Maricopa Real Estate /New Home Sales Reach 8-Month High Nationwide

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Posted on 28th January 2011 by Anthony in Industry News | New Home Sales

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We wrote an article last month about new home permits rising in Arizona and around the country, we also talked about Maricopa real estate specifically.  This is more great news for the homes builders.  If Home builders are building, that means that they can compete with foreclosures here in Maricopa, Arizona .Nationwide sales of new homes rose sharply in December, posting a 17.5 percent gain from the month prior.

According to the Department of Housing and Urban Development, New Home Sales climbed to 329,000 in December, besting November by close to 50,000 units on a seasonally-adjusted annual basis.

Last month’s reading is an 8-month high for New Home Sales, and the latest in a series of signals that housing is improving in Maricopa and around the country.

Note that December’s Existing Homes Sales and Building Permits reports also showed marked gains last month, climbing 12 percent and 6 percent, respectively.

Furthermore, an interesting pattern is emerging in the price points of home sales. The highest levels of relative growth are occurring within the “move-up buyer” segments. Entry-level price points are lagging the market, as a whole. In Arizona the relocation, and retiree markets are driving cities like Maricopa and Casa Grande.  As you can see most of the growth was in higher price points, which aren’t a majority of the homes for sale in Maricopa and Casa Grande, but still this is good news for the whole real estate market. Home builders are still holding strong in the Maricopa real estate market.

December’s New Home Sales data breaks down by price point as follows:

  • Homes under $200,000 : 36% of the market (-9% from November)
  • Homes between $200,000-$299,999 : 32% of the market (+7% from November)
  • Homes between $300,000-$499,999 : 27% of the market (+7% from November)

Luxury homes accounted for less than 5% of the newly-built home market, suggesting that Arizona homeowners are either not “buying new” as frequently, or are choosing to renovate their existing properties instead.

The 2010 housing market finished on a tear, and that momentum is carrying forward into 2011. Expect the spring season to show strongly, putting pressure on home prices to rise.

Coupled with rising mortgage rates, the long-term cost of homeownership is unlikely to be as low as it is today.  For Maricopa real estate needs please visit www.pru1re.com.

Casa Grande Arizona real estate / casa grande real estate stats

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Posted on 22nd January 2011 by Anthony in Casa Grande Arizona Reports | Uncategorized

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Casa Grande Arizona real state has been very affordable for home buyers, and it has been a tough market for home sellers.  it seems we closed out the year with the for sale inventory coming down a bit, and that trend seems to be continuing in January.  The total listings sold were pretty steady to close out the year with a spike in sales in Casa Grande for the month of December. With the busy season for our friends from up north, everything pionts to casa grande having its typical share of people buying homes in Casa Grande Arizona from other parts of the country.  Invesntory from the banks is seeping out to the market at a steady pace.  As long as they don’t flood the market in Cg with too many foreclosures casa grande real estate should be fine.

Here are the casa grande real estate for sale vs. sold:

 

 There are some things to think about going forward into the first quarter.

  • What are the banks going to do with the foreclosed homes they have on their books?
  • How is the job market progressing?
  • What growth items are coming up for Casa Grande to attract more home buyers?

These are all items that we need to have an eye on.  Investors, retirees, and second home buyers have been and will be a big part of the market going forward.  With Arizona’s affordability index off the charts, great weather, and continued long term job growth, that trend will continue for the forseeable future, the question is.  What is the first time home buyer going to do?  With so many options in the rental market, and the rental market in Arizona being so competative, will the first time home buyer buy or rent.  In the long term buying a home for yourself is a good investment, but some potential first time home buyers may be looking short term.  Thats where the job market comes in.  If people have jobs, you have relocation, and growth.  The job market will drive the first time home buyer, in casa Grande Arizona and around the country. All in all casa grande real estate should plug along with nothing spectacular, but nothing bad for the first quarter.  Click here for map of Casa Grande Arizona

Home Supplies Plummet, Putting Pressure On Prices To Rise

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Posted on 21st January 2011 by Anthony in Existing Home Sales

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Existing Home Supply 2009-2010Existing Home Sales surged 12 percent last month, closing 2010’s housing market with strength. An “existing home” is a home that cannot be categorized as new construction; a resale.

According to the National Association of REALTORS®, seasonally-adjusted, annualized Existing Home Sales figures climbed by more than a half-million units in December as compared to November. It’s the 3rd straight month of home resale improvement nationwide.

Sales volume is now as high as it’s been since May 2010 — just after the federal home buyer tax credit’s expiration.

In addition, the number of months needed to sell the complete, current home inventory at the current pace of sales fell by 1.4 months, tying December for the biggest one-month home supply improvement in 2 years.

It’s yet another signal that the housing market is in recovery. Not that this data should surprise anyone. November’s Pending Home Sales report told us to expect it two weeks ago.

Broken down by buyer-type, home sales split as follows:

  • First-time home buyers : 33% of all sales
  • Repeat buyers : 47% of all sales
  • Real estate investors : 20% of all sales

Cash buyers represented 29 percent of all transaction, down 2 ticks from November. This may suggest that mortgage guidelines are loosening — another sign of economic improvement.

So, take note, Maricopa home buyers. This spring, along with mortgage rates, home values should rise, too. Expect less “bang for your buck” as the housing recovery takes hold across the nation.

The best deals of the year may be the ones made this month.

Arizona Real Estate/Building Permits Up/Great for Casa Grande/Maricopa

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Posted on 20th January 2011 by Anthony in Housing Starts

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Housing Starts 2007-2010

Don’t be alarmed by the graphic!  Its good news for the Real Estate Market, and our Arizona Real Estate Market. Each month, in conjunction with the Department of Housing and Urban Development, the Census Bureau releases its New Residential Construction report. The report is comprised of several sections, one of which counts the number of homes that have “broken ground” in Arizona and nationwide. In Maricopa Arizona there are still homes breaking ground.  In Casa Grande Arizona there has been action in the New Home Real Estate market.

They’re called “Housing Starts” and, by most measures, they faded quickly as 2010 came to a close.  In Arizona there will be tough bouts, whenever the banks flood the market with foreclosed homes, that always presents a problem for Home builders in Arizona and beyond.  But as land in keeps falling in value, it presents opportunities for home builders to buy the land build the home, and sell it at a more reasonable price.

According to the Census Bureau’s report, Housing Starts of single-family homes fell to 417,000 units on a seasonally-adjusted, annual basis. The figure marks a 9 percent drop-off from November, and is the lowest reading since May 2009.

Not surprisingly, the press went bearish on housing post-release:

  • U.S. Home Building Stuck Near 50-Year Lows (AFP)
  • Housing Starts Slowed Sharply In December (New York Times)
  • Housing Starts Fall In December To One-Year Low (Bloomberg)

Despite being truthful, these headlines are somewhat misleading. They each ignore a key element of December’s New Residential Construction report — Building Permits. Building Permits rose 6 percent to an 8-month high last month.

We all know that a permit is the first step in the process to building a home. A building permit is a local-government certification that authorizes home construction. 

Permits are a precursor to Housing Starts with 82% of homes starting construction within 60 days of permit-issuance. More permits in December, therefore, should lead to more Housing Starts in January and February.  We will wait and see..

It’s unclear whether permits were up because the economy was improving, or because builders raced to beat new building code for 2011. Regardless, expect additional “new home” supplies this spring which would ordinarily help home prices drop if not for the normal surge in spring buyers to gobble those new homes up.

Look for home prices to stay flat, but with rising mortgage rates contributing to higher costs of homeownership overall. As for Arizona it will always be a destination state, and that means that people come to arizona cities to retire in places like casa Grande, or they buy a second home in maricopa Arizona.  It may take awhile to eat through these foreclosures, but Im sure the demad will be there for steady progress in the Arizona Real Estate market. For arizona real estate, queen creek, casa grande arizona, maricopa arizona visit www.pru1re.com.

Arizona Real Estate New Home Builders ,More Traffic/Maricopa/Casa Grande

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Posted on 19th January 2011 by Anthony in Homebuilders

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National Association of Home Builders Housing Market Index (Nov 2009-Dec 2010)Homebuilder confidence held firm for the second straight month this month, according to the National Association of Home Builders. In Arizona New Home Builders are doing a great job of competing with all of the foreclosures.  In Maricopa Arizona, and some home builders in Casa Grande Arizona, have adjusted their prices to get within 15% in some cases.  When you take into account an investment of 10% to bring your foreclosure up to par, it seems like a good deal.  My advice, if you plan on living in your home for 5 years think about a new build, it makes sense in some cases.

The monthly Housing Market Index registered 16 out of a possible 100. January’s reading is three points higher than the 2010 low-point, set in September, and in-line with last year’s average reading.

According to the NAHB, the market for newly-built, single family homes remains relatively weak “following a below-expectations finish in 2010″. Builders expect a better 2011.

The Housing Market Index dates to 1985. It’s a composite of surveys which gauge the builders’ perceptions of the new home-buying market.

There are 3 surveys and they ask:

  1. How would you rate market conditions for sales of new homes today?
  2. How would you rate market conditions for sales of new homes 6 months from now?
  3. How would you rate the foot traffic of prospective buyers of new homes?

The answers are then collated and weighted, and used to produce the Housing Market Index.

In January, market conditions for current and future sales were deemed to be flat. Foot traffic is seen as increasing. For homebuyers of new homes in Maricopa , this data may foretell of more bidding wars in the months ahead.

More active buyers means more competition for homes. It may also mean fewer concessions from builders as confidence starts rising.

If you’re in the market for a newly-built home, watching the Housing Market Index may be sensible. Each builder is different, of course, but as the overall market sentiment falls, buyers can be more likely to get “a deal”. That’s not the case once confidence is rising.

The HMI is plateaued. If it resumes rising later this year, expect new homes to get more costly. For a complete list of New home Builders contact your local Prudential One Realty agent www.pru1re.com.  We serve Maricopa, Casa Grande, Chandler, Queen Creek, Gilbert, and Ahwatukee Arizona.

Home Renovation Arizona Real Estate

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Posted on 18th January 2011 by Anthony in Home Improvement

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Remodeling valueHome remodeling projects can add function to a home, but don’t always add value. Consider the latest report from Remodeling Magazine.  When investing in Arizona Real Estate it is important to take in to consideration how much money it will take to bring a home up to value.  In Maricopa Arizona, or Casa Grande Arizona it can take 10-20% initial contribution to buy a foreclosure and bring the home to market value.

In it, the average cost of 35 projects are evaluated for the value they retain at the time of resale. Function beats flash, it seems, in today’s housing market.

Expansive kitchens and custom vanities are returning less value to homeowners in Queen Creek  on a percentage basis than energy-efficient doors and windows, for example. In Maricopa you are better off investing in flooring, paint, and standard counter tops.  In Casa Grande the same investment startegy remains true.

A sampling of Remodeling Magazine’s Cost vs Resale report shows the following cost recovery, by project:

  • Attic Bedroom Remodel : 79.90 percent cost recovery
  • Bathroom Addition : 74.90 percent cost recovery
  • Bathroom Addition (Upscale) : 72.80 percent cost recovery
  • Home Office Remodel : 63.40 percent cost recovery
  • Minor Kitchen Remodel : 85.20 percent cost recovery
  • Major Kitchen Remodel : 75.90 percent cost recovery
  • Roofing Replacement : 73.90 percent cost recovery
  • Window Replacement (Wood) : 85.30 percent cost recovery

Overall, “green” projects are returning a high percentage of costs to remodeling homeowners — especially for respect to homes that are “over-improved” with respect to the neighbors.  With all of the tax credits that Arizona offers when doing green improvements on you real estate, it makes sense to think green!

CNNMoney.com hosts a “Will This Renovation Pay Off?” calculator on its website, based on the data from Remodeling Magazine’s annual report. It may be a helpful guide for you. That said, before starting a home improvement project, regardless of whether your goal is increase your home’s resale value or to improve its function, be sure to talk with a real estate agent that knows your neighborhood well.

At worst, you’ll gain insight to what’s “typical” for your area to work into your plan, and, at best, you’ll keep yourself from over-improving your home.

Foreclosure Activity Down Second Straight Month, Not in Arizona

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Posted on 13th January 2011 by Anthony in foreclosures

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Foreclosure concentration December 2010According to foreclosure-tracking firm RealtyTrac, the number of foreclosure filings nationwide dropped for the second straight month in December. After falling 21 percent in November, filings were down by an additional 2 percent in December.  The fillings keep decreasing, however in states like Arizona the foreclosure activity is till high.  Outskirt cities like Queen Creek, and Maricopa Arizona were hit hard.

“Foreclosure filing” is a catch-all term, comprising default notices, scheduled auctions, and bank repossessions.

Like most months, a small number of states dominated December’s national foreclosure figures. 6 states accounted for more than 50 percent of all bank repossessions.

  1. California : 17% of all repossessions
  2. Florida : 11% of all repossessions
  3. Arizona : 6% of all repossessions
  4. Michigan : 6% of all repossessions
  5. Texas : 6% of all repossessions
  6. Nevada : 4% of all repossessions

December’s  filings fell to its lowest levels since June 2008, but we can’t read into the report too much just yet. Foreclosure volume continue to be dampened by lawsuits and moratoriums related to controversy surrounding the so-called robo-signers.

Foreclosure activity may have lessened in December anyway, but we can’t know for certain. 

Distressed properties are in high demand among home buyers, accounting for one-third of all home sales; typically sold at a steep, 15 percent discount as compared to non-distressed properties.  In places like Maricopa Ariozna distressed properties account for over 50% of all the real estate sales.

Buying foreclosures can be a terrific “deal”.

That said, buying a foreclosed home is different from buying a non-foreclosed home. Specifically, because you’re buying from a bank and not a person, contracts may vary from what’s “customary” and negotiations may be drawn-out.

It’s one reason why buyers in Queen Creek Arizona – first-timers and investors alike — should talk with a real estate agent before writing an offer for a foreclosed property. You can learn a lot from the internet, but when it comes time to actually purchase a home, you’ll want an experienced professional on your side.  Contact Prudential One Realty.  We serve the Arizona real estate market with pride.

Maricopa Arizona/Queen Creek Real Estate/Home Affordability Gets A Boost

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Posted on 13th January 2011 by Anthony in Retail Sales

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Retail Sales (2009-2010)Consumers keep spending, the economy keeps growing. All of this is great news for Arizona, which needs a thriving economy to attract the retiree’s and second home owners.  Growth always starts in the center, cities like Phoenix, Chandler, and Tempe always lead the way, then come the areas like Casa Grande, Maricopa, Arizona City, and Queen Creek.

Mortgage rates are easing lower this morning on just-released, slightly worse-than-expected Retail Sales data from December 2010. That means that Arizona real estate just got cheaper.

Excluding motor vehicles and auto parts, December’s sales receipts were $1.5 billion higher from November. Analysts had expected a number north of $2 billion.

Despite falling short of estimates, however, December’s reading is the highest in Retail Sales history, surpassing the previous record set in July 2008, set during the recession. In addition, December’s strong numbers helped 2010’s year-over-year numbers go positive for the first time in 3 years.

Although the data is a mixed bag for Wall Street, home affordability in Queen Creek is improving today.

The link between Retail Sales and home affordability may not be up-front obvious, but in a post-recession economy like ours, it’s often tight. Retail Sales is another name for “consumer spending” and consumer spending makes up more that 70% of the U.S. economy.

As spending grows, the economy tends to, too.

Investors recognize this and start chasing “risk”. It becomes a boost for the stock market, but those gains are made at the expense of “safe” asset classes which include mortgage-backed bonds. Mortgage-backed bonds are the basis for conforming and FHA mortgage rates so, as bond markets sell off, asset prices fall and rates move up.

Thankfully, rate shoppers will avoid that scenario today — at least for today. December’s Retail Sales results are a factor in the bond market’s early-day improvement. Conforming and FHA mortgage rates across the state of Arizona should be lower today.

Despite the good news, if you’re shopping for a mortgage, consider locking your rate as soon as possible. Mortgage rates are coming off a 2-week rally and look poised to reverse appear — especially with a full docket of data due for next week. As mortgage rates rise, purchasing power falls. If you are looking for real estate investments in Arizona, contact Prudential One Realty.  Prudential One realty represent investors and clients in The greater Phoenix area to include Phoenix, Chandler, Ahwatukee, Mesa, Gilbert and Queen Creek.  We also serve the Pinal COunty market to include Maricopa, Casa Grande, Arizona City, Coolidge, Florence, and Eloy.  If you are looking to buy or sell real estate contact Prudential One Realty.

Arizona real estate/Comparing Mortgage Rates/ Chandler arizona

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Posted on 12th January 2011 by Anthony in Adjustable Rate Mortgages

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Comparing FRM to ARM mortgage rates (January 2010 - January 2011)

For  homeowners looking to buy real estate in Arizona, from casa grande to Ahwatukee, electing to take an adjustable rate mortgage over a fixed rate one can be matter of budgeting. ARMs tend to carry lower mortgage rates and, therefore, lower monthly mortgage payment as compared to a comparable fixed rate loan. In ariozna alot of real estate investors opted for 5 year baloon mortgages to keep the mortgage payment lower.  Baloon payments were riddled all over Ariozna from the rural areas like Casa Grande Arizona, Maricopa and Arizona city, to Metro areas like Phoenix, Ahwatukee, Gilbert, Chandler.

Relative to fixed rate mortgages, current ARM pricing is excellent. Freddie Mac’s weekly Primary Mortgage Market Survey puts the 5-year ARM mortgage rate lower than the 30-year fixed rate mortgage rate by 1.02 percent.

On a $250,000 home loan, a 1.02 differential yields a payment savings of $149 per month.

ARMs are not for everyone, of course. Over time their rates can change and that can frighten people. An ARM can finish its respective 30-year lifespan with a mortgage rate as much as 6 percentage points higher from where it started. Some homeowners won’t like this.

Other homeowners, however, won’t mind it. For this group,  the ARM can be a terrific fit. Especially with the huge, relative discount in today’s pricing.

A few scenarios that should warrant consideration of a 5-year ARM include homeowners that are:

  1. Buying a new home with the intent to sell within 5 years
  2. Currently financed with a 30-year fixed mortgage with plans to sell within 5 years
  3. Interested in low payments; comfortable with longer-term rate and payment uncertainty

In addition, homeowners with existing ARMs due for adjustment may want to refinance into a new ARM, if only to push the first adjustment date farther into the future.

Before choosing to go with an ARM, speak with your loan officer about how adjustable rate mortgages work, and their near- and long-term risks. Payment savings may be tempting, but with an ARM, payments are permanent. For more information about Arizona real estate please visit www.pru1re.com.

How To Renegotiate Your Credit Card Interest Rates To Something Lower

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Posted on 11th January 2011 by Anthony in Budgeting

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Credit card debt, left unchecked, can pile up quickly. Especially for debtors making minimum payments.  

According to the Federal Reserve, a credit card balance of $5,000 at 23.99 percent APR won’t pay off for 16,127 years. That’s one reason why it’s important to manage your credit card rates, and renegotiate them whenever possible.

In this 4-minute piece from NBC’s The Today Show, you’ll learn the tested tactics that can cut a credit card rate, and get monthly payments to a more manageable range. And it’s do-it-yourself — no debt management firms required.

Some of the tips in the video include:

  • Compare your current rate to the rate offered to new customers. Ask the lender for “new customer rate” if it’s lower.
  • If your credit score has improved since application, ask for an interest rate more reflective of your current credit score.
  • Be nice to the customer service representative. Kindness helps.

Managing debt is an important part of household budgeting so if you’re finding your credit card payments and/or rates too high for your liking, try following the instructions as described in the video. And, above all else, be persistent. The credit card companies won’t likely approve your first request.

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