Fed Vows to Keep Rates Low Until 2014 - The Federal Reserve announced that short-term interest rates will likely stay near zero for nearly three more years, a move that is expected to spillover to long-term mortgage rates for home buyers and home owners. In August, the Fed had made a rare move to say it would keep rates near zero until at least mid-2013. The Fed said Wednesday that the economy still needs more help and it will now extend that period to 2014. Read article:
http://realtormag.realtor.org/daily-news/2012/01/26/fed-vows-keep-rates-low-until-2014

Foreclosures dropped in Valley in 2011, but still higher than normal - One of the better developments in the year-end findings was that foreclosures dropped to 35,855, down from 41,625 in 2010, according to the W. P. Carey School of Business at Arizona State University. That translated to foreclosures representing 34% of transactions - down from 39% in 2010. However, foreclosures account for less than 5% of transactions in a typical year. Read article:
http://www.eastvalleytribune.com/local/apache_junction/article_20b65acc-42f0-11e1-9ebf-001871e3ce6c.html

30-year Fixed-rate Mortgage Averages 3.88 Percent - In Freddie Mac's results of its Primary Mortgage Market Survey® the average mortgage rates changing little amid mixed economic data. Regardless, the 30-year fixed-rate mortgage (FRM) averaged 3.88% with an average 0.8 point for the week ending January 19, 2012, down from last week when it averaged 3.89%. Last year at this time, the 30-year FRM averaged 4.74%. Read article:
http://realtytimes.com/rtpages/20120120_freddierates.htm

Is housing glut over? Experts predict housing shortage by spring - Real estate experts predict the Valley’s years-long housing glut is reaching its end and, as early as this spring, could stun home buyers by transforming into a shortage. The crunch is expected to be more pronounced in the East Valley, where some subdivisions are approaching build-out and other builders are raising prices. About 58,000 homes were on the market by late 2007. The long-term average is about 33,000 homes listed at any given time. That’s down to 25,000 now or 19,000 when accounting for homes that have deals pending. Read article:
http://www.eastvalleytribune.com/local/mesa/article_b7ed8380-4164-11e1-9ac3-0019bb2963f4.html



Optimism Builds in Housing Market - Several recent indicators for the real estate industry are pointing to a market that is on the mend and entering recovery mode. Housing experts’ predictions for the new year tend to center around a market stabilizing before entering a gradual, albeit very slow, recovery. However, the tone is more upbeat than it has been in years for the housing market. Existing home sales are expected to increase 12% this year, following a 2% jump last year, Moody’s Analytics predicts. Read article:
http://realtormag.realtor.org/daily-news/2012/01/17/optimism-builds-in-housing-market

Top 10 Tips for Sellers - This article covers ten tips to get you on your way to getting your home sold.
1. Hire a Professional. This is no time to be navigating the rough waters of the real estate market on your own.
2. Fully Disclose. Are you selling because your current home needs more work than you can handle?
3. Be Realistic about Pricing. It is much wiser to price a home correctly from the start of the selling process than to have an overpriced home sit on the market for months only to have to do a price reduction.
Read article:
http://realtytimes.com/rtpages/20120111_sellertips.htm

The NATIONAL ASSOCIATION OF REALTORS® Code of Ethics:
What Does it Mean for Consumers?

How does the Code of Ethics affect everyday real estate practices?

If a REALTOR® represents you, whether you are buying or selling a home, you can count on that REALTOR® to:

1. Be honest with all parties in the transaction – not just with you, as his or her client, but also with the other real estate practitioner and his or her clients.
For example, if REALTORS® represent a buyer with a spotty credit history, they can’t be dishonest with sellers about this fact. At the same time, REALTORS® can help their buyer clients collect and assemble information, such as credit reports and audited tax returns, to demonstrate that the buyer has addressed the problem and improved their situation.

2. Put your interests ahead of his or her own, at all times.
A REALTOR® makes every effort to understand the housing needs of his or her client, thoroughly researches available inventory, and shares all relevant information with the buyer so that he or she can make an informed decision. This service is provided regardless of the compensation available.

3. Disclose all pertinent facts regarding the property and the transaction to both buyer and seller.
If a REALTOR® believes information provided by a seller is questionable, the REALTOR® is obligated to investigate. REALTORS® should recommend that buyers consult their own experts, such as home inspectors, to address concerns. For example, if a home seller asks his or her REALTOR® to conceal the fact that the roof leaks, the REALTOR® cannot comply; if the seller insists, the REALTOR® should end the business relationship with that seller.

4. Be truthful in all communications with the public.
When REALTORS® distribute newsletters, create Web sites, or place advertisements, they must be careful not to represent other real estate professionals’ work product as their own. If recently sold or listed properties in the community are publicized, it must be clear whether the REALTOR® was actually involved in the transaction, or whether that data came from the local multiple listing service or other source. This ensures that the public understands the REALTOR®’s experience and can make an informed decision when choosing real estate representation.

Read a summary of the principles embodied in the NATIONAL ASSOCIATION OF REALTORS®' Code of Ethics.

Some Good Signs for the Real Estate Market


Daily Real Estate News | Tuesday, December 27, 2011



Sales ticked up for existing homes and new-homes, several real estate market indicators revealed last week, pointing to a housing market that may finally be entering recovery mode.

In the most recent report, the Census Bureau reported that the new-home market continued its rebound, with sales of new homes once again inching up last month. New-home sales rose 1.6 percent from October to November to an annualized rate of 315,000, and sales were up nearly 10 percent compared to November 2010.

The median sales price of a new-home in November was $214,100, the Census Bureau reported, and the inventory of new-homes nationwide decreased to a 6-month supply at the current sales pace.

"Inventories of new homes are very low: There's nothing on the shelf, so any increase in new home sales will translate directly into new housing starts," Bob Denk, senior economist at the National Association of Home Builders, told CNNMoney. "That means putting people back to work."

Other recent good news for the housing market: November sales of existing-homes increased 12 percent year-over-year, new-home building starts were up nearly 21 percent year-over-year, and mortgage rates reached new record lows last week, pushing housing affordability even higher.

Valley declines in foreclosures, home supply bode well for 2012 - Local builders and analysts said there are several reasons to anticipate a more robust new-home market in 2012. This year, homebuilders are on pace to sell about 7,200 homes. One of the most promising changes in the housing market since early 2011 has been the drastic reduction in the number of existing homes available to purchase in metro Phoenix, said Alan Jones, division president for homebuilder Lennar Corp. in Arizona. A related market condition that has improved significantly in the latter half of 2011 is the volume of home foreclosures in the area. Read article:
http://www.azcentral.com/business/realestate/articles/2011/12/13/20111213phoenix-area-foreclosures-home-supply-declines-bode-well.html

Mortgage Applications Increase as Low Mortgage Rates Remain Steady - The housing and mortgage markets are showing signs of recovery as mortgage applications increased 12.8% for the week ending December 2nd. Mortgage refinance applications were up 15.3% and purchases were up 8.3%. Freerateupdate.com's survey of wholesale and direct lenders show that for the past week mortgage rates, except jumbo 30 year fixed mortgage rates, remained steady bringing in a surge of borrowers. 30 year fixed mortgage rates are at 3.750%, while 15 year fixed mortgage rates are at 3.125%. These low mortgage rates are available with 0.7 to 1% origination fee for borrowers who have a history of good credit. Read article:
http://realtytimes.com/rtpages/20111214_rates.htm

Beware of Down Payment Gift-Giving Rules - Last year, 27% of first-time home buyers received a financial gift from relatives or friends that they applied toward a down payment on a new home — up from 22% in 2009, according to data from the NAR. It's important to follow the IRS and banks’ gift-giving rules, including:
1. Home owners still need to come up with at least some of the down payment on their own.
2. You may need to document where the down payment money came from.
3. If you’ve had the gift for a long time, you likely won’t need to document it. If the gift has been in your bank account for three months or longer, it’s considered “seasoned”.
Read article:
http://realtormag.realtor.org/daily-news/2011/12/20/beware-down-payment-gift-giving-rules

November housing stats for Phoenix show improvement - Here are some positive metrics based on data from the ARMLS:
* There were 1,889 property sales in November. That’s down from 2,029 sales recorded in October, but up from November 2010, when there were 1,677 sales.
* The November median price was $88,000, as compared with $83,000 in October and $80,000 in November 2010.
* Average days on the market for November stood at 59, as compared with 60 in October and 67 in November 2010.
Read article:
http://www.bizjournals.com/phoenix/blog/business/2011/12/november-housing-stats-for-phoenix.html

Report: Big Drop in Mortgage Delinquencies in 2012 - The number of borrowers behind on their mortgage payments is expected to drop sharply by the end of next year, according to a new report released by TransUnion. Rates are expected to rise to about 6% during the first three months of the new year before dropping to 5% by the end of 2012, TransUnion forecasts. At its peak in the fourth quarter of 2009, mortgage delinquencies stood at a 6.89% rate. Read article:
http://realtormag.realtor.org/daily-news/2011/12/08/report-big-drop-in-mortgage-delinquencies-in-2012

Housing is in last phase of 'bubble,' expert says - Nishu Sood, director of Wall Street's Deutsche Bank Securities, used the term "revulsion" to describe the current phase of metro Phoenix's housing market. Sood was the lead speaker at the Scottsdale-based Land Advisors' third annual housing forecast for the Phoenix area, presented to a group of the region's top real-estate executives. He was quick to point out that revulsion was the last phase in the "bubble" cycle before recovery for the region's housing market. Sood feels more positive about Phoenix's housing market and its oncoming recovery than he did about many other parts of the country. Read article:
http://www.azcentral.com/business/realestate/articles/2011/12/01/20111201housing-last-phase-bubble-expert-says.html

Are the Holidays a Good Time to Sell? - Sixty percent of real estate professionals advise their sellers to list a home during the holidays because it’s a good time to sell. Seventy-nine percent of the agents surveyed said that more serious buyers come out during the holidays, and 61% say less competition from other properties make it a great time to sell. Plus, 17% of agents say the cold weather is actually a benefit, making homes feel more cozy. Read article:
http://realtormag.realtor.org/daily-news/2011/12/05/are-holidays-good-time-sell

Housing in 2012: Things are looking up - Last year the economic forecasting firm Fiserv predicted that home values would sink around 5% in 2011, and that prices in three-quarters of the nation's major metro areas would fall. The bad news is, the firm wasn't that far off the mark. The good news: In the coming year, Fiserv thinks 95% of the 384 metro areas it tracks will see prices rise. Foreclosures will continue to weigh on the market. According to Core- Logic, there are 5.4 million homes that are for sale or part of the market's "shadow inventory". Read article:
http://money.cnn.com/2011/11/11/pf/make_money_2012_housing.moneymag/index.htm

New stats indicate Arizona's housing market may have hit bottom - There are indications that the state's housing market may finally have hit bottom. A few of the state's metro areas moved into the positive range in the last quarter in terms of average home values. Marshall Vest, economist at the Eller College of Management at the University of Arizona points to the increase for the metro Phoenix area which includes both Maricopa and Pinal counties. While small - just 2.2% over the prior quarter - he said it bucks what has been a multi-year trend of declines. Read article:
http://www.eastvalleytribune.com/arizona/article_b2a648ae-1ac1-11e1-bdc3-001cc4c002e0.html

Stronger Lure for Home Buyers - Home prices and mortgage rates have fallen so far that the monthly cost of owning a home is more affordable than at any point in the past 15 years and is less expensive than renting in a growing number of cities. The Phoenix market has a median mortgage Payment of $651 and a median rent of $762 for an affordability gap of -$111 -- a significant incentive for potential buyers. Read article:
http://online.wsj.com/article/SB10001424052970203764804577060502694077494.html?mod=WSJ_RealEstate_LeftTopNews

Should I Take My Home Off The Market During The Holidays? - Although buyer activity may appear to slow down, the buyers who are actively looking during the holidays are that much more serious. Here are some more things to remember: 1) Relocating families often don't have a choice in when they can leave for their new destination. 2) Allowing buyers to view your home during this most hospitable of seasons lets them better picture their own family life in the attractive environment you have created. When is your home ever more beautiful and inviting? 3) With reduced inventories and motivated buyers, you will have all the members of the MLS on your team. 4) If you do get a contract, you can arrange the terms to suit your needs. Read article:
http://realtytimes.com/rtpages/20111125_holidays.htm

Will Rates Stay Low? - While the Federal Reserve has promised to keep rates "low" until 2013, it is clear to many experts that the current historical lows we are experiencing will not last. According to the latest projections from the National Association of Realtors® (NAR), interest rates should gradually rise out of historic lows as we move through 2012. The NAR reports that current surveys reflect the tight credit conditions. Read article:
http://realtytimes.com/rtpages/20111116_staylow.htm

More Arizonans can refinance under plan - Many homeowners will be able to find out next week how to seek refinancing, no matter how underwater they are on their mortgages. The new program, as laid out by the president, would be open only to homeowners who are current on their payments or have missed no more than one in the past year. It applies only to those with mortgages backed by government-owned mortgage giants Fannie Mae and Freddie Mac, but the two entities back more than half of all mortgages, meaning many homeowners are likely eligible. Read article:
http://www.azcentral.com/business/articles/2011/11/10/20111110more-arizonans-can-refinance-underwater-mortgages-under-new-plan.html

30-Year Fixed-Rate Mortgage Averages 3.99 Percent - Freddie Mac's Primary Mortgage Market Survey showed average mortgage rates changing little from the previous week amid a mix of economic data reports as the 30-year fixed-rate mortgage averaged 3.995, dropping below 4.00% for the second time this year. The 30-year fixed averaged 3.94% in the October 6, 2011 survey. 30-year fixed-rate mortgage (FRM) averaged 3.99% with an average 0.7 point for the week ending November 10, 2011, down from last week when it averaged 4.00%. Last year at this time, the 30-year FRM averaged 4.17%. Read article:
http://realtytimes.com/rtpages/20111111_rates.htm

12 Most-Searched Housing Markets - Which cities are home buyers targeting the most? Realtor.com recently released its search rankings of 146 metros during the month of September. The Phoenix-Mesa market made the list at #7 with a median list price of $150,000. Read article:
http://realtormag.realtor.org/daily-news/2011/10/31/12-most-searched-housing-markets

Survey Reveals 5 Home Buying Myths - Overall, today’s home buyers tend to be fairly knowledgeable about the real estate market. However, a recent survey revealed five main areas of confusion. According to the survey, 41% of buyers think they will have to purchase private mortgage insurance, regardless of the amount of their downpayment. In reality, buyers only need to purchase PMI if their downpayment is less than 20% of the home’s purchase price. Additionally, 56% of the buyers said the purpose of the appraisal was to determine if a home was in good condition. In reality, the purpose of an appraisal is to estimate fair market value. Read article:
http://realtormag.realtor.org/daily-news/2011/10/28/survey-reveals-5-home-buying-myths

Obama To Promote New Steps To Help Housing Woes - According to an administration official, Obama's housing initiative will help homeowners with little or no equity in their homes refinance by cutting the cost of doing so and removing caps for deeply underwater borrowers. The new rules apply to homeowners with federally guaranteed mortgages who are current on their payments. With the president's jobs bill struggling in Congress, the White House is refocusing its efforts on steps Obama can take to address the nation's economic woes without getting lawmakers' approval. Read article:
http://www.npr.org/templates/story/story.php?storyId=141648275

CoreLogic: Good and bad in Phoenix, U.S. housing markets - CoreLogic released its U.S. Housing and Mortgage Trends report today with an interesting mix of national and local information. Here’s a look at data for the Phoenix metro area for July 2011:
- Total sales: 9,346
- REO sales: 3,415
- Short sales: 1,327
- Percent of sales that were distressed: 50.7 percent
- Home prices month-over-month: Up 1.3 percent
- Percent of home loans 90 days delinquent or longer: 9.9 percent
- Pre-foreclosure filings: 6,022
- Auction filings: 6,035
Read article:
http://www.bizjournals.com/phoenix/blog/business/2011/10/corelogic-good-and-bad-in-phoenix.html

What Your Clients Can Do If Rejected for a Loan - Lending experts say buyers shouldn’t give up if rejected for a loan — they may still be able to qualify for a mortgage if they keep trying. They should take a close evaluation of why the original mortgage application was turned down, and find ways to address those issues. Applicants can, by law, find out why they were rejected in a mortgage application. Some borrowers may need to save up for a larger down payment or take steps to improve their credit score. Others may find shopping around for other lenders can help. Read article:
http://realtormag.realtor.org/daily-news/2011/10/17/what-your-clients-can-do-if-rejected-for-loan

Additional articles that you may find of interest:

Arizona trying new ways to assist homeowners - Of the $268 million allotted to the state since 2010, only about $4 million has been spent as of this week. Last week, officials launched a program to use the funds to help borrowers complete short sales. The state agency is now offering homeowners $4,500, plus money to pay closing costs such as the real-estate agent's fee, if they work with their lender to complete a short sale. It started taking applications for its short-sale assistance last week, and several real-estate agents already have made inquiries. Read article:
http://www.azcentral.com/arizonarepublic/news/articles/2011/09/30/20110930arizona-trying-new-ways-assist-homeowners.html

Shadow Inventory Drops: ‘Positive Sign for Housing’ - The nation's residential shadow inventory as of July declined slightly to 1.6 million units, representing a supply of five months, according to CoreLogic. That's down from 1.9 million units, a supply of six months, from a year ago, and follows a decline from April when shadow inventory stood at 1.7 million units. "The steady improvement in the shadow inventory is a positive development for the housing market," said Mark Fleming, chief economist for CoreLogic. Read article:
http://www.housingwire.com/2011/09/27/shadow-inventory-declines-to-five-month-supply-corelogic

New Requirements for Landlords Who Deny on the Basis of Credit Score - Landlords and their agents need to be aware of how they may be affected by new requirements imposed upon them by the Fair Credit Reporting Act (FCRA). Landlords who take “adverse action” regarding a tenant application will have to provide specified information if that adverse action is based upon the applicant’s credit score. What might adverse action be? At least one of the following: 1) Denying the lease/rental application; 2) Requiring a co-signer; 3) Requiring a higher security deposit; and 4) Requiring an increased rent amount. Read article:
http://realtytimes.com/rtpages/20110927_landlords.htm

Fed’s Latest Move May Send Rates Lower - The Federal Reserve announced this week that it will invest $400 billion in long-term Treasury securities over the next nine months, which is expected to send interest rates on mortgages even lower. The Fed’s move is yet another attempt to try to stimulate economic growth. Economists predict that interest rates could drop by a few tenths of a percentage point. Read article:
http://realtormag.realtor.org/daily-news/2011/09/22/fed-s-latest-move-may-send-rates-lower

Phoenix new home sales up 26 percent in August - New-home sales improved in August, according to the Phoenix Housing Market Letter produced by RL Brown Reports. There were 632 new closings in August, compared with 500 in August 2010. Building permits were up from 504 in August 2010 to 692 in August 2011. RL Brown also tracks resales, including homes not listed on the MLS. Resales were up for both the month and the year to date. There were 8,605 resales in August and 67,804 for the year to date, compared with 6,623 last August and 61,730 for the first eight months of 2010. Read article:
http://www.bizjournals.com/phoenix/news/2011/09/19/phoenix-new-home-sales-up-26-percent.html

Top 5 States Where Home Prices Will Rise in the Next 6 Months - Real estate professionals in Arizona are the most optimistic about home values rising in their market in the next six months. Read article:
http://realtormag.realtor.org/daily-news/2011/09/16/sellers-say-their-homes-are-worth-more

Don't Misjudge a Property by Its Street Face - For real estate buyers, the process of purchasing a home can be overwhelming. Many purchasers, particularly first-time or first-time-in-a-long-time buyers, are relieved that at least part of the process is easy—viewing properties. That's where they make a big mistake. It seems easy:
• Look at a house from the street, and you either like it or you don't.
• Walk through a house or condominium in 30 minutes or less, and you either love it or hate it.
Without specific construction knowledge and an eye for interior design—and in less time than typically spent picking out new clothes—buyers decide whether or not to buy. Read article:
http://realtytimes.com/rtpages/20110920_misjudge.htm

Six Mistakes Housing Investors Make - Investing in real estate right now can be surprisingly profitable, if everything goes well. Investors will want to avoid falling into one of these common traps:
* Mistake 1: Confusing a cheap deal for a good deal.
Homes in deserted subdivisions aren't any more appealing to renters than they are to buyers. The same is true for less-attractive properties or those in less-desirable school districts.
* Mistake 2: Overlooking key costs.
Factor in closing costs of 3% to 6%, the costs to fix up the place and maintain it, and your holding costs.
* Mistake 3: Forgetting that time is money.
You lose money when your property is empty, whether you are painting it or between tenants.
Read article:
http://online.wsj.com/article/SB10001424053111904103404576558484074477822.html?mod=WSJ_RealEstate_LeftTopNews

Additional articles that you may find of interest:

4 ways to pay off your mortgage earlier - Paying off the mortgage early is in. Refinancing to take money out of our homes is out. Living through the foreclosure crisis, more people want the security and the psychological benefit of owning their home free and clear. If you want to see magic, start playing with mortgage calculators and see how adding a little payment to your principal here and there can shorten the length of your loan. Another option is to refinance into a mortgage for 10, 15 or 20 years, but 15-year mortgages are the most common. Your payments will be higher on a 15-year loan, but perhaps not as high as you think. Read article:
http://www.bankrate.com/finance/mortgages/4-ways-to-pay-off-your-mortgage-earlier-1.aspx