Posted on 4th February 2011 by Anthony in jobs
Arizona, Arizona real estate, arizona unemployment, buy a home, homes for sale maricopa, homes for sale maricopa arizona, homes maricopa, Maricopa, Maricopa Arizona, Maricopa real estate, Mortgage Rates, Non-Farm Payrolls, Unemployment Rate, unemployment statistics
Americans are getting back to work. Sort of. This is good signs for the Arizona real estate market, and for people looking to buy a home in Maricopa Arizona. With the information released by the BLS, it shows that we are on a slight recovery both nationwide, and in Arizona.
This morning, at 8:30 AM ET, the Bureau of Labor Statistics released its Non-Farm Payrolls report for January 2011. More commonly called “the jobs report”, the government’s data showed a large decrease in the number of working Americans as compared to December, but a sizable drop in the Unemployment Rate. According to the group Arizona is at 9.1 , which is around the national average, and heading in the right direction.
The job growth figures were much lower than consensus estimates:
- Expected job growth in January : +148,000 jobs
- Actual job growth in January : +36,000 jobs
January’s Unemployment Rate surprised analysts, too, but not in a bad way, falling from 9.4 percent in December to 9.0 percent last month. This is the nation’s lowest Unemployment Rate in nearly 2 years.
Today’s jobs report is rough news for home buyers and rate shoppers for Arizona real estate. Shortly after the report’s release, Wall Street is attributing the low jobs number to “bad weather” and is choosing to focus on the strong Unemployment Rate instead.
U.S. stock futures are now rising ahead of open, an increase that will come at the expense of the bond markets. Indeed, mortgage-backed bonds are losing this morning already.
Conforming mortgage rates are expected to start the day at least +0.125% from Thursday’s close and, if momentum continues, could tack on an additional +0.125% before today’s closing bell.
The government’s report is an excellent example of how important jobs data can be to home affordability — especially in a recovering economy. Arizona real estate affordability is at an all time high, with some areas going down in value up to 80%, this truly is the time to buy a home in Maricopa Arizona.
The economy shed 7 million jobs between 2008 and 2009 and fewer than 1 million of those were recovered in 2010. It’s a data point Wall Street watches closely because more working Americans means more consumer spending, and more consumer spending means more economic growth. Consumers account for 70% of the U.S. economy, after all. This along with housing drive the overall U.S. economy.
More workers also means more taxes paid to federal, state and local government, and, in theory, fewer loan charge-offs from banks. These, too, keep the economic engine moving forward, spurring more spending and job growth.
If you have not yet locked a mortgage rate, consider locking one today. On the heels of today’s jobs data, 30-year fixed rates will scratch at their highest levels of the year. Mortgage Rates are still afforadble, and Arizona real estate is just as affordable. For more information on Arizona real estate, or to buy a home in Maricopa Arizona please visit www.pru1re.com.
Posted on 20th January 2011 by Anthony in Housing Starts
Arizona, Arizona real estate, Arizona Real Estate news, Building Permits, Casa Grande, Casa Grande Arizona, Census Bureau, housinfg starts arizona, housing permits, Maricopa, Maricopa Arizona, new homes, Pinal County, rela estate news
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.
Posted on 19th January 2011 by Anthony in Homebuilders
Arizona real estate, builders, Casa Grande, Casa Grande Arizona, HMI, home builders, Housing Market Index, Maricopa, Maricopa Arizona, NAHB, New Home Builders, new homes, Queen Creek, queen creek real estate, real estate
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:
- How would you rate market conditions for sales of new homes today?
- How would you rate market conditions for sales of new homes 6 months from now?
- 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.
Posted on 18th January 2011 by Anthony in Home Improvement
Arizona, Arizona real estate, Casa Grande, Casa Grande Arizona, Casa Grande arizona real estate, Green Project, home remodeling project, invest in arizona, Invest in Maricopa Arizona, investing, investing arizona, investmet tips, Maricopa, Maricopa Arizona, Queen Creek, queen creek arizona, real estate, real estate economics, Remodel Magazine
Home 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.
Posted on 13th January 2011 by Anthony in Retail Sales
Arizona, arizona investments, Casa Grande, Casa Grande Arizona, Consumer Spending, Home Affordability, investments, Maricopa, Maricopa Arizona, Queen Creek, queen creek arizona, queen creek real estate, real estate
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.
Posted on 11th January 2011 by Anthony in Budgeting
Arizona, Casa Grande, Casa Grande Arizona, Credit Cards, David Bach, Maricopa, Maricopa Arizona, real estate, relocate to arizona, Renegotiation
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.
Posted on 7th January 2011 by Anthony in jobs
Arizona, Arizona real estate, arizona real estate listings, Casa Grande, Casa Grande Arizona, casa grande real estate, casa grande real estate listings, Inflation, jobs, Maricopa, Maricopa Arizona, Maricopa real estate, maricopa real estate listings, phoenix, Phoenix Arizona, Queen Creek, real estate, short sale
On the first Friday of each month, the Bureau of Labor Statistics releases its Non-Farm Payrolls report. The real estate market is directly tied to the job market. The Job market in Arizona has driven real estate growth from Casa Grande to Maricopa, and Ahwatukee to Queen Creek.
More commonly called “the jobs report”, the government’s data include raw employment figures and the Unemployment Rate.
The jobs report hit the wires at 8:30 AM ET today. It’s making big waves in the mortgage market and may help home affordability for buyers in Maricopa and Casa grande this weekend, and would-be refinancers across Arizona. This can only be good news for all real estate transactions across arizona.
For this month, and for the rest of 2011, employment data will figure big in mortgage markets.
7 million jobs were lost in 2008 and 2009. Fewer than one million jobs were recovered in 2010. For the economy to fully recover, analysts believe that jobs growth is paramount. In Arizona the job market seems to be stabilizing, and in some rural communities like Maricopa and Casa Grande jobs have actually increased.
Consider how job creation influences the economy:
- More jobs means more income and more spending
- More spending means more business growth
- More business growth means more job creation
It’s a self-reinforcing cycle and, as business grows, the economy expands, pushing stock markets higher. This tends to lead mortgage rates higher, too, because bonds can lose their appeal when stock markets gain.
According to the government, 103,000 jobs were created in December, and October’s and November’s figures were revised higher by a net 50,000 jobs for a total of 153,000 new jobs created. Economists expected a net gain of 135,000.
The Unemployment rate fell to 9.4, its lowest level since mid-2009.
Wall Street is voting with its dollars right now. Mortgage bonds are improving, pointing to slightly lower mortgage rates today.
The December jobs report was “average”, and home affordability is improving. arizona remains a great desitination state with high home affordability. For more information about Arizona Real estate contact Prudential One Realty at www.pru1re.com. Prudential One Realty serves the Arizona real estate market to include Casa Grande, Maricopa, Gilbert, Queen Creek, and the greater phoenix area.
Posted on 6th January 2011 by Anthony in Industry News | Mortgage Rates
admin, Arizona, Arizona real estate, Casa Grande, Casa Grande Arizona, Fannie Mae, foreclosures, LLPA, Maricopa, Maricopa Arizona
Arizona real estate news: 
Starting April 1, 2011, loan-level pricing adjustments are increasing. Most conforming mortgage applicants will face higher loan costs. This means its time to check your loans Arizona home owners. Alot of home owners, in places like Maricopa, Casa grande, and Phoenix Arizona, have loans that are getting ready to adjust, it is imperative to check this out and see if it is in your interests to look at a new loan program for your real estate purchase
Loan-level pricing adjustments are mandatory closing costs. They’re assigned by Fannie Mae and Freddie Mac, and based on a loan’s specific risk to Wall Street investors.
First constructed in April 2009, loan-level pricing adjustment are a means to help Fannie Mae and Freddie Mac compensate for “riskier loans” by bolstering their respective balance sheets.
Since the initial roll-out, Fannie and Freddie have amended adjustments five times. The pending April adjustment will be the 6th revision in two years.
No class of conforming borrower is exempt from LLPAs. Each loan delivered to Fannie Mae is subject to a quarter-percent “Adverse Market Delivery Charge”. That cost is often absorbed by the lender.
The remaining adjustments are grouped by category:
- Credit Score : Lower FICO scores carry bigger adjustments
- Property Type : Multi-unit homes carry bigger adjustments
- Occupancy : Investment properties carry bigger adjustments
- Structure : Loans with subordinate financing may carry bigger adjustments
- Equity : Loans will less than 25% equity carry bigger adjustments
LLPAs are cumulative. A borrower that triggers 4 different categories of risk must pay the costs associated with all four traits.
Loan-level pricing adjustments can be expensive — as much as 3 percent of your loan size in dollar terms. As an applicant, you can opt to pay these costs as a one-time cash payment at closing, or you can to pay them over time in the form of a higher mortgage rate.
The loan-level pricing adjustment schedule is public. You can research your personal scenario at the Fannie Mae website. However, you may find the charts confusing. Especially with respect to which route makes the most sense for you — paying the adjustments as cash, or paying them “in your mortgage rate”.
Phone or email your loan officer for help. Prudential One Realty serves the real estate market for Phoenix Arizona, Maricopa, and Casa Grande Arizona. For more real estate information please visit www.pru1re.com.
Posted on 3rd January 2011 by Anthony in Home Appliances | Industry News
admin, Casa Grande, Casa Grande Arizona, casa grande disposal, casa grande real estate, Garbage Disposal, Home Repair, Maricopa Arizona, maricopa arizona real estate, maricopa disposal, maricopa garbage, Maricopa real estate, Queen Creek, queen creek arizona, queen creek real estate, real estate
When a garbage disposal clogs, a plumber’s service call in Maricopa can cost as much as $100 just for showing up. A “fix” could add even more to that bill. Arizona has dry weather, and generates a good amount of dust. In cities like maricopa, Casa Grande, and Queen Creek, it is very important to do regular maintanence on your real estate investment.
To minimize the likelihood of costly repairs, therefore, be mindful of how your disposal works, and where its limitations lie.
Most clogs are the result of how certain food waste reacts with water and there’s some items you should never flush down your sink. This is because everything sent through the disposal eventually must make its way down the waste line and that can include a trap.
Over time, the trap can get blocked.
With that in mind, here’s a short list of food waste that’s better suited for the garbage can than the kitchen sink:
- Rice and pasta : Small particles can never be completely pulverized, and will swell in the presence of water. This can clog pipes and traps.
- Egg shells : Tiny, granular waste can get “bound” with pipe sludge, creating a thick clog.
- Coffee grounds : Same as for egg shells. As a clog thickens, it’s harder for water to pass through.
- Grease : Liquid fats turn to solid when in contact with cold water. Over time, this creates a clog like plaque on an artery.
- Potato peels : Once ground, peels turn starchy like mashed potatoes. This can clog a drain pipe instantly.
With kitchen garbage disposals, the general rule for flushing food should be “when in doubt, leave it out”. Use your disposal for convenience, not for a trash chute substitute.
Posted on 30th December 2010 by Anthony in Case-Shiller Index | Industry News
admin, Arizona, arizona housing, Arizona real estate, Casa Grande, Casa Grande Arizona, Case-Shiller Index, economics, finance, Home Values, homes sale, houses, Housing, housing stats, jobs, Maricopa, Maricopa Arizona, phoenix, Phoenix Arizona, phoenix arizona real estate, real estate
The Case-Shiller Index posted awful numbers in its most recent reading. Each of the index’s 20 tracked markets showed home price deterioration between September’s and October’s respective reports. Some markets fell as much as 2.9 percent.
The drop in values is nothing about which to panic, however. The Case-Shiller Index is just re-reporting what we already knew. It’s a common theme with the Index, actually; a trait traced to the report’s methodology.
The Index is an imperfect housing indicator with 3 inherent flaws.
The first flaw is that the index makes use of a limited data set, tracking values in just 20 cities nationwide. That data set is then projected across the more than 3,100 other municipalities in the United States. The “national figures”, therefore, aren’t really national.
The second flaw is that, even within the tracked 20 cities, not all home sales are included. The Case-Shiller Index only tracks sales of single-family, detached homes, and within that market subset, it only uses homes that are “repeat sales”. This specifically excludes sales of condominiums and multi-family homes, and new construction.
Lastly, the Index’s third flaw is its “age”. The Case-Shiller Index reports on a 60-day delay, and the values it reports are tied to contracts written even longer ago. Sales contracts from July and August are responsible for October’s closings so when we see the Case-Shiller Index as reported in December, some of the data it’s reporting is 5 months old already. That’s too old to be relevant.
Looking back at 2010, housing was at its weakest between May and August. Therefore, it’s no surprise that the most recent Case-Shiller Index shows significant weakness. Looking forward, we should expect the report to improve — especially because of how strong New Home Sales and Existing Home Sales have been since summer.
The Index is helpful for economists and policy-makers. It’s not much good for individual homeowners, however. For accurate, real-time housing data, talk to a real estate professional instead. Prudential One Realty operates in Phoenix Arizona, Maricopa Arizona, Casa Grande Arizona, Chandler arizona, Queen Creek Arizona, Gilbert Arizona, and Ahwatukee Arizona. For more information about Arizona real estate please visit www.pru1re.com. Jobs in Arizona are increasing, and there is still very affordable housing. Even Bristol Palin bought a home in the city of Maricopa! Canadians are coming to arizona in record numbers
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