Happy New Year! January 2011
What’s the Buzz? What a year! Even though the recession is technically over, it’s been a crazy year for real estate.
Here’s hoping that 2011 will be a “kinder, gentler” year…
Market Snapshot With many sectors of the economy recovering, consumers are feeling more confident. Year-to-date, the economy has added 87,000 jobs per month (on average). That number is still low when compared to past recoveries, but nonetheless signals an improving economic picture. Unfortunately, this new found confidence is causing inflation fears. These fears are triggering higher interest rates and ultimately higher borrowing costs for real estate investors. Those who’ve been waiting for prices to fall further may see the cost of financing now becoming a barrier to entry. Over the past month, interest rates have jumped to around 5% on 30-year fixed mortgages, marking the highest rates since May as reported by Freddie Mac. 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, please point them our way!
In this edition:
Another boom coming for Arizona December 20, 2010 – Real estate expert and economic forecaster Elliott D. Pollack said on Friday that the worst phase of the downturn is over for the greater Phoenix area, including Pinal County, but that recovery will be slow. “2012 and 2013 will be a hell of a lot better than 2011,” Pollack told a group of 200 or so government officials, developers, financiers and other business people at the Pinal County Partnership's annual economic forecast. “And 2011 will be a hell of a lot better than 2008 and 2009. By 2014 and 2015, you all will have big smiles on your faces again.” Click here for complete article.
Commercial real estate could rebound in 2011 December 23, 2010 – Cassidy Turley/BRE Commercial in Phoenix has released its 2011 Forecast Report for metro Phoenix, and the tone is modestly upbeat. The key to the future is affordability, as values reset in the new economy and Phoenix once again becomes increasingly attractive. Click here for complete article.
Consumers start to feel better It is in our nature to be dubious about predictions of better economic times ahead, especially when so many ominous signals suggest otherwise. But even after loading on the shovels full of caveats – yes, the U.S. unemployment rate remains high; yes, Arizona's vital construction and real-estate industries look moribund well into the future – some glimmers of hope are flickering back to life. Consumer confidence nationally is on the rise, resulting in some better-than-expected holiday sales receipts, at least early on. Click here for complete article.
Arizona sets another foreclosure record in 2010 PHOENIX – Arizona will close out 2010 with a record number of home foreclosures, marking the third straight year of staggering growth for bank repossessions. From January through November, 65,911 Arizona homeowners lost their houses to the mortgage holder, 12 percent more than were taken in all of record-setting 2009, according to foreclosure listing firm RealtyTrac Inc. Banks and loan companies were on track to take thousands more homes in December. Click here for complete article.
Fewer U.S. Homeowners Underwater on Their Mortgage RISMEDIA, December 15, 2010—The number of homeowners in the U.S. who owe more on their properties than what those homes are worth has declined steadily for most of 2010, according to Santa Ana, Calif. research firm CoreLogic. But the drop in properties with negative equity has more to do with troubled borrowers losing their homes to foreclosure than an increase in prices. About 10.8 million, or 22.5% of residential properties with mortgages were in negative equity positions at the end of the third quarter. That is down from 11 million, or 23%, in the second quarter. Click here for complete article.
Arizona's Economy: Recovery at a Glacial Pace Arizona's economic recovery will continue to move at a glacial speed in 2011 – but at least it's moving. The coming new year will see an increase in job creation, a rise in population and even a modest increase in single-family home permits. But the consensus among economists at today's 47th Annual Economic Forecast Luncheon, co-sponsored by the Department of Economics at Arizona State University's W. P. Carey School of Business and JPMorgan Chase, is that Arizona's recovery will continue to be far less robust than economic rebounds of the past. Click here for complete article.
The Role of Short Sales in a Tough Housing Market RISMEDIA, December 7, 2010—The term short sale has virtually become a household word in the last couple of years as home values decrease and countless homeowners face financial difficulties. But, what does the term short sale really mean and why is it important to us all—whether we are facing financial difficulties or not? Click here for complete article.
Economic and Housing Outlooks Brighten According to Fannie Mae Analysis Group RISMEDIA, December 28, 2010—Improvements in consumer spending and consumer confidence, increased demand for goods and services, and falling unemployment claims are all positive factors for a brighter outlook as we move into 2011, according to the December 2010 Economic Outlook released today by Fannie Mae’s (OTC Bulletin Board: FNMA) Economics & Mortgage Market Analysis Group. Downside risks still exist, however, including a weaker than expected employment report, the ongoing economic turmoil in Europe, and potential inflation problems in China. Click here for complete article.
U.S. averages as of January 1, 2011: 30 yr. jumbo: 5.54% |
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Another boom coming for Arizona
Mortgage Rates