Have you ever had one of those phone calls that make you shake your head indisbelief? I had one this afternoon. A local home buyer called wanting a"short sale expert" to help her buy a short sale property.
I asked her why a short sale? Her reply was, "because they are greatdeals. I can get a home for really cheap."
I then asked her why she thought short sales were better deals thatnon-distressed listings and her reply was, "Because I have seen thelistings".
She hung up on me while I was explaining that a list price is notnecessarily the price a lender will accept for a Short Sale and that ShortSales are not a "steal of a deal" but that lenders will want fair marketvalue for these homes.
This conversation made me realize just how uneducated the public and manyRealtors are on the topic of Short Sales.Here is food for thought:
1. The short sale listing agent may not be listing the property at arealistic price for a short sale. Banks are not obligated to accept anyoffer, no matter what the listing price is.
2. Banks are taking a loss from past market values, so they want currentmarket value in the sale, even if it is at the bottom of market value, itwill still be market value. They will be ordering a third party BrokerPrice Opinion, so they will not be basing their decision on the word of thelisting agent.
3. If the bank is willing to discount the property to an extreme value, itmeans that the property probably needs a lot of work to make it livable.
4. There are usually better "steal of a deal" from a seller who has equityand willing to negotiate to move quickly.
Think twice before you think or believe that Short Sales are a Great Steal.Some can very fair but I don't think the majority of short sales are thesteal that this buyer was thinking of.
For more information on short sales or for assistance with buying or selling Tucson area Real Estate, call Julie Nellis, Long Realty, 520-918-2843 or visit www.tucsonhouses4you.com
Thursday, July 31, 2008
Wednesday, July 30, 2008
The Housing Stimulus Bill
The Housing Stimulus Bill effects all home buyers and sellers so it is important to understand it. I have found this article from the National Association of Realtors the most readable and understandable explanation.
National Association of REALTORS®Summary of Key Provisions of H.R. 3221 - The Housing Stimulus Bill (as of 7/30/08)
H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:
GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.
GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.
Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.
National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.
CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.
LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.
Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.
For more information on Tucson Real Estate call Julie Nellis, Long Realty, 520-918-3843 or visit www.tucsonhouses4you.com
National Association of REALTORS®Summary of Key Provisions of H.R. 3221 - The Housing Stimulus Bill (as of 7/30/08)
H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:
GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.
GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.
Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.
National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.
CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.
LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.
Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.
For more information on Tucson Real Estate call Julie Nellis, Long Realty, 520-918-3843 or visit www.tucsonhouses4you.com
Friday, July 18, 2008
Tucson Active Adult Communities-Still a Great Investment
Market Conditions for Tucson Active Adult Communities
From "Realty Times .com" July 18, 2008
Tucson's Active Adult Communities are weathering this volatile market fairly well. Prices have stabilized at pre-boom levels. Homes are selling but with longer market time. Short Sales and Foreclosures are rare in these communities so there is no downward spiral in values based on distressed properties. Buyer's visiting open houses in these communities are ready to buy as soon as their homes in our feeder markets of California, the Northwest, the Midwest, East Coast and Colorado sell. After the long, hard winter sellers in these areas are starting to see their traditional spring market start now. Lower prices and pent up demand is expected to attract buyers this summer which in turn will bring buyers to Tucson.
SaddleBrooke is on track for close to 200 homes sales this year with an average sale price of $409,000. With just 135 homes for sale it's still a Buyer's Market with a lot of great deals to be had.
Sun City Vistoso has seen a significant drop in average sale price from $318,000 in 2006 to $283,000 in 2007 to $274,000 for the first half of 2008. This has resulted in a lot of homes sold this year. With only around 50 homes for sale, Sun City is no longer a Buyer's Market, however, there is still a good selection of homes.
Heritage Highlands has 16 months of inventory and is a Buyer's Market and an average sale price is $310,000.
Vistoso Village is a stable market with only 6 months of inventory and an average sale price of $250,000.
Sunflower is also stable with 7-1/2 months of inventory and an average sale price of $213,000.
This is a wonderful opportunity to make a smart buy in Tucson. Inventory is still high, price reductions have been taken and motivated sellers are ready to negotiate.For seller's aggressive pricing and top notch marketing is the key to successful selling in Tucson. With market stabilization, sellers continue to see a good return on their real estate investment in Tucson.
If you want to know more about Tucson's Active Adult Communities or the Tucson area Real Estate Market, call Julie Nellis, Long Realty, 520-918-3843 or visit www.tucsonhouses4you.com
Julie can help you buy the home of your dreams or help you sell your current home so you can follow your dreams.
From "Realty Times .com" July 18, 2008
Tucson's Active Adult Communities are weathering this volatile market fairly well. Prices have stabilized at pre-boom levels. Homes are selling but with longer market time. Short Sales and Foreclosures are rare in these communities so there is no downward spiral in values based on distressed properties. Buyer's visiting open houses in these communities are ready to buy as soon as their homes in our feeder markets of California, the Northwest, the Midwest, East Coast and Colorado sell. After the long, hard winter sellers in these areas are starting to see their traditional spring market start now. Lower prices and pent up demand is expected to attract buyers this summer which in turn will bring buyers to Tucson.
SaddleBrooke is on track for close to 200 homes sales this year with an average sale price of $409,000. With just 135 homes for sale it's still a Buyer's Market with a lot of great deals to be had.
Sun City Vistoso has seen a significant drop in average sale price from $318,000 in 2006 to $283,000 in 2007 to $274,000 for the first half of 2008. This has resulted in a lot of homes sold this year. With only around 50 homes for sale, Sun City is no longer a Buyer's Market, however, there is still a good selection of homes.
Heritage Highlands has 16 months of inventory and is a Buyer's Market and an average sale price is $310,000.
Vistoso Village is a stable market with only 6 months of inventory and an average sale price of $250,000.
Sunflower is also stable with 7-1/2 months of inventory and an average sale price of $213,000.
This is a wonderful opportunity to make a smart buy in Tucson. Inventory is still high, price reductions have been taken and motivated sellers are ready to negotiate.For seller's aggressive pricing and top notch marketing is the key to successful selling in Tucson. With market stabilization, sellers continue to see a good return on their real estate investment in Tucson.
If you want to know more about Tucson's Active Adult Communities or the Tucson area Real Estate Market, call Julie Nellis, Long Realty, 520-918-3843 or visit www.tucsonhouses4you.com
Julie can help you buy the home of your dreams or help you sell your current home so you can follow your dreams.
FHA Down Payment Grants
AmeriDream ProgramAmeriDream is a non-profit organization dedicated to helping people find affordable housing. Part of the AmeriDream mission is to help low and moderate income families buy homes by offering down payment assistance. Buyers who are qualified for an FHA loan but don't have the money for down payment and/or closing costs are eligible to apply for AmeriDream down payment assistance:
*A down payment gift of up to 10% (typically 3%-6%) of the purchase price.
*A true gift-the down payment assistance is not repaid by the home buyer
*Home buyer must have an approved FHA home loan or pre-approved FHA loan.
To participate in the AmeriDream down payment assistance program, buyers should;
*Get pre-approved for an FHA mortgage and start looking for a home.
*Make an offer on the home you want to buy and get a ratified contract.
*Your loan officer applies for the AmeriDream down payment assistance program on your behalf.
*You will receive a "Notice of Gift Approval" from AmeriDream.
*Close the deal on your new home.
The seller must participate in the AmeriDream program, but your loan officer can assist a seller in signing up for the program by showing where and how to apply. For your home buying needs, the loan officer will handle your application for AmeriDream down payment assistance, but may require additional information from you to help fill out the form. AmeriDream is just one of many organizations offering down payment assistance to those with FHA approved home loans. If you have been pre-approved for an FHA mortgage loan but don't meet the income requirements for the AmeriDream program, keep looking. There are several down payment assistance programs with no income requirements or restrictions.
Down payment assistance programs generally require the seller to pay a fee to participate. This fee is considered a payment for services rendered and not a tax-deductible charitable contribution. http://www.fha.com/program_ameridream.cfm
To see if you qualify for the Ameridream Program, contact Tony Poe with Long Mortgage, 520-918-1651 or e-mail tonyp@longmortgage.com Tony can help you find the right loan program for you.
For more on Tucson Real Estate call Julie Nellis, Long Realty at 520-918-3843 or go to www.tucsonhouses4you.com
Julie can assist you in finding the home of your dreams or help you sell your home so you can follow your dreams.
AmeriDream ProgramAmeriDream is a non-profit organization dedicated to helping people find affordable housing. Part of the AmeriDream mission is to help low and moderate income families buy homes by offering down payment assistance. Buyers who are qualified for an FHA loan but don't have the money for down payment and/or closing costs are eligible to apply for AmeriDream down payment assistance:
*A down payment gift of up to 10% (typically 3%-6%) of the purchase price.
*A true gift-the down payment assistance is not repaid by the home buyer
*Home buyer must have an approved FHA home loan or pre-approved FHA loan.
To participate in the AmeriDream down payment assistance program, buyers should;
*Get pre-approved for an FHA mortgage and start looking for a home.
*Make an offer on the home you want to buy and get a ratified contract.
*Your loan officer applies for the AmeriDream down payment assistance program on your behalf.
*You will receive a "Notice of Gift Approval" from AmeriDream.
*Close the deal on your new home.
The seller must participate in the AmeriDream program, but your loan officer can assist a seller in signing up for the program by showing where and how to apply. For your home buying needs, the loan officer will handle your application for AmeriDream down payment assistance, but may require additional information from you to help fill out the form. AmeriDream is just one of many organizations offering down payment assistance to those with FHA approved home loans. If you have been pre-approved for an FHA mortgage loan but don't meet the income requirements for the AmeriDream program, keep looking. There are several down payment assistance programs with no income requirements or restrictions.
Down payment assistance programs generally require the seller to pay a fee to participate. This fee is considered a payment for services rendered and not a tax-deductible charitable contribution. http://www.fha.com/program_ameridream.cfm
To see if you qualify for the Ameridream Program, contact Tony Poe with Long Mortgage, 520-918-1651 or e-mail tonyp@longmortgage.com Tony can help you find the right loan program for you.
For more on Tucson Real Estate call Julie Nellis, Long Realty at 520-918-3843 or go to www.tucsonhouses4you.com
Julie can assist you in finding the home of your dreams or help you sell your home so you can follow your dreams.
KEY MARKET INDICATORS FOR TUCSON REAL ESTATE
DAYS OF INVENTORY
DOI dropped yet again and as of June 2008 stands at 236 days or slightly under 8 months of available product. This represents a 8% decline from the prior month and within 11% of 212 DOI in June 2007.
The downward trend in DOI continues, each month a step closer to a balanced market. In some localized areas of Tucson DOI is a low as 3 months, so it is possible that in some market segments a bottom may have already been reached. In fact median pricing has held relatively steady in Tucson in 2008 – an important sign to potential stabilization.
Days of Inventory (DOI) reflect the time period required to sell all the properties on the market given the number of closed transactions in the preceding month, provided no new product becomes available. This is an excellent benchmark to show the velocity of transactions in relation to the market inventories. This measurement is a broad one and will vary (in some cases dramatically) by price range, location and type of property.
ACTIVE INVENTORY LEVELS
Active inventory levels in the Tucson MLS continue to trend lower. June 2008 saw 8,140 residential properties available. This represents a 6% decline from June 2007 and a 5% decline from May 2008.
Closings in June 2008 were at 1,034, up slightly from the prior month and 16% lower than June 2007.
This is the fifth month in a row Tucson has seen a reduction in active inventory along with an
increase in closings. There are some well priced properties on the market, and buyers would serve themselves well to work with a professional real estate agent who is knowledgeable in the local market to navigate to the best opportunities. Market conditions can vary greatly by geographic area and price – real estate is in fact very localized.
For more on the Tucson Real Estate Market, call Julie Nellis, Long Realty, 520-990-8477 or visit her website at www.tucsonhouses4you.com
Julie Nellis can help you find the home of your dreams or sell your current home to follow your dreams.
DOI dropped yet again and as of June 2008 stands at 236 days or slightly under 8 months of available product. This represents a 8% decline from the prior month and within 11% of 212 DOI in June 2007.
The downward trend in DOI continues, each month a step closer to a balanced market. In some localized areas of Tucson DOI is a low as 3 months, so it is possible that in some market segments a bottom may have already been reached. In fact median pricing has held relatively steady in Tucson in 2008 – an important sign to potential stabilization.
Days of Inventory (DOI) reflect the time period required to sell all the properties on the market given the number of closed transactions in the preceding month, provided no new product becomes available. This is an excellent benchmark to show the velocity of transactions in relation to the market inventories. This measurement is a broad one and will vary (in some cases dramatically) by price range, location and type of property.
ACTIVE INVENTORY LEVELS
Active inventory levels in the Tucson MLS continue to trend lower. June 2008 saw 8,140 residential properties available. This represents a 6% decline from June 2007 and a 5% decline from May 2008.
Closings in June 2008 were at 1,034, up slightly from the prior month and 16% lower than June 2007.
This is the fifth month in a row Tucson has seen a reduction in active inventory along with an
increase in closings. There are some well priced properties on the market, and buyers would serve themselves well to work with a professional real estate agent who is knowledgeable in the local market to navigate to the best opportunities. Market conditions can vary greatly by geographic area and price – real estate is in fact very localized.
For more on the Tucson Real Estate Market, call Julie Nellis, Long Realty, 520-990-8477 or visit her website at www.tucsonhouses4you.com
Julie Nellis can help you find the home of your dreams or sell your current home to follow your dreams.
June 2008 Tucson Housing Report
Market Continues Towards Stabilization As we approach the second half of 2008 we continue to see market improvement. We see the total unit sales continue to rise for the sixth consecutive month while the active listings continue to decrease. Home sales volume as well as average
sales price is still on the rise.
We also see improvements quarter over quarter with increases in sales volume and reduction in average sales price, which continues to reflect a buyers market.
Modest near-term movement is expected in existing-home sales, with a recovery in sales seen during the second half of the year, according to the latest forecast by the National Association of REALTORS®.
With interest rates staying under 6.5% it is a great time to buy a home in Tucson.
New Listings-June 2008- 2,095 2007-2,820 May 2008-2,282 2007-2,960
Median Sales Price-June 2008-$200,000 2007-$225,000 May 2008-$201,000 2007-$223,000
Average Sales Price-June 2008-$257,449 2007-$293,443 May 2008-$250,803 2007-$278,619
Pending Contracts-June 2008-951 2007-2,053 May 2008-1,485 2007-1,191
Active Listings-June 2008-8,140 2007-8,665 May 2008-8,527 2007-9,721
Active/Sold by Zip Code
85614 342/33 85715 164/20 85742 306/33
85701 40/3 85716 181/41 85743 350/40
85704 238/34 85718 423/51 85745 322/28
85705 208/26 85719 220/32 85746 322/33
85706 431/49 85730 208/42 85747 184/48
85710 284/54 85735 107/8 85748 144/26
85711 205/37 85736 62/2 85749 215/11
85712 210/38 85737 311/42 85750 350/46
85713 309/28 85739 257/32 85755 298/22
85714 56/3 85741 184/22 85757 139/20
For more information on Tucson Real Estate call Julie Nellis, Long Realty, 520-918-3843 or visit her website at www.tucsonhouses4you.com
Julie Nellis can help you find the home of your dreams or sell your current home so you can follow your dreams.
sales price is still on the rise.
We also see improvements quarter over quarter with increases in sales volume and reduction in average sales price, which continues to reflect a buyers market.
Modest near-term movement is expected in existing-home sales, with a recovery in sales seen during the second half of the year, according to the latest forecast by the National Association of REALTORS®.
With interest rates staying under 6.5% it is a great time to buy a home in Tucson.
New Listings-June 2008- 2,095 2007-2,820 May 2008-2,282 2007-2,960
Median Sales Price-June 2008-$200,000 2007-$225,000 May 2008-$201,000 2007-$223,000
Average Sales Price-June 2008-$257,449 2007-$293,443 May 2008-$250,803 2007-$278,619
Pending Contracts-June 2008-951 2007-2,053 May 2008-1,485 2007-1,191
Active Listings-June 2008-8,140 2007-8,665 May 2008-8,527 2007-9,721
Active/Sold by Zip Code
85614 342/33 85715 164/20 85742 306/33
85701 40/3 85716 181/41 85743 350/40
85704 238/34 85718 423/51 85745 322/28
85705 208/26 85719 220/32 85746 322/33
85706 431/49 85730 208/42 85747 184/48
85710 284/54 85735 107/8 85748 144/26
85711 205/37 85736 62/2 85749 215/11
85712 210/38 85737 311/42 85750 350/46
85713 309/28 85739 257/32 85755 298/22
85714 56/3 85741 184/22 85757 139/20
For more information on Tucson Real Estate call Julie Nellis, Long Realty, 520-918-3843 or visit her website at www.tucsonhouses4you.com
Julie Nellis can help you find the home of your dreams or sell your current home so you can follow your dreams.
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