And Now April Existing Home Sales are UP!!!

We saw that March had an increase from February sales.  Now April has seen a 13% increase from March sales.  There were 4783 existing home sales in April.  This is really good news.  Combine that news with the fact that the number of homes currently in escrow is close to 8000 means May looks to have at least as many sales as April.  I believe we will hit 5000 homes sales in May.  Right now Inventory is at 54716 with 49% of those properties sitting vacant.  We have just under 12 months of inventory.

I believe the bottom is here for Metro Phoenix.

[digg=http://digg.com/business_finance/April_Existing_Home_Sales_Up_Phoenix]

 

March Existing Home Sales are WAY UP!!!

It will be 15 days before you hear the “official” numbers from Arizona Association of Realtors, but you can say you heard it here first.  March existing home sales are up, WAY UP!!!  There were 4200 existing home sales in March which is an increase of nearly 34% over February’s sales.  The bigger news is that the number of homes currently in escrow is close to 7000.  This means that within the next 45 days or so most of these properties will be closing escrow.  If the number of homes in escrow stays consistently at or above about 6500 the monthly sales figures should remain brisk at over 4000 per month.  If all things continue along as they are now, April existing home sales will hit at least 4700.  Even though inventory is still hovering at 56000, months of inventory is now at 13 months and should shrink to 12 months by the end of April.  

Have we hit the bottom?  Can’t say yet, but we should know soon.

Stay tuned….

Lenders altering rules for credit

The article, Lenders altering rules for credit, from the Arizona Republic, reports that banks and lenders are rapidly changing their requirements for loans as home sales and prices fall and delinquencies and defaults rise. To adjust their standards, which many critics say grew too lax in the middle of the decade, lenders now are raising minimum credit scores, offering smaller loans and requiring detailed proof of income and assets.
For those who do meet the tightened criteria, a new plan announced Tuesday by the Federal Reserve to provide $200 billion to the financial-services sector should mean there is plenty of money available for borrowers and lower interest rates, said David Wyss, chief economist at Standard & Poor's. In early 2007, customers with credit scores in the low 600s would be able to receive a mortgage with no down payment and by simply stating their income. Today, a credit score below 680 is a red flag that subjects a prospective homeowner to higher rates and special fees.  Read the entire article to find out more.

Older Homeowners Cautioned On Use of Reverse Mortgages

The Financial Industry Regulatory Authority urged homeowners over the age of 60 to carefully weigh their options before tapping into their home equity through reverse mortgages to obtain additional income for their retirement years.

The group, formed by a merger of the NASD and some regulatory functions of New York Stock Exchange parent NYSE Group Inc., warned that a reverse mortgage -- an interest-bearing loan secured by the equity in a home -- can jeopardize their financial futures.

With a reverse mortgage, a bank makes payments to a homeowner instead of the homeowner making payments to a bank. The loan is repaid, with interest, when the borrower sells the house, moves out or dies. Reverse mortgages have high fees -- typically about 7% of the home's value -- and they make it difficult for homeowners to leave the property to their heirs.

Read the whole article at realestatejournal.com.

 

A Good Time to Buy a House If You Can Afford One

For years rapidly rising prices kept many first-time home buyers out of the housing market. But as home values slide further downward and interest rates hover at relatively low levels, it may be time to start looking to buy that first house.

That is, if you have a secure job, can afford higher down payments than were required a few years ago and can meet lenders' much stricter income and credit requirements.

Also, don't assume the seller is even in the right ballpark with his asking price. Most real-estate agents and sellers only look at comparable sales prices, or "comps," of similar homes in similar neighborhoods. Take a lesson from property investors and appraisers instead and check out prices from other angles as well.

 

To read the whole article go here

Arizona banks join 'Lifeline' to aid homeowners

White House effort will give homeowners at risk of foreclosure a 30-day reprieve.

 

If you are a homeowner and you have a loan with one of the following banks:

 

Bank of America, Chase, Citigroup, Countrywide Financial, Washington Mutual or Wells Fargo

 

AND you meet the following criteria you may be able to get a temporary reprieve from foreclosure proceedings:

 

□          90 days or more overdue on payments

□          have not filed for bankruptcy protection

□          don't have a foreclosure date set within the next 30 days

□          haven't vacated the property

□          haven't used your loan to fund investment property or vacation homes

 

Read the article at:

http://www.azcentral.com/realestate/articles/0213biz-lifeline0213.html

Stimulus plan also sparks housing market

This article from CNNMoney.com, reports that the economic stimulus plan announced by Congress last Thursday includes provisions that specifically address the mortgage crises. The package proposes lifting the dollar amount of loans that are eligible for purchase by Freddie Mac and Fannie Mae to $625,000 for 12 months, up from the current $417,000, and then raiding it to $725,000 permanently.  “This will have a big, immediate impact, especially in California where sales have been down most significantly,” said Lawrence Yun, chief economist for the National Association of Realtors (NAR). Yun added, “There’s a lot of pent-up demand in the market. This will boost confidence among these potential buyers, and some of the people on the fence will start buying.”

 

Read the whole article here.