October 2011 Real Estate News What’s the Buzz? Nationally, new home sales in August were essentially flat from the previous month to a seasonally-adjusted annual rate of 295,000 units. Here in the Phoenix area homes sales (all types) were up nearly 3% from July and up 26.5% from this time last year. Active Listings (including AWC): 26,820 on September 1 - down 3.5% from August 1 and down 37% from this time last year (about 3 months of inventory). “AWC” stands for “Active With Contingency”, meaning that there is a sales contract on the home, but some condition has not yet been met (i.e., bank approval, etc.). Active Listings (excluding AWC): 19,216 on September 1 - down 4.8% from August 1 and down 47% from this time last year. As of September 29, Active Listings (excluding AWC) were down to 15,241. At the current pace of sales, that represents less than 2 months of inventory – a ridiculously low number. If supply continues to fall, and demand remains relatively steady (or even increases), sooner or later prices will go up. Just a thought… Had Enough Yet? Over the past couple of months, the stock markets have closely resembled an exciting roller coaster ride. Most 401K portfolios have been hit pretty hard. And most “experts” predict that the next several months will feature a very rocky, unstable market, at best. Maybe it's time to think about a different investment strategy... Real estate is generally considered one of the safest investments you could make right now, and may well produce very attractive returns over the next 10 years. Many books have been written by people who have made fortunes in real estate. They did by investing in a market like we are seeing right now! Income properties can offer as much as 8% to 10% annual return on a relatively low-risk investment, plus potential tax advantages as well as long term capital gains. If you are interested in learning more, please contact Bonnie or Chuck with The Kennedy Group, and we will be happy to answer any questions you may have. 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!
In this edition: · Phoenix new home sales up 26 percent in August · August Existing-Home Sales Rise Despite Headwinds · Sales of foreclosed homes in SE Valley down from last year · How to Predict Local Home Prices · Phoenix-area home prices to hit a decade low · Mortgage Rates Again Fall to Record Lows · Current Mortgage Rates Phoenix new home sales up 26 percent in August New-home sales improved in August, according to the Phoenix Housing Market Letter produced by RL Brown Reports. There were 632 new closings in August, compared with 500 in August 2010. Click here for complete article. August Existing-Home Sales Rise Despite Headwinds Existing-home sales increased in August, even with ongoing tight credit and appraisal problems, along with regional disruptions created by Hurricane Irene, according to the National Association of REALTORS®. Monthly gains were seen in all regions. Click here for complete article. Sales of foreclosed homes in SE Valley down from last year A couple of statistics from August seem to be good news for the housing market in Maricopa County. "The market is actually in better shape than most people realize," according to Mike Orr, a Mesa-based housing-market analyst who publishes the Cromford Report, an online analysis of real-estate transactions. Click here for complete article. How to Predict Local Home Prices You’re about to put an offer on a home, but you’re worried that prices will sink and you won’t get the best deal. You’re putting your home on the market and you want to get the most you can for it but you can’t wait forever to sell it. You’ve found a great deal on a foreclosure that looks like a great investment, but how will you know what will it be worth a year from now? Wouldn’t it be nice if you had more than a guesstimate to guide you as you make one of the most expensive decisions in your life? Click here for complete article. Phoenix-area home prices to hit a decade low The Phoenix area's median home price is likely to fall to a decade low of $100,000 in November, according to a predictive indicator of future home prices based on current pending home sales. The Arizona Regional Multiple Listing Service Pending Price Index is based on pending sales in the multiple-listing-service database, where most, but not all, Phoenix-area homes for sale are listed. Click here for complete article. Mortgage Rates Again Fall to Record Lows Mortgage rates fell once again, to the lowest point on record, according to mortgage rate research website, ForTheBestRate.com. Rates for a 30 year fixed rate mortgage were advertised as low as 3.875% (APR: 4.040%, Lender: LoanDepot) on Thursday, September 8th. Pricing this low for residential home loans is unprecedented, and while it reflects the weakness of the US and global economy, represents a huge opportunity for home buyers and current mortgage holders. Click here for complete article.
U.S. averages as of October 1, 2011: 30 yr. fixed: 4.01% 15 yr. fixed: 3.36 % 30 yr. jumbo: 4.82% |
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Mortgage Rates