Arizona and National Real Estate and Mortgage News
Apr 23, 2010
Phoenix home prices, sales on the rise - Last month, Phoenix-area median prices in came in at $144,500, up from $127,500 in March 2009 - a 13.3% increase. The number of home resales was up 10.1%, according to The National Association of Realtors’ monthly report issued Thursday. Read full article:
http://www.bizjournals.com/phoenix/stories/2010/04/19/daily52.html?s=industry&i=resi_real_estate
New-home sales jump 27%, biggest gain in 47 years - Sales of new homes surged 27% nationwide last month, bouncing off the previous month's record low and blowing past expectations as better weather and government incentives boosted sales. The Commerce Department said Friday that new-home sales rose in March to a seasonally adjusted annual sales pace of 411,000. It was the strongest month since last July and the biggest monthly increase in 47 years. Read full article:
http://www.usatoday.com/money/economy/housing/2010-04-23-new-home-sales_N.htm
Mortgage rates unchanged from last week - Rates on 30-year mortgages didn't budge from last week, Freddie Mac said Thursday. The 30-year fixed-rate mortgage averaged 5.07% - the same as last week, according to Freddie Mac's Primary Mortgage Market Survey. A year ago, 30-year fixed-rate mortgage averaged 4.80%. Read full article:
http://www.usatoday.com/money/economy/housing/2010-04-22-mortgage-rates_N.htm
Apr 22, 2010
Gateway airport, Mesa oppose Queen Creek housing proposal - A proposal to build homes in a long-established industrial area south of Phoenix-Mesa Gateway Airport is a study in contrasting visions. One sees quiet Queen Creek neighborhoods near new transportation corridors that have quicker access to points north and south of the community. The other sees a sea of complaints from a new residential area that will be subjected to noise from airport flight paths and nearby heavy industry. Both scenarios will be debated Wednesday night before the Queen Creek Town Council, which will consider a request by Jason Barney, a developer and member of a longtime Queen Creek farming family, to clear the way for the development by amending the town's General Plan.
http://www.azcentral.com/news/articles/2010/04/21/20100421development-near-gateway-airport.html
Mortgage Applications Spike - Mortgage applications to buy homes rose 10.1% last week on a seasonally adjusted basis compared to the previous week, according to the Mortgage Bankers Association weekly survey. “Purchase applications continued to increase coming out of the Easter holiday, as we approach the end of the home buyer tax credit, and are up modestly over last month.” said Michael Fratantoni, MBA’s vice president of research and economics.
http://www.realtor.org/rmodaily.nsf/pages/News2010042102
Apr 21, 2010
Land Prices Jump as Home Builders Move In - Recently, there was a bidding war over some land in Gilbert. In Arizona and across the U.S., home builders are battling to acquire land lots in preparation for ramping up home construction. While volume is tough to track, analysts report that land deals have been rising rapidly in recent months, causing land prices in some of the nation's weakest housing markets to rise for the first time since 2006. "There's been an absolute land rush," said Gregor Watson, a partner with McKinley Partners, a California-based real-estate fund that works with builders. Now the companies are spending millions of dollars to boost their land supply, optimistic that sales will pick up once the employment picture improves.
http://online.wsj.com/article/SB10001424052748703763904575196291509876752.html?mod=WSJ_Real+Estate_LeftTopNews
Scottsdale makes RelocateAmerica's top 100 cities - While Arizona missed out on the top 10, the state did make a mark on RelocateAmerica’s Top 100 Places to Live in 2010. Flagstaff, Green Valley, Prescott and Scottsdale made the list of cities nominated by RelocateAmerica.com users and selected by the website’s editorial team. "The Scottsdale housing market offers enormous variety, so buyers have unlimited choices regarding where and how they want to live,” the website says, citing lifestyles from urban to family friendly and horse properties.
http://www.bizjournals.com/phoenix/stories/2010/04/19/daily18.html
Apr 20, 2010
Economist: Recession over in Ariz. - University of Arizona economist Marshall Vest says the recession officially ended in Arizona several months ago, although it will be months before a recovery is evident. Vest contends the national recession ended in May or June and the recession in Arizona ended about six months later. He bases that on an analysis of retail, employment, housing and income numbers as well as anecdotal information. "With the data we have currently, it looks like consumers are spending again," Vest said. "I think the economy is off and running."
http://www.azcentral.com/business/articles/2010/04/19/20100419recession-over-arizona.html
New Lead Paint Rules for Contractors - Beginning on Earth Day, April 22, contractors working on homes built before 1978 must prove that they are following the EPA’s new rules regarding containment and cleanup of lead paint – or face fines of up to $37,500 a day. Painters and renovation contractors must be trained and certified in EPA-approved lead-paint management methods.
http://www.realtor.org/rmodaily.nsf/pages/News2010041904
Apr 19, 2010
Proposal to slash business property taxes on the table - Large commercial property tax breaks are included in a tax-cut plan under consideration at the Arizona Legislature. Business property taxes, which currently are as high as 20%, could be cut to 1% for 10 years for developers, property owners or businesses making building renovations or doing new construction of $250 million or more. These entities also must hire at least 150 new workers for their projects and qualify under Arizona Department of Commerce rules aimed at attracting and retaining high-wage jobs with benefits. Capital investments and developments of $1 million to $250 million that create at least 15 jobs could result in a 5% property tax rate, down from 20%.
http://www.bizjournals.com/phoenix/stories/2010/04/19/story2.html?b=1271649600^3199621&s=industry&i=commercial_real_estate
Real Estate Outlook: Faster Recovery? - It's been a long time since we've seen the Wall Street Journal run a front-page article suggesting that the national economy appears to be rebounding faster than most analysts forecast. But that happened last week. And over the past couple of years, we haven't seen retail sales -- a key barometer of consumer confidence -- jump by almost two% in a single month. But we saw that last week as well. Housing activity is also up in 11 of the 12 bank districts. Freddie Mac's economists expect to see total home sales this year at least 10% higher than last year, even with the possibility of higher mortgage interest rates.
http://realtytimes.com/rtpages/20100419_realestateoutlook.htm
Apr 16, 2010
UA forecast calls for rebound in Valley housing market this year - The Valley's new-home market is on its way to recovery, according to a University of Arizona forecast. The UA Economic and Business Research Center report predicts that new-home permits in metro Phoenix this year will jump 54% from last year to 13,320. Then, permits will more than double to 28,060 next year. The university's forecast predicts that new-home permits will fluctuate from 35,000 to 40,000 annually from 2012-16. The metro area is expected to grow from 4.2 million this year to more than 5 million in 2015. Longer term, Arizona is expected to grow to 16 million by 2050.
http://www.azcentral.com/business/realestate/articles/2010/04/15/20100415phoenix-area-new-home-recovery.html
Mortgage Rates Ease a Bit This Week - The 30-year fixed-rate mortgage averaged 5.07% with an average 0.6 point for the week ending April 15, 2010, according to Freddie Mac's Primary Mortgage Market Survey. Last week, it averaged 5.21%, and a year ago it averaged 4.82%. "After rising for four consecutive weeks, mortgage rates eased back to where they were two weeks ago and still remain historically low," said Frank Nothaft, Freddie Mac vice president and chief economist.
http://realtytimes.com/rtpages/20100416_rates.htm
ZIP code woes split Q.C., San Tan Valley
http://www.eastvalleytribune.com/story/152823
Apr 15, 2010
Planners see new role, routes for light rail - Regional planners are mapping new light-rail lines in places that were inconceivable a few years ago, as they grapple with how urban Arizona takes shape in the coming half-century. Preliminary studies show that sufficient demand will exist for light rail to succeed on 44th Street, Camelback Road, south Central Avenue, Bell Road and other routes not previously planned, building a web far more expansive than what is currently envisioned. Officials at the Maricopa Association of Governments, Arizona Department of Transportation and Metro say the conceptual routes are not intended to replace the voter-approved plan for 57 miles of track. But early findings support leading transportation figures who say the Phoenix region has a historic opportunity to rethink light rail's role - and maybe change some original routes.
http://www.azcentral.com/news/traffic/lightrail/articles/2010/04/15/20100415new-routes-for-arizona-light-rail.html
Loan Delinquency Rate Takes a Notable Dip - The percentage of delinquent mortgages declined to 6.57% in the first quarter from 6.60% in the last quarter of 2009, according to Equifax and Moody’s Economy.com. This is the first decline in the delinquency rate since the first quarter of 2006.
http://www.realtor.org/rmodaily.nsf/pages/News2010041401
More Single Buyers Opt for Suburbs - More singles are buying homes in suburbia. Here are some highlights from the survey conducted by Coldwell Banker:
* 52% chose the suburbs over urban or rural areas.
* 68% chose a home priced lower than they could afford.
* Of the 13% who own their home jointly with another person, 49% made the purchase with their parents.
http://www.realtor.org/rmodaily.nsf/pages/News2010041406
Apr 14, 2010
Uptick in home building encourages Chandler officials - The pace of Chandler home building is picking up, and that's giving officials hope that the city is on its way out of the recession. City Manager Mark Pentz recently compiled a list of current and past single-family building permit numbers from Chandler and other Valley municipalities at the request of Councilman Jeff Weninger. It shows Chandler's 122 home-building permits so far this year is a big increase over 10 permits for that same period in 2009. And in February, Chandler issued 59 home permits compared with one for that month last year. "We have seen an uptick but it is relatively localized in three or four existing subdivisions that were stalled out and are now seeing more brisk sales," said Planning Director Jeff Kurtz.
http://www.azcentral.com/business/realestate/articles/2010/04/13/20100413chandler-home-building.html
More homeowners keep up with their mortgage - The share of homeowners behind on their mortgages fell in the first quarter, the first drop in four years and a possible sign that the foreclosure crisis has peaked. The portion of mortgages that were delinquent 30 days or more fell to 6.57% in the first quarter from 6.60% in the last three months of 2009, according to Equifax and Moody's Economy.com. That's a drop of about 16,630 delinquent loans and, though modest, it is the first decline in the delinquency rate since early 2006.
http://www.usatoday.com/money/economy/housing/2010-04-14-1Amortgages14_ST_N.htm
Apr 13, 2010
Builder buys 88 Gilbert lots for $5.7M - PulteGroup Inc. recently purchased 88 finished lots in Gilbert at the Lyon’s Gate master-planned community located near Higley and Ray roads. The firm purchased the land from an undisclosed group of investors who had bought the land from Orleans Homes in December 2007. Pulte will build homes ranging in size from 2,400 to 3,500 square feet. In October Pulte, along with Meritage Homes and Toll Brothers, collectively purchased 232 finished lots at Stratland Estates in Gilbert for $13.3 million.
http://www.bizjournals.com/phoenix/stories/2010/04/12/daily17.html?s=industry&i=resi_real_estate
Mortgage Rates Dip - Private Buyers Fill Government Void - Last Wednesday afternoon, just as results of the weekly Freddie Mac survey were finalized, mortgage rates dipped. The decline in long term mortgage rates was an effect of rising MBS prices. Mortgage rates move opposite mortgage-backed securities prices. Surprisingly, so far private buyers have successfully filled the void left in mortgage-backed securities markets since the government discontinued their MBS purchasing program on Mar. 31st.
http://realtytimes.com/rtpages/20100413_rates.htm
Apr 12, 2010
Price cuts help condo sales bounce back - Urban condos throughout the Valley are selling quickly now that lenders have sold the properties to new developers at sizable discounts. The buyers, in turn, have brought the condos back to market at affordable prices. In other cases, the original developers are readjusting prices and aggressively marketing urban living as the wave of the future. “Where the basis has been properly adjusted, we are seeing a pent-up demand for urban living,” said David Newcombe of Russ Lyon Sotheby’s International Realty.
http://phoenix.bizjournals.com/phoenix/stories/2010/04/12/story4.html?b=1271044800%5E3163901
Fed: Low Rates Likely Through 2010 - In at least two recent presentations, Federal Reserve policymakers hinted that interest rates are likely to remain low into 2011. These indications came one week after the Fed shut down its program to buy mortgage-backed securities, which had kept rates at or near record lows in recent months. Michael Fratantoni, vice president of research and economics for the Mortgage Bankers Association, predicts that the Fed will have created a situation where there are days or weeks of low-rate opportunities, and other days and weeks when rates rise significantly.
http://www.realtor.org/RMODaily.nsf/pages/News2010040901
Apr 9, 2010
Resales of homes in Valley up in March - The Phoenix-area home-resale market was bustling with activity in March. With 6,490 detached single-family-home resales, March was one of the area's busiest months on record, according to the ASU report by Jay Butler, an associate professor of real estate. Resale activity was up 9.3% compared with March 2009's total of 5,940. The median sales price for single-family homes continued to increase in March. The median price of $142,500 was up 10.9% from a year earlier.
http://www.azcentral.com/business/realestate/articles/2010/04/09/20100409phoenix-home-resales-march.html
Bond Yields Push 30-Year Mortgage Rates to Highest Level in Eight Months - The 30-year fixed-rate mortgage averaged 5.21% with an average 0.6 point for the week ending April 8, 2010, according to Freddie Mac's Primary Mortgage Market Survey. Last week, it averaged 5.08%, and a year ago it averaged 4.87%. This is the highest the 30-year FRM has been since the week ending August 13, 2009 when it averaged 5.29%. "The economy added 162,000 jobs, which was the largest monthly gain over the past three years. In addition, revisions raised the January and February figures by a combined 61,000 workers. Excluding government employees, private payrolls rose for the third consecutive month and were the strongest increase since May 2007," said Frank Nothaft, Freddie Mac vice president and chief economist.
http://realtytimes.com/rtpages/20100409_rates.htm
Apr 8, 2010
Arizona real estate being snapped up by Canadian buyers - Canadian investors are buying Arizona real estate, helping the housing market in the west Valley. "It is the buying opportunity of a lifetime," said Bill Chipman, an investor from British Columbia whose business group is buying real estate in Arizona, Texas and Nevada. "Our business plan is to buy 500 homes but I hope we can do 1,000," he said. Real estate sales to Canadians are reportedly up 80 percent over last year.
http://www.abc15.com/content/realestate/story/Arizona-real-estate-being-snapped-up-by-Canadian/To_gZ9p-iUi_WqnE0RpCTw.cspx
Homebuyers scramble as mortgage rates jump - The average rate on a 30-year loan has jumped from about 5% to more than 5.3% in just the past week. For people putting their homes on the market this spring, rising rates may actually be a good thing. Buyers are racing to complete their purchases and lock in something decent before rates go even higher. "We are seeing some panic among potential buyers who have not found houses yet," said Craig Strent, co-founder of Apex Home Loans in Bethesda, Md. "They're saying: Man, I should have found a house three weeks ago or last month when rates are lower."
http://www.usatoday.com/money/economy/housing/2010-04-07-homebuyers-scamble_N.htm
Queen Creek could be home to big master-planned community
http://www.azcentral.com/business/abg/articles/2010/04/08/20100408abg-gr-qcchurchfarm0408.html
Apr 7, 2010
Mesa residents could see property tax dip - Mesa residents will likely see property tax bills drop 12%. The city is planning to raise the property tax rate, but that will be more than offset by the drop in home values and savings in projects financed by the secondary property tax. The average value of a home for next year’s tax bill will be $181,000, which will result in a bill of $54.92.
http://www.eastvalleytribune.com/story/152551
Check the Real Estate: It's Time to Delve In - The author of this article writes...Last summer I wrote that it was time to buy residential real estate if you were in the market and looking for a bargain. I never expect to call a market bottom, and certainly not for long-cycle assets like houses, but I seem to have come pretty close. The latest S&P/Case-Shiller survey results, released last week, suggest housing prices bottomed out around April 2009, when its 20-city composite index was down 32.6% from its peak reached in June/July 2006. Since then it has gained 3% through January 2010. Read more:
http://online.wsj.com/article/SB10001424052702304172404575167971729724454.html?mod=WSJ_Real+Estate_LeftTopNews
Apartment vacancies dropping in East Valley
http://www.eastvalleytribune.com/story/152559
E.V. cities named best places to learn
Mesa, Gilbert and Scottsdale have been named to greatschools.org’s “Best Cities to Live and Learn 2010”
http://edxtra.freedomblogging.com/2010/04/06/east-valley-cities-best-places-to-learn/
Apr 6, 2010
Americans say time is right to buy home: poll - Nearly two-thirds of Americans think the time is right to buy a house, with a majority believing prices will be the same or higher over the next year. In a survey conducted by Fannie Mae, 64% said it is a good time to buy. However, most of the 3,451 polled said that it would be tougher for them to get a loan than it was for their parents.
http://www.msnbc.msn.com/id/36192404/ns/business-real_estate/
How mobile 'apps' are making house hunting much easier - More and more house hunters are turning to their cell phones to help them track the housing market. Phoenix couple Heather Lesmes and her husband Juan used a free iPhone app to help them find their first home. "You can see the blue circle is where we are at and the little orange dot next to it is this particular house for sale," said their Realtor, Joe Lauer. "When you drive by a sign, you're located on the GPS, you look it up and you can see the pictures and see if it meets your criteria or not and move on."
http://www.abc15.com/content/news/blogs/story/How-mobile-apps-are-making-house-hunting-much/425Br6gZ_U6DmUJ2cgoLPQ.cspx
Apr 5, 2010
Legislation aims to address Arizona housing crisis - The federal government will send additional money to help Arizona families facing foreclosure this summer. State legislators are trying to help families as well. Nearly a dozen bills were proposed this session to address issues related to the housing crisis. About half are still moving through the system. Seven of them, all sponsored by House Democrats, were packaged together and named the Foreclosure Rescue for Arizona Act. The Republican-controlled Legislature granted a hearing to only one of the bills. House Bill 2766 passed the House this week, and the Senate Government Institutions Committee will hear it on Thursday.
http://www.azcentral.com/business/realestate/articles/2010/04/05/20100405foreclosure-bills.html
Real Estate Outlook: Positive Track - When home prices, mortgage applications to buy homes and consumer confidence are ALL pointing upward, even the perpetual doomsayers on Wall Street have to admit: Housing in the U.S. looks like it's on a very positive track. And that's where we are right now. The latest monthly Standard & Poor's/Case-Shiller home price index came in higher last week. Prices were up in 12 of the 20 major markets that Case Shiller monitors. Consumer confidence also improved significantly in the last month and they are finally beginning to loosen up on spending - making purchases they deferred last year.
http://realtytimes.com/rtpages/20100405_realestateoutlook.htm
Apr 2, 2010
Funds to boost Chandler's affordable-housing program - Chandler is expanding its First Time Homebuyers Program with the addition of $706,988 in federal HOME grant funds. The money will be used for the land trust administered by Newtown Community Land Trust. In the program, a potential homeowner finds a suitable home, Newtown purchases the home and sells it back to the homebuyer while the land that house sits on is held in trust. Selling just the home makes the price lower.
http://www.azcentral.com/business/realestate/articles/2010/04/01/20100401cr-homebuyer0402.html
Long-Term Mortgage Rates at Second Highest Level This Year - The 30-year fixed-rate mortgage averaged 5.08% with an average 0.7 point for the week ending April 1, 2010, according to Freddie Mac's Primary Mortgage Market Survey. Last week, it averaged 4.99%, and a year ago it averaged 4.78%. "Interest rates for fixed mortgages rose this week following a run up in long-term bond yields, while ARM rates eased slightly," said Frank Nothaft, Freddie Mac vice president and chief economist. "Rates on 30-year fixed loans were the highest since the starting week of this year."
http://realtytimes.com/rtpages/20100402_rates.htm
Lawyer: Foreclosure or short sale?
http://insiderealestatenews.com/2010/04/lawyer-foreclosure-or-short-sale/
Apr 1, 2010
Big lease signed at Chandler Airport Center - CB Richard Ellis announced it negotiated the lease of a building in the Panattoni Chandler Airport Center to Education Management LLC. The company will lease nearly 47,000 square feet of space in the building at the northeast corner of Cooper and Germann roads in the Chandler Airport Center. The transaction is the largest lease signed in the south East Valley this year.
http://www.eastvalleytribune.com/story/152380
Mar 31, 2010
Master-planned community may be on horizon in Queen Creek - One of the largest master planned communities in Queen Creek's history could soon be under way. If approved by the town, Church Farm would be bordered by Meridian and Signal Butte roads to the east and west and Ocotillo Road and the Queen Creek Wash to the north and south. Queen Creek Planning Manager Wayne Balmer said if the project is approved, it would be among the largest projects in the town's history. He said plans call for 1,745 homes at buildout. John Kross, Queen Creek town manager, said builder William Lyon Homes could start pulling permits by end of calendar year.
http://www.azcentral.com/business/realestate/articles/2010/03/29/20100329queen-creek-master-planned-community.html
Investors to Pick Up Slack in Mortgage Backs - As the Federal Reserve ends its purchase of mortgage securities this week, private investors are expected to step in. The change isn't expected to push mortgage rates up very much. Analysts are anticipating an increase of less than a quarter of a percentage point in the next three months.
http://www.realtor.org/rmodaily.nsf/pages/News2010033001
Mar 29, 2010
Home flippers focus on ranch houses south of Biltmore area - Chris Bowley, a former executive of two public home builders, and Josh Gonzalez, an agent with Realty Executives, have partnered to buy ugly, cheap homes in a stable neighborhood southeast of 24th Street and Camelback Road. Their venture is called Aspire Homes. That area, an extension of the Biltmore neighborhood to the north, is considered one of the premier spots in Phoenix, but modest ranch houses dominate the streets just a few blocks away. They are purchasing these homes, using top quality tradesmen to make improvements and flipping the homes within about 90 days.
http://www.bizjournals.com/phoenix/stories/2010/03/29/story12.html?b=1269835200^3095861&s=industry&i=resi_real_estate
Don't foreclose! Do a short sale - Short sales are the hottest thing going in the distressed-property market, and the trend is expected to get even hotter in coming weeks, when the government starts handing out cash to encourage lenders to close these deals. "Banks have ramped up short sale approvals," said Duane Legate of House Buyer Network, which connects short sellers with buyers. "They're hiring a lot of the people who once worked in the mortgage-lending industry and moved them over to short sales."
http://money.cnn.com/2010/03/29/real_estate/short_sale_explosion/index.htm
Mar 26, 2010
CantaMia to bring 600 homes to Goodyear - Estrella's first active-adult community is expected to bring more than 600 homes to Goodyear, and buyers will be offered green building features like solar panels. About 1,400 people attended the recent grand-opening weekend for the development, called CantaMia. Five sales were made in the first week, said Martha Moyer, spokeswoman for Joseph Carl Homes, the Arizona-based builder behind CantaMia. The project lies on 587 acres at the southern-most end of Estrella Parkway, 14 miles south of Interstate 10.
http://www.azcentral.com/business/realestate/articles/2010/03/25/20100325-cantamia-community-goodyear-CP.html
U.S. unveils plan to shrink some home loans - After months of criticism that it hasn't done enough to prevent foreclosures, the Obama administration is announcing a plan to reduce the amount some troubled borrowers owe on their home loans. The multifaceted effort will let people who owe more on their mortgages than their properties are worth get new FHA-backed loans. "The changes are wide-ranging and significant and have the real potential for bringing the foreclosure crisis to a much quicker end," said Mark Zandi, chief economist at Moody's Analytics.
http://www.msnbc.msn.com/id/36050868/ns/business-real_estate/
Mortgage Rates Inch up Following Bond Yields - The 30-year fixed-rate mortgage averaged 4.99% with an average 0.6 point for the week ending March 25, 2010, according to Freddie Mac's Primary Mortgage Market Survey. Last week, it averaged 4.96%, and a year ago it averaged 4.85%. "Mortgage rates inched up slightly this week as bond yields rose even further," said Frank Nothaft, Freddie Mac vice president and chief economist. "Interest rates on 30-year fixed mortgages, however, were still below 5 percent for the fourth consecutive week."
http://realtytimes.com/rtpages/20100326_rates.htm
Mar 25, 2010
Applications to Purchase Homes Rise - Last week, mortgage applications for purchases of homes rose 2.7% on an adjusted basis compared to the previous week, according to the Mortgage Bankers Association weekly survey. However, refinancing activity decreased as rates rose. On an unadjusted basis, mortgage applications increased 2.8%.
Mortgage rates jump up - Mortgage rates have been motoring along at near-record lows for weeks. However, the 30-year fixed-rate mortgage rose four basis points this week, to 5.11%, according to the Bankrate.com national survey of large lenders. The mortgages in this week's survey had an average total of 0.41 discount and origination points. One year ago, the mortgage index was 5.19%; four weeks ago, it was 5.15%.
Mar 24, 2010
Walls come down on age for over-55 communities - An increasing number of developers struggling to find older residents for their 55-plus housing communities have relaxed the age restrictions to attract younger home buyers. Sun City Grand in Surprise was completed in late 2005. Two years later, the community voted to allow people ages 45 to 54 in 15% of the homes. "We had forward-thinking board members who could see the future," says Meda Cates, membership director. "As we age, we golf less, we spend less money doing activities, and we also wanted to be perceived as a younger community."
HUD Attorney Clarifies Add-on Fees - Add-on fees have been a source of confusion since a U.S. District Court last year ruled that these fees violate federal law when the bill doesn’t detail specific services for which the fees are being billed. Commissions may be quoted “using a flat fee, a percentage of the sales price, or a combination” — all listed on the revised HUD-1 sheet. But Helen R. Kanovsky, general counsel for HUD, wrote that if the total charges "exceed the amount of the commission for listing and selling the home that is reflected in the real estate broker's or agent's listing agreement," then HUD has the right "to determine whether additional services were provided" to justify the add-on.
Mar 23, 2010
Phoenix homes now undervalued by 22% - As of year-end, home prices in Phoenix were undervalued by more than 22%, according to the data released Friday by IHS Global Insight. Prices in the Phoenix area fell 39.5% from 2005 to 2009. The report put 2005 prices in the Phoenix area at $242,100 — being overvalued by 38.9%. That compares with $146,500 at the end of 2009, with an undervaluation of 22.3%.
Short-Sale Incentives Start April 5th - Starting April 5th, the federal government will begin offering lenders financial incentives to hasten the process. Under the new rules, banks will seek a BPO before the property is listed for sale and let the sellers know a minimum number they are willing to accept. If the sellers bring a buyer with a good offer, the lender must accept it within 10 days.
Mar 19, 2010
Westcor weighs new development - Arizona's dominant mall developer, Westcor, still wants to build North Black Canyon, a shopping, dining and entertainment center in north Phoenix. They are looking to develop on about 200 acres east of Interstate 17 between Carefree Highway and Dove Valley Road. The company is waiting for the State Land Department to auction the 80 acres within the 200 acres.
Apartments sell in quick cash deals - Due South Apartments was acquired by a private investor group in Phoenix from Land Holding LLC for $1.1 million, or $8,594 per unit. A 24-unit lender-owned complex at 2417 W. Campbell Ave. in Phoenix sold for $260,000 - it was completely vacant and in need of renovations to the tune of about $3,400 to $4,000 per unit. Both transactions were described as “quick-close cash deals.”
Mar 18, 2010
Businesses looking to move to Gilbert - Nearly 90 businesses are looking to open facilities in Gilbert, representing a potential 7,524 new jobs for the town and $725 million in potential capital investment.
Brookings report: Output on the rise in Phoenix, U.S. - The Phoenix area joined other Western cities posting gains in output, according to Brookings Institute reports for the nation and Intermountain West. The report, released Wednesday, shows gross metropolitan product for the Phoenix area up 1.1% from second to third-quarter 2009.
Foreclosures slowing, but still drive market - The number of foreclosures might be down in the Phoenix area, but they are still driving the region’s housing market, according to the latest Realty Studies report from the W. P. Carey School of Business at Arizona State University. Foreclosure-related activity - including both foreclosure sales and the resale of previously foreclosed properties - represented 65% of February sales. The median price of single-family homes increased - up from $136,500 in January to $140,000 in February.
Wells Fargo signs up for loan modification program - Yesterday, Wells Fargo became the second bank to sign up for a government program to modify second mortgages. The program is part of the Obama administration's mortgage modification program that is aimed at reducing monthly payments to help customers stay in their homes. By signing up for the program, all customers of Wells Fargo or Wachovia who have already modified their first mortgage through the modification program, known as the Home Affordable Modification Program or HAMP, can now also modify their second mortgage.
Mar 17, 2010
Mortgage modifications see sharp increase - The number of permanent mortgage modifications under the federal Making Home Affordable program increased 45% nationally and 39.5% in Arizona from January to February, according to the latest statistics from the U.S. Department of the Treasury. Through Feb. 28, 9,763 permanent modifications were reported in Arizona, including 8,118 in the Valley. That's up from 7,000 statewide, including 5,834 in the Valley, as of Jan. 31. The median savings to borrowers with permanent modifications is more than $500 per month.
Time is Drawing Closer to Attend Instructor-Led Training for EPA Lead-Based Paint Certification - While the National Association of Home Builders has a number of resources to help its members comply with the new lead paint rule, the deadline is looming for remodelers and builders who do renovation or remodeling projects in homes built before 1978 to comply with the Lead: Renovation, Repair and Painting rule from the Environmental Protection Agency (EPA). At least one employee in any company doing work in these homes must be certified, follow specific work practices and keep detailed records by April 2010.
Mar 16, 2010
5 states rush plans for $1.5B in housing funds - The five states hardest hit by the foreclosure crisis have been given only weeks to plan how to spend $1.5 billion in federal funding announced by the Obama administration last month. Guidelines issued under the U.S. Treasury Department's Fund for Hardest Hit Housing Markets on March 5 gave housing finance agencies in California, Arizona, Florida, Nevada and Michigan just six weeks to come up with plans on how to spend their share of the money. Arizona is getting $125 million.
Housing Experts Say Real Estate is Recovering - According to some of the nation’s top economists, the housing market has turned and better days are on the way for the housing industry. Increases in jobs, credit, and affordable homes will overcome impediments such as rising interest rates, and the expiration of the Federal stimulus program to push the housing market toward recovery, says Dean Maki, chief U.S. economist for Barclays Capital.
Mar 15, 2010
Best Buy, former Opus exec create real estate venture - Dick Schulze, founder and chairman of Best Buy Co. Inc., has launched a real estate investment partnership with Gerald Rauenhorst, founder and former CEO of Opus Corp., and will be looking at various markets including Phoenix. Their new company, called Founders Properties, will be led by Andy Deckas, who has been president of Opus’ investment business, called Opus Properties LLC, since 1997.
Mar 11, 2010
Tighter Requirements for FHA Loans Loom - It's about to get tougher to qualify for a FHA mortgage. The FHA is adding more-stringent lending requirements and higher fees borrowers must pay to get the federally-insured loans. Beginning this spring, the FHA will raise mortgage insurance fees that borrowers must pay, cap the amount of cash that sellers can contribute for closing costs and require higher down payments for the borrowers with poor credit scores. The new upfront mortgage premium will cost borrowers 2.25% of the loan amount. New borrowers must have a minimum FICO credit score of 580 to qualify for FHA's 3.5% down payment loan, otherwise the borrower must put 10% down.
Feds offer help Thursday to homeowners facing foreclosure - Housing counselors and representatives from lenders will be available to help homeowners facing foreclosure at an event in Glendale on Thursday. The federal government's Making Home Affordable program is sponsoring the event at the Glendale Civic Center. It runs from 1 p.m. to 7 p.m.
Mar 10, 2010
Developer reveals plans for Chandler corner - Chandler officials are in talks with a New York-based developer to build a mixed commercial/residential project several stories tall on a high-profile corner viewed as a future northern "gateway" into downtown. The land - about four acres on the east side of Arizona Avenue between Chandler Boulevard and Buffalo Street - previously had been slated to house future phases of the 123 Washington Street condominium project. However, developers Benton-Robb in 2008 sold its property on the southeast corner of Chandler Boulevard and Arizona Avenue, as well as development rights to an L-shaped city-owned parcel south of Guedo's Taco Shop and an existing Jack-in-the-Box restaurant, to COR Arizona Land Company.
Home Buyers Check Out Apps - Just in time for the spring house-hunting season, smart-phone applications that provide information to home buyers are proliferating. Real-estate firms now feel compelled to have an "app" for Apple Inc.'s iPhone and other smart phones. Many of the apps' functions — such as listing which nearby homes are for sale and which have sold recently, then fetching pricing and other data — have long been available via traditional Web sites. But the apps combine those functions with smart phones' global-positioning technology, so that users can get information on their immediate surroundings without having to type the address or zip code.
Mar 9, 2010
Cave Creek named Arizona's top affordable suburb - With its Wild West legacy and open parks, Cave Creek has earned the title of Arizona's "best affordable suburb" in a 2010 report by Bloomberg BusinessWeek. Cave Creek unseated Fountain Hills, which won the award last year. The magazine focused on communities where families "live well for less and enjoy good schools, low crime and reasonable commutes." Affordability and quality of living were taken into account. Cave Creek was mentioned for its cowboy cookouts, rodeos, horseback riding and 2,922-acre Cave Creek Regional Park.
Federal Program to Encourage Short Sales - Beginning April 5, the latest federal program will encourage delinquent borrowers to avoid foreclosure and instead give up their homes in short sales. The program will offer a cash payment to the home owner, as well as to the servicer and second-lien holder; and protect borrowers from future lender lawsuits for the unpaid mortgage balance.
Mar 8, 2010
Townhomes offer good signal - Desert Viking, the developer of a big townhouse project in downtown Chandler, has resumed construction after receiving a $10.2 million loan from Wells Fargo. The townhouse market has faced more challenges recently because a builder has to start several units; he can't build only one unit at a time as he could with single-family homes. "Construction is much more complex, and it takes a longer time to deliver units," said Jim Belfiore, an Ahwatukee-based real-estate consultant. Construction on single-family homes has resumed around the Valley but for the most part not on townhouses and condos, he said.
Program to pay homeowners to sell at a loss - The Obama administration is taking a new approach: paying defaulting homeowners to leave their home. This latest program, which will allow owners to sell for less than they owe and will give them a little cash to speed them on their way, is one of the administration’s most aggressive solutions. Taking effect on April 5, the program could encourage hundreds of thousands of delinquent borrowers who have not been rescued by the loan modification program to shed their houses through a process known as a short sale. Lenders will be compelled to accept that arrangement, forgiving the difference between the market price of the property and what they are owed.