Posts
Thursday, February 26, 2009
FHA loan limits raised!
FHA loan limits increased this week to $346,250, up from from $271,000. This will allow buyers to utilize loan programs with lower down payments on higher purchase prices.
Saturday, February 21, 2009
Obama & Arizona - proposed new plan to improve valley real estate conditions
As President Obama came to town on Wednesday an eager and subdued crowd awaited his plan to stabilize valley housing prices and pull us out of a continual downward slide of values.
The 3 main areas that were covered:
- a $75 billion homeowner stability initiative that could help 4 million at-risk borrowers.
Homeowners would have reduced payments in layers as a result of interest-rate reductions and government buy downs. Ideally the payments would get down to 31% of a borrower's income. If borrowers can manage this and stay current they could also qualify for $1,000 a year in government principal subsidies for five years.
- a refinancing push, opening this line to 5 million homeowners with Fannie Mae or Freddie Mac mortgages nationwide who cannot take advantage of low interest rates because their equity has dropped below or never reached the 20% mark. This would be an easy way to immediately lower payments to borrowers.
- through government investment, the position of Fannie & Freddie would strengthen. This would allow the firms to take on more mortgage debt. The plan also calls for more streamlined loan-modification guidelines for borrowers.
Should one of these proposals work, that could help stabilize home prices and provide a much-needed boost in the outlook many seem to hold of the current state of affairs in the real estate and mortgage markets.
-
The 3 main areas that were covered:
- a $75 billion homeowner stability initiative that could help 4 million at-risk borrowers.
Homeowners would have reduced payments in layers as a result of interest-rate reductions and government buy downs. Ideally the payments would get down to 31% of a borrower's income. If borrowers can manage this and stay current they could also qualify for $1,000 a year in government principal subsidies for five years.
- a refinancing push, opening this line to 5 million homeowners with Fannie Mae or Freddie Mac mortgages nationwide who cannot take advantage of low interest rates because their equity has dropped below or never reached the 20% mark. This would be an easy way to immediately lower payments to borrowers.
- through government investment, the position of Fannie & Freddie would strengthen. This would allow the firms to take on more mortgage debt. The plan also calls for more streamlined loan-modification guidelines for borrowers.
Should one of these proposals work, that could help stabilize home prices and provide a much-needed boost in the outlook many seem to hold of the current state of affairs in the real estate and mortgage markets.
-
Mortgage rate dips
The average 30-year fixed mortgage rate fell to 5.04% from 5.16% this week over last, according to Freddie Mac on Thursday
Saturday, February 14, 2009
January - by the numbers
4847 vs 2963 - units sold in '09 vs. '08
73% of home sales were under $200,000, up from 70% in December. 15% were $200k-300k. 12% were over the $300k mark.
Median sales price $131,500, down 53% from June' 06 at $280,000.
In the city of Phoenix bank-owned foreclosures represented 41% of all active listings, yet 80% of the homes that sold!
Short sales are becoming more out of favor, as buyers' frustration with the time element increases and concern about whether the listed price means anything, evidenced by listings representing 23% of available inventory yet only 14% of actual sales. Average price per square foot of listings is $99/sf, compared to closed sale price of $109/sf, so buyers are paying an extra $15,000 over list price for short sales by the time the bank responds back with a price approval.
Normal sales are 36% of listings and 7% of total sales.
Nationally 860,000 homes were repossessed last year, double the rate of foreclosure over 2007. Over 1 million homes are expected to be foreclosed upon in 2009.
73% of home sales were under $200,000, up from 70% in December. 15% were $200k-300k. 12% were over the $300k mark.
Median sales price $131,500, down 53% from June' 06 at $280,000.
In the city of Phoenix bank-owned foreclosures represented 41% of all active listings, yet 80% of the homes that sold!
Short sales are becoming more out of favor, as buyers' frustration with the time element increases and concern about whether the listed price means anything, evidenced by listings representing 23% of available inventory yet only 14% of actual sales. Average price per square foot of listings is $99/sf, compared to closed sale price of $109/sf, so buyers are paying an extra $15,000 over list price for short sales by the time the bank responds back with a price approval.
Normal sales are 36% of listings and 7% of total sales.
Nationally 860,000 homes were repossessed last year, double the rate of foreclosure over 2007. Over 1 million homes are expected to be foreclosed upon in 2009.
Friday, February 13, 2009
Foreclosures continue to increase
Foreclosures were on the rise in January, after banks took a break over the holiday season to repossess homes. Many experts believe foreclosure activity will reach its peak this year, as values continue to decline and another wave of consumer-unfriendly mortgages reset to higher payments.
The number of home sales increased by nearly 50% in the single-family market over the previous January. The foreclosures that have been driving up sales in the last several months have created opportunities for many buyers. Rates are definitely still on the way up - the median sale price last month was $136,000 in Maricopa County, which is a 44% drop of $243,000 from the previous January. Prices fell 7% from December, and in the last 2 months we have seen a high volume of closings selling for disproportionally low prices, pulling down the median home price valleywide
The number of home sales increased by nearly 50% in the single-family market over the previous January. The foreclosures that have been driving up sales in the last several months have created opportunities for many buyers. Rates are definitely still on the way up - the median sale price last month was $136,000 in Maricopa County, which is a 44% drop of $243,000 from the previous January. Prices fell 7% from December, and in the last 2 months we have seen a high volume of closings selling for disproportionally low prices, pulling down the median home price valleywide
Sunday, February 8, 2009
$15,000 Tax Credit Proposal
A stimulus amendment that could actually stimulate the housing market!
The senate said yes to one of the best proposals we've seen to date that can actually make an immediate difference in our housing market. Now, let's see how the house and new President respond.
The credit would be for 10% of the purchase price of a house, up to $15,000. The credit would spread over 2 years - $7,500 the first year and $7,500 the second year. Unlike the $7,500 first time home buyer "credit" (which is actually not a credit, but an interest free loan), this real credit would not have to be paid back. Remember a credit is a dollar for dollar addition to your refund, or will offset taxes owed directly to the federal government.
As proposed, the credit would apply to any house purchase - including investors, first-time buyers, and trade-up buyers, among other classes.
The senate said yes to one of the best proposals we've seen to date that can actually make an immediate difference in our housing market. Now, let's see how the house and new President respond.
The credit would be for 10% of the purchase price of a house, up to $15,000. The credit would spread over 2 years - $7,500 the first year and $7,500 the second year. Unlike the $7,500 first time home buyer "credit" (which is actually not a credit, but an interest free loan), this real credit would not have to be paid back. Remember a credit is a dollar for dollar addition to your refund, or will offset taxes owed directly to the federal government.
As proposed, the credit would apply to any house purchase - including investors, first-time buyers, and trade-up buyers, among other classes.
Fannie Mae Raises Limit to Number of Properties Investors Can Purchase
Lending giant Fannie Mae announced on Friday, February 6th they’re lifting the 4 property rule limit as of March 1, 2009. The Fannie Mae Policy Change will allow qualified investors to finance more than 4 properties. Under the previous guideline investors could only finance 4 properties, which meant a seasoned investor with 5 properties, great credit and documented income could not finance an investment property. Well today that has changed. Although the LTV is only 70% this is still a huge stride in the right direction allowing investors to capitalize on this market.
Wednesday, February 4, 2009
Wholesale cash flow property for $35,000
Property is located at 43rd Ave & Thomas. Wow, cheap!
1305 square feet - 3 bed/2 bath/1 car garage and built in 1958 - needs paint, flooring in one room, broken window fixed, and landscaping. Will sell quickly. Cash or hard money only. Home will rent for around $800/month. Call Matthew at 602.332.3321 for entry.
Subscribe to:
Posts (Atom)