Archive for the ‘Market Conditions’ Category

Phoenix Neighborhood Stabilization Program info
February 19, 2013

NSP Logo 250

We had a speaker come into our office today and talk to us about the Neighborhood Stabilization Program for the city of Phoenix today.  I had heard about this program and actually put a client through a similar program a couple of years ago.  The info she shared I found very useful and thought I’d pass it along.  Basically the program is an opportunity for home buyers to receive assistance with down payment on a house (up to $15,000) as a forgivable second loan. The payback decreases by $1,000 per year and disappears after 15 years. If you sell the house before the loan goes away you simply pay back the portion that remains. It’s great opportunity for people who don’t have a lot of money to put down to get into a house. The homes are either new or “move in ready” condition and have been built/remodeled to very high standards. I will include a few links to their pages that may be helpful.

Here is the address to their home page (http://phoenix.gov/residents/stabilization/nsp/index.html).

Here is the address to their qualification page (http://phoenix.gov/residents/stabilization/nsp/eligible/index.html).  You can buy either a new home or a “move in ready” home.

Here is the address to the page where you can see a list of the “move in ready” homes that qualify for the program (http://phoenix.gov/webcms/groups/internet/@inter/@res/@stab/@nsp/documents/web_content/moveinreadyhomeinventory11-11.pdf)

If you would like to talk to me about the program or for more info, please feel free to give me a call or drop me an email at TLee@TLeeRealty.com

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How’s The Phoenix Home Market?
September 19, 2012

Home prices are definitely on the rise and inventory is very low. This is causing bidding wars again in many neighborhoods. The reasons behind the rebound in our market are varied but a lot of it is centered around the value of investment property to rental pricing and demand. The laws of supply and demand are definitely in play and with the increasing prices more people are getting “right side up” on their mortgages again. As displayed in the graphs below you can see what the market trends are.

Phoenix average property price
Phoenix Homes For Sale
Phoenix – number of properties
Phoenix Homes For Sale

Questions or comments are certainly welcome. I can be reached at tlee@tleerealty.com

The Future of Short Sales in Phoenix
November 15, 2011

In these tough economic times we have seen lots of good people who are struggling to make their payments and keep their homes.  Recently I attended a seminar that talked about the future of short sales in the Arizona market.  It was headed by a panel that included executives from Wells Fargo, Bank of America, Chase and some other well-known people from the financial industry.  The long and the short of it is that short sales are not going away anytime soon.  One of the panel members made the comment that he sees the numbers rising not decreasing in the near future.  We were assured that while there is noshadow inventory” in the Phoenix future, there will be lots of short sales that will continue to affect the market locally.  Another panel member reminded us that a short sale transaction is a settlement of debt, not a relief of debt.  Basically he was saying that lenders are not in the habit or will they be in the habit of approving a short sale if the sellers do not have a true hardship causing them to no longer be able to afford the house.  “Strategic default” was brought up and the bank execs all agreed flat-out, do not submit them because they will not be approved. If you are not familiar with the term strategic default it means that the seller wants to sell because they no longer want to pay on a home that is worth substantially less than what they owe.  This is not what the short sale was intended for and banks made it clear they do not and will not work with these home owners.  One other point that was brought up was that the IRS has recently hired 20,000 new agents and they are going to be primarily be investigating mortgage fraud and the strategic default process.

As for real estate agents, we were encouraged to hear that the banks have stream-lined their short sale process and in many cases are even able to aid the seller in getting out of the home and relocating into a new home but offering a little $$$.  The HAFA and HAMP programs are there and can be a great help for those who qualify.  There are some great articles out there that explain the options to home owners that are in trouble.  One website I highly endorse is shortsalehelp.org  I urge all home owners and agents who work with short sales to educate yourself on the process and keep up to date.  The short sale market is changing rapidly and by the time you read this I am sure that some of the rules have changed.

As with any legal and financial dealings I highly recommend that you not only speak to a reputable real estate attorney but also talk to a CPA that you trust to find out what your financial implications may be.   While we are in an anti-deficiency state here in AZ, you still may have financial implications.  Real estate agents are great to help you market and sell your home but we are not legal or financial experts and should not be relied upon for that purpose.

Below are some links to lending institution web sites that may be helpful if you have a loan with one of them and are looking for answers:

Bank of America

Wells Fargo

Chase

NAR Reports Rise in Home Sales
February 20, 2011

 

Existing-home sales exceeded analysts’ expectations by increasing by 12.3 percent in December. Homes sales are returning to their highest level since last May.

 

The National Association of Realtors (NAR) reported seasonally adjusted sales rose to an annualized rate of 5.28 million last month from 4.7 million for November. Analysts had predicted a rate of approximately 4.9 million units.

 

NAR Chief Economist Lawrence Yun said, “December was a good finish to 2010, when sales fluctuate more than normal. The pattern over the past six months is clearly showing a recovery. The December pace is near the volume we’re expecting for 2011, so the market is getting much closer to an adequate, sustainable level. The recovery will likely continue as job growth gains momentum and rising rents encourage more renters into ownership while exceptional affordability conditions remain.”

 

NAR said the median existing-home price in December was $168,000, down 1 percent from a year earlier, which was attributed to the number of distressed properties sold during the month. The level of distressed-home sales last month rose to 36 percent of the existing-home market, up from 33 percent in November and 32 percent last year.

 

Regarding distressed-home sales, Yun said, “The modest rise in distressed sales, which typically are discounted 10 to 15 percent relative to traditional homes, dampened the median price in December, but the flat price trend continues,”

 

NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said buyers are responding to very good affordability conditions despite tight mortgage credit. “Historically low mortgage interest rates, stable home prices, and pent-up demand are drawing home buyers into the market,” Phipps said. “Recent home buyers have been successful with very low default rates, given the outstanding performance for loans originated in 2009 and 2010.”

New Foreclosure Prevention Plan Announced
March 29, 2010

President Obama is announcing an expansion of foreclosure-prevent tactics, including a plan to reduce principal balances and special aid for unemployed borrowers.

The bulk of the responsibility for carrying out the new program will be assigned to the Federal Housing Administration, which will insure lenders against part of the losses.

The plan asks banks to write down loan balances to less than the value of the home. If there is both a first and second mortgage, the combined total would have to be no more than 115 percent of the home’s value.

The Treasury would pay part of unemployed homeowners’ loans for three months while they job hunt.

Source: The Wall Street Journal, Nick Timiraos and James R. Hagerty (03/25/2010)

Buyers… the time is now!
March 5, 2010

If you are considering buying a home… the time is now! With the expiration of the tax credit (April 30th) just around the corner, that is incentive enough for you to make a decision. Now with the U.S. Treasury Department printing money like there’s no tomorrow, that means one thing… inflation WILL rise just as sure as a river in the rain. With inflation rising, so will interest rates. Some experts are predicting that we could see 30 year rates in the double digits before the end of the year. This is not meant as a scare tactic to get people off the fence. It is simply a warning… if you have the means to buy a home you will not find a more perfect storm than now. Prices at a decade low, interest rates on the verge of a steep climb and the government (local and federal) have several programs offering funds that can be used to make repairs or even cover some closing costs.

My advice is to get approved with a reputable lender and choose your house quickly so you don’t miss the boat!