Best Places To Live? – Phoenix is one of them.
October 8, 2007
According to an article in Resident Publications Phoenix is one of the better places to live.
September Sales Down Nearly 21%
October 4, 2007
The sale of existing homes fell 21% compared to August sales. This is most likely a fallout from the mortgage issues that we experience in August. We are still at about 57,000 homes on the market with 47% of those being vacant. In September 3,300 homes were sold which is lower than any month in the past 6 years. So far October is showing some signs of an improvement over September. At the September rate of sales we have 17 months worth of inventory. Look for October to equal or surpass August sales of 4,200. The best bet at this point is to hold off on selling your home until after the first of the year.
What the Federal Rate Cut Means for Homeowners
September 20, 2007
The Federal Reserve said it lowered short-term interest rates by half a percentage point, to 4.75%, to combat the effects of a weaker housing market and tighter credit on the broader economy.
Here is a look at what the Fed’s action means for consumers:
- Homeowners. The rate cut is good news for borrowers with home-equity lines of credit, and savings could show up as soon as the next monthly statement.
- Savers. Savers could soon see lower payouts on their savings accounts, certificates of deposit and money-market mutual funds.
- Credit Cards. Many credit-card customers should soon see some relief. About 85% of all credit cards carry variable rates.
- Auto Loans. A rate cut isn’t likely to have a big impact on new-car loans in part because more than half of all auto loans are already offered at reduced rates due to heavy manufacturer incentives…
- Student Loans. Students with private, variable-rate student loans pegged to the prime rate may see their rates adjust more quickly than borrowers with loans tied to Libor.
Pending sales of existing homes fell in July to the lowest
level in nearly six years as borrowers struggled to finalize
home purchases, particularly in expensive areas. The
National Association of Realtors said its seasonally
adjusted index of pending home sales for July fell 16.1
percent from a year ago and 12.2 percent from the prior
month.
August Sales Slowest in over 5 years
September 4, 2007
There were only 4,293 homes sold in August which is lower than any other month this year. In fact, it is the lowest number of homes sold in any month since January 2002. This is an indication which direction the market is moving. With September upon us we are now approaching the traditionally slower time of the year in terms of real estate sales. Don’t expect the sales numbers to improve for 6 months. The perceived issues with mortgages will only continue to hinder the sale of homes for the next 6 months or so. Unfortunately, there are 5,924 homes on the market with 47% of them vacant. These vacant homes are really hurting the market and will continue to be a drag on housing until that number decreases. Buyers that have good credit or have extra cash will find the next 6 to 12 months to be a great time to buy. The best time to get into any market is when that market is depressed. I think we can safely say the housing market is in a bad way at the current time. Buying in the right areas is more of a key than buying at the right time. If you are planning to hold onto a property for the next 4 years or so, buying now or waiting to buy in 12 months will not make much of a difference as long as you are buying in the proper location. Of course, make sure you use and agent you can trust.
Are incandescent bulbs a thing of the past?
August 30, 2007
More and more people are starting to focus their attention on ways to reduce the US consumption of energy and now Congress is thinking about taking some action. There has been proposed legislation that would effectively eliminate incandescent light bulbs from store shelves nationwide as early by 2012. If every U.S. home replaced one light bulb with a compact florescent light, the country would save more than $600 million in annual energy costs, according to the government. Not only will this help reduce energy consumption it will also help save consumers money on their annual electric bill.
Countrywide taps $11.5 billion credit line AND First Magnus
halts loans all in the same day. Wow, things are going to
tighten even more. This will definitely not be good for a
bunch of people.
Check out the articles by following the links below.
http://news.yahoo.com/s/nm/20070816/bs_nm/countrywide_liquid
ity_dc_10
http://www.azstarnet.com/sn/relatedstories/196683.php
New Home Construction Slows to 10 year low
August 16, 2007
The construction of new homes and apartments has fallen to the lowest level since January 1997. Anyone that has been following the real estate market new this would be coming. Builders are in a world of hurt and are just looking to get rid of existing inventory before jumping into new construction. The current mortgage industry in turmoil is also taking its toll on the market making it much more difficult for buyers to get approved for loans especially those with less than perfect credit. The nations largest mortgage lender, Countrywide Financial Corp., will be cutting out most subprime, alt-A and jumbo loan products. This is not going to help the glut of homes on the market.
Incentives of $100,000 or more!!!
August 13, 2007
With the housing market continuing to not look too good new
home builders are offering all kinds of incentives. From
offering to pay two years of property taxes and insurance to
paying 4 months of mortgage payments to giving $100,000
toward upgrades.
If you want a new home, now may be a great time to get one.
According to the National Association of Realtors (NAR) the
real estate market should start to pick up toward the end of
this year. I also think this to be the case. The average
list price of all the homes on the market has been steadily
declining over the last couple of months and the number of
homes on the market has stayed pretty flat for about 2
months. Look for list prices to continue the decline and
the number of homes on the market to start declining over
the next couple of months. To read the NAR report visit
http://www.realtor.org/press_room/news_releases/2007/hef_jul
y07_housing_prices_recover.html
