MARKET DATA & PHILANTHROPY          |          TESTIMONIALS


Sunday, November 17, 2013

Information on 2013 Tax Credits!

It’s that time of year again when we will be solicited by many organizations for our 2013 Arizona Charitable Tax Credit dollars. There are three funds that most of us are familiar with: private school, public schools, and working poor. Each donation has a limit per individual or per couple so make sure you check with your accountant to determine the amount you are eligible to contribute. Guidelines we have seen to date are $2062 for couples for private schools, $400 per couple for public school activities, and $400 for the working poor. It is half of these amounts for singles.
  
There is another deduction that is lesser known, the Arizona Military Family Relief fund. It is paid to the Department of Veterans’ Services and can be accessed on line at http://dvs.az.gov/benefits/relief_fund. The catch is that total contributions are capped at $1m so as soon as it reaches that level, additional contributions are returned and cannot be used towards the tax credit in Arizona. The maximum contribution for this fund is $400 per couple.

An additional note for the public school contribution is that it is most beneficial for the school if you ask that your donation be applied to the General Fund rather than a specific activity. Too many schools have unused dollars sitting in one specific category and they are not allowed to use any money left over for a lesser funded area. For instance, if Fine Arts has used as much as it needs but still has $5000 remaining and another activity could use that money, the principal is not allowed to co-mingle the funds. When the money is in the General Fund, the administration of the school can determine where and how it can be used. It allows for more flexibility within the school!

So help out the children, the working poor, and the military and help yourself at the same time. Remember it is a dollar per dollar write-off on your Arizona state taxes!! A true win/win!

Monday, November 4, 2013

Avoid Common Mistakes When Financing a Home Purchase!

Have you ever lost a deal because the financing fell through? 

There are a few things you need to know if you are buying a home and financing the purchase. By following these pointers you can avoid losing the home you want to buy!

o    DO NOT CHANGE YOUR MARITAL STATUS - How you hold title is affected by your marital status. Be sure to make both your lender and the title company aware of any changes in your marital status so that documents can be prepared correctly.

o    DO NOT CHANGE JOBS - A job change may result in your loan being denied, particularly if you are taking a lower-paying position or moving into a different field. Don’t think you’re safe because you’ve received approval earlier in the process, as the lender may call your employer to re-verify your employment just prior to funding the loan.

o    DO NOT SWITCH BANKS OR MOVE YOUR MONEY TO ANOTHER INSTITUTION - After the lender has verified your funds at one or more institutions, the money should remain there until needed for the purchase.

o    DO NOT PAY OFF EXISTING ACCOUNTS UNLESS YOUR LENDER REQUESTS IT - If your Loan Officer advises you to pay off certain bills in order to qualify for the loan, follow that advice. Otherwise, leave your accounts as they are until your escrow closes.

o    DO NOT MAKE ANY LARGE PURCHASES - A major purchase that requires a withdrawal from your verified funds (such as a car) or increases your debt can result in your not qualifying for the loan. A lender may check your credit or re-verify funds at the last minute, so avoid purchases that could impact your loan approval.

If this brings up any questions for you, please do not hesitate to call us or your lender.

Monday, October 28, 2013

October 2013 Market Report

Report Overview

This report includes MLS data for the past 36 months in Maricopa County only as provided by the FlexMLS system.  Please note that searches fluctuate daily when running these reports; these figures were obtained on 10/2/2013.

A reminder that you need to meet with a real estate professional to see how statistics impact the area where you are considering selling or buying – blended statistics will not be as accurate as a more detailed report that your real estate professional can provide to help you with your decision making.


Closed Sales Report Analysis

Sellers:

The month of September showed a significant decrease of 10% in the number of closed sales. The statistics show that we had 5,608 residential homes sell in September in Maricopa County compared to 6,260 in the month of August. This is the fourth month in a row that we have seen this number decrease.  Although this follows the trend for this same month in the past 2 years, sellers should pay attention as it means fewer of them are having success selling their homes.

Buyers:

For buyers, this means that though the inventory is increasing, it is still limited.  Fewer buyers found success in closing on a home when compared to the prior few months.  As prices and interest rates continue to rise, buyers need to take action now to make sure they don’t get priced out of buying their home.


Pending Sales Analysis

Sellers:

The month of September saw a 16% decrease in the number of homes that moved to pending status – a total of 4,259 homes. Although September usually sees a drop in this number, it is very important for sellers to monitor this statistic. It means significantly fewer buyers and sellers were able to come to agreement on the terms of a contract on a home.

Buyers:

Educated and savvy buyers understand that a competitive market gives them fewer options for home choices, negotiating on price AND looking for concessions from a seller.  Although this may vary from area to area AND from price range to price range, buyers need to make sure they are fully informed regarding the individual market in which they have an interest.  This will give them the best chance of being competitive in the search for a home.  With the recent increase in interest rates, it will be important to monitor its impact on future sales.


Average Sales Price Analysis

Sellers:

Last month saw the average sales price decrease slightly by $200 from $244,408 to $244,208. This does NOT follow the trend of the month of September in the prior two years when we have normally seen an increase in the average sales price.  Although this is the 5th highest average in the 36-month reporting period, we are definitely seeing a level off of prices in the market. Sellers need to remain diligent about pricing homes according to the current market and to understand how this increase impacts individual homes.  Sellers are encouraged to spend time with us to determine what is happening in their local market.

Buyers:

This statistic is an indicator that buyers still continue to pay more for homes than they have in the past 36 months. Educated and savvy buyers understand that a competitive market gives them fewer options for home choices, negotiating on price AND looking for concessions from a seller.  Although this may vary from area to area AND from price range to price range, buyers need to make sure they are fully informed regarding the individual market in which they have an interest.  This will give them the best chance of being competitive in the search for a home.


Distressed Sales Analysis

A bank owned/foreclosure home is one that the seller no longer owns – it has been taken over by the lender(s) who had a note on the home. Short sales are homes where the seller is negotiating with the bank to “forgive” a portion of the debt in order to avoid foreclosure.

The market saw a slight adjustment favoring what we call traditional or non-distressed sales.  Bank-owned sales decreased slightly from 8.4% to 7.3% of closed sales, and short sales decreased from 10.5% to 8.9%.  The result was an increase in the number of traditional sales from 81.1% to 83.8%.  Sellers and buyers need to monitor this trend to see how the market continues to respond to the current inventory.
 
STOP!

Would you like to know what is happening in your neighborhood?
Would you like to know the value of your home?
Do you need help deciding whether to sell or not?
Would you like to know if now is the right time to buy?
 
We would be very happy to get you that information.
Contact Us Today!

Just Listed | Gainey Ranch | $500,000



Welcome to this beautifully updated town home in Gainey Ranch. This home boasts an open floor plan with spacious rooms and plantation shutters throughout. Owner of 10 years has maintained the home beautifully – gorgeous hardwood floors, tiled fireplace; new AC, water softener, water heater, RO, ceiling fans and garage opener. Owner just updated bathrooms with new fixtures. The open kitchen boasts a sub-zero fridge and Bosch appliances. Back patio has automated sprinklers and garage has built-in cabinets. This home has been fully child-proofed and all items can stay or be taken out and repairs made. You will love this home that is nestled in the quiet, gated community of Gainey Ranch. Flat screen and speakers convey with the home!!



Click here for the virtual tour

Tuesday, October 1, 2013

Congratulations to Sandra and Her Family!


In this market of low inventory, it was amazing to find two homes for our clients! Bengt & Lena Ovlinger purchased the perfect home for their daughter, Sandra, and grandchildren, Mia, Charlie & Vivi. It has been a labor of love and a joy to assist such a loving family.

A donation has been made to angel mamas in honor of their new home. To learn more about angel mamas click here.

Friday, September 6, 2013

We Are In A Seller's Market!

WE ARE IN A SELLER’S MARKET

SEE WHY BELOW!
From The Cromford Report

Several writers and commentators in the national media appear to be trying to stoke mass hysteria that the housing recovery is over and done. There is precious little statistical evidence to back that theory and almost none at all here in Phoenix. However, many people are hyper-sensitive to any suggestion of weakness because they remember the last crash so vividly. They don't want to be caught again in the same trap. There is no shortage of pessimists and skeptics who take delight in passing on the media's gloom. In fact, that is often a key identifying characteristic of a market in the early stages of a long term recovery. The facts tell us that the market has cooled over the last 2 months. They also tell us that the housing recovery is still intact.

In the normal world, no market improves every month without a rest now and then. There are always changes going on, and we are way overdue for a cooling off. 

A move towards normality should not be regarded as a sign of impending doom, just a sign of impending normality. 

A move towards normality does not mean prices will come down. Unlike the stock market, prices almost never move downwards in a normal real estate market. Sellers only lower their price expectations when very desperate. Desperate times do occur a few times per century, but they are very rare. For a while in 2004 and 2005 we forgot that they could ever happen. Now the public knows all too well they do and consequently expects prices to drop at any moment, even when it is least likely to happen. From a statistical point of view, any significant non-seasonal downward movement in pricing would be very strange because none of the exceptional conditions that existed in 2005 are true today.

This month we can see a significant cooling in demand, but it is nowhere near large enough to balance with the shortage in supply. So pricing pressure remains firmly upward, albeit less intense. Demand will have to drop much further before there is any likelihood of a change in price direction. Demand is just as likely to firm up again once the surprise of the interest rate changes has been assimilated.

Prices have risen a long way in the last 24 months and it would be very surprising if that didn't take some steam out of the demand.

Sales volume over the last 2 months was fairly strong at 15,310 which compares favorably with 14,803 in the same 2 months of 2012. The sudden spike in interest rates seems to have caused sales to be pulled forward from August giving us a stronger than normal July and a weaker than normal August. If we measure sales by dollars instead of units the numbers are impressive. Home buyers spent $3.6 billion in July & August 2013 versus $2.9 billion in the same two months of 2012. Even with the slump in unit sales in August 2013, we saw buyers spend $1.66 billion versus $1.46 billion in August 2013.

It seems odd to talk of a sales slump when revenue grew by 13.6%, but everyone likes to focus on unit counts. Revenue was improved because prices have increased faster than the unit count has fallen.

There is little change in the supply of new listings. They continue to arrive at close to the lowest level in 13 years, just a tad higher than last year. We still have a chronic shortage of supply. This may surprise many observers who can see clearly that active listings are growing in the majority of areas. There are three effects at work here:

1. Between July and November, the sales rate is always considerably less than rate at which listings arrive (the opposite is true between February and June). This is a seasonal pattern that always appears in Greater Phoenix.
2. Fewer active listings have been going under contract since June - the seasonal fall in pending listings is greater than usual this year, similar to 2010 after the tax credit expired.
3. The 65% drop in completed short sales means listings spend dramatically less time in escrow.

The price range where supply is improving most for buyers is from $300,000 to $599,999. On the other hand, between $600,000 and $1,999,999 supply is now tighter than last year. That part of the market is noticeably stronger than 12 months ago.

So what is going to happen to prices going forward? They are almost certainly going to start rising again. The average $/SF for pending listings and for listings under contract are both moving higher each day now that August is over. (Cromford) expects to see the average sales $/SF move up from $119 per sq. ft. to around $122 per sq. ft. in the next 4-8 weeks. After that the future is uncertain but it would not be a surprise if they hit $125 per sq. ft. by the end of the year.

So what does this mean for buyers and sellers? For sellers, if you list your home, it will sell, most likely within 60 days if it is in a price range where there is still demand, in an area that is still in demand, and in a condition that impresses buyers. For buyers, be willing to open your search into a number of zip codes, be as flexible in price as your situation allows, and be open to improving a home rather than waiting for a perfect, remodeled house. Buyers also need to act quickly when they find the home they want and be open to bringing their highest and best offer to “win” a contract. In summary, we are clearly in a seller’s market!

Friday, August 23, 2013

Good News for Buyers!

You may be able to buy a new home only 12 months after a Foreclosure, Short Sale, or Bankruptcy.

The details:

 FHA is now approving mortgages for borrowers who have experienced an Economic Event* and can document that:

* Certain credit impairments were the result of a Loss of Employment or a significant loss of Household Income beyond the borrower's control;
* The borrower has re-established satisfactory credit for a minimum of 12 months; and,
* The borrower has completed housing counseling.

* An Economic Event is any occurrence beyond the borrower's control that results in Loss of Employment, Loss of Income, or a combination of both, which causes a reduction in the borrower's Household Income of twenty (20) percent or more for a period of at least six (6) months.

If you have specific questions about these new guidelines, just call or email Brian Yampolsky or Joe Ashton at Orion Mortgage.

Brian Yampolsky & Joe Ashton, Co-owners
Orion Mortgage Corporation
11120 N. Tatum Blvd, Suite 100
Phoenix, AZ 85028
602-912-0222 office
e-mail:
info@orionmtg.com

Thursday, August 1, 2013

Interest Rates Seem to Stabilize

VIP Mortgage Market Update

It's been roughly 2 months since the Fed announced that they would scale back Mortgage Backed Security (MBS) purchases later this year and then try to end their MBS purchases in 2014.  That announcement caused interest rates to quickly rise by more than 1%.  For now, rates have seemingly stabilized in the mid 4's on a 30 Year Fixed (although rates obviously vary based on loan program, fico, etc.).  The next big question is "what will happen next with rates?"  No one has that magical crystal ball but most experts agree that the lowest rates are likely behind us.  It seems that the only way that rates would drop back to their previous lows is if the Fed decides to reverse their plans and continue purchasing $85 Billion per month in MBS for longer into the future.  On the flip side, many experts think that we will see another bump upward in rates once the Fed scales back on their MBS purchases later this year and then likely another bump upward once they end their MBS purchases in 2014.  All of that being said, the Fed's plans are always subject to change based on economic conditions so any prediction for the future is just based on the information available today.
Interest Rates as of 8/1/2013

Rates based on a 200k Primary Residence Purchase (unless description below says differently), 740+ Credit, assuming 0% loan origination fee and 0% in buydown "points" (you can also choose to pay "points" and get a lower interest rate).  Please note, this information is intended for Real Estate Professionals.

96.5% FHA 30 Year Fixed = 4.25% (Requires MI)
80% 30 Year Fixed = 4.625%
95% 30 Year Fixed = 4.625% (Requires PMI)
97% 30 Year Fixed = 4.875% (Requires PMI)
80% 15 Year Fixed = 3.75%
90% 2nd/Vacation Hm 30 Yr = 4.625% (Requires PMI)
80% Investment Property 30 Yr Fixed = 5.375%
75% Investment Property 30 Yr Fixed = 5.125%
100% USDA/Rural 30 Yr Fixed = 4.75% (No PMI required)
100% VA 30 Year Fixed = 4.375% (No PMI required)
80% 5 Yr Jumbo ARM = 3.0%
80% 30 Yr Fixed Jumbo = 4.75%

Conventional and FHA Refi's are also available for underwater homeowners

Courtesy of:

Russel Gundlach
Loan Officer
V.I.P. Mortgage, Inc
3131 E Camelback Rd; Ste 224
Phoenix, AZ 85016
Phone: 480-580-9073 | Fax: 602-288-7726 | russelg@vipmtginc.com






Thursday, July 11, 2013

Housing Shortage to Continue!

June is the transitional month where we go from the frenzied buying of spring into the quieter summer months. As if to rub it in, the end of June treated us to some very high temperatures. The housing market does the opposite: it cools off until the outside temperatures drop back below 100 degrees!

The luxury market is the one that takes the biggest hit over the summer (along with the over-55 and vacation homes). People with lots of money tend to find somewhere else to be other than Phoenix. We can see this clearly - in May there were 13 sales of homes over $3,000,000. In June, there was only 1. This is quite normal. The Canadians prefer their summer weather to ours.

Active listings are up slightly but still low: 15,692 versus 12,935 last year - up 21.3% - and up 1.5% from 15,466 last month. We have just 2.2 months supply, including UCB (under contract - backups accepted) listings. If we exclude those UCB listings we have 1.9 months of supply.

We had 8,068 sales in June which can be split up as follows:

  • 184 were HUD sales
  • 512 were REO sales
  • 1,082 were short sales
  • 6,290 were normal sales
Clearly the trend is for the market to go back to predominately normal sales. 

The average days on market for active listings is still up at 109 days, which tells us that the inventory of active listings still contain many homes that are unlovable or over-priced. Attractive homes at realistic prices are few and far between and usually last only a few days before they go under contract.

The number of new listings added in June 2013 was slightly less than June 2012. However, from July through November we should start to see the number of active listings grow. But so far the higher prices have done absolutely nothing to motivate more sellers to emerge. Supply remains very low. 

There are no promising sources of new supply and here is why:
  • Delinquent Borrowers - already back to normal levels of delinquency
  • Pre-Foreclosures - dwindling fast
  • Banks - not going to happen (they hardly have any left)
  • Investors - not going to happen (most homes are leased and appreciating nicely, no good reason to sell now)
  • Ordinary Sellers - many still underwater and those who aren't are scared they won't be able to find a new home because of the short supply
  • New Homes - permits are still being issued at only one-third the normal rate.
We are now seeing what happens when the whole country under-builds dwelling units by about 3.6 million homes over 5 years. The creation of new homes is vastly exceeded by the creation of new households. The disturbance to the market is going to be large and doesn't seem to have been widely appreciated yet. Only the home builders themselves, a few specialist housing analysts and isolated individuals seem to be aware of the enormity of the situation. The general public appears to be focused on relatively minor issues like interest rates, the foreclosure inventory, high unemployment and (especially) investor-owned homes. These may slow down price rises in a few areas, especially those that have no population growth or have been slow to handle their delinquent loans, but most of the country is in for a shock. The home building industry will grow from around 900,000 a year to over 1,500,000 a year just to stop the home shortage situation getting more extreme. That is probably not even feasible with the current construction labor shortages. 

Although we will see a relatively quiet period for the next 3 months, there is still immense upward pressure on pricing due to all the homes that were never built between 2008 and 2013. This effect is starting to hit in areas other than Arizona, especially those with strong population growth rates. California is only just behind Arizona in its speed of clearing up the foreclosure mess and in the urban areas like San Francisco, San Jose, San Diego and Los Angeles they are already starting to see eye-popping appreciation, even greater than the 18% we currently have in Phoenix. We will just have to get used to not being in the spotlight. Our time at the top of the Case-Schiller(R) chart is coming to an end, but home price appreciation is not. 

If you have been considering selling your home, let us run the numbers for your neighborhood. You may be pleasantly surprised to see how much equity you have! With the shortage of homes in all areas, you will be able to sell!

Saturday, June 29, 2013

Congratulations to Our June Buyers & Sellers


Congratulations to Cory & Lisa on their first home in Phoenix! It was all in the timing and the teamwork: found a house in 3 days, dealt with a trip out of the country for 2 weeks, got lender docs to title in time for signings in Ohio and Minnesota, and Cory & Lisa arrived here on the day it recorded! Bless Fed Ex and Docusign!! A wonderful house for a wonderful couple that have been a delight to work with from day one!

Thank you Banner Good Samaritan OGBYN Family for referring Cory and Lisa to us!

   
                                  Kamen Family                                      Secor Family

After two years of waiting for the market to improve, Greg and Ali Kamen were able to put their Desert Ridge home on the market just in time for Rick and Laurie Secor to find it! The next step was selling Rick and Laurie’s home and working with title companies and multiple lenders to create simultaneous closings on both houses while waiting for the IRS to release just one more document to the lender! It came down to the wire, but homes are now secure with the new owners. Our thanks to both couples for their flexibility and understanding. It took a village …….. We wish Rick & Laurie many years of happiness in their new home and Greg and Ali many years of happiness in California!


What does it take to beat out five other offers on a home and not lose it because of an appraisal? Lots of carefully structured talking! Dawn Walhood and Carl Hunt sure found the right agents to accomplish that feat! We are so happy that they have the home they wanted, in the location they wanted, and at the price they needed. Not easy in this dwindling market! Congratulations to a great couple on their home and their engagement! We celebrate both!

Thank you Jim & Jennifer Campbell for referring Dawn & Carl to us!


It is always a joy to help friends sell their home, but also very sad to see Evan, Jo, Kyra & Maya Bookbinder leave Arizona. We are delighted to have been a part of the transition and were thrilled that they were able to experience a sale that had no lender or title issues. It is becoming a rarity these days! Thank you for the years of friendship and we wish you much happiness in Texas. And then come back!!

Cohen Family

Sometimes we are very fortunate and the stars align to allow us to know the perfect couple for one of our listings! Jodi and Adam Cohen contacted us just as we were getting ready to sell Linda Brill's house (after finding her a new home) and voila! So this is a big Mazel Tov to our buyers and our seller for being so wonderful to work with and for making this a smooth transaction!

  

Four years ago we sold a great house to Megan and Barr Peterson as she was beginning her residency and now that adorable house has moved to a new buyer. We are so sad to see the Petersons leave Arizona but we know that they will love California … and then come back! Barr, no one appreciates your sense of humor like we do, except probably Megan!


There’s nothing like love at first sight when it comes to a new home. Jacquie Fernandez found her dream house and it was the only property she had to see. Seller’s first buyer had just backed out and there we were! After pushing to get the information needed from her employer (yea Jacquie!) she was able to close on time and move with her two kitties. And they nearly had a new brother, but that’s another story!

Thank you Nilda Hitchcock for referring Jacquie to us!


Wednesday, June 5, 2013

Congratulations to Both our Buyer & Seller!


Sometimes it pays off to abandon a grocery store in favor of selling a home! By acting quickly, we were able to bring a wonderful match together, Joe Enright as the buyer and Maeve Johnson and Lyle Richardson as the sellers. Joe brought an appreciation for the mountains that had always been meaningful for Maeve and Lyle. And to be able to work with such good friends is always a plus. We made it through all of the hurdles that came at us to get this house closed on time and escrow deposits located! Long story, happy ending … with just a bit more stress than we all wanted. Congratulations to Maeve and Lyle on their sale (and on their daughter’s marriage) and to Joe on his new home!

Monday, May 13, 2013

Housing Crisis is Over! People Have Equity in Their Homes!


WHERE IS OUR MARKET NOW?

Phoenix real estate prices are up an average of 23% from our low in September, 2011. We lead the nation as #1. Behind us are San Francisco, Las Vegas, and Atlanta. From January 2009, listings are down a whopping 90%!

Yet 58% of the public believe we are still in a housing crisis. The majority of people have not yet realized that the crisis is over in most of the nation and definitely over here. Anyone that bought a home prior to 2004 or from 2009-2013 has equity again as long as they did not borrow against that equity.

The luxury market is still lagging behind lower priced homes (anything below $2m) but even Paradise Valley that had a -8% appreciation two years ago is now up 13%. The town has gone from nearly 4 years of inventory to less than 5 months. Once the luxury market comes back strong, the rest of the market will shoot up even faster!

From The Arizona Republic, Saturday May 11, 2013: “Analyst Offers His View of Market”

Tom Ruff has been tracking the Phoenix housing market since the 1980’s and is currently an analyst with The Information Market, a data provider for the Arizona Regional Multiple Listing Service. He wrote for The Cromford Report prior to taking his position with ARMLS.

The paper asked him three questions and here is the summary of his responses:

1. Where do you see home prices heading? His reply includes the fact that we have a huge imbalance between supply and demand. The foreclosures have all but stopped so the banks will no longer be able to bolster our supply with these homes. Builders will not be able to fill the gap any time soon as we have lost a great deal of our work force and infill land is scarce. Over 80% of our closings right now are normal sales. Tom thinks that another 10% rise in home prices in the next year would not be unreasonable.

2. How were you able to tell the height of the boom and the bottom of the market? Tom answered that he analyzed public records data daily but basically it was his gut that told him where the peak was in 2005. He looked at the demand at that time and saw that it was driving the measurable data. He saw that there was a vast spike in California buyers and saw what was happening. He also looked at the buyers’ intended uses of their properties (not as primary residences) to determine where the market was headed. For the low, it was a combination of his data gathering and monitoring the REO and distressed housing levels. The declining of the distressed market indicated that the bottom of the market was approaching. He also watched the so-called Shadow Inventory that never materialized. As normal sales increased, it was only a matter of time for us to get back to a healthy market.

3. What’s going on with foreclosures? Tom feels that we are headed into a market where foreclosures will be lower than they have ever been. He said it won’t be normal, it will be extremely low. We dropped 82% from March to April alone! This drop keeps the pressure on rising home prices as the foreclosures were pulling our market down.

Here is his most critical quote about the housing market:

With the four years’ trends of stringent loan guidelines, higher than normal cash purchases, and two years of rapid appreciation, people who have bought homes during the past four years have equity.  And with equity comes options!

If you have been waiting to sell your home, let us evaluate the prices in your area now. Remember, if you wait for the market to rise more before selling, you will also pay more for your next home. If your goal is to buy up, now is the time! There are more homes in the market priced over $600,000 than below.

Tuesday, April 30, 2013

Congratulations to Our April Buyers & Sellers!


Congratulations to Renee Hanson on her brand new home in Rio Verde. Private, quiet, beautiful views and the perfect floor plan for her. Brand new build and the finishes she wanted. Perfect! Many years of happiness in her pristine desert setting!


When is a dishwasher not a dishwasher? When it turns into a planter sometime between inspection and close of escrow! Gotta love home warranties!! Blessings and good wishes for many years of happiness to Kyle & Caitlin Clark in their charming first home in their favorite neighborhood!

Thank you, David Glassman, for referring the Clarks to us.


Selling Mother’s home is never easy but Sheri Robinson and Chris Benike  did a wonderful job updating and it paid off as they got the highest appraisal for a 2bd 2ba in Villa Antigua! Always a joy to help a friend of so many years and to know that Mom would have loved the new owner! Good job; Mother would be proud of you!

Selling Mother's home took a combined team effort to overcome a stubborn and difficult HOA! With the help of the seller, the buyer, the lender, and another condo owner we were able to close the deal. Thanks to Randy Schaffer for switching lenders and trusting that we could get him this condo! Many happy years to the new homeowner!

And, thank you to Cheryl and Alan Ogilbee for referring Randy to us.




Aunt Mary was watching over the sale of her home and steered a wonderful woman and cash buyer to it before it ever went on MLS! It certainly helped that our seller was so organized that all of the papers we needed for closing were at her fingertips! So glad that we have been able to help such a wonderful family. Friends forever, Rosemary Stralser!

Mazel Tov to Linda Brill for being the perfect buyer for Aunt Mary's house … soon with a new AC but that’s another story! She wasn’t afraid to move quickly to secure this home and her thorough approach made it a smooth transaction for everyone. Now we move forward to sell her beautiful home and it will be a perfect circle!

Thank you, Marjorie Abramson, for referring Linda to us. Namaste.

Monday, April 1, 2013

INTEREST RATE CHANGES AND FHA BUYER CHANGES


There are some financial changes coming that we feel are important for buyers and sellers to know. Interest rates are still low and we have heard from some lenders that there may be another small drop before June or July this year. However, the forecast is that interest rates will begin to rise late summer or early fall. We are getting this information from a variety of good sources so it is something you need to know if you are waiting to buy or sell a home. The prediction is that a 7% interest rate is not far off and no one is sure if the rates will creep up or make a dramatic rise. 

Another change coming is in FHA loans. FHA loans will soon have an increase of their Mortgage Insurance Premiums (MIP). Fannie Mae and Freddie Mac are trying to prevent a federal bailout and have to make more money on their loans. In the recent past, the MIP rates have gone from .55% of the total loan to what will soon be 1.35%. That takes the MIP payment on a $200,000 loan to $134.00/month! In addition, the ability to remove this payment once the owner has 20% equity in the home will no longer be available. The MIP cost will stay with the loan for the entire duration of the loan. Also, the choice to re-fi to get out of the MIP payment once equity is 20% will no longer be a good option if the interest rate jumps as predicted. 

The good news is that right now there are conventional loans that are low down payments like FHA and do not have the MIP insurance attached. As long as the credit score for the buyer is good, these loans can be a much better and lower cost choice! 

If you have been waiting to re-finance, we would advise that you do it now. If you have been waiting to sell the home you are in and then buy a larger home, you may want to re-think the timing. We are in one of the strongest seller’s market we have had in a long time, buyers are plentiful, interest rates are low, and inventory above $500,000 is good for buyers. If the home you are in will sell for under $500,000 and is in a high demand area, it won’t sit for long!

Call us if you want to know more! 


Sunday, March 3, 2013

Congratulations to Our Newest Homeowners!


Congratulations to newlyweds, Dr. Jon and Grace Mellen (and Walli) on their beautifully unique home! Remodeled by an artist with an amazing eye for detail, it is a perfect space for the perfect couple! And thanks to them for hanging in for one of the most stressful races to the recorder’s office to meet the COE deadline that we have ever experienced! A whole 30 minutes to spare! It was truly a team effort!! We wish them a lifetime of happiness in their wonderful home!

Tuesday, February 19, 2013

Congratulations to the Gann Family!



And the wheels on the bus go round and round … as Michael, Addi and Zane head for their new home complete with guest house. Or a garage! Or a guest house! Long story here but we all worked through it together to make their dream happen. We wish Michael and his kids many years of happiness and an easy remodel when the time comes. See you at the bus stop, Michael!!

In honor of their new home, a donation has been made to angel mamas, a 501(c)3 whose mission is connecting mothers to support each other and families in our community.

Monday, February 4, 2013

Market Summary for the Beginning of February!

Here are the basic numbers for February 1, 2013 relative to February 1, 2012 for all areas & types:
(UCB are the homes that are Under Contract, taking Back-ups)

• Active Listings (excluding UCB): 17,573 versus 17,602 last year - down 0.2% - but up 2.6% from 17,121 last month
• Active Listings (including UCB): 21,757 versus 24,762 last year - down 12.1% - but up 3.9% from 20,942 last month
• Pending Listings: 9,523 versus 10,611 last year - down 10.3% - but up 18.7% from 8,026 last month
• Monthly Sales: 5,762 versus 6,377 last year - down 9.6% - and down 15.8% from 6,846 last month
• Monthly Average Sales Price per Sq. Ft.: $108.53 versus $85.07 last year - up 28% - and down 0.4% from last month
• Monthly Median Sales Price: $154,950 versus $120,000 last year - up 29% - and up 1.9% from last month

January is a month unlike any other. Sales are always much weaker than normal, but this January was down nearly 10% compared with last year. The primary reason was a lack of distressed properties to attract buyers with their bargain prices. Normal sales across Greater Phoenix were actually 40% higher than in January 2012. However lender owned sales in Greater Phoenix were down over 50% and short sales were down 42%. Though down from 2012 and 2011, January 2013's sales exceeded all earlier years except for 2005, so remain fairly respectable.

The number of active listings is down 12% from last year, but that is including UCB listings, Excluding them we have almost exactly the same as this time last year. Again the nature of these listing has changed a lot. Within Greater Phoenix:

• Normal listings - up 12.8%
• Lender owned listings - down 15.7%
• Short sale listings - down 53.7%
• Prices have been climbing fast over the last year, but this change in the mix of both supply and sales, has amplified the effect. Prices have actually been relatively stable over the last month. Normal sales took a 65% market share in January (the highest since 2008) with short sales at 19% and REOs at 16%. This represents a slight and temporary recovery in the REO market share from 13% in December, but lenders' small unlisted inventory is declining and there is little likelihood of REOs sustaining January's percentage share. Short sales are dropping surprisingly fast, down from 25% in December and now at the lowest percentage since April 2010.
• The key issue remains - where is the new supply coming from to keep pace with demand? January 2013 saw fewer new listings added to the ARMLS database than in any January since that database was first built in 2000. The weaker sales rate in January disguised this effect but sales will not be weak from now on. The peak buying season is just about to start and we simply have too few homes available.
• The fabled "shadow inventory" is of almost no importance here. If the banks sold their entire unlisted inventory in Maricopa and Pinal Counties at once it would represent no more than 2 weeks' supply and would be quickly absorbed without a hiccup. Builders processed surprisingly few permits for single family homes in December 2012 - just 652 across Maricopa and Pinal. Compare that with 2,805 as long ago as December 1998. and we can see they are going to find it hard to step up production fast enough to meet the supply gap caused by the steep fall in distressed homes. The majority of willing short sellers seem to have already made their move. If we are going to get more supply it is the ordinary home-owner we have to look to, and so far the response to the large prices increases has been pretty tepid. Most of these potential sellers seem to be waiting for prices to go up further before they will consider selling.
• The obvious solution is for prices to rise - this encourages more sellers to list their homes and discourages buyers, especially investors. New homes prices are going to rise anyway. Labor costs are rising due to the shortage of construction workers. Materials costs have been rising at an unusual rate and land costs have been rising even faster. The increase in new home prices in inevitable and creates a vacuum for resale homes to move into. Buyers hoping and waiting for prices to drop back from 2012 levels are likely to be very disappointed. But eventually we will reach equilibrium when prices rise enough to bring supply and demand into balance.

So what do we take from these stats? If you have been in a holding pattern for selling your home, get it listed! If you have been waiting to buy, it’s time to get moving! The market demand is here and the home supply is weak with very few new homes under contract to build. Call us now to get started!

Friday, February 1, 2013

Two Families in Their New Homes in 2013!





Our heartfelt congratulations to Dr. Michelle Jeffries for the successful closing on her new home … in spite of appraiser! After a previous home sale in 2010, a great rental for two years, and an on-going home search, she and Tom finally found the perfect contemporary Zen home with all of the finishes they love. We wish them many years of happiness in their new digs!

Thank you to Dr. Harper Price at Phoenix Children's Hospital Dermatology Dept for the referral.

 

Congratulations to Beverly and Richard Steichen. What a ride! You sold your home in Hawaii in record time, moved in with Kevin and Monica and we set out to find you a home in Sun City. You made it in time for the New Year!

Thank you to Kevin and Monica Patrick for the referral.

Tuesday, January 1, 2013

6 Happy Families for the New Year! Homes Sold...Donations Made.


Our very best wishes to The Sacks Family on their new home in a fabulous neighborhood. Nothing like a little water and mold in the laundry room to liven things up since there is nothing to stress about in home buying! The Sacks’ proved they have great endurance and survival skills when plans run amok! The attached photo shows Ellie and Justin, with Justin inspecting the house to make sure it is good to go!! Many happy years to the entire family, Ellie, Josh, Justin and Leah!



We are so pleased that we have been able to help the children of Helen Kovacich sell their mother’s lovely condo. It is an honor to be able to assist families through the home selling process and remove some of the stress and grief that falls on them when a parent passes away. It has been a labor of love for us and an honor to be able to help Helen’s family. We miss seeing her at the JCC and we wish only the best for the entire family. A special thanks to Marci Sturm for all of her hard work and for representing her siblings so well!



And it’s over! Finally!! We are so happy that past clients, The Freeman Family is out from under the stress of selling their home and are now able to move forward without worrying about a home in another city. It took longer than any of us wanted it to take but the end result has been very positive. A weight has been lifted from their shoulders just in time for the holiday celebrations. We hope they come back to Phoenix soon! Congratulations on a successful sale!!



Our heartfelt congratulations to Vanessa Fonseca and John Gildenstern on the successful and stress-free close on their new home. What a find in the heart of Scottsdale: a perfectly maintained home with receipts, warranties, and all related information organized into one huge notebook! A true move-in ready property for a delightful couple! We know you will have many years of happiness in this home!

Thank you to Dr. Harper Price at Phoenix Children's Hospital Dermatology Dept for the referral.
 
 

Congratulations to Ken Moscow on his new home even though the lamp posts are no longer there! Great neighborhood and enough room for the kids, too. We look forward to celebrating many Shabbats with you, Kate and Jake. We are so pleased that we were aksed to help him through the home buying process and help it move so smoothly.

 

What a year for Mrs. Hildy Forman! A new husband, a fabulous wedding and honeymoon, and a fast sale on her lovely home. The first couple that saw it fell in love and it has been non-stop right up to the closing. And after so many years in her home, Hildy set a new record for packing! Our congratulations to the newlyweds and our best wishes for many happy years together in their new home!

Thank you to Lorrie Cohen for the referral.