Yost Realty Group
Displaying blog entries 11-20 of 208
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®.
http://www.realtor.org/rmodaily.nsf/pages/News2011062901
Phoenix-area housing market shows signs of price stability
In the latest S&P/Case-Shiller report, the Phoenix area was one of the best performers with regard to the most recent month-over-month price change measured by the Case-Shiller study, from February to March. The Valley's median home-resale price decreased 0.5% during that one-month period, making it the fifth-best metro area in terms of price retention. The Phoenix area's recent performance boost in home-value retention reflects that prices have essentially stabilized since January, local analysts said.
Metro Phoenix's homebuilding market is on the second step of a five-phase recovery process, according to one of the nation's top housing analysts.
During a Wednesday Urban Land Institute panel discussion on the future of homebuilding, California-based real-estate consultant John Burns laid out the five stages the current market must go through to rebound: job growth, reduced housing vacancies, a market in which demand exceeds supply, increases in rents and home prices, and then, finally, new construction.
According to ForeclosureRadar.com, Notice of Trustee Sale filings were down 27.9 percent in April 2011 from the prior month, falling to the lowest point we've seen since we began tracking Arizona in August 2009, and down 41.5 percent from the same time last year. There was a similar dip in foreclosure sales, with a 22.2 percent drop in sales Back to Bank and a 15.4 percent decline in Sales to 3rd Parties month-over-month. Cancellations rose 18.8 percent month-over-month, which together with the drop in filings led to 10.6 percent fewer properties Scheduled for Sale.
http://www.foreclosureradar.com/arizona-foreclosures
Foreclosure activity in the US has fallen to it lowest level in 40 months, according to RealtyTrac. The company's foreclosure market report for April shows that filings-including default notices, scheduled auctions, and bank repossessions-were reported on 219,258 properties last month.
http://www.dsnews.com/articles/foreclosure-activity-at-40-month-low-realtytrac-2011-05-11
Statistics for the end of the first quarter of 2011 show some dynamic improvement in supply and demand. Compared to just six months ago (Sept 2010) a whopping 46% more homes closed escrow in Casa Grande, 74.7% more have a pending sale and there are 12.5% less homes for sale! We've known the market is improving, despite the media's continued insistence that there is more "shadow inventory" to come on the market. That is partially true, in our opinion, although we see more emphasis by the banks on keeping people in their homes, and definite improvement in the short sale approval process. With this added emphasis on foreclosure being a last resort, we believe the potential for shadow inventory (many more foreclosures) may actually be less than predicted. We've seen a dramatic improvement in the time and procedures for short sale approval, and we can attribute that to both the banks getting more efficient and our experience and improved systems for short sale approval. We also were surprised to see the average price per square foot increase almost $5 for closed sales from February to March 2011.
If you are buying a home, these statistics may indicate that you have less inventory to choose from than in previous months, and you are competing with more buyers for the same home. There may not be as much negotiating room as in recent months.
If you are selling a home, these statistics mean there may be more potential buyers who will consider purchasing your home. While we wish we could say this means rising prices, there hasn't yet been enough of a pattern for us to say that prices are rising. Statistics are important and we are definitely watching them with interest!
More good news! March home sales in Phoenix area the most in 66 months.
http://www.bizjournals.com/phoenix/news/2011/04/07/march-home-sales-in-phoenix-area-the.html
I found an interesting video regarding three very important reasons to act now in purchasing a new home in the current real estate market. Click Here to view the video.
It happened again today. I spoke to another person who abandoned a home because they thought they would lose it to foreclosure. I understand the hopes and dreams they had as new homeowners are dashed by the economic challenges of this market, and they may feel as though they have no other options. In reality, it may take months for the home to actually be acquired by their bank and in the meantime neighborhood home values will be negatively impacted as landscaping dies, the pool turns green and weeds grow in the yard of this abandoned home.
If a homeowner is struggling financially or feels desperate because their mortgage balance exceeds current market value, abandoning their home is actually the last thing they should do. Contrary to popular belief as well as the folks who answer the phone at the mortgage company, lenders do not want to foreclose on their property. I know of homeowners who haven’t made a mortgage payment in over a year who are still in their homes.
Many people erroneously believe that if they miss a mortgage payment the bank will foreclose and this means that they and their belongings will be thrown out into the street. Arizona law protects homeowners by giving them a minimum of 90 days legal notice before the actual trustee’s sale takes place. And that notice of foreclosure (which starts the 90-day time period) usually won’t begin for months after the first monthly payment is missed.
As in every natural and manmade disaster, there are those individuals and companies who find a way to prosper in the face of others’ distress. I’ve spoken with countless homeowners who have paid companies thousands of dollars to help them modify their loans, seek short sale approval or induce them to sign over their property with the ability to rent the property until some future date when they can purchase it again. The federal government has laid out guidelines and provided financial incentives to mortgage companies to assist borrowers with loan modifications and foreclosure alternatives, such as short sales, at no cost to the homeowner. I repeat: There is no need to pay anyone money to participate in the HAMP loan modification and HAFA foreclosure (short sale) programs and the federal government actually pays the lender money for successful assistance to homeowners under these programs. The truth is that participating in these programs requires unending patience, a lot of financial disclosure and paperwork, and can take months to complete.
Some lenders have actually taken a proactive approach to the challenging real estate market and have streamlined their short sale procedures to the point where approval can be obtained in as little as 10 days! More lenders are watching these pilot programs, with the goal of adopting similar procedures in the coming months.
Rather than moving out of their home while wading through the paperwork and procedures involved and taking on another housing expense in the form of rent and moving costs, financially distressed homeowners are far better to remain in their homes, even if they are unable to make their scheduled mortgage payments.
The real estate market has changed from the skyrocketing appreciation Arizona experienced in the 2002-2005 years, and it will probably never return to those crazy days. The only way for the market to stabilize is to stop foreclosures and the further value declines they create in our neighborhoods.
There are many Realtors who have been extensively trained in dealing with the banks and negotiating short sales, which is convincing the bank to accept a loan payoff which is “short” of the full balance owed. If you or someone you know is having difficulty making their payments or finds their loan balance is so much larger than their home’s current market value, interview Realtors to find someone who has been extensively trained and certified in this specialty, doesn’t charge a fee up front, and who has a track record of successfully closing short sales. Short sales have been called “the brain surgery of real estate” and while I would seek a family doctor for treatment of the flu, I would seek out a skilled brain surgeon with a successful track record if I needed that type of treatment. We have created a Web site full of helpful information for distressed homeowners at www.CasaGrandeShortSales.com.
If you or someone you know is in trouble with your mortgage or property value, please don’t abandon your home. It doesn’t help you, your lender or your neighbor’s home values.
Its true! Short sales can be frustrating, difficult, require mounds of paper and followup, and take months for approval. However, we've seen a definate trend with lenders understanding the problem of reduced property values, and making strides to streamline the process. In fact, some lenders have begun pilot programs where the main requirement for approval is that your property value is less than the current mortgage balance(s). We have recently become aware of a few lenders who will approve a short sale in just a few weeks, not require mountains of paper and will approve the short sale based only on the mortgage balance/market value difference. Lenders processes are changing all the time with an effort toward streamlining their systems, and that is great news for those of us in Western Pinal County in Arizona. Call or email us today to find out if YOUR lender is one of the forward thinking ones who are approving short sales faster and without the hardship or payment delinquency requirements.
Unfortunately, most short sales can take 3 to 4 months for lender approval, which means it is even more important to get your home on the market now so that the potential buyer has enough to time close escrow before the expanded first time homebuyer and repeat homebuyer tax credit deadlines become an issue. There is a great misconception that listing your home during the holiday months of Nov and Dec is a waste of time. Nothing could be further from the truth, especially with the expanded home buyer tax credit!
The new laws require a signed purchase contract before the end of April 2010 with closing occurring before the end of June 1020. If you think that you may be a good candidate for a short sale, get your home on the market with a broker who is highly experienced with successful short sales as soon as possible! As CDPE's (Certified Distressed Property Experts) we understand the process needed to stop the foreclosure action by your lender. Wouldn't be nice to know your family could enjoy the holidays without worrying about a possible foreclosure?
For more information about the short sale process, visit our website at www.CasaGrandeShortSales.com
Displaying blog entries 11-20 of 208
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