Beacon Economics analyzed home affordability and came away feeling optimistic.
Beacon Economics founding principal Christopher Thornberg, whose firm advises a variety of business clients, says the high level of affordability is likely to drive demand and reduce the stock of excess inventory, ultimately resulting in the need for new housing, a rise in prices, and a pickup in new construction.
"While prices may fluctuate modestly over the next several months, we believe the worst of the housing crisis is behind us," says Beacon Economics Research Manager Jordan G. Levine. "We expect prices to stabilize around current levels and likely be higher in the next 12 months."
Source: Beacon Economics (10/11/2010
Monday, October 25, 2010
Friday, July 30, 2010
Phoenix Home Sales Up 11% in June While Home Prices Remain Level
Home sales in the Phoenix Metro Statistical Area (MSA) rose 11% from May, but fell short of a year ago for the second consecutive month. A total of 10,430 new and resale houses and condos closed escrow last month in the Maricopa-Pinal counties metropolitan area, up 11.2% from May, but down 2.8% from a year ago, according to MDA DataQuick.
The number of newly built homes sold in June rose 35.1 percent compared with May and rose 26.9 percent from a year ago. Still, last month’s new-home sales were the second-lowest for a June in more than a decade as builders continued to struggle to compete with low-cost distressed sales.
The median sale price stayed about the same at $139,500 for all new and resale houses and condos that closed escrow, up 0.4% from May and up 7.3% from a year ago. Even though the median price fell short of it's peak by 47.2%, set in June 2006, it did achieve the highest median for any month this year. The median price climbed for the past four consecutive months after a 36-month digression.
The median paid last month for resale single-family detached houses was $135,875, down 1.5 percent from May but up 8.7 percent from a year earlier while the median paid for resale condos in June was $89,900, down 8.3 percent from May and down 13.6 percent from a year earlier.
One of the biggest changes in the mix of sales this year versus last year is the decline in foreclosure resales. In June 2010, foreclosure resales represented 47.4 percent of the resale market, compared with 60.8 percent a year earlier. The peak for foreclosure resales was 66.2 percent in March 2009.
This year a smaller percentage of sales occurred below $100,000, 29.2% last month as compared to 35.6% the same time last year. Sales for $200,000 or more were 29.2 percent of all sales last month, up from 28.0 percent in May and up from 26.7 percent a year ago.
by Cristine Ricciardi
The number of newly built homes sold in June rose 35.1 percent compared with May and rose 26.9 percent from a year ago. Still, last month’s new-home sales were the second-lowest for a June in more than a decade as builders continued to struggle to compete with low-cost distressed sales.
The median sale price stayed about the same at $139,500 for all new and resale houses and condos that closed escrow, up 0.4% from May and up 7.3% from a year ago. Even though the median price fell short of it's peak by 47.2%, set in June 2006, it did achieve the highest median for any month this year. The median price climbed for the past four consecutive months after a 36-month digression.
The median paid last month for resale single-family detached houses was $135,875, down 1.5 percent from May but up 8.7 percent from a year earlier while the median paid for resale condos in June was $89,900, down 8.3 percent from May and down 13.6 percent from a year earlier.
One of the biggest changes in the mix of sales this year versus last year is the decline in foreclosure resales. In June 2010, foreclosure resales represented 47.4 percent of the resale market, compared with 60.8 percent a year earlier. The peak for foreclosure resales was 66.2 percent in March 2009.
This year a smaller percentage of sales occurred below $100,000, 29.2% last month as compared to 35.6% the same time last year. Sales for $200,000 or more were 29.2 percent of all sales last month, up from 28.0 percent in May and up from 26.7 percent a year ago.
by Cristine Ricciardi
Five Smart Reasons to Buy a Home Now
RISMEDIA, July 30, 2010--The economy is stabilizing. Home prices are holding. It's not just as good a time as ever to buy a house. It's one of the best times ever.
ForSaleByOwner.com presents five overlooked reasons why now is a great time to buy a house.
1. Low mortgage rates serve as an equity shock absorber. When buyers borrow at today's record-low rates, they start building equity as soon as they close. That means they have a little give to absorb a few ups and downs as the still-recovering housing market gains traction.
2. Houses are in move-in condition. Homeowners have continued to spend on maintenance and repair, according to the Harvard Joint Center on Housing. Homeowners who have been holding back kept their houses in good shape while they waited. As those houses enter the market, they are in marked contrast to tattered foreclosures.
3. Terrific houses are coming on the market. Foreclosures are finally starting to clear the system – and this is just the opportunity that owners of many desirable properties have been waiting for.
4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines...again. Now that appraisers have more flexibility to set values that reflect the current market, today's deals will make it over the finish line.
5. Plenty of programs. Homes are more affordable than they have been for years, but communities have stuck by "workforce housing" programs that encourage middle-class families to buy houses. Buyers who qualify can get a big boost by combining one of these programs with today's low mortgage rates.
ForSaleByOwner.com presents five overlooked reasons why now is a great time to buy a house.
1. Low mortgage rates serve as an equity shock absorber. When buyers borrow at today's record-low rates, they start building equity as soon as they close. That means they have a little give to absorb a few ups and downs as the still-recovering housing market gains traction.
2. Houses are in move-in condition. Homeowners have continued to spend on maintenance and repair, according to the Harvard Joint Center on Housing. Homeowners who have been holding back kept their houses in good shape while they waited. As those houses enter the market, they are in marked contrast to tattered foreclosures.
3. Terrific houses are coming on the market. Foreclosures are finally starting to clear the system – and this is just the opportunity that owners of many desirable properties have been waiting for.
4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines...again. Now that appraisers have more flexibility to set values that reflect the current market, today's deals will make it over the finish line.
5. Plenty of programs. Homes are more affordable than they have been for years, but communities have stuck by "workforce housing" programs that encourage middle-class families to buy houses. Buyers who qualify can get a big boost by combining one of these programs with today's low mortgage rates.
Wednesday, March 24, 2010
Phoenix home resale market update
According to Realty Studies Report from the W. P. Carey School of Business authored by Dr. Jay Butler, associate professor of real estate , The Phoenix resale home market rebounded slightly in February, according to the Compared to January, the number of transactions increased and prices were up a bit. Still, foreclosures accounted for 42 percent of the total market, and the sale of previously foreclosed properties made up 40 percent of the traditional sale segment. Meantime, market watchers are wondering what will happen when the many Adjustable Rate Mortgages (ARMs) reset this year and next. In the report, Dr. Butler explains that prices are not necessarily going up or anything, but they are not in a freefall either; in prominent home buying areas like Gilbert and Chandler, foreclosure activity as a share of the market is still very high, over 40 percent, but the absolute number is beginning to decline.
Monday, March 8, 2010
Federal Reserve leaves Interest rates unchanged
The Federal Reserve left its target interest rate near zero and will continue winding down its unconventional programs, the central bank said Wednesday -- though there were new signs of internal disagreement about how much longer to continue its extreme efforts to support the economy.
Following a two-day policymaking meeting, the Fed said the weak economy and subdued inflation "are likely to warrant exceptionally low levels" for interest rates "for an extended period." (But) It also said it will follow through with plans to end a $1.25 trillion program to support the mortgage market by the end of March, and taper off other special lending programs by Feb. 1...
This should be a very real motivator for your buyers who are currently in the market and will be getting financing.
If your interested in the full article and more detail on the internal fight over sustaining the low rate stimulus:
http://www.washingtonpost.com/wp-dyn/content/article/2010/01/27/AR2010012704802.html
For your success,
Following a two-day policymaking meeting, the Fed said the weak economy and subdued inflation "are likely to warrant exceptionally low levels" for interest rates "for an extended period." (But) It also said it will follow through with plans to end a $1.25 trillion program to support the mortgage market by the end of March, and taper off other special lending programs by Feb. 1...
This should be a very real motivator for your buyers who are currently in the market and will be getting financing.
If your interested in the full article and more detail on the internal fight over sustaining the low rate stimulus:
http://www.washingtonpost.com/wp-dyn/content/article/2010/01/27/AR2010012704802.html
For your success,
Monday, March 1, 2010
Who I am.
Hello,
This is my first blog. First, a little about myself, my name is Fabrizia Meoli, most friends call me Fabi, I am a residential real estate agent. I have been involved in most aspects of real estate over the past 22 years, from the acquisition and development of thousand of residential and commercial acres in Arizona to the management of income properties. I am a post graduate with a Masters degree in Business Administration from W.P Carey School of Business at Arizona State University. Since 2008, I have joined Russ Lyons Sotheby’s International, www.russlyon.com , and I have applied all my passion and energy to help people who want to buy or sell a home in the Greater Phoenix Metropolitan Area and in the Flagstaff Area.
I’d like to dedicate this blog to share my knowledge of the ever-changing complex world of real estate. In my next posts, I will share with my readers market data and articles written by experts of the real estate market in Arizona.
This blog is also posted in my own website, www.fabimeoli.com, which I invite all of you to visit. The website will enable anyone to search homes in any area of the Greater Phoenix Metropolitan Area.
Stay tuned for more of my postings.
This is my first blog. First, a little about myself, my name is Fabrizia Meoli, most friends call me Fabi, I am a residential real estate agent. I have been involved in most aspects of real estate over the past 22 years, from the acquisition and development of thousand of residential and commercial acres in Arizona to the management of income properties. I am a post graduate with a Masters degree in Business Administration from W.P Carey School of Business at Arizona State University. Since 2008, I have joined Russ Lyons Sotheby’s International, www.russlyon.com , and I have applied all my passion and energy to help people who want to buy or sell a home in the Greater Phoenix Metropolitan Area and in the Flagstaff Area.
I’d like to dedicate this blog to share my knowledge of the ever-changing complex world of real estate. In my next posts, I will share with my readers market data and articles written by experts of the real estate market in Arizona.
This blog is also posted in my own website, www.fabimeoli.com, which I invite all of you to visit. The website will enable anyone to search homes in any area of the Greater Phoenix Metropolitan Area.
Stay tuned for more of my postings.
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