Last week, The National Association of REALTORS® reported that existing home sales – which include single-family, townhomes, condominiums and co-ops – increased 3.6 percent to a seasonally adjusted annual rate of 4.89 million units in June.
This is third consecutive month that NAR has reported an increase in existing home sales. Lawrence Yun, NAR’s chief economist, added that “We expect a gradual uptrend in sales to continue...”
Home prices edged up almost 4 percent between May and June of 2009, due to repeat buyers purchasing at higher price points, and distressed properties accounting for a smaller percentage of sales (33 percent of sales, compared to 45 percent the month before).
Bank owned homes are selling now for well above list prices! Buyers should not be sitting on the fence any longer, they should be buying today if they want to take advantage of the affordable prices while they can and to take advantage of the buyer incentives being offered. If first-time homebuyers want to take advantage of the tax-credit, they need to act now. The tax credit is ending November 30, 2009.
Call My Arizona Home Team if you are interested in purchasing a home (480) 330-6242. We can help!
With summer break nearing an end for most Valley children, here are just a few ideas to relieve some of the back to school stress!
Back on schedule
The night before the first day of school is not the time to try to re-introduce back to school bedtime! You should start now getting the kids to bed earlier and up earlier. It will make their life and your life much easier in the weeks and months to come!
Buy a family calendar
Life during the school year can get very hectic and stressful. A family calendar can help ease the stress. We all have our electronic calendars but a print-version hung in a central location is the way to go when trying to organize the entire family. Buy one of the large desktop calendars with big boxes for dates. Assign a different color marker or pen for each family members activities. When someone wants to schedule a sporting event, after school activity or family outing, everyone will be on the same page!
Make a checklist before shopping
August is the second busiest shopping month of the year. Make yours a little less stressful by taking a day to go through the kid’s drawers and closets and making a checklist of the clothing items that they really need to start the school year.
School supply lists can be found in several of the big box stores. Get the supply shopping done as early as possible because these items move quickly off the shelves as the first day of school approaches! Stock up for the entire school year while the prices are low!
Make sure your paperwork is in order
Call your child’s school now to ask what immunizations they need to start the school year. You may also need school records from previous schools to start at a different one. Make sure that your documentation is in order to prevent last minute running around.
No more morning madness!
Plan ahead to prevent the chaos of a getting ready for school by starting the night before. Make sure clothes are picked out, lunches are made, permission slips signed and homework is checked in the evenings. Showering or bathing the night before is also a time saver.
Homework first!
Many times kids will come home from school, turn on the TV and they are trapped in TV Land. Good luck getting them to shut off their favorite show right in the middle to get homework done! Start the school year with a new rule: No TV until homework is completed and checked. Many children have trouble working in silence so turn the radio on low to a smooth, calming station or put in a CD with “white noise”. Children retain more information without the interference of loud background noise.
Dinners in snap
Take some time to plan out your family dinners for the week. If time permits, take a day to put together enough make-and-freeze dinners for 2 weeks. You can make double batches of meatloaf, spaghetti sauce, pork chops, etc. And then mix and match as you need them. Label with the name of the dinner and the date you made them so that they don’t go to waste. These types of dinner should last for up to 30 days in the freezer.
Crock pot cooking is also a great time saver for parents. Pick up a crock pot cook book, sit down with the family and choose a few recipes that everyone will enjoy.
Incorporating even a few of these ideas should not only relieve back to school stress but should also allow for some healthy, quality family time throughout the entire school year!!
Existing-home sales in the West improved by 6.4% to an annual rate of 1.16 million in June, and are 11.5% higher than June 2008. The median price in the West was $214,800, which is 24.9% below a year ago.
Read more: http://rismedia.com/2009-07-23/signs-of-change-existing-home-sales-rise-36-in-june/#ixzz0MCg4YIHK
Now is the time to buy, give us a call today! 480-889-1424
Thinking of visiting an open house or two this weekend?
Because not all real estate agents host open houses in the same manner, you can't always be certain who will answer the door. It could be the listing agent, a neighbor, a buyer's agent or even the seller. One thing is for certain. You do not need to ring the door bell or knock, unless there is a sign posted instructing you to do so. Open the door and walk in. If you don't see an agent, call out "hello," just in case the agent is, um, otherwise occupied in a private room.
Here are types of agents you may encounter:
• Standing at the front door to greet you. This type of agent will shake your hand, introduce himself or herself, get your name, hand you a flyer and say, "Go on through at your own pace." The agent might even follow you to point out features and answer questions you didn't realize you had.
• In the driveway, asleep behind the wheel of her car. This agent might leave the door ajar and never get up to greet you. Free free to go inside anyway. Make a note of the agent's name and promise yourself you will never call this company nor the agent.
• Reading a book in another room. The non-engaging type agent will say, "There is information on the counter. If you have any questions, let me know." Generally, this is an agent who didn't really want to hold open the home but is doing it so she can tell her seller she did.
When visiting open houses, Realtors are required to ask if you are working with an agent, if you are it is best to have them with you, or at least provide the information of who is representing you. Many people will stop at open houses including people on a whim and neighbors. Either way most agents should welcome everyone, the more the merrier.
I recently saw an ad on one of our local stations for a product from Safewire Energy that I thought I'd check out. It claimed to save as much as 25% or more off the typical electric bill in the Phoenix area. The savings could be more in the summers. So I checked out the site, www.safewireenergy.com, and it seems to be a great product with great reviews. If you go to the site you will find a link to the investigative "Deal or Dud" report. Seems to be a rather remarkable product that really works! Such a deal!
And while we're at it, this morning we were at Encanterra, the premier community in the southwest if not the nation. This is the most energy efficient community, probably in the nation. How would you like to have a power bill... in the summer... in Phoenix, for $1.71!!!! This could happen to you if you built a home in this magnificent subdivision. How can this be? Shea homes is currently offering incredible incentives on these homes that include power generating roofing systems that actually allow you to sell power back to the electric company. Imagine your meter spinning backwards! Call us for the details in this incredible community. Want to try it out for a few days? We can arrange that as well. A 2 bedroom fully furnished home can be rented for 4 days and 3 nights for only $199 including other amenities as well.
Please join Ben Leeson and Todd Menard for a Field Trip to Encanterra by Shea Homes. This community has been the recipient of numerous Eco-Friendly awards and offers one of the most state-of-the-art construction technologies in the country! This is open to any and all real estate agents of any brokerage.
Thursday, July 23rd, 2009 (9:15am – 12:00pm)Please be on-time!
-Begins with a presentation and short video in the Clubhouse Theatre
-Introductions to Solar Electric Generating System, Satellite Controlled Yard Watering System, Solar Powered Attic Fans, Low VOC Paints and Green-labeled Carpeting, Low-e Glass and Wood from Eco-friendly Lumber processing and numerous other NEW construction techniques
-Tour a home under construction (Hard Hats Provided) and see these systems and materials exposed!
-Learn how to explain the Feature-Benefits of these NEW construction techniques and more
-Plus! Learn about the Community of Encanterra itself and its numerous amenities
-Tour the Models… the Superintendents and Sales Associates will be on hand for questions.
A Special Gourmet Lunch is provided by Chef Brandon of Café Solaz! So RSVP IS MANDATORY!
Giveaway – (2) Sets of Golf two-some Certificates will be awarded.
RSVP by Monday July 20th!
-Leah Hamman (480)330-6242 cell, email: hamamnteam@cox.net
Here are suggestions on saving money on gas prices:
1. Always keep your car tuned up and in good repair. We've all seen cars driving down the road that leak gas -- what a waste! A poorly tuned car can use up to 25% more gas.
2. Avoid buying higher octane gas than your car requires. Higher octane gas is more expensive, and if your car doesn't need it, you're wasting money.
3. Keep your tires properly inflated. This can make a huge difference in your gas mileage -- up to 6% loss for every single pound your tire is under-inflated. Check your tire pressure frequently, especially if your tires have a tendency to lose pressure.
4. Consider getting steel-belted radial tires, since they can pay for themselves over time. They can increase gas mileage up to 10%.
5. Remove snow tires after the winter season, since they require more fuel.
6. Don't carry unnecessary items in your car. Every 250 extra pounds eats up an extra mile per gallon. Another good reason to clean out the trunk...
7. You might want to buy your gas at the wholesale clubs, like Costco and some Sam's Clubs. You can often save over 10 cents a gallon. Or, if you don't like the wholesale clubs, get a gas credit card. You'll get a 1% to 5% discount when you buy that brand of gas.
8. Save money with self-service whenever possible. And pay cash if there is an extra charge to use a credit card.
9. Don't let your car idle, either when you warm it up or when you are at a standstill. If you're going to be standing for more than a minute, running your engine wastes more gas than restarting the engine.
10. Buy gas when it's cooler during the day (like the early morning or at night) to reduce gas evaporation.
11. This surprises a lot of people, but don't over-fill your gas tank. You don't want the gas to slosh out or evaporate.
12. This is probably obvious -- but slow down. Most cars are less efficient at higher speeds. You'll save 2 miles per gallon driving 55 mph rather than 65 mph. That adds up.
13. Another obvious suggestion is to drive less. Combine errands, carpool, and plot out your route beforehand to avoid backtracking whenever possible.
14. Develop good driving habits. For example, accelerate gently, maintain a steady speed rather than speeding up and slowing down, and avoid slamming on the brakes.
15. Keep your windows closed when driving on the highway. Open windows can reduce your gas mileage by as much as 10%. In stop-and-go traffic, open the windows and turn off the air conditioning to save money.
16. Rent fuel-efficient cars when you travel. Research and find reasonably priced places to buy gas before you leave, especially if you'll be driving a lot.
Hurry! To take advantage of the tax credit for first time home purchase, you must be in your new home by Nov. 30, 2009!
The $8,000 tax credit for first-time home buyers should entice some first-time home buyers to “jump-in” and buy a home.
*The borrower must agree to homeowner counseling by a DOJ approved debt counseling agency
*Available only to first-time home buyers
*The tax credit is not a loan and does not require repayment(If the home is sold within 3-years, the $8,000 tax credit must be re-paid)
*The tax credit reduces the home buyer’s tax liability; if the buyer’s liability is less than $8,000, the remaining credit will be issued as a check
*Home purchase must be for a primary residence
*The credit is available on home purchases between January 1, 2009 and December 1, 2009
*If you are single and make $75,000 or more, or are married and make $150,000 or more, you do not qualify for the tax credit
*The credit is not eligible if the seller is a relative of the buyer
If you or anyone you know might be interested in this incredible opportunity to purchase a home, please contact a member of My Arizona Home Team for more details!!
Why purchase a Foreclosure?
There are many advantages to purchasing a Foreclosure. Although they may seem difficult--both to locate and to execute the transactions--the potential to either turn them over for a nice profit or find a good deal on a home is definitely there. Since a bank or other lender wants to recover as much of its investment as quickly as possible, foreclosed homes are often unloaded at significant discounts—sometime as much as 30 percent or more. Banks are not structured to own property in great quantity, so foreclosed properties are considered assets in distress. In our real estate market today there are currently thousands of foreclosed homes and it is expected that more than a million foreclosed and distressed properties are going to hit the market nationwide before the end of this year. Best of all, you should be able to buy a bank-owned property with a traditional mortgage.
Why chose My Arizona Home Team?
Potential buyers should not gamble when buying a foreclosed property. It is important that you find an agent that is experienced in foreclosures. In certain cases there are sellers who won’t accept offers from unrepresented buyers. Our Real Estate Consultants ensure that purchasing a foreclosure is an easy process and give you peace of mind. With our extensive background and access to current foreclosures and pre-foreclosures, you can expect the best source of information which allows you to move quickly when a home becomes available.
This past week, there was news that perhaps the government's Fannie Mae and Freddie Mac refinancing program may begin refinancing mortgages with loan-to-value ratios above 105 percent as the Obama administration seeks to boost participation in its anti-foreclosure programs.
"We're actively considering how to structure a program that makes sense over 105 percent," Federal Housing Finance Agency Director James Lockhart said. He said a ratio of 125 percent "is a number" that's on the table, though "not necessarily the number we're going to end up with."
This would be an expansion of President Barack Obama's Home Affordable program announced Feb. 18, sought to help homeowners who may owe more on their mortgages than their homes are worth. No word was given at to when the loan-to-value ratio could be raised.
Home Affordable has been "seeing a slowdown" as mortgage rates increase, Lockhart said. The average rate on a typical 30- year fixed loan was 5.38 percent last week, according to Freddie Mac. The rate is up from a record low of 4.78 percent at the end of April.
The program applies to mortgages that meet Fannie Mae and McLean and Freddie Mac's conforming loan limits. That cap is $417,000 for some areas and as high as $729,750 for the 250 most expensive real estate markets.
Under the program, borrowers with loans owned or guaranteed by Fannie Mae or Freddie Mac who have loan-to-value ratios of 80 percent to 105 percent and aren't delinquent can refinance without buying mortgage insurance, or paying for more insurance than they already have.
Expanding the program to a 125 percent loan-to-value level may benefit additional borrowers that have loans backed by Fannie Mae or Freddie Mac. Fannie Mae and Freddie Mac own or guarantee more than half of the single-family mortgages in the U.S.
Lockhart also said yesterday that his agency, the companies' regulator, is looking at ways for Fannie Mae and Freddie Mac to help the so-called warehouse lending market, which provides financing to smaller, independent mortgage companies, amid a credit crunch.
While Fannie Mae and Freddie Mac are prohibited by law from lending directly to other firms, Lockhart said they may be able to provide the market some liquidity by committing to purchase multifamily and other loans.
As more information is released on this initiative and others we will continue to provide updated information.
Below is a chart detailing the months of home inventory.
Questions? Give us a call today! We would be happy to help!
One simple way to reduce the cost you spend each month on hot water starts with washing your cloths.
Unlike dishwashers, clothes washers don't require a minimum temperature for optimum cleaning. Therefore, to reduce energy costs, you can use either cold or warm water for most laundry loads. Cold water is always sufficient for rinsing.
Inefficient clothes washers can cost three times as much to operate than energy-efficient ones. Select a new machine that allows you to adjust the water temperature and levels for different loads. Efficient clothes washers spin-dry your clothes more effectively too, saving energy when drying as well. Also, front-loading machines use less water and, consequently, less energy than top loaders.
Small-capacity clothes washers often have better EnergyGuide label ratings. However, a reduced capacity might increase the number of loads you need to run, which could increase your energy costs.
If you want to ensure that your new clothes washer is energy efficient, purchase one with an ENERGY STAR label.
The Clock Is Ticking...
Important Dates Home Buyers Need to Know About
"There's no place like home," so the famous saying from The Wizard of Oz goes. And this year, that saying applies to many new home owners, as first-time home buyers (FTHBs) have accounted for 53% of total residential real estate purchases during parts of 2009. For those of you who have already bought a home, congratulations. For those of you still waiting, this is a call to action: It's time to get moving.
While it's true that the best environment home buyers have ever seen may have been from January to late May of this year, outstanding opportunities still exist for those who act soon. If you are planning to buy a home, there are important dates on the calendar that you need to take note of so you can act accordingly. These dates represent money-saving opportunities for consumers.
We May Never See Rates This Low Again
Beginning in late November last year, 30-year fixed rates plunged into the mid 4.0% range. So what prompted this precipitous decline? The Federal Reserve announced that they would start purchasing mortgage backed securities (MBS) issued by Fannie Mae, Freddie Mac and Ginnie Mae. The Fed made this decision because there was a lack of liquidity and buyers in the fixed income securities market. By becoming a buyer for the securities that determine interest rates, the Fed helped lower rates to stimulate the economy by absorbing supply not picked up by others in the markets.
Following the announcement by the Federal Reserve, home loan rates immediately responded, falling a full percentage point. When the buying started, home loan rates fell even more, sparking a frenzy in refinancing and buyers seeking financing.
However...and here's what you need to note...this program implemented by the Federal Reserve has a deadline! That deadline is December 31, 2009. And as the Federal Reserve has been the primary buyer for MBS, purchasing up to 85% of all MBS since March, the impact to rates when the program ends could be as dramatic as when the program was announced. This means that interest rates could conceivably rise to well above 6.00%.
In the month leading up to the announcement, interest rates had been exceptionally volatile, peaking on some days near 7.00% for a 30-year fixed rate loan with no points and fees. This kind of volatility often happens when investors are reluctant to purchase MBS and trading volumes in securities are light, causing rates to rise quickly if investors demand a higher return for their investment.
While the final impact to interest rates will have to play itself out, one thing is certain: without the Federal Reserve as a primary buyer of MBS, home loan rates could be primed for a spike if other investors do not pick up the slack that could result in 2010.
It is unlikely that interest rates will return to the sub-5.0% range again this year. Why? The purchase and refinance mortgages that have already occurred this year were packaged into Mortgage Backed Securities after they closed and were sold on the secondary markets. This added supply to the markets and the new Bonds simply outweighed what the Fed had allocated to buy. Still, the Fed's program is helping slow down the rate increases we are seeing...but remember; their program is due to end on December 31. That's why now could mark the lowest rates that will be seen for some time to come.
Would You Like $8,000? Buy a Home. Soon!
To stimulate the economy, Washington juiced up the stimulus plan passed last year in February. Two benefits for FTHBs were that the amount of the tax credit was increased from up to $7,500 to $8,000. And, more importantly, the amount of the credit does not have to be repaid!
To qualify for the credit the individuals buying a home cannot have owned a home in the last three years. So, while the credit is discussed as a credit for first-time buyers, anyone who has not owned a home in the last three years is eligible.
There are income limitations to fully qualify but they are quite liberal. Single tax filers earning up to $75,000 and joint filers earning up to $150,000 based on modified adjusted gross income can earn the full credit. A partial credit is available for those earning up to $95,000 and $170,000 respectively.
The amount of the tax credit is based on a percentage of the price of the home, specifically 10% of the purchase price, up to $8,000. This means if someone purchases a home for $70,000 their credit would be $7,000 and if the amount of the home purchased is $100,000, the credit would max out at $8,000.
Note! The deadline to take advantage of this opportunity is November 30, 2009. Close in December, and you just lost $8,000.
Homes Have Never Been More Affordable
FTHBs are leading the way, taking advantage of one of the best home buying opportunities ever, providing support for the real estate market. As indicated earlier, FTHBs have accounted for as much as 53% of purchases for any month this year.
Who can blame them? In short, no one. Home prices have fallen to levels not seen in years and interest rates hit their lowest point ever. This combination led to the highest home affordability ever recorded.
The National Association of Realtors® tracks what is known as the Home Affordability Index. The Home Affordability Index is arrived at as a function of both median home prices, available interest rates, and median family income.
The index represents the amount of monthly income that is required to pay a mortgage payment. In 2005, approximately 23.3% of a family's monthly income was required to carry a mortgage payment. With falling home prices and interest rates, the percentage of monthly income required to pay a mortgage payment is now approximately 15%.
This means that for a family at the median income level purchasing a home priced at the median income level, the monthly mortgage payment has declined nearly 36%! This is great news for anyone shopping for a home today.
Get Busy, Time is Short!
In order to take advantage of both the available tax credit and low interest rates, anyone going into contract should strive to have their purchase agreement not later than mid-October. This will allow some time cushion in the event anything pops up in the purchase process and still allow for closing in time to take advantage of the available tax credit.
Home prices have fallen to levels not seen since the start of the decade in many parts of the country, interest rates are still near all time lows, and the availability of free money from the IRS all mean that the time to act is now. It is always easy to look back and identify times people should have acted, and this could well be one of those times people will look back and say, "Wow, I should have bought a home in 2009!"
A is for Adult: Adults need to have constant eye-to-eye contact with children around all forms of water (pools, bathtubs, buckets, toilets, canals, etc…) More than two thirds of children who drown in Arizona were not even expected to be near the pool. A toddler can drown in as little as 2 inches of water. Always, make sure you designated an adult to watch children when they swim in the pool.
B is for Barrier: Supervision is critical but can sometimes fail. To prevent a drowning, multiple barriers should be placed between kids and water. Barriers can include pool fences, alarms, door and window locks that are out of children's reach, and self-closing, self-latching hardware on doors. Barriers around other forms of water include lids on buckets, locks on bathroom doors and toilet locks.
C is for Classes: For adults, this means CPR classes taken regularly to keep your skills fresh; for children at the appropriate age, this means swimming and water safety classes. Every family should learn what to do in an emergency.
Be safe this summer and practice the ABC’s of water safety!
Escape to Rocky Point Mexico, a quick 3 1/2 hour drive from Phoenix. You deserve a weekend getaway and what a great way to beat the Arizona heat! Bask in the clear ocean waters of Sandy Beach, collect sea shells with your kids, lounge on the lazy river all day......Your vacation options are limitless in Mexico at the best resort in Rocky Point, Las Palomas! Visit www.HammanVacations.com for more details, pictures, and bookings.
While the overall housing market isn't on the upswing, these metros show long-term potential. According to a recent Forbes article, the top 10 cities in the U.S. to buy a home are:
1. Denver
2. Boston
3. Phoenix
4. San Diego
5. Los Angeles
6. St. Louis, Mo
7. Tampa
8. Philadelphia
9. San Francisco
10. Washington, D.C.
• Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their homes. Recognize and avoid common scams.
• Assistance from a HUD-approved housing counselor is FREE.
• Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.
• Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house.
• Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
• Never make a mortgage payment to anyone other than your mortgage company without their approval.
Chances are, as a seller, you want your home to sell quickly and for the best possible price. The key to making that happen is first, to price your home competitively, and then, make the best possible first impression on a potential buyer – realizing that in the current market, buyers have lots and lots of inventory to choose from.
Effective staging begins with the mindset that once your home is on the market, it’s no longer really “yours.” Potential buyers want to walk in and picture themselves in your home. They don’t want to see your family pictures, evidence of your travels and your hobbies, and certainly not your clutter. Anytime I begin the process of helping sellers stage a home, I recognize that they’ve probably spent several years decorating and filling it with their unique tastes in furniture and home décor to make it home their own. Sometimes staging requires undoing some of that.
Keep in mind that staging starts at the street, if a buyer were to drive by your home, what would their first impression be? Make sure your landscaping is inviting. Paint and plants are key to curb appeal. Trim trees and shrubs so that would-be buyers can see your home clearly, and it looks like it has been well maintained.
As for your home’s interior: embrace the 3Ps – 2Fs Formula: plantings, paint, pictures, fixtures and furnishings.
The entrance to your home says a lot. Be sure to make this first impression a pleasant one. The proverbial “Welcome Mat” is a great start. As the buyer moves into the other areas of your home, the most important thing that you can do is to make sure that you’ve removed all clutter, and cleaned out your closets.
Especially if you live in a small home, you want to convey that there is plenty of room, and clutter conveys the opposite message.
This can mean taking down any personal photos, rearranging or removing furniture to increase the feel of spaciousness, or simply exchanging any unnecessary knick-knacks for candles, books, or other simple items that don’t draw too much attention to themselves. I’ve heard some of my previous clients describe living in a staged home as “hotel living.”
Staging is simply an act of accentuating the value of your home based on first impressions.
While it might seem time consuming on the front end, chances are that a well-staged home will sell quicker and help you to get where you want to be much sooner.
