by Dru Bloomfield on August 27, 2010
Frequently, lenders email me updates about the current mortgage market. This week, I got an email from Mike Weldy at Prime Lending. Titled “The Perfect Storm”, it outlined the following:
- A “Perfect Storm” of low purchase prices and historic low interest rates
- Compare this example:
$250,000 purchase price at 4.5% (which recently closed)
Versus
$250,000 purchase price with a 6% rate (possible interest rate in 2011)
- The projected payment would jump from $1,267 to $1,499! (an increase of over 18% )
- If you believe house values will fall further, consider this: if you were to purchase this exact home for $225,000 at 5.5% (assuming taxes, insurance, and HOA were the same), your projected monthly payment would still be higher at $1,278!
- Therefore, from a payment perspective, IF the market dropped an additional 10%, it would still be a lesser monthly payment to pay the higher sales price at the lower interest rate.
I like playing with numbers, so I thought Mike’s scenario was a perfect way to lay out the situation in today’s real estate market. If you want to talk through your scenario to see if now might be a good time for you to finance a home, call Mike directly.
by Dru Bloomfield on August 13, 2010
Looking for some tips to get your home sold…. here’s my perspective, along with some great input from a few of my favorite Phoenix area Realtors.
From today’s AZCentral.com: Online marketing key to selling home
by Dru Bloomfield on August 9, 2010
The Arizona Regional MLS (ARMLS) has published its July home sales report for the Phoenix Metropolitan area.
Highlights include:
- June home sales continue to increase, following a five month trend
- June sales were the high monthly total in the past 12 months AND number of sales were the highest since August 2005
- If this year’s home sales continue tracking at their current rate, 2010 sales could could exceed 100,000, and go on record as the second highest sales year ever.
- Inventory has held steady all year long, with just over 40,000 units.
- The Months Supply of Inventory metric has remained just under 5 months for all of 2010.
- Average and median list prices set new record lows for the decade.
- Sales prices have been showing signs of stabilization.
- However, the ARMLS Pending Price Index continues to predict a slight reduction in sales prices.
- As of this report, pending foreclosures are down, and lender owned sales continue to decline.
- Average Days on Market (DOM), or the number of days it takes to get an accepted contract has been fairy stable over the past year.
Read the report to get complete commentary and graphic view:
by Dru Bloomfield on August 1, 2010
Paul Wakefield, a Senior Loan Office at V.I.P. Mortgage Inc., emails me a monthly newsletter. Sometimes the tips are so timely, like this one below:
Top 10 Credit Don’ts During the Loan Process
Many are taking advantage of interest rates at historic lows, either by re-structuring debt with a refinance or purchasing a new home. However, the recent economic crisis has created even tougher guidelines and credit requirements and there are some things that consumers must be aware of when applying for a loan.
Leading nationwide credit expert and President of Credit Resource Corporation, Linda Ferrari, developed the top 10 credit don’ts during the loan process, to help you get your arms around those things that can unknowingly wreak havoc on your loan transaction.
1. Don’t do anything that will cause a red flag to be raised by the scoring system
2. Don’t apply for new credit of any kind
3. Don’t pay off collections or charge offs
4. Don’t max out or over charge on your credit card accounts
5. Don’t consolidate your debt onto 1 or 2 credit cards
6. Don’t close credit card accounts
7. Don’t pay late
8. Don’t allow any accounts to run past due-even one day!
9. Don’t dispute anything on your credit report
10. Don’t lose contact with your mortgage and real estate professionals
This is excellent advice for any buyer, and even more important for home buyers involved in a short sale transaction. It does take some additional attention to keep your finances in perfect order for the 6-8 months it may take to close on a short sale. The last thing you want to happen is fail to qualify for a loan because of a delayed payment or large purchase made during the extend wait. Keep in touch with your loan officer, and be sure to ask questions about any type of financial transaction that you think might impact your ability to buy a home.
by Dru Bloomfield on July 31, 2010
We visited the Arizona Science Center last weekend. It was a hot summer day, and my son picked it over a trip to the Grand Canyon. 
It had been many years since I’d visited the Science Center, so it was a good refresher. The building is currently undergoing major renovations, but there was still more than enough to see, even though we skipped the featured exhibit (The Science of Fear!), the planetarium, and the IMAX theatre.
On the first floor, the home construction exhibit, “Many Hands Make a Home”, is always a hit with both kids and adults. It is fun to see how a home is put together step by step.
Moving upstairs, we spent a bit of time on the “Music Landing” playing with sound, and then headed over to the Get Charged Up Gallery, another one of the many hands-on exhibits. In here, I laid on a bed of nails. It was prickly, but not painful at all. Actually, it felt pretty cool.
On the third floor, the “My Digital World” was new to me. Fun! I had to pull my camera out for one of the exhibits (see the show below). Still don’t know quite how the technology works on this one, but totally enjoyed watching everyone play with the light!
The Forces of Nature exhibits on this floor were interesting, too. My favorite was the short movie about weather, complete with wind, heat, and rain showers.
SRP sponsored a solar exhibit, “Solarville”, in the fourth floor hallway. Small, but definitely educational. It’s so much easier to understand a concept when you have a chance to play or get a hands-on experience.
The Arizona Science Center is located at 600 E. Washington in downtown Phoenix, just north of Chase Field. We parked in the garage just north of the Science Center, and with validation, the charge was only a buck (even though there was a Diamondbacks game going on at the same time). Exhibit hours are usually 10-5, seven days a week, but you will want to check the center’s web site to make sure.
Helpful Arizona Science Center Links:
by Dru Bloomfield on July 27, 2010
I sit on the Board of Directors for the Sandpiper Home Owner’s Association here in Scottsdale, and receive up-to-date HOA information from a number of sources. Yesterday, I received the following email from a local law firm (Ekmark & Ekmark), and since it covered the new sign and open house laws so well, I asked if I could share it verbatim.
If you live in a community governed by an Arizona Home Owner’s Association, you will want to know what your rights are as a home seller.
For Sale Signs
An association may not prohibit the indoor or outdoor display of a for sale sign and a sign rider by a unit owner on that owner’s property.
This applies to all properties subject to deed restrictions (A.R.S. § 33-441, created 2009), condominiums (A.R.S. § 33-1261, amended 2007) and planned communities (A.R.S. § 33-1808, amended 2007), including those that are access-restricted. It does not apply to timeshare properties.
These laws protect not only professional realtor signs but signs that indicate that the property is for sale by owner. The laws also state that the size of the sign and sign rider shall be in conformance with industry standards. The laws define industry standards as a sign that does not exceed 18 x 24 inches. Likewise, the sign rider shall not exceed 6 x 24 inches.
Also, planned communities (A.R.S. § 33-1808, amended 2010) and condominiums (A.R.S. § 33-1261, amended 2010) may not regulate for sale signs if they are not larger than industry standard size. Associations may not require the use of particular signs indicating real property for sale and may not further regulate the use of for sale signs that are industry standard size and that are owned or used by the seller or the seller’s agent. In other words, associations may not force owners to use pre-approved for sale signs or signs that are a particular color or design.
Open House Signs and Open House Hours
Arizona law protects open house signs and open house hours in condominiums (A.R.S. § 33-1261, amended 2010) and planned communities (A.R.S. § 33-1808, amended 2010), including those that are access-restricted.
Associations may not prohibit or otherwise regulate temporary open house signs if they are not larger than industry standard size. Associations may not require the use of particular signs indicating an open house and may not further regulate the use of temporary open house signs that are industry standard size and that are owned or used by the seller or the seller’s agent. In other words, associations cannot force owners to use pre-approved open house signs or signs that are a particular color or design. It is important to note, however, that planned community and condominium associations may still prohibit open house signs on common areas or common elements.
Associations may not limit the hours for an open house for real estate that is for sale, except that the association may prohibit open house being held before 8:00 A.M. or after 6:00 P.M.
For Lease Signs and Open Houses for Rental Properties
Arizona law protects for lease signs and open house hours for rental properties in condominiums (A.R.S. § 33-1261, amended 2010) and planned communities (A.R.S. § 33-1808, amended 2010), including those that are access-restricted.
Associations may not prohibit or otherwise regulate an owner’s or an owner’s agent’s for lease sign unless an association’s documents prohibit or restrict leasing of a member’s property. Moreover, Associations may not further regulate a for lease sign or require the use of a particular for lease sign other than the for lease sign shall not be any larger than the industry standard size sign of 18 X 24 inches on or in the member’s property.
If leasing of a member’s property is not prohibited or restricted under the association’s documents, the association may prohibit open house leasing being held before 8:00 A.M. or after 6:00 P.M.
For a link to the actual text of the bill, click here: http://www.azleg.gov/FormatDocument.asp?inDoc=/legtext/49leg/2r/laws/0041.htm
If you have any questions about this new legislation, please contact us at 480-922-9292.
Thanks to Ekmark & Ekmark, L.L.C. for giving me permission to share this timely info!
