credit scores correlate to high default rates so, like an insurance policy, they assigned the highest costs to the highest-risk borrowers.
Assuming a 20% downpayment, look at how discount points change based on credit score. Fees get massive for FICOs under 700.
•740+ FICO : There are no discount points required. This loan is “low risk”.
•720-739 FICO : 0.250 discount points are charged to the borrower, or $250 per $100,000 borrowed
•700-719 FICO : 0.750 discount points are charged to the borrower, or $750 per $100,000 borrowed
•680-699 FICO : 1.500 discount points are charged to the borrower, or $1,500 per $100,000 borrowed
•660-679 FICO : 2.500 discount points are charged to the borrower, or $2,500 per $100,000 borrowed
Now, not many new home buyers just have that kind of extra cash just laying around. Therefore, as an alternative to paying discount points with cash, many choose to “roll up” the fees into their respective mortgage rates. In general, 1.000 discount point can be “traded in” for a 0.250 increase to your mortgage rate.
Example : A consumer with a 680 FICO score is required to pay 1.500 discount points at closing, or can alternatively accept a mortgage rate increase of 0.375%.
This is why it’s important to keep your credit score high. There are real dollar costs for having scores under 740.
Courtesy of Dan Green of Waterstone Mortgage and Trulia.com
What Is A Credit Score?
History has shown that the best way to predict a person’s behavior over the near-term future is to look at that person’s behavior in the recent past. It’s a concept similar to the First Rule of Physics — an object in motion tends to stay in motion.
We can apply this theory to consumer credit, too. A person who has recently paid his bills on-time should continue to pay his bills on-time in the near-future.
This is the basis of credit scoring; using your past to predict your future.
To mortgage lenders, your credit score represents your likelihood of making on-time mortgage payments for the next 90 days. “90 days” matters because, after 90 days without payments, a homeowner falls into default.
Higher credit scores correlate with lower default risk which explains why people with high credit scores tend to receive lower mortgage rates than people with low credit scores. This is true across all loan types, including conventional, jumbo, and FHA mortgages.
Like most else in finance, those with the lowest risks get to pay the lowest rates.
Lenders Use The FICO Scoring Model, Exclusively
There are three main credit bureaus in the United States. They are Equifax, Experian and TransUnion. Each offers a bevy of credit-scoring products, available for purchase on their respective websites. Prices range from “free” to several hundred dollars.
None, however, are particularly relevant in the home-buying process. This is because the nation’s mortgage lenders rely on a different credit model — the FICO model.
FICO is named for the Fair Isaac Corporation. It was “invented” in the 1950s and has become the mortgage industry standard for credit ratings. Today, FICO scores are omnipresent to the point that people generically refer to all credit scores as “FICO scores”.
FICO scores range from 300-850.
Credit Scores Change Mortgage Rates
Your FICO score has always influenced the mortgage rate for which you’re eligible. In 2008, though, it began to change your loan fees.
In response to major mortgage market losses, in April 2008, both Fannie Mae and Freddie Mac introduced something called Loan-Level Pricing Adjustments (LLPA). Loan-level pricing adjustments are “discount points” added to a mortgage rate, based on a specific borrower’s risk to the lender.
A discount point is a loan fee, paid at the time of closing. 1 discount point is equal to 1 percent of your loan size.
Example : A $300,000 mortgage that’s assessed 1 discount point will have $3,000 in extra fees due at closing.
Fannie Mae and Freddie Mac know that low credit scores correlate to high default rates so, like an insurance policy, they assigned the highest costs to the highest-risk borrowers.
Assuming a 20% downpayment, look at how discount points change based on credit score. Fees get massive for FICOs under 700.
•740+ FICO : There are no discount points required. This loan is “low risk”.
•720-739 FICO : 0.250 discount points are charged to the borrower, or $250 per $100,000 borrowed
•700-719 FICO : 0.750 discount points are charged to the borrower, or $750 per $100,000 borrowed
•680-699 FICO : 1.500 discount points are charged to the borrower, or $1,500 per $100,000 borrowed
•660-679 FICO : 2.500 discount points are charged to the borrower, or $2,500 per $100,000 borrowed
Now, not many new home buyers just have that kind of extra cash just laying around. Therefore, as an alternative to paying discount points with cash, many choose to “roll up” the fees into their respective mortgage rates. In general, 1.000 discount point can be “traded in” for a 0.250 increase to your mortgage rate.
Example : A consumer with a 680 FICO score is required to pay 1.500 discount points at closing, or can alternatively accept a mortgage rate increase of 0.375%.
This is why it’s important to keep your credit score high. There are real dollar costs for having scores under 740.
Courtesy of Dan Green of Waterstone Mortgage and Trulia.com
Tuesday, October 18, 2011
Time to Purchase a Larger Home???
We are seeing more and more households with 2-3 generations living together. Is this a new trend or a sign of the times? In the majority of the cases, it is an economic choice. We are finding middle age children that are no longer able to afford a care facility for their aging parent, so they all live together to save costs. In others, the 21-35 year old offspring is moving back in with mom and/or dad because he/she can no longer afford their own dwelling.
Nearly 1 in 3 adults — or 30 percent — live with their relatives, according to a new study. The cohabitation is known as “doubling up,” and it has risen to levels not seen since the Great Depression, according to a survey of 3,000 home owners and renters conducted by Hanley Wood.
Recent U.S. Census data also showed an increase in “doubling up” among household, particularly among young adults who are opting to move back with their parents. About 5.9 million Americans aged 25-34 lived with their parents in 2010, which is a 25 percent increase compared to the years immediately preceding the recession. Men were found to be nearly twice as likely as women to live with their parents.
Interested in a larger home? Call us at 623-694-0354 and we will help you find a home that is suitable for your entire family.
Nearly 1 in 3 adults — or 30 percent — live with their relatives, according to a new study. The cohabitation is known as “doubling up,” and it has risen to levels not seen since the Great Depression, according to a survey of 3,000 home owners and renters conducted by Hanley Wood.
Recent U.S. Census data also showed an increase in “doubling up” among household, particularly among young adults who are opting to move back with their parents. About 5.9 million Americans aged 25-34 lived with their parents in 2010, which is a 25 percent increase compared to the years immediately preceding the recession. Men were found to be nearly twice as likely as women to live with their parents.
Interested in a larger home? Call us at 623-694-0354 and we will help you find a home that is suitable for your entire family.
Thursday, October 6, 2011
Phoenix Area Home Sales are Smokin' Hot
Homes are selling like Hotcakes in the Phoenix area market. Now that there are many different companies specializing in bidding on properties on the courthouse steps, most auctioned (foreclosed) properties are receiving multiple bids. Because the prices are being driven up by investment buyers who are purchasing the properties with the intent to rent them, "flippers" are having a difficult time finding good properties to flip.
Yesterday I listed 2 properties in Avondale. Between the two properties we had 7 showings today and 5 showings for tomorrow. So far, we have received two offers for these properties and are expecting more.
To obtain a property, you often need to be one of the first buyers on the scene. Call us and we will "hook you up" to the MLS so you can be the first to know when your ideal property comes on the market.
Did you know that interest rates are at an all time low? If you are thinking of purchasing with a loan, the interest rate plays a bigger role in determining your monthly payment than the overall price of the home. Follow the lead of the investors, the time to strike is now....and you may need to strike (make offers) several times before obtaining your ultimate deal!
Yesterday I listed 2 properties in Avondale. Between the two properties we had 7 showings today and 5 showings for tomorrow. So far, we have received two offers for these properties and are expecting more.
To obtain a property, you often need to be one of the first buyers on the scene. Call us and we will "hook you up" to the MLS so you can be the first to know when your ideal property comes on the market.
Did you know that interest rates are at an all time low? If you are thinking of purchasing with a loan, the interest rate plays a bigger role in determining your monthly payment than the overall price of the home. Follow the lead of the investors, the time to strike is now....and you may need to strike (make offers) several times before obtaining your ultimate deal!
Monday, September 19, 2011
Back Up Offers Are the Best!
Just a quick note for Buyers who feel like they are always getting beat out by other buyers on Short Sales and Foreclosures. ASK TO BE A BACK UP BUYER!
80% of my short sales do not sell to the first buyer. Why? The process feels long to the first buyer. They get all excited about purchasing the house and then are required to wait two months to hear if the seller's lender accepted their offer. As the days drag on, the first buyer's interest usually begins to wain. They begin wondering about the other house down the street, etc. Often by the time the seller's lender gives their approval, the first buyer has found another home that they think can close faster. Consequently, it is the 2nd or 3rd Back Up Buyer that actually ends up purchasing the house.
So buyers, don't be sad when you are not selected as the first buyer. Strategize and get in the 2nd or 3rd position. Chances are, you will be the one who eventually owns the home!
80% of my short sales do not sell to the first buyer. Why? The process feels long to the first buyer. They get all excited about purchasing the house and then are required to wait two months to hear if the seller's lender accepted their offer. As the days drag on, the first buyer's interest usually begins to wain. They begin wondering about the other house down the street, etc. Often by the time the seller's lender gives their approval, the first buyer has found another home that they think can close faster. Consequently, it is the 2nd or 3rd Back Up Buyer that actually ends up purchasing the house.
So buyers, don't be sad when you are not selected as the first buyer. Strategize and get in the 2nd or 3rd position. Chances are, you will be the one who eventually owns the home!
Thursday, September 8, 2011
CONDOS IN PHOENIX AREA ARE CHEAP, CHEAP, CHEAP! BUT LEARN THE FACTS!
Condos in the Phoenix area are currently are very inexpensive. When you are looking for a condo or townhouse, be sure to check into the financing requirement for each type of property. There are some significant differences on what is available and the lending rules for each. Be prepared, not disappointed.
Financing Townhouse and Condo Purchases
If you are looking to buy a townhouse or condominium, it's important to note there are some significant differences between the two.
A condo is more of a legal definition than anything, referring to how the property is owned and managed.
If you were to purchase a condo, as opposed to a townhouse, you would own just the structure.
The land under it would be part of the large parcel on which all the units and the common areas sit.
In a townhouse, you would own the land under their home.
In a condo, you will pay into a blanket condo insurance policy that covers the unit itself.
This insurance, by the way, covers the structure but none of the contents of individual units.
In a townhouse, you would pay for your own individual policy.
Services such as landscaping and repaving of the common parking lots will often be handled by both types of associations.
However, condo associations will be more likely to manage minor items such as trim painting and snow removal and major maintenance such as roof replacement.
Roof replacement is more specific to condos in that they are more likely to share common roofs. Thus, it would be challenging to replace specific sections of one part versus the entire roof itself.
For this reason, condo association dues can be significantly higher than dues for a townhouse. When you are looking to purchase a condo, make absolutely sure that you understand how much these dues are.
Expect them to increase over time, as maintenance expenses rise.
A major challenge that condo buyers and potential condo buyers alike may run into nowadays is that the development may not be on a list approved by the Federal Housing Administration (FHA) or the Fannie Mae.
So in order for you to buy a condo, an association will have to open up its books and provide a set of rules and regulations to the for review. Many times associations charge for this service.
Other consideratiosn with condos is the delinquent association dues and the mix of owner occupied units vs. non owner. This can be determined by a report from the HOA. These numbers have to fall into certain parameters in or order to qualify for financing. Homepath condos do not have the same restrictions.
Many condos right now in the Phoenix area are dirt cheap, but a little more difficult to finance. If you want to get in on these great investment opportunities, call Mike Drefs at 623-693-1505. He can help guide you thru the process and send you a list of available properties.
Financing Townhouse and Condo Purchases
If you are looking to buy a townhouse or condominium, it's important to note there are some significant differences between the two.
A condo is more of a legal definition than anything, referring to how the property is owned and managed.
If you were to purchase a condo, as opposed to a townhouse, you would own just the structure.
The land under it would be part of the large parcel on which all the units and the common areas sit.
In a townhouse, you would own the land under their home.
In a condo, you will pay into a blanket condo insurance policy that covers the unit itself.
This insurance, by the way, covers the structure but none of the contents of individual units.
In a townhouse, you would pay for your own individual policy.
Services such as landscaping and repaving of the common parking lots will often be handled by both types of associations.
However, condo associations will be more likely to manage minor items such as trim painting and snow removal and major maintenance such as roof replacement.
Roof replacement is more specific to condos in that they are more likely to share common roofs. Thus, it would be challenging to replace specific sections of one part versus the entire roof itself.
For this reason, condo association dues can be significantly higher than dues for a townhouse. When you are looking to purchase a condo, make absolutely sure that you understand how much these dues are.
Expect them to increase over time, as maintenance expenses rise.
A major challenge that condo buyers and potential condo buyers alike may run into nowadays is that the development may not be on a list approved by the Federal Housing Administration (FHA) or the Fannie Mae.
So in order for you to buy a condo, an association will have to open up its books and provide a set of rules and regulations to the for review. Many times associations charge for this service.
Other consideratiosn with condos is the delinquent association dues and the mix of owner occupied units vs. non owner. This can be determined by a report from the HOA. These numbers have to fall into certain parameters in or order to qualify for financing. Homepath condos do not have the same restrictions.
Many condos right now in the Phoenix area are dirt cheap, but a little more difficult to finance. If you want to get in on these great investment opportunities, call Mike Drefs at 623-693-1505. He can help guide you thru the process and send you a list of available properties.
Friday, August 19, 2011
A Trillion in Perspective.............
I heard an interesting analogy this week from Eldon Ploetz, an AZ RE instructor and a former bank executive.
If we were to stack $1 bills on top of each other at the rate of 1 per second and worked at it 24 hours per day, it would take us 11.57 days to stack $1 million.
How long would it take to stack a One Billion dollars? 11,574 days or 31.71 YEARS.
How long would it take to stack a Trillion Dollars? 31,710 years.
And,the National Deficit is reported to be 14.5 trillion dollars. That would mean we would need to stack $1 bill, 24 hours per day for 459,795 YEARS. That is a VERY long time. Obviously, our descendants will be dealing with this debt for years.
If we were to stack $1 bills on top of each other at the rate of 1 per second and worked at it 24 hours per day, it would take us 11.57 days to stack $1 million.
How long would it take to stack a One Billion dollars? 11,574 days or 31.71 YEARS.
How long would it take to stack a Trillion Dollars? 31,710 years.
And,the National Deficit is reported to be 14.5 trillion dollars. That would mean we would need to stack $1 bill, 24 hours per day for 459,795 YEARS. That is a VERY long time. Obviously, our descendants will be dealing with this debt for years.
Tuesday, August 9, 2011
How the S&P Ratings Affect the Housing Market
Per the Wall Street Journal, "When all is said and done, borrower psychology—and not mortgage rates—could face the bulk of any housing-market damage that stems from the Standard & Poor’s rating downgrades.
S&P downgraded the credit ratings of Fannie Mae and Freddie Mac on Monday morning to AA+ from AAA. That, of course, followed Friday’s rating cut for the United States.
The downgrades by themselves don’t appear to have done much to roil mortgage markets. The 10-year Treasury note, to which mortgage rates are closely tied, has fallen to a record low, which is good for mortgage rates."
Lawrence Yun, the chief economist for the National Association of Realtors says, “Even if [mortgage] rates were to rise because of the downgrade, this fact is less important in light of the current overly stringent underwriting standards and the general lack of consumer confidence about the economy. A 30-year fixed rate rising from 4.3% to 4.6% will not change the housing game that much, but a return to normal underwriting standards and a boost to consumer confidence will be the true game changer.”
What does this mean for you? Mortgage rates are Low, Low, Low so a house purchased now will have a low monthly payment. While others are crying over their stock values, take advantage and purchase a home at the lowest historical mortgage rate. Be the new Warren Buffett and buy when terms are favorable. You will have outsmarted most of your neighbors!
S&P downgraded the credit ratings of Fannie Mae and Freddie Mac on Monday morning to AA+ from AAA. That, of course, followed Friday’s rating cut for the United States.
The downgrades by themselves don’t appear to have done much to roil mortgage markets. The 10-year Treasury note, to which mortgage rates are closely tied, has fallen to a record low, which is good for mortgage rates."
Lawrence Yun, the chief economist for the National Association of Realtors says, “Even if [mortgage] rates were to rise because of the downgrade, this fact is less important in light of the current overly stringent underwriting standards and the general lack of consumer confidence about the economy. A 30-year fixed rate rising from 4.3% to 4.6% will not change the housing game that much, but a return to normal underwriting standards and a boost to consumer confidence will be the true game changer.”
What does this mean for you? Mortgage rates are Low, Low, Low so a house purchased now will have a low monthly payment. While others are crying over their stock values, take advantage and purchase a home at the lowest historical mortgage rate. Be the new Warren Buffett and buy when terms are favorable. You will have outsmarted most of your neighbors!
Tuesday, July 26, 2011
Cheaper to Own than Rent in Phoenix
Phoenix, AZ is one of the Top Five metro areas that favors home ownership versus renting, according to website Trulia. Currently, buying a home in the Phoenix area makes more financial sense than renting.
Because of the principles of supply and demand, renting has become more expensive than buying in our market.
What are the other Top 4 Metro areas where it is cheaper to Buy than Rent?
Miami, Las Vegas, Arlington,TX, and Mesa,AZ.
What do they all have in common? Lots of Sunshine!
Because of the principles of supply and demand, renting has become more expensive than buying in our market.
What are the other Top 4 Metro areas where it is cheaper to Buy than Rent?
Miami, Las Vegas, Arlington,TX, and Mesa,AZ.
What do they all have in common? Lots of Sunshine!
Friday, July 15, 2011
AZ Real Estate Update: FHA FORECLOSURE FREEZE PLAN TO HELP FEW
AZ Real Estate Update: FHA FORECLOSURE FREEZE PLAN TO HELP FEW: "FHA introduced a program last week allowing for up to twelve months of deferred house payments for those out of a job. It is called the FHA ..."
FHA FORECLOSURE FREEZE PLAN TO HELP FEW
FHA introduced a program last week allowing for up to twelve months of deferred house payments for those out of a job. It is called the FHA Foreclosure Freeze. It is for FHA LOANS ONLY. The borrower MUST BE UNEMPLOYED. NO debt is forgiven. It is a forbearance...i.e. The lender will allow you to live in the house without making payments for 3-12 months. When that grace period ends, you MUST RESUME making your payments and the missed payments will be tacked on to the back end of the loan so you will be paying for a longer period.
Please keep in mind that this is a VOLUNTEER PROGRAM for lender participation. Your lender may choose to not participate. The FHA is limiting the number of borrowers taking advantage of this program to 3,500 per month. That is a small number relative to the amount of FHA homeowners going into foreclosure across the country.
This FHA Foreclosure Freeze program may "help" a select few, but it will not have an impact on our current housing market. Those applying for this plan may be hurt by waiting for the lender's response and not acting on other viable solutions, i.e. short sale, loan modification, etc. This plan may actually increase a homeowner's debt on the loan if his/her lender chooses to penalize the homeowner for all the late payments.
It makes me angry to think of all the government money wasted on the manpower it took to create this weak program. We need an actual fix to help the housing market. This will not happen until politicians get out the lenders' back pockets and think independently. The politicians need to think more about the individual homeowner than about creating tax incentives and bonuses for the lenders.
Please keep in mind that this is a VOLUNTEER PROGRAM for lender participation. Your lender may choose to not participate. The FHA is limiting the number of borrowers taking advantage of this program to 3,500 per month. That is a small number relative to the amount of FHA homeowners going into foreclosure across the country.
This FHA Foreclosure Freeze program may "help" a select few, but it will not have an impact on our current housing market. Those applying for this plan may be hurt by waiting for the lender's response and not acting on other viable solutions, i.e. short sale, loan modification, etc. This plan may actually increase a homeowner's debt on the loan if his/her lender chooses to penalize the homeowner for all the late payments.
It makes me angry to think of all the government money wasted on the manpower it took to create this weak program. We need an actual fix to help the housing market. This will not happen until politicians get out the lenders' back pockets and think independently. The politicians need to think more about the individual homeowner than about creating tax incentives and bonuses for the lenders.
Wednesday, June 8, 2011
AZ REAL ESTATE BUYERS: BE PERSISTENT!!!
The real estate market right now for Buyers is difficult. Inventory is low. Most of the houses that you see with real estate signs hanging in front of them are under contract. Many properties are receiving multiple offers. As a Buyer, be prepared to make aggressive offers to compete with the other buyers. Many buyers are losing out on homes and having to make offers on several homes before getting under contract.
Why is inventory low? The lenders are currently foreclosing on homes and not immediately placing them all back on the market. They are "holding" homes and slowly releasing them. As a result, we have been told that Bank of America alone has approximately 14 million homes that they foreclosed on , but have not placed back on market. We call these homes "shadow inventory". The report says that 85% of these homes are in California, Nevada, Florida and Arizona. And, this is just one lender. The other big players, Wells Fargo, JP Morgan Chase, Citimortgage, etc., are also carrying shadow inventory.
Why all this shadow inventory? The banks are attempting to drive the prices upward to lessen their loss on these foreclosed homes. If the market becomes flooded with new listings, prices will be driven lower. Due to the slow trickle of these homes back to the market, we can see that our current real estate market situation will continue for a few more years. So, if your credit is not perfect now, it is time to seriously concentrate on correcting it.
How do the lenders decide which homes to place back on the market? We don't know. This makes it extremely frustrating for buyers who have their eye on a particular foreclosed home and want to know when it will be for sale.
As a result, many Buyers are now purchasing short sales. These Buyers understand the short sale time lines and are now willing to wait for the completion of the process.
Is it still a good time for Buyers? ABSOLUTELY! The prices are the lowest they have been in years and so are the interest rates. This market just requires a bit more patience. So Buyers, be realistic and persistent and you will be able to take advantage of this unique real estate scenario. And years from now, you will patting yourself on the back!
Why is inventory low? The lenders are currently foreclosing on homes and not immediately placing them all back on the market. They are "holding" homes and slowly releasing them. As a result, we have been told that Bank of America alone has approximately 14 million homes that they foreclosed on , but have not placed back on market. We call these homes "shadow inventory". The report says that 85% of these homes are in California, Nevada, Florida and Arizona. And, this is just one lender. The other big players, Wells Fargo, JP Morgan Chase, Citimortgage, etc., are also carrying shadow inventory.
Why all this shadow inventory? The banks are attempting to drive the prices upward to lessen their loss on these foreclosed homes. If the market becomes flooded with new listings, prices will be driven lower. Due to the slow trickle of these homes back to the market, we can see that our current real estate market situation will continue for a few more years. So, if your credit is not perfect now, it is time to seriously concentrate on correcting it.
How do the lenders decide which homes to place back on the market? We don't know. This makes it extremely frustrating for buyers who have their eye on a particular foreclosed home and want to know when it will be for sale.
As a result, many Buyers are now purchasing short sales. These Buyers understand the short sale time lines and are now willing to wait for the completion of the process.
Is it still a good time for Buyers? ABSOLUTELY! The prices are the lowest they have been in years and so are the interest rates. This market just requires a bit more patience. So Buyers, be realistic and persistent and you will be able to take advantage of this unique real estate scenario. And years from now, you will patting yourself on the back!
Tuesday, May 17, 2011
The NEW FHA LOAN
On April 18 FHA increased their monthly mortgage insurance, doubling to twice the monthly amount it was a year ago. Why?
FHA previously supported itself, based on the mortgage insurance premiums paid by borrowers. Therefore, the payouts for foreclosed properties have forced FHA to raise the monthly mortgage insurance premium to shore up their coffers.
Many buyers need FHA guidelines to purchase a home.
The following seven reasons are why FHA is still in the lending game:
1. Gifts. The 3.5% down payment and all closing costs can be gifted.
2. Lower credit scores. Some lenders are decreasing the requirement down to 600 (and in some cases 580)
3. Non-occupant co-borrower: Mom and Dad helping a family member by agreeing to be equally responsible for the mortgage. This is a great way to get into a home.
4. Bankruptcy: The wait is only two years after a bankruptcy, but be sure to reestablish good credit.
5. Foreclosure: The wait is 3 years, compared to conventional, which is 4 to 7 years. Plus it is the only program that will allow buyers to re-enter the housing market with limited down.
6. Short Sale: After a short sale with no mortgage lates, and a good reason, FHA may finance the next purchase immediately.
7. Own another home but can't sell or don't want to sell it? FHA will allow a purchase of a primary residence as long as the borrower can qualify for both payments. Conventional loans will allow the same but only with hefty reserves.
The guidelines above are oversimplified, because as you well know in our industry, other conditions will apply. For example, I have never seen a Short Sale close without late payments and those purchasing a house 2-3 years after a foreclosure or bankruptcy had stellar credit prior to the events. All these examples are in an ideal world where your only blip on the credit radar was the short sale, foreclosure or bankruptcy. Even though, FHA is currently the loan of choice for many Buyers.
FHA previously supported itself, based on the mortgage insurance premiums paid by borrowers. Therefore, the payouts for foreclosed properties have forced FHA to raise the monthly mortgage insurance premium to shore up their coffers.
Many buyers need FHA guidelines to purchase a home.
The following seven reasons are why FHA is still in the lending game:
1. Gifts. The 3.5% down payment and all closing costs can be gifted.
2. Lower credit scores. Some lenders are decreasing the requirement down to 600 (and in some cases 580)
3. Non-occupant co-borrower: Mom and Dad helping a family member by agreeing to be equally responsible for the mortgage. This is a great way to get into a home.
4. Bankruptcy: The wait is only two years after a bankruptcy, but be sure to reestablish good credit.
5. Foreclosure: The wait is 3 years, compared to conventional, which is 4 to 7 years. Plus it is the only program that will allow buyers to re-enter the housing market with limited down.
6. Short Sale: After a short sale with no mortgage lates, and a good reason, FHA may finance the next purchase immediately.
7. Own another home but can't sell or don't want to sell it? FHA will allow a purchase of a primary residence as long as the borrower can qualify for both payments. Conventional loans will allow the same but only with hefty reserves.
The guidelines above are oversimplified, because as you well know in our industry, other conditions will apply. For example, I have never seen a Short Sale close without late payments and those purchasing a house 2-3 years after a foreclosure or bankruptcy had stellar credit prior to the events. All these examples are in an ideal world where your only blip on the credit radar was the short sale, foreclosure or bankruptcy. Even though, FHA is currently the loan of choice for many Buyers.
Friday, May 13, 2011
BUYING A HOME?? THE INTEREST RATE IS MORE IMPORTANT THAN THE PRICE!
The biggest mistake a home buyer can make is to underestimate the impact of lower interest rates on housing costs, and the relative affordability of housing in the United States. The cost of a loaf of bread and a gallon of gas has more than tripled since 1989, and car prices have nearly doubled. While the median price of a new home has increased by 70 percent, mortgage interest rates, which stood at 10 percent back in 1989, are less than half of what they were back then. The impact of rock-bottom interest rates is that the monthly mortgage payment on a median priced home in the United States has increased by a mere $4 since 1989.
Unless a buyer is paying cash, the monthly payment tends to be a far more relevant number than the home’s actual purchase price. So for buyers who are waiting for home prices to hit the floor before buying, it’s important to point out that the possibility of a slight drop in the price of a home will have very little impact on the monthly payment, while even a slight rise in interest rates (a far more likely scenario) will have a significant impact.
Timing the market to a T is never possible and in the current market, staying on the sidelines is more likely to result in a missed opportunity than a small savings. Waiting on the lowest price while interest rates tick upwards, can cost you more in the long run.
Unless a buyer is paying cash, the monthly payment tends to be a far more relevant number than the home’s actual purchase price. So for buyers who are waiting for home prices to hit the floor before buying, it’s important to point out that the possibility of a slight drop in the price of a home will have very little impact on the monthly payment, while even a slight rise in interest rates (a far more likely scenario) will have a significant impact.
Timing the market to a T is never possible and in the current market, staying on the sidelines is more likely to result in a missed opportunity than a small savings. Waiting on the lowest price while interest rates tick upwards, can cost you more in the long run.
Wednesday, March 30, 2011
Home Prices in Phoenix down another 9.1% Since January 2010....
The S&P Case-Shiller housing report is out. It is GOOD news for Buyers and not so good news for Sellers.
"January housing numbers for Phoenix and the U.S. as a whole were not good in January, according to new S&P Case-Shiller index numbers put out Tuesday morning.
Home prices are down 9.1 percent in Phoenix since January 2010, according to the index. Phoenix had the largest year-over-year drop of the 20 metro areas in the housing index.
From December 2010 to January 2011, Phoenix home prices are down 1.5 percent. U.S. home prices are down 1 percent for the same time period.
Indicators point to Buy, Buy, Buy !!!
"January housing numbers for Phoenix and the U.S. as a whole were not good in January, according to new S&P Case-Shiller index numbers put out Tuesday morning.
Home prices are down 9.1 percent in Phoenix since January 2010, according to the index. Phoenix had the largest year-over-year drop of the 20 metro areas in the housing index.
From December 2010 to January 2011, Phoenix home prices are down 1.5 percent. U.S. home prices are down 1 percent for the same time period.
Indicators point to Buy, Buy, Buy !!!
Tuesday, February 1, 2011
TOP TEN REASONS PHOENIX WILL PROSPER IN 2011
Enjoy this Top Ten List borrowed from Diane Gerdes of The Mortgage Advantage.
Phoenix has withstood additional blows with negative press, but all in all 2010 showed small signs of recovery for our great state.
2011 will be even better, here are the top ten reasons Phoenix will have a prosperous 2011:
10. Phoenix's unemployment rate dropped below the National average to 8.5% in December, 2010 and is expected to slowly decline. Technology and resort-leisure jobs are still the go-to jobs in Arizona, unless you open a pawnshop.
9. Arizonan's love to shop. Wal-Mart is Arizona's largest employer employing over 30,000 people.
8. Arizona is all grown up by implementing their very own stock index called The L&D Arizona Composite Index. It is compiled of companies headquartered in Arizona and publicly traded on the NYSE and NASDAQ.
7. We are not depending on the 5 C's that have defined our state for decades: Citrus, Cattle, Cotton, Copper, and Climate. History Lesson: All five are incorporated on our state symbol.
6. Green is the word! Solar and Algae are the buzz words for fuel sources in the 21st Century. Both industries are continuing to anchor themselves in our state. If oil prices continue to rise, and stay high, we may finally be forced to mass-produce cleaner and more effective alternatives to our oil addiction. Segway's are not the answer if you wear high heels and worry about your toupee.
5. China's inflation may be the U.S.'s windfall: the cost of our goods will become competitive. The Chinese don't want to buy goods labeled "made in China."
4. Our border state geography is a benefit for legal exports and imports from Mexico, Arizona's largest trading partner. According to azcentral.com, exports to Mexico topped $5.9 billion and imports $5.2 billion in 2008. That is a lot of Chihuahuas.
3. The Phoenix metro-plex offers the most affordable housing in the U. S. With rock bottom prices and low interest rates (stop whining, no, they're not at 4% but still pretty darn low) make for an unbeatable combination. Also, families who lost their homes in 2007 and 2008 may be able to re-enter the mortgage market this year.
2. We have the Grand Canyon. Air traffic through Sky Harbor increased in 2010 over 2009.
1. Arizona is not Green Bay or Pittsburg. With the brutal winter in many parts of the U.S. and Canada, pictures of our sunshine will continue to entice people to visit and stay awhile.
No matter what the circumstances of our economy, it will be up to us to energize 2011 and help make it a great year.
Phoenix has withstood additional blows with negative press, but all in all 2010 showed small signs of recovery for our great state.
2011 will be even better, here are the top ten reasons Phoenix will have a prosperous 2011:
10. Phoenix's unemployment rate dropped below the National average to 8.5% in December, 2010 and is expected to slowly decline. Technology and resort-leisure jobs are still the go-to jobs in Arizona, unless you open a pawnshop.
9. Arizonan's love to shop. Wal-Mart is Arizona's largest employer employing over 30,000 people.
8. Arizona is all grown up by implementing their very own stock index called The L&D Arizona Composite Index. It is compiled of companies headquartered in Arizona and publicly traded on the NYSE and NASDAQ.
7. We are not depending on the 5 C's that have defined our state for decades: Citrus, Cattle, Cotton, Copper, and Climate. History Lesson: All five are incorporated on our state symbol.
6. Green is the word! Solar and Algae are the buzz words for fuel sources in the 21st Century. Both industries are continuing to anchor themselves in our state. If oil prices continue to rise, and stay high, we may finally be forced to mass-produce cleaner and more effective alternatives to our oil addiction. Segway's are not the answer if you wear high heels and worry about your toupee.
5. China's inflation may be the U.S.'s windfall: the cost of our goods will become competitive. The Chinese don't want to buy goods labeled "made in China."
4. Our border state geography is a benefit for legal exports and imports from Mexico, Arizona's largest trading partner. According to azcentral.com, exports to Mexico topped $5.9 billion and imports $5.2 billion in 2008. That is a lot of Chihuahuas.
3. The Phoenix metro-plex offers the most affordable housing in the U. S. With rock bottom prices and low interest rates (stop whining, no, they're not at 4% but still pretty darn low) make for an unbeatable combination. Also, families who lost their homes in 2007 and 2008 may be able to re-enter the mortgage market this year.
2. We have the Grand Canyon. Air traffic through Sky Harbor increased in 2010 over 2009.
1. Arizona is not Green Bay or Pittsburg. With the brutal winter in many parts of the U.S. and Canada, pictures of our sunshine will continue to entice people to visit and stay awhile.
No matter what the circumstances of our economy, it will be up to us to energize 2011 and help make it a great year.
MAKE 2011 YOUR YEAR!!
In the last 2 weeks we have seen less than positive news regarding the Real Estate Market in the Phoenix area. Luncheons and meetings have been held where people pay hundreds of dollars to hear experts speak on where the Phoenix market is headed. The general concensus is that it may takes us a bit longer to recover.
In every market, however, there are positives. For Buyers, this is one of the best markets ever. Our Phoenix area prices are down. Coupled with low interest rates, this is one of the best times ever to purchase a home in the Valley of the Sun.
For Renters, there is a larger, more upgraded inventory of rental homes. Investors are purchasing homes in quantity and are turning these homes into rental properties. I have seen many homeowners short sale their home and move into bigger, nicer rental properties.
The key to surviving in Real Estate is to move and adapt to the market.
Consequently, our short sale inventory is way up and we have many buyers purchasing "investment properties" that their "children" will live in while the children reestablish their credit. This market, like any market, is an opportunity for both buyers and sellers. Buyers can purchase low priced homes at excellent rates and Sellers can get out from under a mortgage that will otherwise drag them under financially for years to come. The key is simply to be knowledgeable about the market and to react to its ebbs and tides with your future in sight.
If you need help, just let us know. 623-694-0354.
In every market, however, there are positives. For Buyers, this is one of the best markets ever. Our Phoenix area prices are down. Coupled with low interest rates, this is one of the best times ever to purchase a home in the Valley of the Sun.
For Renters, there is a larger, more upgraded inventory of rental homes. Investors are purchasing homes in quantity and are turning these homes into rental properties. I have seen many homeowners short sale their home and move into bigger, nicer rental properties.
The key to surviving in Real Estate is to move and adapt to the market.
Consequently, our short sale inventory is way up and we have many buyers purchasing "investment properties" that their "children" will live in while the children reestablish their credit. This market, like any market, is an opportunity for both buyers and sellers. Buyers can purchase low priced homes at excellent rates and Sellers can get out from under a mortgage that will otherwise drag them under financially for years to come. The key is simply to be knowledgeable about the market and to react to its ebbs and tides with your future in sight.
If you need help, just let us know. 623-694-0354.
Saturday, January 1, 2011
Real Estate and the New Year Prediction
Happy New Year!! I wanted to share with you the latest predictions for 2011 from the Association of Realtors for our region, Region 2..
Region Two
Phoenix, West Maricopa County Regional
Region Two, consisting of Phoenix and the West Valley up to and including Wickenburg, has had a tough year. We are still moving through a large amount of REO properties, and the market has been top heavy with short sales. Once the tax credit expired, the market calmed for a month or two but seems to be coming back. The buyers are still buying, especially investors. First-time homebuyers are, once again, having difficulty getting an accepted contract due to bidding wars on lesser-priced properties. This will be reflected in price stabilization in certain neighborhoods. We are hoping to see some of these areas switch into more of a buyer’s market after the first of the year. We have experienced a year similar to the one described in the summary. There is a lot of competition for low priced and exceptional homes. Short Sales are still running the market, followed closely by REO (lender owned properties). We still will have a steady stream of foreclosure and short sale inventory thru 2011 based on the number of Notice of Trustee Sale notices that are being recorded at the county offices.
Buyers are capitalizing on the low prices and low interest rates. If you are thinking of upsizing or downsizing, 2011 is the year to do it. If you are experiencing financial distress, please call us. We will be able to go over your options with you so you can make the choice that is best for your family.
Greet the New Year with a hopeful heart and be confident that you will make 2011 your best year yet.
Happy New Year!
Mary & Mike Drefs
Keller Williams Realty Professional Partners
623-694-0354 Mary
marydrefs@cox.net
623-693-1505 Mike
mikedrefs@cox.net
Top Agent 2001, 2002, 2003 & 2004
Top Team 2005, 2006, 2007 & 2008!!
Region Two
Phoenix, West Maricopa County Regional
Region Two, consisting of Phoenix and the West Valley up to and including Wickenburg, has had a tough year. We are still moving through a large amount of REO properties, and the market has been top heavy with short sales. Once the tax credit expired, the market calmed for a month or two but seems to be coming back. The buyers are still buying, especially investors. First-time homebuyers are, once again, having difficulty getting an accepted contract due to bidding wars on lesser-priced properties. This will be reflected in price stabilization in certain neighborhoods. We are hoping to see some of these areas switch into more of a buyer’s market after the first of the year. We have experienced a year similar to the one described in the summary. There is a lot of competition for low priced and exceptional homes. Short Sales are still running the market, followed closely by REO (lender owned properties). We still will have a steady stream of foreclosure and short sale inventory thru 2011 based on the number of Notice of Trustee Sale notices that are being recorded at the county offices.
Buyers are capitalizing on the low prices and low interest rates. If you are thinking of upsizing or downsizing, 2011 is the year to do it. If you are experiencing financial distress, please call us. We will be able to go over your options with you so you can make the choice that is best for your family.
Greet the New Year with a hopeful heart and be confident that you will make 2011 your best year yet.
Happy New Year!
Mary & Mike Drefs
Keller Williams Realty Professional Partners
623-694-0354 Mary
marydrefs@cox.net
623-693-1505 Mike
mikedrefs@cox.net
Top Agent 2001, 2002, 2003 & 2004
Top Team 2005, 2006, 2007 & 2008!!
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