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RE/MAX Preferred Professionals
2916 Stockton Hill Road
Kingman, AZ
928-718-7629

Property

Housing passes a milestone

Thursday, July 19th, 2012

The housing market has turned—at last.

The U.S. finally has moved beyond attention-grabbing predictions from housing “experts” that housing is bottoming. The numbers are now convincing.

Nearly seven years after the housing bubble burst, most indexes of house prices are bending up. “We finally saw some rising home prices,” S&P’s David Blitzer said a few weeks ago as he reported the first monthly increase in the slow-moving S&P/Case-Shiller house-price data after seven months of declines.

Nearly 10% more existing homes were sold in May than in the same month a year earlier, many purchased by investors who plan to rent them for now and sell them later, an important sign of an inflection point. In something of a surprise, the inventory of existing homes for sale has fallen close to the normal level of six months’ worth despite all the foreclosed homes that lenders own. The fraction of homes that are vacant is at its lowest level since 2006.

The reduced inventory of unsold homes is key, says Mark Fleming, chief economist at CoreLogic, a housing data-analysis firm. For the past couple of years, house prices have risen in the spring and then slumped; the declining supply of houses for sale is reason to believe that won’t happen again this year, he says.

Builders began work on 26% more single-family homes in May 2012 than the depressed levels of May 2011. The stock of unsold newly built homes is back to 2005 levels. In each of the past four quarters, housing construction has added to economic growth. In the first quarter, it accounted for 0.4 percentage points of the meager 1.9% growth rate.

“Even with the overall economy slowing,” Wells Fargo Securities economists said, cautiously, in a note to clients, “the budding recovery in the housing market appears to be gradually gaining momentum.”

read full article by clicking link below:

http://online.wsj.com/article/SB10001424052702303644004577520414196790098.html#articleTabs%3Darticle

Bill Aimed at Helping Underwater Homeowners Gains Support

Thursday, July 21st, 2011

By: Krista Franks of dsnews.com

The Helping Responsible Homeowners Act (S. 170), which aims to help underwater homeowners refinance their loans at historically low interest rates, is gaining support.

Sen. Barbara Boxer (D-California) says her bill, which was introduced in January, is now being co-sponsored by Sen. Johnny Isakson (R-Georgia) who previously ran one of the largest independent real estate brokerages in the country.

The Helping Responsible Homeowners Act would eliminate current barriers blocking millions of non-delinquent homeowners from refinancing their mortgages at historically low interest rates.

The refinancing options Fannie Mae and Freddie Mac currently offer these homeowners come with high, up-front, risk-based fees – up to two percent of the loan amount – making them largely unpopular.

The proposed legislation would eliminate these fees for loans for which Fannie Mae and Freddie Mac already bear the risk.

The bill also aims to remove refinancing limits on underwater mortgages and allow these homeowners to receive interest rates comparable to other borrowers.

While mortgage rates remain historically low – below 5 percent – more than 8 million homeowners with loans guaranteed by Fannie and Freddie maintain rates at or above 6 percent.

Several industry groups and professionals have also endorsed the bill, including the National Association of Mortgage Brokers, the National Consumer Law Center, the California Association of Realtors, the California Association of Mortgage Professionals William Gross, managing director and co-CIO of PIMCO, and housing economist Thomas Lawler.

“The time to help struggling homeowners is now – while interest rates remain at near-historic lows,” Boxer said in a press conference call.

“This legislation would help millions of responsible homeowners who are making their payments, but are still struggling to make ends meet,” she continued. By helping these homeowners refinance at lower rates, we will put thousands of dollars back in the pockets of families and strengthen our economy.”

Ronald Phipps, president of the National Association of Realtors also spoke in strong support of the bill. Mark Zandi, chief economist at Moody’s Analytics was also on the press conference call.

Today’s Mortgage Rates

Monday, June 20th, 2011
The current interest rates shown below are based on a purchase of a single-family, primary residence. For current refinance rates, use our Calculate Rates & Payments Tool.
 
Interest rates displayed below require that you pay 1% of your loan amount toward the loan origination charge.1
For information on the many other loan options that are available, contact Wells Fargo.

as of 06/20/2011 12:00 PM Eastern

Product Interest Rate APR
Conforming 1and FHA Loans
30-Year Fixed 4.500% 4.686%
30-Year Fixed FHA 4.375% 5.385%
15-Year Fixed 3.750% 4.069%
5-Year ARM 2.750% 3.083%
5-Year ARM FHA 3.250% 3.236%
Larger Loan Amounts in Eligible AreasConforming and FHA.1
30-Year Fixed 4.500% 4.634%
30-Year Fixed FHA 4.500% 5.466%
5-Year ARM 3.125% 3.167%
Jumbo1 Loans – Amounts that exceed conforming loan limits1
30-Year Fixed 5.000% 5.138%
5-Year ARM 3.375% 3.255%

 

Foreclosure Hot Spots

Monday, June 20th, 2011

Not surprisingly, the most foreclosure sales are being posted in boom-and-bust areas of the West.

Sales of properties with foreclosure filings accounted for 53% of all residential sales in Nevada during the first quarter, the highest of any state, but down from 59% in the first quarter of 2010. Because so many of the sales there are foreclosures, and have been for so long, the discount rate is declining, Sharga says, reaching 18% in the first quarter.

California foreclosures accounted for 45% of all residential sales during the first quarter, up from 43% in the previous quarter, but down from 48% at the same time last year.  The average foreclosure property in the Golden State sold for 34% less than the average price of homes not in foreclosure.

Foreclosures made up 45% of all residential sales in the first quarter in Arizona, down from 50% the previous quarter, and 47% in the same period a year earlier. Foreclosures here traded for a 25% discount to the average traditional listing.

Other states where foreclosures accounted for at least one-quarter of all sales were Idaho, Florida, Michigan, Oregon, Virginia, Colorado, Illinois, Georgia and Ohio.

The biggest discounts on foreclosure properties were in Ohio and Illinois, where foreclosures traded at an average 41% discount to the average nondistressed listing.

Original Article By: Melinda Fulmer of MSN Real Estate

Current Market Trend

Tuesday, June 14th, 2011

Survey shows Americans Are Increasingly Confident about Homeownership

Brookfield Real Estate and Relocation Affiliates Inc., owner of the Prudential Real Estate franchise network, recently released the quarterly Prudential Real Estate Outlook Survey showing that Americans’ confidence in homeownership and real estate continues growing  from the first quarter and a year earlier.

Signs of growing confidence are widespread, according to the national survey. For instance:

Brookfield Real Estate and Relocation Affiliates Inc., owner of the Prudential Real Estate franchise network, recently released the quarterly Prudential Real Estate Outlook Survey showing that Americans’ confidence in homeownership and real estate continues climbing from the first quarter and a year earlier.

Signs of growing confidence are widespread, according to the national survey. For instance:

• 69 percent believe that real estate is a good investment despite the market volatility of the past few years, up 6 percentage points from the first-quarter 2012 survey and 17 percentage points from first quarter 2011.

• 72 percent expressed confidence that the real estate market and property values will improve during the next two years, including a 6-point jump among those “very confident” or “confident” vs. the first quarter 2012, and a 14-point gain in this subset over first quarter 2011.

• Nearly two-thirds (64 percent) of respondents have a favorable perception of the U.S. housing market, up from 60 percent in first quarter 2012 and 52 percent in first quarter 2011).

“The American Dream is clearly on the mend,” says Earl Lee, president, Prudential Real Estate. “Americans are feeling better about homeownership and the ongoing recovery taking place in residential real estate. Many are increasingly optimistic about their personal circumstances and, with housing affordability near all-time highs, they want to act on the opportunity.”

Inmformation from: http://rismedia.com/2012-07-11/survey-shows-americans-are-increasingly-confident-about-homeownership/

Today’s Mortgage Rates

Monday, May 16th, 2011

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Today’s Mortgage Rates

Wednesday, May 11th, 2011

(more…)

Pending Home Sales Continue Recovery, Gradual Improvement Seen in 2011

Thursday, January 6th, 2011

The Pending Home Sales Index

Lawrence Yun, NAR chief economist, said historically high housing affordability is boosting sales activity. “In addition to exceptional affordability conditions, steady improvements in the economy are helping bring buyers into the market,” he said.

The PHSI in the West the index jumped 18.2 percent to 123.3 and is 0.4 percent above a year ago.

“If we add 2 million jobs as expected in 2011, and mortgage rates rise only moderately, we should see existing-home sales rise to a higher, sustainable volume,” Yun said.

For perspective, Yun said that the U.S. has added 27 million people over the past 10 years. “However, the number of jobs is roughly the same as it was in 2000 when existing-home sales totaled 5.2 million.

“All the indicator trends are pointing to a gradual housing recovery,” Yun said.

Existing-home sales are projected to rise about 8 percent to 5.2 million in 2011 from 4.8 million in 2010, with an additional gain of 4 percent in 2012.

~ Original Article Written by: Walter Molony

Why It’s Safe to Buy Homes Again

Tuesday, January 4th, 2011

By Anthony Mirhaydari

MSN Money

It’s no secret: We’ve just been through an economic nightmare.

But that’s old news. And many, including value investor and hedge fund operator Bill Ackman of Pershing Square Capital, who made billions shorting housing-related bond insurer MBIA (MBI, news, msgs) in the last days of the boom, are now calling for its resurrection.

In a leaked research report titled “How To Make A Fortune,” Ackman doesn’t just say the path to wealth through homeownership has been restored. He says this road has seldom been easier.

Why it’s time to buy

Basically, the bull’s case as outlined by Ackman can be boiled down to a few simple bullet points:

  • Home prices are at their lowest valuation in at least a generation.
  • A large number of forced sellers gives buyers negotiating power.
  • Attractive, low-rate financing.
  • Still favorable long-term supply dynamics as the U.S. has one of the best demographic outlooks in the developed world.
  • Housing is an out-of-consensus idea that is under-owned by institutional investors.

The most important factor is affordability.

With home prices down by nearly one-third from their high, housing affordability as calculated by the National Association of Realtors has moved to the highest levels since the recordkeeping started in 1971.

Go-Green & Save Money

Thursday, August 12th, 2010

Here’s a room-by-room guide to saving money and benefiting the Earth while still enjoying some summertime fun.

By Kimberly Palmer and Maura Judkis of U.S. News & World Report

Throughout the house: “Make sure your house is leak-free,” says Ronnie Kweller, spokeswoman for the Alliance to Save Energy, or else “nice, cold, expensive air is going out the cracks.” You might want to consider assigning this task to a professional. Through the Energy Star online directory, you can find a local auditor who will use diagnostic equipment to test your home for areas where air conditioning might escape. Your auditor will probably do what’s known as a blower door test, which lowers the air pressure in your home and reveals leaks. He or she may also take a photo of your house with a thermographic camera; the red areas of the photo will indicate where better insulation and sealing are needed.

If you don’t want to shell out money for an energy auditor, you can perform a casual energy audit yourself. Efficiency experts recommend feeling around baseboards, windows, doors, light switches and electrical sockets for air leaks. Air can escape or enter anywhere that two different building materials meet. Kweller also recommends walking around your house with incense to see if the smoke blows in when you pass windows. Kweller says old wooden windows are especially prone to this kind of leakage.

If you find problem areas, seal with foam or caulking, which you can find at a hardware store. Insulation that meets certain efficiency criteria is eligible for federal tax credits. Kweller says properly sealing your house can save up to 20% on your utility bill.

Using a programmable thermostat so that the temperature automatically rises when no one is home during the day can yield annual savings of about 30%, Godwin says. While about 25 million households own programmable thermostats, only half of those people take advantage of them.

Replacing older light bulbs with compact fluorescents not only reduces your electricity bill, it can help save energy on air conditioning since fluorescents generate less heat, Kweller says. She estimates that each bulb can save about $50 over its lifetime.

In the living room: There’s nothing wrong with hosting movie nights this summer, but make sure you shut your entertainment center down when the evening’s over. Simply turning off a television set doesn’t put a stop to so-called “vampire power” — the power that devices consume even when they’re not in use. That’s why you should either unplug your electronics or use a Smart Strip, which cuts power when it’s not needed.

If you’re in the market for a new television, check energy-efficiency ratings. The Energy Department bestows its Energy Star rating to sets that use about one-third less energy than regular televisions. In general, LCD televisions use less energy than plasma screens, but both use more than older sets.

Remember to turn the power off or unplug your digital photo frames when you’re not gazing at those illuminated photos. Over a year, leaving one on costs about $9 — not a lot, but when thousands of people are doing the same thing, it adds up.

In the kitchen: Baking a cake or casserole in the summer will force your air conditioner to go into overdrive. Plus, eating hot food will only make you want to turn the thermostat down. But you don’t have to survive on cold pasta salads and gazpacho this summer. Instead of using your oven, consider an outdoor grill or toaster oven for small amounts of food.

If you’re up for a challenge, try baking cookies on your car — yes, your car. Nicole Weston of the “Baking Bites” blog developed a method of baking cookies with the heat that collects inside cars on steamy days. She suggests parking in the sun, using a thermometer to help monitor the temperature, and protecting your dashboard by putting a barrier between it and the baking sheet. (It should be at least 95 degrees outside and the baking takes around 2½ hours.)

In the bathroom: If you don’t want to spend money on a low-flow toilet, you can still make yours more efficient by dropping a soda bottle filled with sand or water into the tank. It will use less water each time it flushes. Ivan Chan of carbonfund.org adds that small steps such as turning the water off while brushing your teeth or shaving can save a substantial amount of water (and money on your water bill) each year. He also recommends installing a water-conserving shower head.

In the bedroom: Stay cool while you sleep with an overhead fan instead of pumping air conditioning throughout the entire house. Shutting the doors and vents of unused rooms can also lighten the load on your air-conditioning unit.

Outside: A way to reduce cooling costs in the longer run is to plant trees or shrubs so that your house is more shaded, especially on the sunnier side, Kweller says. (For a quicker fix, draw the blinds or shades when you’re not home.)

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