Mid-Year Review : Were The Experts Right About The Market? Maricopa real estate

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Posted on 8th July 2011 by Anthony in The Economy

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Predictions are risky businessThe year is half-over. It’s an opportune time to take stock of analyst predictions made at the start of the year, and to recognize that the “experts” can be wrong as often as they are right. Maricopa real estate

For as much experience and authority an expert brings to the conversation, though, nobody can accurately predict the future.

As such, there’s often disagreement.

Looking back to December, some housing analysts called for a market rebound this year; while others called for a fall. With respect to mortgages, some said rates had nowhere to go but up; while others expected more dips.

As a layperson, how do you know who will be right?

In short, you can’t.

Predictions are a tricky business because they’re guesses about the future based on the world as it exists today. When the predictions listed earlier were made, the world was a different place.   

A lot has changed since January:

  • Slowing job growth has suggested to slower U.S. economic growth
  • Food and energy costs have spiked, adding inflationary pressures to the economy
  • Eurozone debt issues have grown, punctuated by a near-Greek default
  • Tsunamis have caused widespread damage in Japan
  • Earthquakes, floods and volcanoes have harmed economic output

None of these events had occurred as of December, when the original predictions were made. Yet, each of these developments has made a deep impact on housing, and on the economy.  

So, what’s a Casa Grande homeowner to do? Think of the present instead.

First, mortgage rates are low today — extremely low by historical standards. Second, home values have been slow to rebound through most U.S. markets. Combined, these factors have made homes more affordable than it any time in recorded history. It’s not only cheap to buy a home right now, it’s cheap to refinance one, too.

Analysts are saying the home prices will rise this year, and mortgage rates will, too. Those predictions may ultimately be proven true. Until the future arrives, though, those predictions are just guesses. If you are looking for Maricopa real estate please visit www.pru1re.com for more information about the city of Maricopa and the great state of Arizona.

Wash Your Windows The Eco-Friendly Way / Maricopa real estate

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Posted on 2nd May 2011 by Anthony in Around The Home

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Clean windows the eco-friendly way

Your home’s windows look best when they’re clean on both the inside and the outside. It’s a quarterly housekeeping chore, at minimum, and should coincide with seasonal changes.

But washing windows can be a drag on the environment. Most homeowners use multiple rolls of paper towels to finish the job, and many commercial window cleaners are chemical-loaded.

Fortunately, there’s a way to wash your windows, be environmentally conscious, and still get great results. Here’s how to do it.

First, wait for a cloudy day. Cloudy days are best for cleaning windows because sunny days create more streaking; the sun can dry the windows before you’ve had a chance to polish them.

Next, make your cleaning solution. 

If this is your first time cleaning your home’s windows, in a spray bottle, mix 8 parts water with 1 part each of white vinegar and environmentally-friendly dish detergent. The dish detergent is a necessary additive because it removes waxy buildups from prior washings with commercial cleaners.

Then, for washings beyond the initial cleaning, in the spray bottle, mix 1/2 teaspoon of vinegar for each cup of water instead.

Next, using reusable microfiber cloths, wash one side of the window with horizontal strokes, and the other with vertical strokes. This way, if there’s a streak, you’ll know on which side of the window it is.

Lastly, rinse your cloths often in cold water and be sure to wash top-down.

When you’re finished, your windows will be clean, and you’ll have made a near-zero environmental impact. And remember — you don’t have to wash your windows all at one. You can spread it out over time if that’s easier. If you are looking for Maricopa real estate visite www.pru1re.com.

A Simple Explanation Of The Federal Reserve Statement / Casa Grande real estate

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Posted on 27th April 2011 by Anthony in Federal Reserve | Industry News

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Putting the FOMC statement in plain EnglishEarlier today, the Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent.

The vote was 10-0 — the third straight meeting after which the FOMC vote was unanimous.

In its press release, the FOMC noted that since its March 2011 meeting, the economic recovery is proceeding “at a moderate pace” and that labor markets conditions are “improving gradually”. Household spending and business investment “continue[s] to expand” but the housing sector remains “depressed”.

Furthermore, the FOMC’s statement discussed the Federal Reserve’s dual mandate of (1) Managing inflation levels, and (2) Fostering maximum employment. The statement acknowledged recent inflation pressures on the economy, but it expects those pressures — because they’re related to oil and food prices — to be “transitory”. Unemployment remains “elevated”.

The FOMC statement also re-affirms the group’s plan to keep the Fed Funds Rate near zero percent “for an extended period” of time, and to keep its $600 billion bond market support package — more commonly called “QE2″ — intact.

The statement’s verbiage suggests that a third support package may be created after QE2 ends in June 2011, depending on the needs of the economy.

Mortgage market reaction to the FOMC statement has been positive thus far. Mortgage rates in Casa Grande are unchanged, but leaning lower. And, as always, market sentiment could shift quickly. If you like today’s mortgage rates, consider locking in.

The FOMC’s next scheduled meeting is a 2-day event, June 20-21 2011.  If you are looking for casa grande real estate visit www.pru1re.com.  If you need an Arizona mortgage click here.

Maricopa real estate / New Home Supply Falls To 16-Year Low

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Posted on 27th April 2011 by Anthony in Housing Analysis

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New Home Supply March 2010-March 2011After posting an all-time low in February, New Home Sales rebounded strongly last month. This is good news for the Maricopa real estate market. 

Based on joint research from the Census Bureau and HUD, 300,000 new, single-family homes were sold on a seasonally-adjusted, annualized basis in March. It’s an 11 percent improvement from February, and right in-line with the 6-month average.

The supply of available new homes improved, too, in March, falling by close to a full month.

At the current pace of sales, the entire new home housing stock would be sold in 7.3 months. This is the second-best reading in a year, a statistic partially-supported by the relatively small number of new homes on the market. In the city of Maricopa new homes supply falls right in line with that reading.  As a matter of fact,new homes and reasle real estate is about 7 months of real estate inventory.

There are now just 183,000 new homes available for sale across Maricopa and the country. That’s the smallest reading since the Census Bureau started to keep New Home Sales records beginning in 1995.

However, it should be noted that the March New Home Sales data is suspect. The reading’s margin of error exceeds it actual measurement by almost double. It’s possible that sales volume fell in March instead of rising, therefore. The Census Bureau says as much in its footnotes:

The change [in new home sales] is not statistically significant; that is, it is uncertain whether there was an increase or decrease [in March 2011].

We won’t know for certain until future data revisions are made.

If you’re a home buyer , though, and want to stay ahead of the market, you won’t want to take chances. If the Census Bureau finds its data to be accurate after revisions are made, new home prices will already have started to rise.

You may get your best home value by buying sooner rather than later. If you are looking for Maricopa real estate, visit www.pru1re.com.  For real estate mortgages

Foreclosures Drop 35 / Arizona real estate / Maricopa real estate

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Posted on 15th April 2011 by Anthony in Housing Analysis

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Foreclosure concentration by stateForeclosure activity is much slower this year than last. That is a great sign for home owners in the Maricopa real estate market.  Of course Arizona is leading the way along with other states in the foreclosure market, but a slow down in foreclosures at the national level is a good sign.

According to foreclosure-tracking firm RealtyTrac, the number of national foreclosure filings plunged 35 percent in March 2011 as compared to March 2010, a statistic that reflects a more healthy housing market and more robust outlook for 2011.

A “Foreclosure filing” is defined as any of the following : a default notice, a scheduled auction, or a bank repossessions. Foreclosures filings were down in all but 8 states last month.

Activity remains concentrated, too. More than half of all bank repossessions can be tied to just a handful of states.

In March, 6 states accounted for 51% of activity.

  1. California : 15% of all repossessions
  2. Florida : 9% of all repossessions
  3. Arizona : 7% of all repossessions
  4. Michigan : 7% of all repossessions
  5. Texas : 6% of all repossessions
  6. Nevada : 5% of all repossessions

At the other end of the spectrum is Vermont. With just 5 repossessions for all of March, Vermont accounted for 0.008% of repossessions nationwide.

Distressed homes remain in high demand among today’s home buyers, accounting for almost 40% of all home resales. It’s no wonder, either. Distresses home typically sell at a steep, 15 percent discount as compared to non-distressed properties.

Buying foreclosures can be a great “deal”. However, make sure you’ve done your homework.

Buying homes from banks is different from buying a homes from “people”. Contracts and negotiations are different, and homes are often sold with defects.

If you plan to buy a Maricopa foreclosure, therefore, make you you speak with a licensed real estate professional before submitting a bid. You can research a home online and learn a lot of the process, but when it’s time to purchase, put an experienced agent on your side. If you are looking for Maricopa real estate or need an Arizona home mortgage please visit www.pru1re.com.

Arizona real estate / 15-Year Fixed Rate Mortgages Look Cheap / Maricopa real estate

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Posted on 25th March 2011 by Anthony in Mortgage Rates

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Comparing 30-year fixed to 15-year fixed (2006-2011)

It’s a great time for MAricopa home buyers and homeowners to look at the 15-year fixed rate mortgage.  Arizona mortgages look cheap, and that makes it a double wammy for Arizona real estate and Maricopa real estate.

According to Freddie Mac’s weekly Primary Mortgage Market Survey, the relative “discount” of a 15-year fixed rate loan as compared to a comparable 30-year product is the largest in recorded history. The interest rate spread between the two benchmark products is now 0.77%, nearly double the recent, 5-year average of 0.44%.

Despite its lower rates, however, homeowners that opt for a 15-year fixed mortgage should be prepared for higher monthly payments. This is because the principal balance of a 15-year fixed is repaid in half as many years as with a 30-year amortizing product.

The payment increase is 41% higher at today’s rates. If you can manage that, though, you’ll reap dramatic interest payments savings over time. For each $100,000 borrowed at today’s market interest rates, your mortgage interest costs on a conforming 15-year term mortgage will be lower by $56,000 versus an identically-structured 30-year term. The more you borrow, the more you save.

That said, not everyone should use the 15-year product.

One reason you may want to avoid 15-year products is because the higher payments may lead to financial stress. Unless your monthly income far exceeds your monthly debts, choosing a 30-year product may feel safer for you.

Another reason is that, with less mortgage interest paid, 15-year mortgages don’t allow for as many mortgage interest tax deductions. This can have tax implications to you each year. Or, maybe you prefer to have your home leveraged, investing “spare dollars” in stocks and bonds.

These are all legitimate cases to stick with a 30-year term, but if you’ve ever explored the idea of using a 15-year fixed rate mortgage for your home, today, the math is in your favor. Talk to your loan officer before the rates start rising.  If you are looking for Arizona real estate or Maricopa real estate visit www.pru1re.com for all of your Arizona real estate information.  If you need an Arizona mortgage click here.

/ Homebuilders Expect More This Year / Arizona

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Posted on 17th March 2011 by Anthony in Housing Analysis

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NAHB Housing Market Index (April 2009-March 2011)Homebuilders are optimistic about the housing market this spring, relative to recent months.  Maricopa Home building had been steady for Maricopa real real estate.

According to the monthly Housing Market Index as published by the National Association of Homebuilders, after 4 straight months of reading 16, March homebuilder confidence ticked 1 point higher to 17.

It’s the highest confidence reading in 10 months.

A value of 50 or better indicates “favorable conditions” for home builders; with more builders viewing sales conditions as “good” than “poor”.

HMI hasn’t read higher than 50 since April 2006.

Regionally, the Housing Market Index showed mixed results. Confidence fell 1 point in the Northeast, held firm in the Midwest, and rose in the Southeast and West regions by 2 points and 4 points, respectively. Maricopa real estate has been embracing the well priced new homes.

As an index, the monthly survey is actually a composite of three separate homebuilder surveys — a report on single-family sales; a report on current buyer foot traffic; and a projection for single family sales in the next 6 months.

March’s HMI breakdown shows that builders expect sales to be brisk over the next few months. Projected Single-Family Sales is running at its highest level since May 2010 — right as the $8,000 federal homebuyer tax credit was ending.

  • Single-Family Sales : 17 (Unchanged from February)
  • Buyer Foot Traffic : 12 (Unchanged from January)
  • Projected Single-Family Sales : 27 (+2 from February)

For home buyers in Maricopa and across the country , the March Housing Market Index may signal the end of “builder discounts” and free upgrades. As home sales increase, builders are often less likely to make concessions.

In conjuction with rising mortgage rates and new, mandatory loan costs, buying a newly-built home may never be as inexpensive as it is right now.

If you expect to buy a newly-built home this year, consider moving up your time frame. The longer you wait, the more it may cost you. If you are looking for Maricopa real estate visit Prudential One Realty.  Are you looking for an Arizona mortgage?  Click here

5 reasons Arizona real estate is a good investment / Maricopa real estate

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Posted on 13th March 2011 by Anthony in Industry News | Uncategorized

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If you are thinking about buying a home in Arizona it is a fantastic idea. I’ll give you five reasons why I think buying a home in Arizona would be a fantastic investment but you do need to have certain criteria in mind when you undertake an investment in Arizona. 

Reason number one – you can buy a home for cheaper than you can build it. Just that fact alone makes it an attractive long-term Arizona investment. In the city of Maricopa homes are going for around $40-$50 a square foot in some cases that’s less than half of building a new home.

Reason number two – Arizona is still projected as one of the long-term fastest-growing areas of the United States. Maricopa real estate has driven a 4000% growth gain over the past 10 years. Now County Arizona led the way in the nation for the growth over the past 10 years and continues to lead that trend. Homes for sale in Casa Grande Arizona are still very attractive. Casa Grande real estate affords great job opportunity and lots of attractions to include stores malls and movie theaters.

Reason number three – we are driven by retirees investors and people looking to purchase second homes because of the weather. This will always drive the long-term market of Arizona and thus will drive the value of your Maricopa real estate investment or your Casa Grande real estate investment.

Reason number four – ew cities. Maricopa Arizona Incorporated in 2003 and has grown to almost 40,000 people since. You get lots of different homes for salewhen you are looking at Gilbert real estate Casa Grande real estate Maricopa real estate and Chandler real estate. The new roads the stores the space and the attractive weather makes it a great place to invest in Arizona, retire in Arizona, or look to buy a second home in Arizona. Maricopa Arizona and Casa Grande Arizona are great places for second homes because of the low house prices.

There are some things to keep in mind when you’re looking to buy a home in Arizona invest in places like Casa Grande and Maricopa, or buy a second home in Gilbert or Chandler Arizona.  Here the tips to look for:

  1. you can always try to flip your  real estate investment quickly for a small gain but in my book that is speculation and with speculation always comes risk. For true long-term value and to minimize the risk when you buy a home in Maricopa Arizona or Casa Grande. You have to think about going in staying for at least 3 to 5 years that will give you sufficient time for your real estate investment in Arizona to mature. With rates as low as they are you can buy a second home in Gilbert Arizona or by second home in Chandler Arizona or even by second home and Maricopa Arizona, but the key is to keep it for at least 3 to 5 years.
  2. Look for long-term value. It’s always attracted to look for the $30,000 short sale that’s fallen out of escrow three times, but if this is a home you live in or use it’s always a good idea to look for long-term value in Maricopa real estate and casa Grande a real estate. Make sure that the home has a good location and is structurally sound and always getting inspection on your Arizona real estate purchase.  A good floor plan could always add value to your casa grande a real estate, things like paint cabinets and flooring could always be things you can add in the future to help you build value in the long run.
  3. Take advantage of today’s great financing programs. If you apply today for an Arizona mortgage you be very surprised to see the great rates that you get. FHA is leading the financial market in Arizona and around the country with creative financing programs to help you buy your home for less. Low mortgage rates in Arizona coupled with low prices for Maricopa real estate and Casa Grande real estate, make it a great opportunity to take advantage of everything that they have to offer to include financing and low home prices.

If you’re looking to buy a home in Arizona contact the professionals at Prudential one Realty we are here to serve your Maricopa real estate needs,  Casa Grande real estate needs, Gilbert real estate needs, Chandler real estate needs, and any other surrounding areas in the East Valley of the Phoenix area. If you are looking to get a mortgage in Arizona or buy a home, sell a home, or just need advice on your Arizona real estate, visit www.pru1re.com.

Maricopa real estate / Casa Grande real estate / Loan Fees Set To Rise

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Posted on 10th March 2011 by Anthony in Industry News | Mortgage Guidelines

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LLPA rising April 1 2011Beginning April 1, 2011, Fannie Mae is increasing its loan-level pricing adjustments. Conforming mortgage applicants in Maricopa Arizona should plan for higher loan costs in the months ahead.  This will affect your buying power for Maricopa real estate and Casa Grande real estate alike.

If you’ve never heard of loan-level pricing adjustments, you’re not alone; they’re an obscure mortgage pricing metric and, thus, are rarely covered by the media. That doesn’t make them any less relevant, however.

LLPAs are mandatory closing costs assessed by Fannie Mae and Freddie Mac, designed to offset a given loan’s risk of default. LLPAs were first introduced in April 2009.

This April’s amendment is the 6th increase in 2 years. LLPAs can be costly.

In addition to an up-front, quarter-percent fee applied to all loans, there are 5 additional “risk categories” in the LLPA equation:

  1. Credit Score : Lower FICO scores trigger additional costs
  2. Property Type : Multi-unit homes trigger additional costs
  3. Occupancy : Investment properties trigger additional costs
  4. Structure : Loans with subordinate financing may trigger additional costs
  5. Equity : Loans with less than 25% equity trigger additional costs

Adjustments range from 0.25 points (for having a 735 FICO score) to 3.000 points (for buying an investment property with just 20% downpayment). And they’re cumulative. This means that a borrower that triggers 3 categories of risk must pay the costs associated with all 3 traits.

Loan-level pricing adjustments can be expensive — up to 5 percent or more of your loan size in closing costs. The fees can be paid a one-time cash payment at closing, or they can be paid in the form of a higher mortgage rate.

The loan-level pricing adjustment schedule is public. You can research your own loan scenario at the Fannie Mae website, but you may find the charts confusing.

Phone or email your loan officer if you’re unsure of what you’re reading.  If you are looking for Maricopa real estate or Casa Grande real estate visit Prudential One Realty we specialize in Maricopa, Casa Grande, and many other Pinal County and east valley cities.

Buy a home in Maricopa / Maricopa real estate / Maricopa az real estate

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Posted on 8th March 2011 by Anthony in Home Values | Industry News

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Home Opportunity Index 2004-2010

Home affordability reached an all-time high in 2010’s last quarter. Unfortunately for home buyers in Arizona , it’s been a different story since, however.  If you are looking to buy a home in Maricopa the time is now, before the total index keeps rising.  Arizona mortgage rates and Maricopa real estate affordability is still very low from the birds eye view.  Maricopa az real estate is a good investment.

As mortgage rates cratered, and with home values soft, the Home Opportunity Index reached its highest level in 20 years. The index is published by the National Association of Home Builders. 

Close to 74 percent of the new and existing homes sold between October-December 2010 were affordable to families earning the national median income of $64,400. It’s the 8th straight quarter in which the Home Affordability Index surpassed 70 percent.

Prior to 2009, the HOI rarely topped 65 percent.  In Maricopa and Casa Grande homes are selling for less than new home builders can build them for. 

That said, though, as with everything in real estate, home affordability is a local event. For example, take the Elkhart/Goshen area of northern Indiana. 97 percent of homes sold there last quarter were affordable to families making the area’s median income. 

This level of affordability is likely related to state capital Indianapolis, a perennial top-scorer itself.

For the second straight quarter — and the 22nd time dating back to 2006 — Indianapolis led all major metropolitan areas with a 93.5 affordability rating.

Meanwhile, on the opposite end of the home affordability spectrum, the “Least Affordable Major City” title went to the New York-White Plains, NY-Wayne, NJ area for the 11th consecutive quarter. Just 25.5 percent of homes were affordable to households earning the area median income.

It’s a a 6-point improvement from Q2 2010, however.

The rankings for all 225 metro areas are viewable on the NAHB website but regardless of where you live, it’s important to remember that rising mortgage rates this year have made homes less affordable in all markets across the United States. We won’t see a repeat record in this quarter’s HOI once it’s calculated and published.

Home buyers in Maricopa have lost 10% of their purchasing power since November, and mortgage rates look poised to rise even more.

If your plans call for buying a home later this year, consider moving up your time frame. The long-term costs of homeownership are rising, and affordability, therefore, is falling.  Remember that when Arizona mortgage rates rise, your buying power goes down.  The time to buy a home in Maricopa is now.  Maricopa real estate will only get pricier, so if you are looking to buy a home in Maricopa, talk to a lender and get the ball rolling.

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