October 28, 2007
Last month's dramatic drop in building permits for homes across metropolitan Phoenix may look like one more piece of bad news for the already struggling real-estate market.
But actually it's a good sign, as long as new-home sales are holding steady. And they are. There were 1,391 single-family permits issued from Casa Grande to north Peoria in September, while new-home sales or closings were more than double permits for the month at 2,991.
The result of the two market indicators should mean fewer speculative-built houses languishing on the market unsold. RL Brown, publisher of the Phoenix Housing Market Letter, estimates there are 6,000 to 8,000 spec homes in the Valley now. That compares with an estimated 15,000 to 20,000 spec homes sitting idle and empty earlier this year.
Still dragging down the market is the number of existing homes for sale. Listings are stillhovering in the mid-50,000s.
Resales continued their slide in September, as did the median price of existing homes sold.
Lower prices are helping the new-home market now. Brown said most Valley builders finally have realized they need to drop prices to sell homes.
Instead of offering the hefty incentives of last year, many builders have cut base prices and are now offering smaller homes with fewer amenities to attract buyers. It appears to be working.
David Seiders, National Association of Home Builders chief economist, said last week that these four areas will be most vulnerable to the subprime-loan fallout: California, coastal Florida,Phoenix and Las Vegas.
The speculator-driven housing boom is to blame. All those areas saw the huge run-ups in prices prompted mainly by speculators, often using subprime loans. Regular home buyers then often had to take out subprime loans to afford the higher prices.
"With many of these mortgages scheduled to reset to higher rates in the remainder of 2007 and through 2008, additional weakness in housing markets is likely," Seiders said.
He said the potential for a vicious cycle of defaults and price declines will depend on the level of exposure to subprime loans, the current house-price environment and the strength of the local economy.
Metro Phoenix is adding more jobs to its economy than Florida and many parts of California, which hopefully will buffer the Valley from some of the subprime-lending fallout.
Atlanta beats Phoenix
Atlanta and Phoenix have been rivals for the distinction of being the top U.S. home-buildingmarket for the past several years. Atlanta has held the title more than Phoenix, particularly in the past year.
But now Atlanta also has Phoenix beat for foreclosures. So far this month, more than $1 billion in homes have fallen into foreclosure in metro Atlanta, according to the data firm Equity Depot.
Metro Phoenix is at a 15-year high for foreclosures, but the value of the properties going into foreclosure last month and during October is well below $1 million.
And the Valley's median home price is $40,000 higher than Atlanta's, so it's not because the Georgia city has pricier foreclosures driving up the total.
Source: Catherine Reagor , The Arizona Republic
Tuesday, October 30, 2007
Saturday, October 27, 2007
4809 E Palo Breo Ln - Tatum Ranch Parcel 2
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This Blog is brought to you by the 777Team. The 777Team specializes in Scottsdale Luxury homes, investment properties, Scottsdale real estate, Phoenix real estate, or real estate in any of the surrounding Valley Cities, such as Paradise Valley, Pinnacle Peak, Tempe, Chandler, Mesa, Cave Creek, Carefree, Glendale, Peoria and others. Buyers, Sellers or Investors are encouraged to visit the 777Team's website at www.e-Scottsdale.com as it is designed to be a one-stop source for all real estate information and consumer research for properties throughout our Valley Cities and community information.
Thursday, October 25, 2007
New-home sales rise 4.8% in September
WASHINGTON (MarketWatch) - Sales of new homes rebounded in September from summer sales levels that were much weaker than previously reported, the Commerce Department reported Thursday.
Sales increased 4.8% to a seasonally adjusted annual rate of 770,000 from a revised 735,000 in August, an 11-year low. Previously, August's sales had been reported at a 795,000 pace. Read the full report.
September's sales were slightly higher than the 758,000 pace expected by economists surveyed by MarketWatch. See Economic Calendar.
The three previous months were revised sharply lower, which means the housing market was much weaker in the middle of the year than previous believed, and no one believed it was strong.
"The crash continues," wrote Ian Shepherdson, chief economist for High Frequency Economics. Sales fell at a 35% annualized pace in the third quarter, he said.
The large revisions highlight the low confidence that government statisticians have in the monthly report and the frequent large revisions it undergoes. Longer trends do a better job of showing the reality of the housing market than volatile monthly numbers.
Sales of new homes are down 23.3% in the past year. The sales figures do not account for canceled sales contracts, which have surged in recent months, especially since the seizing up of some mortgage markets. Many buyers are unable to find financing at the rate they want.
Inventories of new homes on the market fell 1.5% to 523,000, representing an 8.3-month supply, down from 9 months in August. The inventory of completed homes continued to rise, however.
New construction on single-family homes has plunged 31% in the past year, according to a separate report released earlier.
Sales rose in two of four regions in September, with sales in the West rising 38% after a 23% drop in August. Sales fell 19.5% in the Midwest to the slowest pace in 16 years. Sales dropped 6.6% in the Northeast and were essentially flat in the South, rising 0.5%.
The median sales price of $238,000 was up 5% compared with a year earlier.
On Wednesday, the National Association of Realtors reported an 8% drop in existing-home sales, while inventories of existing single-family homes rose to a nearly 20-year high. See full story.
The government cautions that its housing data are subject to large sampling and other statistical errors. Large revisions are common. The standard error of 10.3% is so high, in fact, that the government cannot be sure in most months whether sales rose or fell.
It can take up to five months for a trend in sales to emerge. New-home sales have averaged 806,000 per month over the past five months, compared with 833,000 in the five months ending in August.
Home builders have piled on incentives, including offering free vacations and new cars, to sell homes and reduce inventories. Such incentives are not subtracted from the sales price reported to the government.
Sales are reported when a contract is signed, not at the closing of the sale. Home builders have reported a large increase in cancellations in recent months, with some builders reporting that 50% of orders are cancelled. Cancellations are not reflected in the government data, so the reported sales are likely overstated, and inventories are unstated.
In other reports released Thursday, the Commerce Department said orders for durable goods fell 1.7% as demand for defense goods dropped. Outside of defense, orders rose 0.7%. See full story.
The Labor Department said filings for unemployment benefits fell by 8,000 last week to 331,000, while the less-volatile four-week average rose to a seven-week high. See full story.
Source: Rex Nutting, MarketWatch.
This Blog is brought to you by the 777Team. The 777Team specializes in Scottsdale Luxury homes, investment properties, Scottsdale real estate, Phoenix real estate, or real estate in any of the surrounding Valley Cities, such as Paradise Valley, Pinnacle Peak, Tempe, Chandler, Mesa, Cave Creek, Carefree, Glendale, Peoria and others. Buyers, Sellers or Investors are encouraged to visit the 777Team's website at www.e-Scottsdale.com as it is designed to be a one-stop source for all real estate information and consumer research for properties throughout our Valley Cities and community information.
Sales increased 4.8% to a seasonally adjusted annual rate of 770,000 from a revised 735,000 in August, an 11-year low. Previously, August's sales had been reported at a 795,000 pace. Read the full report.
September's sales were slightly higher than the 758,000 pace expected by economists surveyed by MarketWatch. See Economic Calendar.
The three previous months were revised sharply lower, which means the housing market was much weaker in the middle of the year than previous believed, and no one believed it was strong.
"The crash continues," wrote Ian Shepherdson, chief economist for High Frequency Economics. Sales fell at a 35% annualized pace in the third quarter, he said.
The large revisions highlight the low confidence that government statisticians have in the monthly report and the frequent large revisions it undergoes. Longer trends do a better job of showing the reality of the housing market than volatile monthly numbers.
Sales of new homes are down 23.3% in the past year. The sales figures do not account for canceled sales contracts, which have surged in recent months, especially since the seizing up of some mortgage markets. Many buyers are unable to find financing at the rate they want.
Inventories of new homes on the market fell 1.5% to 523,000, representing an 8.3-month supply, down from 9 months in August. The inventory of completed homes continued to rise, however.
New construction on single-family homes has plunged 31% in the past year, according to a separate report released earlier.
Sales rose in two of four regions in September, with sales in the West rising 38% after a 23% drop in August. Sales fell 19.5% in the Midwest to the slowest pace in 16 years. Sales dropped 6.6% in the Northeast and were essentially flat in the South, rising 0.5%.
The median sales price of $238,000 was up 5% compared with a year earlier.
On Wednesday, the National Association of Realtors reported an 8% drop in existing-home sales, while inventories of existing single-family homes rose to a nearly 20-year high. See full story.
The government cautions that its housing data are subject to large sampling and other statistical errors. Large revisions are common. The standard error of 10.3% is so high, in fact, that the government cannot be sure in most months whether sales rose or fell.
It can take up to five months for a trend in sales to emerge. New-home sales have averaged 806,000 per month over the past five months, compared with 833,000 in the five months ending in August.
Home builders have piled on incentives, including offering free vacations and new cars, to sell homes and reduce inventories. Such incentives are not subtracted from the sales price reported to the government.
Sales are reported when a contract is signed, not at the closing of the sale. Home builders have reported a large increase in cancellations in recent months, with some builders reporting that 50% of orders are cancelled. Cancellations are not reflected in the government data, so the reported sales are likely overstated, and inventories are unstated.
In other reports released Thursday, the Commerce Department said orders for durable goods fell 1.7% as demand for defense goods dropped. Outside of defense, orders rose 0.7%. See full story.
The Labor Department said filings for unemployment benefits fell by 8,000 last week to 331,000, while the less-volatile four-week average rose to a seven-week high. See full story.
Source: Rex Nutting, MarketWatch.
This Blog is brought to you by the 777Team. The 777Team specializes in Scottsdale Luxury homes, investment properties, Scottsdale real estate, Phoenix real estate, or real estate in any of the surrounding Valley Cities, such as Paradise Valley, Pinnacle Peak, Tempe, Chandler, Mesa, Cave Creek, Carefree, Glendale, Peoria and others. Buyers, Sellers or Investors are encouraged to visit the 777Team's website at www.e-Scottsdale.com as it is designed to be a one-stop source for all real estate information and consumer research for properties throughout our Valley Cities and community information.
Sunday, October 21, 2007
8738 E Bonnie Rose Scottsdale AZ
Beautiful 4 bedroom, 2 bathroom ranch in classical old downtown Scottsdale corridor.
This traditional home has been completely remodeled, from floor plan to roof.
View this property's VideoWalk @ 777Real Estate TV.
This Blog is brought to you by the 777Team. The 777Team specializes in Scottsdale Luxury homes, investment properties, Scottsdale real estate, Phoenix real estate, or real estate in any of the surrounding Valley Cities, such as Paradise Valley, Pinnacle Peak, Tempe, Chandler, Mesa, Cave Creek, Carefree, Glendale, Peoria and others. Buyers, Sellers or Investors are encouraged to visit the 777Team's website at www.e-Scottsdale.com as it is designed to be a one-stop source for all real estate information and consumer research for properties throughout our Valley Cities and community information.
This traditional home has been completely remodeled, from floor plan to roof.
View this property's VideoWalk @ 777Real Estate TV.
This Blog is brought to you by the 777Team. The 777Team specializes in Scottsdale Luxury homes, investment properties, Scottsdale real estate, Phoenix real estate, or real estate in any of the surrounding Valley Cities, such as Paradise Valley, Pinnacle Peak, Tempe, Chandler, Mesa, Cave Creek, Carefree, Glendale, Peoria and others. Buyers, Sellers or Investors are encouraged to visit the 777Team's website at www.e-Scottsdale.com as it is designed to be a one-stop source for all real estate information and consumer research for properties throughout our Valley Cities and community information.
Saturday, October 20, 2007
Staging the sale
A professional makeover can add sparkle to houses that linger on market.
Gary Kennedy's under-furnished south Phoenix house sat on the market for 50 days with no offers. But instead of lowering the price, like most sellers would do, he hired someone to come in and decorate - adding wall hangings and accessories.
Two weeks later, the house sold for the list price of $255,000.
Houses are taking longer to sell due to the Valley's housing market slump, and staging or giving them temporary new decor has become the strategy of choice for many sellers and investors.
Staging is typically done by professional stagers, interior designers or real estate agents. They may rearrange your furniture, suggest that you repaint, remove worn drapes and reduce clutter, and supplement your décor with accessories. If your house is empty, they'll furnish it.
But staging is more than decorating, certified home stager Bonnie Lewis said. It showcases the home's possibilities, she said. It can make rooms look larger, de-emphasize unusually shaped rooms or dark rooms, and can show buyers how to decorate the space, she said.
"You're setting a mood, and you're showcasing the lifestyle you could lead in this home," said Phoenix interior designer Patti Craze who staged Kennedy's house. "You're trying to have the buyer imagine themselves in the space."
Diane Neslund, a Scottsdale interior designer who also does staging, said that it gives the illusion that you're not desperate to sell your home. "People will think that they had better hurry up and buy it or somebody else will," she said.
The purpose of staging is not just to sell the house but to sell it at an optimum price, Neslund said.
The cost for staging generally is less than the $5,000 or $10,000 first price drop sellers make to entice buyers, said Lewis, who owns Enhanced to Sell with David Bugniazet.
Stagers, who want to see a house before they quote a price, generally base the cost on time, work involved and furnishings. The price, which differs among stagers, typically ranges from $500 to $1,500 for a home that needs minor rearranging to $10,000 or more for an upscale home with full furnishings. Lewis, Neslund and Craze say that staging works on homes priced $250,000 and above.
Realtor Pat Hune, who sold Kennedy's house, said staging isn't the solution for every for-sale home."
If you have a home that's getting no showings, it's a price problem," she said. If it's getting showings but no offers, it's can be a problem with price or the condition of the house, such as under-decorating, she said.
In Kennedy's case, Hune considered lowering the price but instead recommended staging. The redecorating cost $1,500 and added everything that his house didn't have: wall hangings, accessories and other items that made the house look homey."
That was the only difference; I didn't change the house," said Kennedy, who until recently was a bachelor. "The staging made everything look good. It brightened up the whole house." It made him almost wish he had kept it, he said. He and his wife, Kelly, recently had the house she owned before their marriage staged by Craze - it now sports new blinds, paint and curtains - and put it up for sale. They are buying a new home.
Staging isn't new; it's been around for more than 20 years. Last year, during the Valley's housing market boom, few homes were staged. That's because many sold in a matter of hours or days, as is.
With the flood of homes on the market now, buyers have become more selective, said Neslund, owner of Distinctive Interiors and Design in Scottsdale.
"There is so much competition you have to do something different than the others," said Claudia Michalson, a Realtor with Russ Lyon Realty. She has used Neslund to stage a Scottsdale home listed at $595,000.
The key to staging is incorporating the correct scale of furniture and the right furniture for the house, using neutral colors that appeal to everyone and making the home look fashionable and cozy, the stagers said.
That may mean removing some of the seller's personality and replacing it with a neutral environment, said Craze, whose company is PMC Interiors. She started her staging business three years ago and is certified as a stager through Minneapolis-based Home Staging Expert. She does several stagings a month.
It's not that your quilting room isn't handy; it's that few buyers have need for one. Your walls of family photos are appealing to you, but they're distracting to buyers. Purple may be your favorite choice in carpet color, but few buyers are going to have furniture to match.
Craze said that stagers take special care when sellers are still living in the home. "When a family is living there, you can't just yank all the items they use," she said.
This Blog is brought to you by the 777Team. The 777Team specializes in Scottsdale Luxury homes, investment properties, Scottsdale real estate, Phoenix real estate, or real estate in any of the surrounding Valley Cities, such as Paradise Valley, Pinnacle Peak, Tempe, Chandler, Mesa, Cave Creek, Carefree, Glendale, Peoria and others. Buyers, Sellers or Investors are encouraged to visit the 777Team's website at www.e-Scottsdale.com as it is designed to be a one-stop source for all real estate information and consumer research for properties throughout our Valley Cities and community information.Source: Sue Doerfler, The Arizona Republic, Nov. 4, 2006 12:00 AM
Gary Kennedy's under-furnished south Phoenix house sat on the market for 50 days with no offers. But instead of lowering the price, like most sellers would do, he hired someone to come in and decorate - adding wall hangings and accessories.
Two weeks later, the house sold for the list price of $255,000.
Houses are taking longer to sell due to the Valley's housing market slump, and staging or giving them temporary new decor has become the strategy of choice for many sellers and investors.
Staging is typically done by professional stagers, interior designers or real estate agents. They may rearrange your furniture, suggest that you repaint, remove worn drapes and reduce clutter, and supplement your décor with accessories. If your house is empty, they'll furnish it.
But staging is more than decorating, certified home stager Bonnie Lewis said. It showcases the home's possibilities, she said. It can make rooms look larger, de-emphasize unusually shaped rooms or dark rooms, and can show buyers how to decorate the space, she said.
"You're setting a mood, and you're showcasing the lifestyle you could lead in this home," said Phoenix interior designer Patti Craze who staged Kennedy's house. "You're trying to have the buyer imagine themselves in the space."
Diane Neslund, a Scottsdale interior designer who also does staging, said that it gives the illusion that you're not desperate to sell your home. "People will think that they had better hurry up and buy it or somebody else will," she said.
The purpose of staging is not just to sell the house but to sell it at an optimum price, Neslund said.
The cost for staging generally is less than the $5,000 or $10,000 first price drop sellers make to entice buyers, said Lewis, who owns Enhanced to Sell with David Bugniazet.
Stagers, who want to see a house before they quote a price, generally base the cost on time, work involved and furnishings. The price, which differs among stagers, typically ranges from $500 to $1,500 for a home that needs minor rearranging to $10,000 or more for an upscale home with full furnishings. Lewis, Neslund and Craze say that staging works on homes priced $250,000 and above.
Realtor Pat Hune, who sold Kennedy's house, said staging isn't the solution for every for-sale home."
If you have a home that's getting no showings, it's a price problem," she said. If it's getting showings but no offers, it's can be a problem with price or the condition of the house, such as under-decorating, she said.
In Kennedy's case, Hune considered lowering the price but instead recommended staging. The redecorating cost $1,500 and added everything that his house didn't have: wall hangings, accessories and other items that made the house look homey."
That was the only difference; I didn't change the house," said Kennedy, who until recently was a bachelor. "The staging made everything look good. It brightened up the whole house." It made him almost wish he had kept it, he said. He and his wife, Kelly, recently had the house she owned before their marriage staged by Craze - it now sports new blinds, paint and curtains - and put it up for sale. They are buying a new home.
Staging isn't new; it's been around for more than 20 years. Last year, during the Valley's housing market boom, few homes were staged. That's because many sold in a matter of hours or days, as is.
With the flood of homes on the market now, buyers have become more selective, said Neslund, owner of Distinctive Interiors and Design in Scottsdale.
"There is so much competition you have to do something different than the others," said Claudia Michalson, a Realtor with Russ Lyon Realty. She has used Neslund to stage a Scottsdale home listed at $595,000.
The key to staging is incorporating the correct scale of furniture and the right furniture for the house, using neutral colors that appeal to everyone and making the home look fashionable and cozy, the stagers said.
That may mean removing some of the seller's personality and replacing it with a neutral environment, said Craze, whose company is PMC Interiors. She started her staging business three years ago and is certified as a stager through Minneapolis-based Home Staging Expert. She does several stagings a month.
It's not that your quilting room isn't handy; it's that few buyers have need for one. Your walls of family photos are appealing to you, but they're distracting to buyers. Purple may be your favorite choice in carpet color, but few buyers are going to have furniture to match.
Craze said that stagers take special care when sellers are still living in the home. "When a family is living there, you can't just yank all the items they use," she said.
This Blog is brought to you by the 777Team. The 777Team specializes in Scottsdale Luxury homes, investment properties, Scottsdale real estate, Phoenix real estate, or real estate in any of the surrounding Valley Cities, such as Paradise Valley, Pinnacle Peak, Tempe, Chandler, Mesa, Cave Creek, Carefree, Glendale, Peoria and others. Buyers, Sellers or Investors are encouraged to visit the 777Team's website at www.e-Scottsdale.com as it is designed to be a one-stop source for all real estate information and consumer research for properties throughout our Valley Cities and community information.Source: Sue Doerfler, The Arizona Republic, Nov. 4, 2006 12:00 AM
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10 Cities Where It's a Great Time to Buy
The real estate business may be facing a softening in sales, but there are parts of the country where it makes sense to buy now. Forbes magazine examined current home sales patterns and sales projects in the country’s 40 largest real estate markets to identify these attractive markets.Based on models that estimated 2008 housing inventory, sales rates, and turnover, the magazine compiled a list of markets that are experiencing price declines, but where buying looks attractive because there is likely to be an increase in sales in the near future.Here are Forbes’ and Moody’s 10 most attractive markets, along with the median homes sales price and their price change from 2006.
1-Fort Worth, Texas: $156,500, 1.7 percent
2-Kansas City, Mo.: $157,700, -0.7 percent
3-Houston: $154,900, 1.4 percent
4-Cleveland: $128,700, -7.1 percent
5-Denver: $255,200, none
6-Long Island, N.Y.: $482,300, 1.7 percent
7-Washington, D.C.: $445,300, 0.3 percent
8-Orlando, Fla.: $265,100, -2.4 percent
9-Phoenix: $264,800, -2.7 percent
10-Las Vegas: $307,900, -3.6 percent
Source: Forbes, Matt Woolsey (10/08/07)
This Blog is brought to you by the 777Team. The 777Team specializes in Scottsdale Luxury homes, investment properties, Scottsdale real estate, Phoenix real estate, or real estate in any of the surrounding Valley Cities, such as Paradise Valley, Pinnacle Peak, Tempe, Chandler, Mesa, Cave Creek, Carefree, Glendale, Peoria and others. Buyers, Sellers or Investors are encouraged to visit the 777Team's website at www.e-Scottsdale.com as it is designed to be a one-stop source for all real estate information and consumer research for properties throughout our Valley Cities and community information.
1-Fort Worth, Texas: $156,500, 1.7 percent
2-Kansas City, Mo.: $157,700, -0.7 percent
3-Houston: $154,900, 1.4 percent
4-Cleveland: $128,700, -7.1 percent
5-Denver: $255,200, none
6-Long Island, N.Y.: $482,300, 1.7 percent
7-Washington, D.C.: $445,300, 0.3 percent
8-Orlando, Fla.: $265,100, -2.4 percent
9-Phoenix: $264,800, -2.7 percent
10-Las Vegas: $307,900, -3.6 percent
Source: Forbes, Matt Woolsey (10/08/07)
This Blog is brought to you by the 777Team. The 777Team specializes in Scottsdale Luxury homes, investment properties, Scottsdale real estate, Phoenix real estate, or real estate in any of the surrounding Valley Cities, such as Paradise Valley, Pinnacle Peak, Tempe, Chandler, Mesa, Cave Creek, Carefree, Glendale, Peoria and others. Buyers, Sellers or Investors are encouraged to visit the 777Team's website at www.e-Scottsdale.com as it is designed to be a one-stop source for all real estate information and consumer research for properties throughout our Valley Cities and community information.
Friday, October 19, 2007
First American CoreLogic sees Phoenix, Florida markets as low risk
First American CoreLogic Inc. says it expects its quarterly Core Mortgage Risk Index will continue to rise during the next 18 months, as declining or flat home prices put more delinquent borrowers into foreclosure.
The index attempts to gauge the likelihood of mortgage delinquencies in the next six to 12 months by tracking home prices and economic factors in 381 markets where more than nine out of 10 Americans live.
Home prices are falling or not keeping pace with inflation in 247 of 381 metropolitan areas, according to First American CoreLogic's fourth-quarter Risk Monitor report.
Home prices are falling in 88 markets, and appreciating at less than 3 percent in 159 others, the report said. With inflation averaging around 3 percent, homeowners whose properties appreciate at a slower rate experience a decline in value in real terms.
Before the housing boom, when many markets enjoyed double-digit appreciation, houses tended to appreciate at about the same rate as inflation, said First American CoreLogic's chief economist, Mark Fleming.
The current trend "speaks to the large correction of housing prices that's happening nationwide," but "doesn't necessarily translate into mortgage risk," Fleming said, except in markets where the economy is week and foreclosures are up.
There are still markets where foreclosure rates are low and house-price appreciation is robust, the report noted. The markets judged by First American CoreLogic to have the least risk enjoyed lower-than-average unemployment, higher wage growth, moderate house-price appreciation, low foreclosure rates, and minimal fraud and collateral risk.
The 10 lowest-risk markets and their annual appreciation rates were identified as:
- West Palm Beach-Boca R.-Boynton, Fla. (1.79 percent appreciation)
- Orlando-Kissimmee, Fla. (6.6 percent)
- Ft. Lauderdale-Pompano-Deerfield, Fla. (5.07 percent).
- Virginia Beach-Norfolk-Newport News, Va. (6.94 percent)
- Washington, D.C.-Arlington-Alexandria, Va. (3.87 percent)
- Phoenix-Mesa-Scottsdale, Ariz. (7.91 percent)
- Bethesda-Gaithersburg-Fred., Md. (-0.12 percent)
- Richmond, Va. (8.17 percent)
- Salt Lake City, Utah (13.48 percent)
- Honolulu, Hawaii (10.94 percent)
Four of the markets identified by First American CoreLogic's as lowest risk -- West Palm Beach, Orlando, Ft. Lauderdale and Phoenix -- were recently singled out by PMI Mortgage Insurance Co. as markets at the greatest risk for price decline in the next two years.
PMI's U.S. Market Risk Index takes into account factors like home-price appreciation, volatility and affordability, and also economic statistics like employment.
Fleming said the Core Mortgage Risk Index emphasized economic issues like employment and wage growth over home-price appreciation
"I would probably agree that some of those Florida markets will have (price) declines in the next two years, but we find when measuring mortgage delinquency risk, house prices are not the most important driver. Unemployment and wage growth are the fundamental risks."
While price declines can eliminate a borrower's equity -- making it harder for them to refinance -- "the two primary reasons for mortgage delinquency are loss of job and divorce, because of the financial shock to the ability to service mortgage payments," Fleming said.
Risk is rising in many Florida and California markets, but "you have to have combination of negative equity position and stress to the economy," Fleming said. Since many Florida and California markets continue to enjoy strong employment and wage growth, he said, they are "much less risky."
"Theoretically, a sufficiently large decline in prices could outweigh strong economic health, but those would have to be major price declines," Fleming said.
The 10 markets identified by First American CoreLogic as the riskiest had foreclosure rates and fraud and collateral risk indices three times higher than national average, plus higher than average unemployment and lower than average wage growth. Eight of the 10 riskiest markets were in Michigan and Ohio, where layoffs in the auto industry and businesses that support it have had an effect on housing markets.
The 10 highest-risk markets and their annual appreciation rates were identified as:
- Detroit-Livonia-Dearborn, Mich. (-0.73 percent)
- Warren-Troy-Farmington Hills, Mich. (-0.13 percent)
- Youngstown-Warren-Boardman, Ohio (2.05 percent)
- Dayton, Ohio (2.38 percent)
- Toledo, Ohio (2.15 percent)
- Cleveland-Elyria-Mentor, Ohio (2.41 percent)
- Grand Rapids-Wyoming, Mich. (1.88 percent)
- Memphis, Tenn. (4.87 percent)
- Akron, Ohio (4.49 percent)
- McAllen-Edinburg-Mission, Texas (6.64 percent)
Source: Matt Carter, Inman News
Wednesday, October 17, 2007
Home loan apps rise in latest survey
Refinancings loose market share, MBA reports.
A key measure of mortgage application volume rose last week as growth in interest rates slowed, the Mortgage Bankers Association reported today.
The MBA's market composite index edged up 0.7 percent on a seasonally adjusted basis from the first week of October, and includes an adjustment to account for the Columbus Day holiday.
The index component that tracks purchase loans gained 2.1 percent between the first and second weeks of the month, while the refinance index actually declined 1.1 percent during the period, according to MBA.
As a result, the refinance share of loan applications decreased to 45.3 percent last week from 46.2 percent the previous week, and the adjustable-rate mortgage (ARM) share of activity dipped from 13.6 percent to 13.5 percent.
Interest rates on long-term loans were mixed last week, while those on ARMs moved higher, according to MBA. The average contract interest rate on 30-year fixed-rate mortgages held at 6.4 percent; the 15-year fixed rate grew to an average 6.09 percent from 6.03 percent; and the one-year ARM increased to 6.17 percent from 6.15 percent.
Points, which are loan-processing fees expressed as a percent of the total loan amount, averaged 1.04 on the 30-year loans, 1.03 on the 15-year, and 0.94 on one-year ARMs -- compared with 1, 1.12 and 0.92, respectively, in the previous week. These points include the origination fee and are based on loan-to-value ratios of 80 percent.
The Mortgage Bankers Association survey covers approximately 50 percent of all U.S. retail residential mortgage originations, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.
Source: Inman News
A key measure of mortgage application volume rose last week as growth in interest rates slowed, the Mortgage Bankers Association reported today.
The MBA's market composite index edged up 0.7 percent on a seasonally adjusted basis from the first week of October, and includes an adjustment to account for the Columbus Day holiday.
The index component that tracks purchase loans gained 2.1 percent between the first and second weeks of the month, while the refinance index actually declined 1.1 percent during the period, according to MBA.
As a result, the refinance share of loan applications decreased to 45.3 percent last week from 46.2 percent the previous week, and the adjustable-rate mortgage (ARM) share of activity dipped from 13.6 percent to 13.5 percent.
Interest rates on long-term loans were mixed last week, while those on ARMs moved higher, according to MBA. The average contract interest rate on 30-year fixed-rate mortgages held at 6.4 percent; the 15-year fixed rate grew to an average 6.09 percent from 6.03 percent; and the one-year ARM increased to 6.17 percent from 6.15 percent.
Points, which are loan-processing fees expressed as a percent of the total loan amount, averaged 1.04 on the 30-year loans, 1.03 on the 15-year, and 0.94 on one-year ARMs -- compared with 1, 1.12 and 0.92, respectively, in the previous week. These points include the origination fee and are based on loan-to-value ratios of 80 percent.
The Mortgage Bankers Association survey covers approximately 50 percent of all U.S. retail residential mortgage originations, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.
Source: Inman News
Rent-to-own deals gain clout in today's market.
Win-win for buyers and sellers alike?
What do you do if you want to buy a home but don't have the cash for a down payment or even the credit score to qualify?
You might try to find a "rent to own" situation where you can lease the property and purchase an option to buy it down the road when you're ready.
When the real estate market was steaming along and sellers had buyers lining up out the door, renters found themselves out of luck.
If a seller can sell a property and get rid of it, why play landlord? It's better to have the buyer's cash in hand and move on. That's why rent-to-own properties were more difficult to find in the last six to seven years.
But now that the real estate market has turned, there are hundreds of thousands of sellers who are desperately searching for buyers. While being a landlord isn't the typical seller's first choice, rent-to-own situations can help a seller turn a renter into a buyer.
Here's how a rent-to-own situation typically works: The renter/buyer agrees to rent the property for a certain period of time. An option to purchase the property at a specific price is agreed to, and a nonrefundable option fee is paid. Sometimes this fee is credited toward the down payment at the time of purchase. In addition, a portion of the rent paid is often credited toward the down payment as well. At the end of the lease term, the renter/buyer decides whether to buy the property or pay another option fee and continue renting the property.
Sellers might like a rent-to-own situation if they've had trouble finding a buyer for their property, and if they can get enough rent to carry the property without losing any money. Often, a renter/buyer will be more motivated to pay the rent and take better care of the property if he or she is seriously considering buying the property at the end of the lease/term.
If you're a first-time buyer looking for a rent-to-own situation, here are some issues you might want to consider:
Companies advertising rent-to-own properties may not be what they seem. If you search Google, Yahoo! or even your craigslist for local rent-to-own options, there are thousands of listings that come up. But if you click through, you'll see that many are developers looking to unload property. Or, they're Web sites that claim to help you find the rent-to-own house of your dreams. Except that once you sign up, nothing happens.
Check out the "houses for rent" and "houses to buy" sections of your local newspaper or Web site. Sellers may not know whether they'll attract a tenant/buyer if they advertise their property for rent or sale. So, they may advertise in both sections. You should also look at some of the more popular for-sale-by-owner (FSBO) Web sites for sellers who appear open to a rent-to-own or lease/option deal.
Ask for what you want. A seller may not want to be a landlord, but local market conditions or his personal finances may force him to rent because he can't sell. As a tenant/buyer, you can ask the seller to fix up items in the house, repaint, and replace or clean the carpet (if the property needs it).
Take the time to explore the neighborhood before you sign on. If you're serious about buying a home, you'll need to seriously think about the neighborhood. That means making sure you're in a good school district, with plenty of shopping, services and restaurants nearby. Is there public transportation and good access? Who is on the streets during the day and evening? While you're renting now, the goal is to turn you into a home buyer.
Negotiate the rent credit and pick-up price before you sign the lease/option agreement. If the landlord/owner has promised to credit a portion of the rent and the entire option fee toward your down payment, get it in writing. You'll want to know what percentage of the rent will be credited and if that credit will earn interest over the course of the year. Do the numbers before you agree to anything. If the reason you're renting instead of buying is because you don't have enough cash for a down payment, be sure to negotiate for a sufficient rent credit so that you have enough for a 5 to 10 percent down payment if you pick up the option to buy the property.
Rent-to-own and lease/options are legal transactions. Before you sign any documents, be sure you talk to a local real estate agent who can help you figure out if the price is right (you don't want to overpay for the property if you buy it down the line). You'll also want to have an attorney review your documents to make sure you're protected. Like any purchase agreement (which is what a lease/option is), you'll want the right to cancel the deal for certain reasons.
Source: Ilyce R. Glink, Inman News
What do you do if you want to buy a home but don't have the cash for a down payment or even the credit score to qualify?
You might try to find a "rent to own" situation where you can lease the property and purchase an option to buy it down the road when you're ready.
When the real estate market was steaming along and sellers had buyers lining up out the door, renters found themselves out of luck.
If a seller can sell a property and get rid of it, why play landlord? It's better to have the buyer's cash in hand and move on. That's why rent-to-own properties were more difficult to find in the last six to seven years.
But now that the real estate market has turned, there are hundreds of thousands of sellers who are desperately searching for buyers. While being a landlord isn't the typical seller's first choice, rent-to-own situations can help a seller turn a renter into a buyer.
Here's how a rent-to-own situation typically works: The renter/buyer agrees to rent the property for a certain period of time. An option to purchase the property at a specific price is agreed to, and a nonrefundable option fee is paid. Sometimes this fee is credited toward the down payment at the time of purchase. In addition, a portion of the rent paid is often credited toward the down payment as well. At the end of the lease term, the renter/buyer decides whether to buy the property or pay another option fee and continue renting the property.
Sellers might like a rent-to-own situation if they've had trouble finding a buyer for their property, and if they can get enough rent to carry the property without losing any money. Often, a renter/buyer will be more motivated to pay the rent and take better care of the property if he or she is seriously considering buying the property at the end of the lease/term.
If you're a first-time buyer looking for a rent-to-own situation, here are some issues you might want to consider:
Companies advertising rent-to-own properties may not be what they seem. If you search Google, Yahoo! or even your craigslist for local rent-to-own options, there are thousands of listings that come up. But if you click through, you'll see that many are developers looking to unload property. Or, they're Web sites that claim to help you find the rent-to-own house of your dreams. Except that once you sign up, nothing happens.
Check out the "houses for rent" and "houses to buy" sections of your local newspaper or Web site. Sellers may not know whether they'll attract a tenant/buyer if they advertise their property for rent or sale. So, they may advertise in both sections. You should also look at some of the more popular for-sale-by-owner (FSBO) Web sites for sellers who appear open to a rent-to-own or lease/option deal.
Ask for what you want. A seller may not want to be a landlord, but local market conditions or his personal finances may force him to rent because he can't sell. As a tenant/buyer, you can ask the seller to fix up items in the house, repaint, and replace or clean the carpet (if the property needs it).
Take the time to explore the neighborhood before you sign on. If you're serious about buying a home, you'll need to seriously think about the neighborhood. That means making sure you're in a good school district, with plenty of shopping, services and restaurants nearby. Is there public transportation and good access? Who is on the streets during the day and evening? While you're renting now, the goal is to turn you into a home buyer.
Negotiate the rent credit and pick-up price before you sign the lease/option agreement. If the landlord/owner has promised to credit a portion of the rent and the entire option fee toward your down payment, get it in writing. You'll want to know what percentage of the rent will be credited and if that credit will earn interest over the course of the year. Do the numbers before you agree to anything. If the reason you're renting instead of buying is because you don't have enough cash for a down payment, be sure to negotiate for a sufficient rent credit so that you have enough for a 5 to 10 percent down payment if you pick up the option to buy the property.
Rent-to-own and lease/options are legal transactions. Before you sign any documents, be sure you talk to a local real estate agent who can help you figure out if the price is right (you don't want to overpay for the property if you buy it down the line). You'll also want to have an attorney review your documents to make sure you're protected. Like any purchase agreement (which is what a lease/option is), you'll want the right to cancel the deal for certain reasons.
Source: Ilyce R. Glink, Inman News
Tuesday, October 16, 2007
3208 N Ladera Circle, Las Sendas Mesa AZ
Magnificent true Hacienda-style Custom Home in Las Sendas Golf Subdivision. True one-of-a-kind Hacienda-style home. (Click here for Video Tour)
Large center Courtyard includes Pool, Spa & entertainment yard w/full BBQ area. Some of the features include Theater Room, Exercise Room, Game Room, separate Guest Quarters, Library/Den/Office w/private entrance, Panoramic Deck w/breathtaking views, fire sprinklers, computerized home w/lighting, A/C, sound, alarm, etc. Many more amenities and features you would expect in a fine luxury custom home (see detailed descriptions).
Pre-completion pricing available. Please call for details.
Large center Courtyard includes Pool, Spa & entertainment yard w/full BBQ area. Some of the features include Theater Room, Exercise Room, Game Room, separate Guest Quarters, Library/Den/Office w/private entrance, Panoramic Deck w/breathtaking views, fire sprinklers, computerized home w/lighting, A/C, sound, alarm, etc. Many more amenities and features you would expect in a fine luxury custom home (see detailed descriptions).
Pre-completion pricing available. Please call for details.
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This Blog is brought to you by the 777Team. The 777Team specializes in Scottsdale Luxury homes, investment properties, Scottsdale real estate, Phoenix real estate, or real estate in any of the surrounding Valley Cities, such as Paradise Valley, Pinnacle Peak, Tempe, Chandler, Mesa, Cave Creek, Carefree, Glendale, Peoria and others. Buyers, Sellers or Investors are encouraged to visit the 777Team's website at www.e-Scottsdale.com as it is designed to be a one-stop source for all real estate information and consumer research for properties throughout our Valley Cities and community information.
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