August 2011 Real Estate News
What’s the Buzz? We seem to be living in a time of great contradictions... In the midst of some of the best economic news we've had in years (corporate earnings are up, consumer confidence levels are up, home sales are up, bankruptcies and foreclosures are down, first-time unemployment claims are down, etc., etc.), the stock market has decided to do a "belly flop".
And as the best belly flops typically are performed by the most obese divers, so our over-inflated, overweight congress (which can't agree on anything besides "it's someone else's fault") seems to be behind this Olympic-class plunge. Of course, one would have to allow some "credit" to our European Union cousins (notably Greece, Italy and Spain), whose own spectacular dives are also receiving high scores… But right now we're all just hoping that, like most breathtaking belly flops, this one will appear dramatic -- make a big noise, a splash – and then the waters will be calm once again. Housing Numerous industry experts are now going on record to declare that Phoenix’s real estate market, which ranges from residential sectors to commercial lease, is beginning to make a solid comeback. Michael Orr, creator of The Cromford Report which performs in-depth local residential research, indicated that the market could begin to turn around as soon as next year. To support his estimate, current rates of foreclosures are at their lowest level since September of 2007, which is a sure sign of economic recovery after experiencing a nation-wide standstill in 2009. Nationally, new home inventory levels reached another all-time record low last month. New home inventory has now recorded 46 straight months of declines and has not recorded a monthly increase since May 2007. As for mortgage rates, recent instability in financial markets has caused rates to drop rather significantly. 30-year fixed rate averages are down to 4.31%! You can see other rates at the bottom of this newsletter. Change in FHA loan limits In case you missed our mid-month report, FHA loan limits in Arizona are about to change – to the down side. Barring Congressional intervention, we will revert back to limits determined under the Housing and Economic Recovery Act (HERA) – effective on all FHA loans secured or after October 1, 2011. In Arizona, the FHA loan limit will drop from $346,250 to $271,050 – a difference of $75,200. In simple terms, this means if you're looking to buy a home that costs more than $281,000 ($271,050 + 3.5% down payment), you may be out of luck come October 1. If you’d like to know more about this, just drop us a line. This issue of Real Estate News contains articles collected over the past month, relating to both local and national real estate issues. Please keep us in mind with all your Real Estate needs (don’t forget to refer your friends to us). We are always looking for new buyers and sellers, so if you know of anyone planning to buy or sell a home, we would appreciate you pointing them our way! And be sure to watch for our detailed statistics for the local real estate market mid-month! ~Bonnie & Chuck Kennedy In this edition:
Pending Home Sales Turn Around
Investors Driving Phoenix-Area Home Sales to Record Levels According to DataQuick, Phoenix-area home sales rose in May, when resales of single-family houses hit the highest level for that month in six years amid near-record levels of investor purchases. Click here for complete article.
Phoenix big on investment housing, with many renters PHOENIX -- Phoenix is among the nation's top 10 places to buy rental property, according to property investment and real estate firms, and experts say rental property probably will stay red hot until the housing market recovers. Click here for complete article.
Phoenix area housing market gaining ground, new data show
Phoenix real estate market starting to stage a comeback
Chandler planners see new homes, subdivisions on horizon
Ahwatukee housing market may be improving Those trying to sell a home in Ahwatukee Foothills have no need to fear as long as they have the right price. Click here for complete article.
Anthem Real Estate Records Being Set If you were to buy a home in Anthem last month, you had only 146 to choose from and 126 buyers to compete with. This represents just over a one-month inventory. A very different game—one that more closely resembles—remember the days?—the frenzied pace of 2005. Click here for complete article.
“Normal” Home Prices are Stabilizing Prices of "normal" homes—those that aren't foreclosures or short sales—are stabilizing and the numbers of future foreclosures are falling. That "sliver of good news for consumer spending" was included in CoreLogic's July report on housing and market trends. Click here for complete article.
Mortgage Rates U.S. averages as of August 1, 2011: 30 yr. fixed: 4.31% 15 yr. fixed: 3.48% 30 yr. jumbo: 5.00% |
||
July 5, 2011—Pending home sales rose strongly in May with all regions experiencing gains from a year ago, pointing to higher housing activity in the second half of the year, according to the National Association of REALTORS®. 
Frenzied home-sales activity in June proved earlier speculation about a third dip in metro-Phoenix home prices to be untrue. The median price of an existing home in the region climbed to $118,950 last month, after hovering at a real-estate crash low of $115,000 for six straight months, according to the Information Market, a realty-data company. 
When will the Phoenix real estate markets return to normal? Either 2013 or 2014, according to several residential and commercial real estate experts who presented their opinions at Real Estate Forward, a forum sponsored by the Arizona Regional Multiple Listing Service in conjunction with the Phoenix Business Journal.