Monday, February 27, 2012

February Market Report

Here is the Market Report for the end of January, 2012. January was a very interesting month as you will see in the following charts and dialogue.

Besides the distressed property analysis that we always talk about, the report centers on the Average Sales Price of homes, New Listings entering the market, and the total number of Active Listings on the market. We are going to talk about how these three metrics are changing, how they inter-relate, and what to be on the lookout for.

The average sales price for January is the highest we have seen since August. This reflects an ongoing significant decrease in the number of homes on the market →fewer homes to choose from →more competition for those homes →higher prices.

At the same time that prices are rising due to decreasing inventory, January marked the highest number of new listings to the hit the market since August. It will be interesting to watch how these somewhat conflicting metrics resolve themselves.

Finally, I included a chart that shows overall inventory – not just new listings – to show you the steady decline of available homes on the market.

Distressed Sales Analysis:

A bank owned/foreclosure home is one that the seller no longer owns – it has been taken over by the lender(s) who had a note on the home. Short sales are homes where the seller is negotiating with the bank to “forgive” a portion of the debt in order to avoid foreclosure.

January statistics saw the number of bank owned/foreclosure sales DECREASE by 15.9%, short sales decrease by 22.7%, and traditional sales drop by 17% over December; however, the overall comparative percentages remained the same, with foreclosures moving up to 28.4%, short sales dropping to 29.4%, and non-distressed sales moving up to 42.1% of all sales in January.

This statistic means that the competition from foreclosure properties decreased while traditional sales from sellers with equity increased.

Sellers and buyers need to monitor this trend to see how the market continues to respond to the current inventory.

Click HERE to view report in its entirety.

Friday, February 17, 2012

Freddie Mac not pursuing a deficiency judgment against borrowers

Here is some good news;
The secondary mortage market company Freddie Mac has updated its bulletin to servicers of Freddie Mac mortgage loans to make clear that they aren’t to pursue a deficiency judgment against a borrower after a short sale or deed-in-lieu of foreclosure if the transaction was processed in accordance with Freddie Mac’s guidelines.
In a deficiency judgment, a lender goes after the borrower to collect the amount of loan that was “shorted” in a short sale or deed-in-lieu of foreclosure, even after the lender approved the short-pay agreement. State laws apply differently to the practice, but in some states a lender can go after a borrower several years after a transaction closes–sometimes to the surprise of the borrower.
The new language, says the company, reinforces “the requirement that the Servicer, for itself and on behalf of Freddie Mac, must waive all rights to seek deficiencies for short payoffs and deed-in-lieu of foreclosure transactions on Freddie Mac Mortgages that have closed in accordance with the Guide.”
You can find the updated language in Freddie Mac Bulletin 2012-5, dated February 15, 2012.
If you have any questions about the language, the company asks you to contact your Freddie Mac representative, if you have one, or call 800/FREDDIE and select “Servicing.”
To find out if your loan is a Freddie Mac loan click here;

To find out if your loan is a Fannie Mae loan click here;

Please call or email me if you have any questions!  

Thursday, February 16, 2012

February Newsletter

The Vote is In: Americans Place High Value on Homeownership

By an overwhelming margin, American voters strongly value homeownership and would oppose efforts to weaken or eliminate the mortgage interest deduction or diminish a federal role to help qualified home buyers obtain affordable 30-year mortgages, according to a new nationwide survey gauging likely voters’ attitudes towards homeownership and housing policy issues.

“The American electorate is sending a clear message that owning a home remains a cornerstone of the American Dream and preserving a federal commitment to homeownership is essential to maintain a thriving middle class and get housing and the economy back on track,” says Neil Newhouse, a partner and co-founder of Public Opinion Strategies.

To read more, click HERE


Mortgage Rates Continue Trend of Record-Breaking Lows

Freddie Mac recently released the results of its Primary Mortgage Market Survey®, showing mortgage rates easing to new all-time record lows for all products covered in the survey helping to keep homebuyer affordability high. The average for the 30-year fixed mortgage rate has been below 4.00 percent for six consecutive weeks.

To read more, click HERE

To read my entire newsletter, click HERE.

Monday, February 13, 2012

Tips and Tricks for and about Real Estate

monthly newsletters come and go...but I find that this one has the best up to date
information...give it a try!

Tips and Tricks Newsletter  

This is a good go to for what is going on in the market.
From The Debt cancellation bill expiring at the end of
the year, to what types of plants you should plant to enhance
your home and net the most down the line...there is
something for everyone!  I hope you find it useful...

Call or email me if you ever have any questions or need anything!

Wednesday, February 8, 2012

Calling all Sellers....Investors are getting their hands on many of the homes in the Valley of the Sun- competition is again the name of the game!

  •  Office and home rent will continue to rise, according to MSNBC
    Bottom Line - Office and home rent will keep rising and rising
      Paying rent is getting more painful for renters across the country in the face of rising demand and tight supply. Both the commercial and residential real estate markets are seeing increases, and more are expected in the months and years to come. Office construction starts were a …
    Very interesting, Investors are speculators, the more they see this trend, the more an average home buyer will have to compete with investors to purchase a home. 48% of sales have been cash as the trend shows in 4th Qtr 2011...there is a demand for homes out on the market- just not enough inventory to quench the need!
     So if you are thinking of selling, please let me know-I can help!  Go to my website at www.AzSells for more information about what I can do to help. and if you want to know figures to see if it would be worth selling your home to move up to a better home, go to it will generate a report, automatically giving you a general guideline of what your home is worth, and what it may be worth in a few years.  Armed with this information you should be able to determine if Selling is a good idea!  
    Feel Free to call or email if you have any questions...