New Intel facility in Chandler? / Chandler real estate / Chandler Arizona

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Posted on 2nd March 2011 by Anthony in Uncategorized

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Intel has committed to invest 5 billion in a new factory that will for sure boost the Chandler real estate market.   In short with such an investment, and such a big job draw, it can only help an ailing arizona real estate market.  In the big picture the real estate market is driven by jobs, without a job it doesn’t matter what your credit score is, without a job, you have no money to purchase a house, so you can see why a project like this is so vital to the Chandler real estate market, and the Arizona economy.  With so much joblosses incurred by the state, and by the country the thousands of temporary construction and factory jobs will be a success.  With longer term high paying jobs in the near future this project has really turned into a big winner for Chandler Arizona.

The facility hopes to open for business in 2013 and they will be producing high volume semi conductors, and the plany will be called fab 42.  Such a move will be sure to initiate the jobs beign relocated to Arizona.  This is what Arizona does best, build expand and produce more jobs.  This is the first big step that Arizona has taken in the empoyment sector. 

The new plant can be directly attested to the  2005 passed legislation that helped companies such as Intel that have expensive facilities and high wages but sell little within the state.  In short, if companies made a billion dollar investment in the state, then the sales counted for tax purposes would only be those in Arizona.  This is what prompted Intel to make the decision, good legislation!

Here are some interesting stats about the new Intel plant:

  • Over 320 million in direct revenue to Arizona over the next decade
  • 569 million when you take multipliers into effect
  • target date is 2013
  • 19,000 temporary jobs
  • 1,000 full time high salary positions
  • 3,000 construction jobs

As far as the city of Chandler they could not be happier.  with such a major employer in their backyard, that will only boost Chandler real estate.  Currently Intel employ’s just under 10k employees, and they are the biggest job provider in the East Valley, and that number will only grow for Chandler Arizona.  Chandler real estate has taken a hit like everywhere else around the country, but with it’s great centralized location, good schools, and plenty of jobs, Chandler has really positioned itself to continue to grow and move forward.  Intel will not only help Chandler Arizona, but surrounding cities like Maricopa, Casa Grande, Gilbert, Queen Creek, and other cities where the prices of homes are less, and they are still within a 40 minute drive to work.  There is no doubt that this is a major benefit to Chandler, the surrounding cities and the state.

Market Statistics / Buy a home in Casa Grande / Maricopa real estate

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Posted on 2nd March 2011 by Anthony in Case-Shiller Index

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Case-Shiller December 2010

Casa Grande, and Maricopa real estate were not represented in this nationwide real estate track.  Last week, Standard & Poor’s released its Case-Shiller Index for December 2010. The index is a home valuation tracker, meant to meausure the change in home prices from one period to the next.

December’s Case-Shiller Index showed major devaluations nationwide. As compared to December 2009, on a year-over-year basis, home values fell in 18 of the Case Shiller Index’s 20 tracked markets, and the U.S. National Index dropped 4 percent overall. 

The retreat puts December’s home values at similar levels as compared to early-2003.

That said, buyers and sellers would be wise to take the findings lightly. The Case-Shiller Index is inherently flawed. As such, its results are neither practical — nor relevant — to everyday Americans.  Maricopa real estate is still a great buy, so are homes in Casa Grande, the market seems to be stabilizing, so the time to buy a home in casa grande is now!

There are 3 Case-Shiller flaws, in fact.

The first flaw is the index’s limited sample set. Wikipedia lists 3,100+ municipalities nationwide and we can be certain that real estate is bought and sold in all of them. The Case-Shiller Index, however, measures just 20 of them. That’s less than 1% of all U.S. cities. And then, within those tracked cities, Case-Shiller reports an average, lumping disparate neighborhoods and streets into one big number.  Pinal County, and cities like Maricopa and Casa Grande were not counted in this measure.  Homes for sale in Phoenix and the surrounding areas have been counted.

The “national figures” aren’t really national, and the “city data” doesn’t apply to your home, specifically.  For more information about Pinal County information please visit http://www.caredf.org/.

The second Case-Shiller Index flaw is how it measures home value changes. The index only consider at “repeat sales” of the same home, so long as that home is a single-family, detached property. Condominiums, multi-family homes, and new construction are ignored in the Case-Shiller Index.

Because distressed properties account for such a high percentage of resales lately — 36% in December –foreclosures and short sales skew Case-Shiller Index worse.

And, lastly, the Case-Shiller Index is flawed by “age”. Because it reports closed sales a 60-day delay, December’s Case-Shiller Index is measuring the values of home sales contracts from September and October. The Case-Shiller Index, therefore, is a snapshot of the not-so-recent past, and does little to tell us about the next 60 days.

Overall, the Case-Shiller Index is helpful tool for economists and policy-makers, but it doesn’t do much good for individual homeowners across the city of Maricopa or anywhere else. For accurate, real-time housing data in your local market, talk to a real estate professional instead.  For more information about Maricopa real estate visit www.pru1re.com.  Looking to buy a home in Casa Grande?  Search all Casa Grande foreclosures.  Need a loan?  Click here

Pending Home Sales Drop / buy a home in Maricopa Arizona

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Posted on 1st March 2011 by Anthony in Pending Home Sales

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Pending Home Sales July 2009 - January 2011After a strong run to close out 2010, the market for home resales softened a bit in January.  This could be great news for people looking to buy a home in Maricopa Arizona.  Maricopa real estate was strong to end out the quarter with strong home sales, but the first of the year has steadied out.  But with this news , the time to buy a home in Maricopa Arizona is now!

On a seasonally-adjusted basis, the Pending Home Sales Index dropped 3 percent last month, and December’s figures were revised downward for a loss, too, according to the National Association of REALTORS®.

A “pending home sale” is defined as a home under contract to sell, but not yet closed. 

The forward-looking index is now at a 3-month low on a national level, but still well ahead of its rolling 6-month average.

Unfortunately, national data isn’t overly helpful for buyers and sellers of real estate. The National Association of REALTORS® knows this, of course, and makes an effort to get more granular, supplementing the Pending Home Sales Index report with a region-by-region breakdown. 

Between December and January, only the South Region increased in sales volume. The Midwest led the losers:

  • Northeast Region: -2.4%
  • Midwest Region : -7.3%
  • South Region : +1.4%
  • West Region : -5.2%

Maricopa real estate is in the west bracket, down, but still selling a high volume of homes. Even still, however, regional data remains too broad to be practical. The South Region, for example, is comprised of multiple states with thousands of cities and town. The housing market dynamics of a specific neighborhood in a specific regional city will differ from that of another neighborhood in another regional city.

Real estate data must be local to be relevant.

Overall, then, what may be most telling from January’s Pending Home Sales Index is how weather can influence results.

Most of the country faced drastic weather conditions in January, ranging from raging snowstorms to bitter cold. Events like that tend to put a damper on home sales, a contributing factor in why the number of new contracts fell.

Another reason is rising mortgage rates. Conforming and FHA rates rose week-by-week in January, robbing home buyers of 10% of their purchasing power. This, too, can slow down purchase activity as buyers adjust their expectations.

Looking forward, we should expect the Pending Home Sales Index to resume rising. Inclement weather doesn’t kill demand; it just delays it. And mortgage rates have settled somewhat. These two factors should help release pent-up demand just as the Spring Homebuying Season gets underway.

As more buyers enter the market, negotiation leverage will shift to home sellers, pressuring Queen Creek home prices higher. The lowest prices of the year — and the cheapest financing — could be what you see today.  If you are looking to buy a home in Maricopa Arizona, or are looking to get a loan for Maricopa real estate please visit www.pru1re.com.

Home Supply Down 40% Nationwide/ Maricopa real estate the Same

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Posted on 24th February 2011 by Anthony in Existing Home Sales

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Existing Home Supply (Jan 2010 - Jan 2011)Home resales rose another 2.7 percent last month, according to the National Association of REALTORS® monthly Existing Home Sales report.  Maricopa real estate has been steady compared to the national averages.  Here in Maricopa there still have been steady foreclosure activity, and prices for Maricopa real estate have been steady.  The invenotry has been going down, but it seems to be inching up.

An “existing home” is a home that’s been previously occupied and is not considered new construction.

The number of existing homes sold on a rolling 12-month basis is now at its highest point since May 2010, the month before the federal homebuyer tax credit ended. It’s also up some 40% since July 2010, the month after the tax credit ended.

But that’s not the biggest story in the Existing Home Sales report. The precipitous decline in home inventory deserves more attention.

At the current pace of sales, the complete, national home resale inventory will be sold in 7.6 months. This is close to 5 months faster as compared to last year’s peak, and well below the 2-year home supply average of 9.0 months. There more buyers in the market, it seems, and fewer homes from which they can choose.  The inventory here  in the city of Maricopa has gone down in recent months.  In September there was 7.2 months of inventory, recently that number has gone down to 5 months of inventory.  For Maricopa real estate this has been a significant drop, but dont be fooled, there is more inventory coming in the next 6 months to the city of Maricopa.

Total home resale inventory is down to just 3.38 million homes nationwide — the fewest in 12 months.

There were other interesting statistics in the official Existing Home Sales report, including a break-down of purchases by buyer-type.

  • First-time buyers accounted for 29% of purchases, down from 33% in January
  • Repeat homebuyers accounted for 48% of purchases, up from 47% in January
  • Investors accounted for 23% of of purchases, up from 20% in January

In addition, distressed sales — foreclosures and short sales — made up 37 percent of the market.

Over the next few days, more housing data will hit the wires and it’s expected to show similar strength to January’s Existing Home Sales report. With falling supplies and a growing base of move-up buyers, home prices in Queen Creek and around the country are expected to rise in the coming months ahead.  For more information about Maricopa real estate or to get a home loan please visit www.pru1re.com.

Maricopa real estate / Maricopa foreclosures / homes for sale Maricopa

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Posted on 17th February 2011 by Anthony in Homebuilders | Industry News

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Homes for sale in Maricopa have been dominated by foreclosures.  Maricopa foreclosures have held the market down, and the newest news for single family starts, means that Maricopa may have an opportunity to slowly sell these homes for sale in Maricopa.  Housing starts September 2008 - August 2010Annualized Single-Family Housing Starts dropped 1 percent in January to 413,000 units nationwide, it’s lowest reading almost 2 years.

A “Housing Start” is defined as a home on which construction has started. 

Maricopa real estate has never been more affordable.  In Maricopa foreclosures have driven the market, and anyone who wants to buy a home in Maricopa, the affordability is at an all time high. Now, if you had only seen the Housing Starts story in the headlines today, you wouldn’t have known that single-family starts fell at all. It’s because of how the story is being reported. 

Most commonly, newspaper headlines are reading something similar to “Housing Starts Jump 14.6%” with the lead paragraph making mention that “housing starts are at their highest levels in 4 years”.

It’s a true statement, but it’s misleading, too.

This is because, despite the Census Bureau reporting Housing Starts by property type — single-family, multi-family, and apartments — the media often lumps them into a single data set.  For home owners in Maricopa, it is only good news that the single family starts are down.  Maricopa Arizona has been and will be a heavy foreclosure real estate market, and the less amount of New homes they build, the quicker we will sell the homes for sale in Maricopa.

It’s a categorization that helps investors in homebuilder stocks, but it does little for everyday Maricopa home buyers. The huge majority of buyers aren’t buying multi-units or whole apartment buildings — they’re buying 1-unit homes.

Here’s how January’s Housing Starts broke down by type:

  • Single-Family Homes : Down 4,000 units, or -1%
  • 2-4 Unit Homes : Negligible change
  • Apartment Buildings : Up 46,000 units, or +80%

Clearly, the surge in Housing Starts can be attributed to the rapid rise in the 5-unit-or-more sector. Single-Family Starts were weak, by comparison.

Even with all of this noted, however, we can’t even be certain that the January Housing Starts data is accurate anyway. A footnote in the government’s report shows that, although single-family starts are said to have decreased 1 percent, the data’s margin of error is ±8.6%.

This means that the true Single-Family Housing Starts reading may be anywhere from -9.6% to +7.6%. The data is throw-away. Housing Starts may have actually increased in January, but we won’t know until revisions are offered later this year.  For more information about Maricopa real estate, or Foreclosures in Maricopa please visit www.pru1re.com. Need a loan to buy a home in Maricopa?  Click here

Arizona Mortgage Rates / Casa Grande Real Estate

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Posted on 11th February 2011 by Anthony in Mortgage Rates

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Mortgage rates (Feb 2010 - Feb 2011)

Arizona Mortgage rates are rising.

Over the last 7 days, conventional, 30-year fixed rate mortgage rates have jumped 24 basis points, or 0.24%, according to Freddie Mac’s weekly Primary Mortgage Market Survey.  This is a significat increase, however it is only a small part of the equation when talking about Casa Grande real estate.  With affordable housing, and still affordable Arizona mortgage rates, the total proposition to buy a home is still a good one.

It’s the largest 1-week spike in mortgage rates in recent history.

The 30-year fixed rate mortgage now averages 5.05% nationally. This is much, much higher than what we saw last November when mortgage rates were 4.17% and looked headed to the 3s.

That’s not the case today. In fact, it’s the opposite. 

Arizona Mortgage rates have risen quickly and fiercely this year. As of this morning, mortgage rates are higher over 9 consecutive days, marking the longest mortgage rate losing streak in the last 6 years, at least.

Note, however, that when you call your loan officer or bank, you may not be quoted the same 5.05% rate as shown by Freddie Mac. This is because Freddie Mac-reported rates are national averages. Any given mortgage rate may be higher or lower depending on its region. 

As an illustration, look how this week’s rates breaks down by area:

  • Northeast : 5.07 with 0.7 points
  • Southeast : 4.99 with 0.9 points
  • North Central : 5.09 with 0.6 points
  • Southwest : 5.06 with 0.6 points
  • West : 5.02 with 0.8 points

In other words, the rate-and-fee combination you’d be offered in your home town of Maricopa is different from what you’d be offered if you lived somewhere else. In the Southeast, rates tend to be low and fees tend to be high; in the North Central U.S., it’s the opposite.

The good news is that, as a mortgage applicant, you can have your pricing whichever way you prefer. If getting the absolute lowest mortgage rate is what’s most important to you, have your loan officer structure your loan as in the “Southeast Style”. Or, if you prefer to have as few closing costs as possible and don’t mind slightly higher rates, ask for that type of set-up instead.

Either way, consider locking your rate as soon as possible. If rates keep rising, it won’t be long before they touch 6 percent. For more information about Casa Grande real estate, or homes for sale in Casa Grande Arizona visit www.pru1re.com. For more Arizona mortgage information click here.

Foreclosures Drops in Arizona / Casa Grande real estate / Foreclosures

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Posted on 10th February 2011 by Anthony in Industry News | foreclosures

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Foreclosure Change By State (January 2011)

Foreclosure activity is slowing. According to foreclosure-tracker RealtyTrac, the number of foreclosure filings dropped 17 percent on an annual basis last month. Monthly filings ticked higher 1 percent after a combined 23 percent decrease through November and December 2010.  As you can see Arizona is among the leaders in a decrease.  This means that your Casa Grande real estate is starting the slow climb back.  Foreclosures have been a heavy part of the market in Arizona, and paticular the outskirt areas like Casa grande and Maricopa.  But this news looks good for all of us.  But remember these are foreclosure filings, not new real estate listings.

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

January marked the third straight month of sub-300,000 filings after 20 straight months above it.

As compared to January 2010, six of the nation’s 10 most foreclosure-heavy states posted an annual foreclosure filing reduction. The remaining four showed modest worsening.  Arizona is on the right track.

It’s noteworthy that states like California, Florida, and Arizona posted declines of 7 percent to 54 percent, respectively, and that Nevada posted a relatively-low 3 percent gain. These three states have been at the leading edge of foreclosure activity since 2007. Their subsequent recoveries, therefore, may foreshadow a better housing market ahead.

Or, this may be lasting effects from the “robo-signer” controversy.

Regardless, home buyers in Arizona continue to clamor for distressed homes.  Casa Grande real estate has been driven by foreclosures, and it seems to be the trend this year.  For The real estate market in Casa Grande to get back to normal we will have to sell these properties at todays market value.

According to the National Association of REALTORS®, properties in various stages of the foreclosure and short sale process are selling at discounts in the range of 10-15 percent so it’s no wonder they now account for 36 percent of all home resales. Buying a foreclosure can be a great “deal”.  They can be more trouble and cost than they’re worth.

Therefore, If you’re in the market for a foreclosed home , be sure to speak with a licensed real estate agent. The process of buying a distressed home is different from buying a non-distressed home. An experienced professional can help make sure you negotiate your best possible price.  There are great foreclosed homes on the market in Casa Grande.  To see a full list of homes and information about the Casa Grande real estate market please visit www.pru1re.com. Need a loan?  Click here for a full list of programs, and criteria.

Arizona Mortgage Rates Rise again / Casa Grande Real Estate

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Posted on 9th February 2011 by Anthony in Mortgage Rates

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Arizona Mortgage rates risingMortgage rates worsened for the 7th straight day Tuesday.  A long stretch in this economy.  rates are still much lowere than they have been historically, and coupled with the prices of Casa Grande real estate, it still remains a great buy.

Conventional, 30-year fixed mortgage rates are now around 5-51/2  percent, with FHA mortgage rates running roughly the same.

This is a huge increase from just 11 weeks ago when mortgage rates were riding an 8-month-long hot streak, and appeared headed into the 3s. Then the Federal Reserve intervened.

On November 3, as additional support for markets, the Fed announced its second round of bond buys, a $600 billion program dubbed QEII — short for Quantitative Easing, Round II. Wall Street got spooked on the news; investors feared runaway inflation.

That’s when lower rates slowed down. Here’s why:

(A) Inflation makes the U.S. dollar lose its value,

And, (B) U.S. mortgage bond payments are paid in U.S. dollars.

Therefore, (C) Inflation makes mortgage bond repayments lose their value.

When mortgage bond repayments are worth less, bond demand falls among the global investor set and that causes bond prices to fall along with it. When bond prices fall, mortgage rates rise and that’s exactly what we’re seeing right now.

Since the Fed’s QEII announcement, Arizona mortgage rates have rised, but Casa Grande real estate is still affordable.

Given recent trends, it’s probably safe to declare the Refi Boom “officially over” and the era of low mortgage rates may be over, too.  Home prices may move up or down in Casa Grande this year, but rising Arizona mortgage rates could render the point moot. If you’re looking for a great “deal” with low, long-term payments, the time to get in contract is now.  Casa Grande real estate is a very good investment, and rates are still far under 6%. 

Because of rising rates, homeowners have lost roughly 10% of their purchasing power since November.  We do have to keep this all in perspective.  It wasn’t long ago that 8% was a great rate.  Arizona mortgage rates are relatively low for the long term, and rising for the short term.  For Casa Grande real estate information and arizona mortgage rates please visit www.pru1re.com.

Image Copyright (c) 123RF Stock Photos

Arizona Real Estate / Homes for sale in Arizona / remodel tips

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Posted on 7th February 2011 by Anthony in Home Improvement

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Remodel projects to avoidHome remodeling is back in vogue.  In the Arizona Real Estate market home remodeling has been a tool of many investors.  They have a calculated remodeling system that is figured in to the resale price of the houses for sale in Arizona. 

With contractors dropping prices in most U.S. markets, and a resurgence in confidence among homeowners, home remodeling projects are expected to top $125 billion this quarter.  A good portion of that will be in Arizona real estate.  Of all homes for sale in Arizona, Phoenix area, it is safe to say that around 8-10% are investor owned real estate.

Not all renovations will be “worth it”, according to Remodeling Magazine’s 2011 Cost vs Value report, but some projects should never be started — especially when said projects render a home somewhat un-sellable.

For example, if installing a new toilet requires that the discharge pipes run along the living room ceiling, the project should be re-engineered, or skipped entirely.

A recent renovation article on CNNMoney.com listed several others “never do” projects.

  • Don’t add a 4th/5th bedroom to a home with just one bathroom.
  • Don’t build a bedroom with no closet space.
  • Don’t make common rooms disproportionately large or small to one another.

And, for all projects, no matter what the details, try to keep the home’s traffic flow intact. Nobody likes to walk through bedrooms to get from the kitchen to the living room.

Home remodeling can be a less expensive alternative to moving, and can improve a property’s resale value. But keep in mind — just because a project is featured on HGTV, for example, that doesn’t make it a Do-It-Yourself. Some projects can be handled on your own, but most should not.

With the help of a professional, you’ll be sure the job is done properly.

If you need the name of a local contractor or specialist, please reach out anytime. I am happy to help you with a referral. For more information about Arizona real estate, or remodeling homes for sale in Arizona please visit us at 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.

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