July 2008 Residential Housing Report
KEY INDICATORS CONTINUE TO SHOW IMPROVEMENT IN THE
TUCSON REAL ESTATE MARKET... according to the Tucson Association of
Realtors Multiple Listing Service July '08 Monthly Statistical Digest. The consistent
strength in the year to date sold and closed units, plus fewer listings coming on the
market (1,000+ fewer tjam July '07) are reflected in the July Tucson listing inventory
number that dipped below 8,000 units for the first time since March 2006 (28 months
ago).
The Tucson July Median Sales Price continues to hover around $200,000, with the
largest number of reported Solds in the Northwest area (241 sales), and the Central
Home Sales Volume: Decreased 23.92% from $316,549,145 in July 2007 to $240,837,426 in July 2008.
Home Sales Units: Decreased 20.04% from 1,182 in July 2007 to 945 in July 2008.
Average Sales Price (all residential types): Decreased 4.84% from $267,808 in July 2007 to $254,854 in July 2008.
Median Sales Price (the price at which half the homes were sold above and half below): Decreased 7.88% from $217,000 in July 2007 to $199,900 in July 2008.
Pending Contracts (new transactions subject to contract in the month): Decreased 45.98% from 1,777 in July 2007 to 960 in July 2008.
Active Listings: Decreased 9.39% from 8,692 in July 2007 to 7,876
in July 2008.
New Listings: Decreased 39.30% from 2,766 in July 2007 to 1,679
in July 2008.
The July Median Sales Price for Single Family Residences was $210,000, for Condos was
$137,000, for Townhomes was $169,000 and for Manufactured Homes was $105,000.
Even though we are seeing the Active Listing Inventory shrinking, it is still a Buyer's Market.
First Time Homebuyers may qualify for the $7500 Tax Credit under the recently passed Federal Housing Stimulus Bill, and remember a First Time Homebuyer is someone who has not owned a home in the past three years.
Buyers can certainly benefit in this quickly changing market by working with a knowledgeable Realtor who knows the local market, including the values of our neighborhoods, and the availability of low interest rate home loans.
For more information on Tucson Real Estate call Julie Nellis, Long Realty, 520-990-8477 or visit www.tucsonhouses4you.com
Friday, August 22, 2008
Thursday, August 14, 2008
Why Buy Right Now?
It is a great time to buy! Buy before these changes to FHA financing take effect October 1st:
*Minimum downpayment is increasing from 3% to 3.5%
*Many sources of down-payment assistance will no longer be available
*Long Companies’ Home Closing Guarantee:
On Time Closing & Closing Costs Guaranteed
Your Home Closing Guarantee Includes:
On Time Closing Guarantee 1 - If your loan from Long Mortgage doesn’t close on your new home by the initial close date stated in your purchase contract due solely to Long Mortgage or Long Title delay, we will at closing either (1) reimburse you one monthly principal and interest payment OR (2) credit you $1,000 toward closing costs, whichever is greater.
Closing Cost Guarantee 2 - Should your actual closing costs be OVER the amount quoted in the Good Faith Estimate, we will credit you the difference at closing.
A full title search & commitment on lot and block property that you are purchasing within 48 hours after receipt of the order from escrow.
Sufficient time to approve your title commitment during the inspection period.
A LSR (Loan Status Report / Conditional Loan Approval) will be in your hands at no additional cost prior to your property search.
No charge for your appraisal should your contract fall through during the inspection period.
To put Long Companies’ Home Closing Guarantee to work for you, please contact a Long Mortgage Consultant, Tony Poe, at 520-918-1651 or email at tonyp@longmortgage.com
*Minimum downpayment is increasing from 3% to 3.5%
*Many sources of down-payment assistance will no longer be available
*Long Companies’ Home Closing Guarantee:
On Time Closing & Closing Costs Guaranteed
Your Home Closing Guarantee Includes:
On Time Closing Guarantee 1 - If your loan from Long Mortgage doesn’t close on your new home by the initial close date stated in your purchase contract due solely to Long Mortgage or Long Title delay, we will at closing either (1) reimburse you one monthly principal and interest payment OR (2) credit you $1,000 toward closing costs, whichever is greater.
Closing Cost Guarantee 2 - Should your actual closing costs be OVER the amount quoted in the Good Faith Estimate, we will credit you the difference at closing.
A full title search & commitment on lot and block property that you are purchasing within 48 hours after receipt of the order from escrow.
Sufficient time to approve your title commitment during the inspection period.
A LSR (Loan Status Report / Conditional Loan Approval) will be in your hands at no additional cost prior to your property search.
No charge for your appraisal should your contract fall through during the inspection period.
To put Long Companies’ Home Closing Guarantee to work for you, please contact a Long Mortgage Consultant, Tony Poe, at 520-918-1651 or email at tonyp@longmortgage.com
July 2008 Tucson Housing Report
July was a very good month for our industry in many ways! Our listing inventory has dropped below the 8,000 mark for active listings. We have not been below 8,000 listings since March of 2006.
New listings are also down by 19.86%.This is just another sign that we are continuing to see market improvement. July has historically been a slower month with a decrease in sales from June 2007 to July 2007 of 21.72%.
I am happy to report that the decrease in sales for June 2008 over July 2008 is 9.53%. There is virtually no change in the median sales price, it appears to have stabilized currently at $199,900.
New listings are also down by 19.86%.This is just another sign that we are continuing to see market improvement. July has historically been a slower month with a decrease in sales from June 2007 to July 2007 of 21.72%.
I am happy to report that the decrease in sales for June 2008 over July 2008 is 9.53%. There is virtually no change in the median sales price, it appears to have stabilized currently at $199,900.
Thursday, July 31, 2008
Short Sales, Steal of a Deal?
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
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
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.
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