10 Cities Where List Prices Soared Last Month
Daily Real Estate News | Thursday, December 22, 2011
Median list prices nationwide have risen 4.05 percent on a year-over-year basis, according to November housing data of 146 metro areas from Realtor.com. Fewer cities are reporting year-over-year list price declines, “suggesting a growing optimism on the part of sellers about 2012 market conditions,” according to Realtor.com.
So where have prices risen the most in the last month? The following are the 10 cities that saw the largest median list price increases from October to November.
1. Central Fla.-Regional Statistical Area
Month-to-month median increase: 5.63 percent
Year-over-year increase: 14.27 percent
Median list price: $169,000
2. Phoenix-Mesa, Ariz.
Month-to-month increase: 4.46 percent
Year-over-year increase: 10.54 percent
Median list price: $164,700
3. Miami, Fla.
Month-to-month increase: 3.60 percent
Year-over-year increase: 29.50 percent
Median list price: $259,000
4. Tampa-St. Petersburg-Clearwater, Fla.
Month-to-month increase: 3 percent
Year-over-year decrease: -2.50 percent
Median list price: $144,200
5. New York, N.Y.
Month-to-month increase: 2.71 percent
Year-over-year decrease: -2.57 percent
Median list price: $379,000
6. Fort Myers-Cape Coral, Fla.
Month-to-month increase: 2.69 percent
Year-over-year increase: 21.63 percent
Median list price: $224,900
7. Iowa City, Iowa
Month-to-month increase: 2.50 percent
Year-over-year increase: 3.02 percent
Median list price: $204,900
8. Tucson, Ariz.
Month-to-month increase: 2.41 percent
Year-over-year increase: 2.41 percent
Median list price: $174,000
9. Sarasota-Bradenton, Fla.
Month-to-month increase: 2.13 percent
Year-over-year increase: 16.56 percent
Median list price: $240,000
10. West Palm Beach-Boca Raton, Fla.
Month-to-month increase: 1.86 percent
Year-over-year increase: 15.26 percent
Median list price: $219,000
By Melissa Dittmann Tracey for REALTOR® Magazine’s Daily News
Arizona Property Management and Investments
If you are interested in purchasing investment properties or receiving a free quote for our property management services, please call us at (888)777.6664 for immediate assistance.
Thursday, December 22, 2011
Wednesday, December 14, 2011
Phoenix-area declines in foreclosures, home supply bode well for 2012
Phoenix-area declines in foreclosures, home supply bode well for 2012
by Lesley Wright - Sept. 14, 2010 12:00 AM
The Arizona Republic
Read more: http://www.azcentral.com/arizonarepublic/local/articles/2010/09/14/20100914real-estate-scheme-sun-city.html#ixzz1gXJkavbg
by Lesley Wright - Sept. 14, 2010 12:00 AM
The Arizona Republic
Read more: http://www.azcentral.com/arizonarepublic/local/articles/2010/09/14/20100914real-estate-scheme-sun-city.html#ixzz1gXJkavbg
Tuesday, December 13, 2011
BofA developing foreclosure rental programs to deal with distressed properties
BofA developing foreclosure rental programs to deal with distressed properties
by JON PRIOR
Housing Wire
Friday, December 9th, 2011, 3:35 pm
Bank of America is looking at a new program to rent a home back to the borrower after foreclosure.
"There are programs that we are quite interested in," said Ron Sturzenegger, who leads the bank's legacy asset servicing division, in an interview with HousingWire. "We are talking with investors that would come in and buy these houses and would lease them back to who would now be the now tenant."
In February, BofA formed the division to handle the servicing for delinquent mortgages, loans no longer being written, and to sort out outstanding representation and warranty claims. Currently, more than 35,000 employees at the bank are sorting through 1.1 million loans 60 days delinquent or worse, according to its third-quarter financial statement.
The Federal Housing Finance Agency is working on an REO rental program for Fannie Mae and Freddie Mac. It received more than 4,000 ideas on how to do it.
But private banks own $50.4 billion worth of REO properties, too, according to the Federal Deposit Insurance Corp., and millions of these homes are sitting vacant.
Sturzenegger described how their idea would work.
"We are looking at programs where you can capture somebody before the REO process and offer a deed-for-lease. We would go to the customer and say, 'We'll do a short sale. Will you be interested in leasing your property back? We're still going to sell the property. You will no longer be the owner. But you can be a tenant now in that same property and save you from moving on,'" he said.
Sturzenegger stressed the bank would still sell the REO as before in areas where there is a market for them and they can still get reasonable bids. But some areas are so saturated with inventory, there isn't enough investor or homebuyer demand and properties can sit for years uninhabited.
Rick Sharga, the executive vice president at Carrington Mortgage Holdings, said in an interview that many firms, including Carrington are preparing to participate.
"We already have the infrastructure and assets in place to participate effectively," he said. "Everyone is waiting on final direction from the FHFA."
Sturzenegger stressed the private program at BofA is in its infancy.
"It's in the very early stages," he said.
Jacob Gaffney contributed to this report.
Arizona Property Management and Investments
If you are interested in purchasing investment properties or receiving a free quote for our property management services, please call us at (888)777.6664 for immediate assistance.
by JON PRIOR
Housing Wire
Friday, December 9th, 2011, 3:35 pm
Bank of America is looking at a new program to rent a home back to the borrower after foreclosure.
"There are programs that we are quite interested in," said Ron Sturzenegger, who leads the bank's legacy asset servicing division, in an interview with HousingWire. "We are talking with investors that would come in and buy these houses and would lease them back to who would now be the now tenant."
In February, BofA formed the division to handle the servicing for delinquent mortgages, loans no longer being written, and to sort out outstanding representation and warranty claims. Currently, more than 35,000 employees at the bank are sorting through 1.1 million loans 60 days delinquent or worse, according to its third-quarter financial statement.
The Federal Housing Finance Agency is working on an REO rental program for Fannie Mae and Freddie Mac. It received more than 4,000 ideas on how to do it.
But private banks own $50.4 billion worth of REO properties, too, according to the Federal Deposit Insurance Corp., and millions of these homes are sitting vacant.
Sturzenegger described how their idea would work.
"We are looking at programs where you can capture somebody before the REO process and offer a deed-for-lease. We would go to the customer and say, 'We'll do a short sale. Will you be interested in leasing your property back? We're still going to sell the property. You will no longer be the owner. But you can be a tenant now in that same property and save you from moving on,'" he said.
Sturzenegger stressed the bank would still sell the REO as before in areas where there is a market for them and they can still get reasonable bids. But some areas are so saturated with inventory, there isn't enough investor or homebuyer demand and properties can sit for years uninhabited.
Rick Sharga, the executive vice president at Carrington Mortgage Holdings, said in an interview that many firms, including Carrington are preparing to participate.
"We already have the infrastructure and assets in place to participate effectively," he said. "Everyone is waiting on final direction from the FHFA."
Sturzenegger stressed the private program at BofA is in its infancy.
"It's in the very early stages," he said.
Jacob Gaffney contributed to this report.
Arizona Property Management and Investments
If you are interested in purchasing investment properties or receiving a free quote for our property management services, please call us at (888)777.6664 for immediate assistance.
Monday, December 12, 2011
After drop, home prices on the rise in Valley
After drop, home prices on the rise in Valley
by Catherine Reagor - Dec. 9, 2011 04:04 PM
The Arizona Republic
In August, as metro Phoenix home prices dipped to another new low, some real-estate analysts predicted the area's home values would keep falling. Other analysts disagreed, saying all the indicators, besides home prices, were heading in the right direction for values to climb before year's end.
The median price for an existing Phoenix-area home climbed to $119,900 in November, according to a new report from the Information Market. It's the region's highest median home price since November 2010.
In October, Phoenix's median home price was $115,000, which is where it had hovered most of the first half of this year. But when it fell to $112,000 in August, some market watchers thought it would drop all the way down to $100,000 by the end of this year. Of course, some panic ensued.
But the housing analysts who were watching foreclosures fall, sales climb ahead of last year's pace and listings plummet, stood firm in their opinion that home prices would begin to rise again.
During the past few months, not only short-sale prices but the prices for foreclosure resales known as REOs, or real-estate owned, have been steadily climbing. In some areas of metro Phoenix, REOs are now selling for more than houses sold through lender-approved short-sale deals. In 2008 and 2009, REOs were dragging down the area's home values as lenders took back houses through foreclosure and then resold them quickly for bargain prices to get the properties off their books.
Home prices are also climbing at foreclosure auctions, also known as trustee sales, held daily in front of the Maricopa County Courthouse. The auctions are Arizona's method for lenders to foreclose.
In 2008, when foreclosures started to climb, few properties sold at these trustee auctions. Back then, lenders weren't lowering prices beyond what was owed on a house, so investors weren't interested in purchasing a house for at least twice what it was actually worth. But once lenders started lowering prices to much less than what they were owed, bidding picked up quickly.
Competition is also driving up prices at the trustee auctions. Each month this year, more than 1,000 foreclosure homes have been bought at Maricopa County trustee auctions. That compares with 100 per month at the beginning of the crash.
Arizona Property Management and Investments
If you are interested in purchasing investment properties or receiving a free quote for our property management services, please call us at (888)777.6664 for immediate assistance.
by Catherine Reagor - Dec. 9, 2011 04:04 PM
The Arizona Republic
In August, as metro Phoenix home prices dipped to another new low, some real-estate analysts predicted the area's home values would keep falling. Other analysts disagreed, saying all the indicators, besides home prices, were heading in the right direction for values to climb before year's end.
The median price for an existing Phoenix-area home climbed to $119,900 in November, according to a new report from the Information Market. It's the region's highest median home price since November 2010.
In October, Phoenix's median home price was $115,000, which is where it had hovered most of the first half of this year. But when it fell to $112,000 in August, some market watchers thought it would drop all the way down to $100,000 by the end of this year. Of course, some panic ensued.
But the housing analysts who were watching foreclosures fall, sales climb ahead of last year's pace and listings plummet, stood firm in their opinion that home prices would begin to rise again.
During the past few months, not only short-sale prices but the prices for foreclosure resales known as REOs, or real-estate owned, have been steadily climbing. In some areas of metro Phoenix, REOs are now selling for more than houses sold through lender-approved short-sale deals. In 2008 and 2009, REOs were dragging down the area's home values as lenders took back houses through foreclosure and then resold them quickly for bargain prices to get the properties off their books.
Home prices are also climbing at foreclosure auctions, also known as trustee sales, held daily in front of the Maricopa County Courthouse. The auctions are Arizona's method for lenders to foreclose.
In 2008, when foreclosures started to climb, few properties sold at these trustee auctions. Back then, lenders weren't lowering prices beyond what was owed on a house, so investors weren't interested in purchasing a house for at least twice what it was actually worth. But once lenders started lowering prices to much less than what they were owed, bidding picked up quickly.
Competition is also driving up prices at the trustee auctions. Each month this year, more than 1,000 foreclosure homes have been bought at Maricopa County trustee auctions. That compares with 100 per month at the beginning of the crash.
Arizona Property Management and Investments
If you are interested in purchasing investment properties or receiving a free quote for our property management services, please call us at (888)777.6664 for immediate assistance.
Thursday, December 8, 2011
Phoenix: Good Time to Buy?
Good Time to Buy? Housing Cheaper to Own vs. Rent in 12 U.S. Metro Areas: WSJ
By Peter Gorenstein | Daily Ticker – Mon, Nov 28, 2011 12:30 PM EST
Five years after the market peaked, the housing market remains depressed. October new home sales, released this morning, totaled 307,000, slightly below estimates. Meanwhile, prices rose slightly.
But, as your real estate broker will happily mention - 'Now is a great time to buy!' Unlike 2007, when that obviously was not the case for most, now it might actually be true. Ironically, the reluctance for many to buy a home is what makes it a good (relatively) time to purchase.
As Aaron and Henry discuss in the accompanying clip, owning a home is now more affordable than any time in the last 15 years, based on a new Wall Street Journal survey. In fact -- with the average price of a home $242,300 -- it is now cheaper to own than rent in 12 metro areas including Atlanta, Chicago, Detroit, Las Vegas, Miami, Orlando and Phoenix.
As the WSJ article points out, the discrepancy between buying and renting can be extreme in some areas:
"In Atlanta, which had the most favorable values for owning versus renting, the monthly payment on the average home was $539 assuming a 20% down payment during the third quarter. By contrast, the average asking rent stood at $840."
Sagging prices and sub-4% interest on a 30-year fixed mortgage are the biggest drivers behind the trend of record housing affordability. However, unlike the glory days when buying a home merely took a pulse, securing a loan today is much tougher. And, flipping property is a dead game.
Arizona Property Management and Investments
If you are interested in purchasing investment properties or receiving a free quote for our property management services, please call us at (888)777.6664 for immediate assistance.
By Peter Gorenstein | Daily Ticker – Mon, Nov 28, 2011 12:30 PM EST
Five years after the market peaked, the housing market remains depressed. October new home sales, released this morning, totaled 307,000, slightly below estimates. Meanwhile, prices rose slightly.
But, as your real estate broker will happily mention - 'Now is a great time to buy!' Unlike 2007, when that obviously was not the case for most, now it might actually be true. Ironically, the reluctance for many to buy a home is what makes it a good (relatively) time to purchase.
As Aaron and Henry discuss in the accompanying clip, owning a home is now more affordable than any time in the last 15 years, based on a new Wall Street Journal survey. In fact -- with the average price of a home $242,300 -- it is now cheaper to own than rent in 12 metro areas including Atlanta, Chicago, Detroit, Las Vegas, Miami, Orlando and Phoenix.
As the WSJ article points out, the discrepancy between buying and renting can be extreme in some areas:
"In Atlanta, which had the most favorable values for owning versus renting, the monthly payment on the average home was $539 assuming a 20% down payment during the third quarter. By contrast, the average asking rent stood at $840."
Sagging prices and sub-4% interest on a 30-year fixed mortgage are the biggest drivers behind the trend of record housing affordability. However, unlike the glory days when buying a home merely took a pulse, securing a loan today is much tougher. And, flipping property is a dead game.
Arizona Property Management and Investments
If you are interested in purchasing investment properties or receiving a free quote for our property management services, please call us at (888)777.6664 for immediate assistance.
Thursday, December 1, 2011
Second Half Of The Financial Crisis Is Approaching Soon.
Payam Raouf
Owner/Associate Broker
Arizona Property Management and Investments
Toll Free: (888)777.6664
If you are interested in receiving a free quote for our property management services,
please CONTACT US.
Investors,
We are approaching the second half of the storm (financial crisis). We have been in the eye of the storm for a year now making everyone feeling good. We are ¾ over, approaching the second half. If you missed the first half, this is your chance to pick up some nice properties in more established areas at a very reasonable price.
1/3 of variable mortgages has or is coming due soon in areas where prices have yet to come down another 10 to 20 percent such as in Scottsdale, N Peoria, Cave Creek, Chandler, Ahwatukee and Gilbert.
Institutional investors are yet to consider these areas. They hover more and less in the 80k to 120k range where there are already too many rentals in the market.
If you are looking for some solid investment properties, it is time to keep an eye on the areas I mentioned above.
If you have any questions, call 888-777-6664 and ask for Payam Raouf.
Owner/Associate Broker
Arizona Property Management and Investments
Toll Free: (888)777.6664
If you are interested in receiving a free quote for our property management services,
please CONTACT US.
Investors,
We are approaching the second half of the storm (financial crisis). We have been in the eye of the storm for a year now making everyone feeling good. We are ¾ over, approaching the second half. If you missed the first half, this is your chance to pick up some nice properties in more established areas at a very reasonable price.
1/3 of variable mortgages has or is coming due soon in areas where prices have yet to come down another 10 to 20 percent such as in Scottsdale, N Peoria, Cave Creek, Chandler, Ahwatukee and Gilbert.
Institutional investors are yet to consider these areas. They hover more and less in the 80k to 120k range where there are already too many rentals in the market.
If you are looking for some solid investment properties, it is time to keep an eye on the areas I mentioned above.
If you have any questions, call 888-777-6664 and ask for Payam Raouf.
Saturday, November 19, 2011
A third option, offering foreclosed homes in rent-to-own deals.
Real Estate: Why Home Prices Won't Bottom Out
By John Wasik | Reuters – Fri, Nov 18, 2011 1:10 PM EST
Watching the U.S. home market struggle to rebound is like listening to children in the back of a car. No, we're not there yet.
The National Association of Realtors reported that ten real estate markets are "leading the nation toward a general recovery and stability of the housing sector," but myriad problems are going to weigh down the housing market for months to come.
The lingering malaise in the economy has triggered a new wave of defaults and foreclosures. After five straight quarterly drops, foreclosures nationwide shot up 14 percent from the second to third quarter this year, according to data released by Realtytrac, the foreclosure information service, in October.
While RealtyTrac doesn't foresee that the latest foreclosure wave will equal the severity of the 2007-2010 pattern -- in which three million borrowers lost their homes -- it's going to slam on the brakes where areas are getting hit the hardest.
In theory, it should be a good time to buy a home. In the worst-hit areas, properties have lost more than half their value.
Yet as the average 30-year mortgage rate has slipped below 4 percent, the combination of employment insecurity and unusually tight standards for lending are discouraging buyers en masse. Lenders are asking for extensive income verification and tax returns. One lender I contacted for refinancing even wanted me to get an accountant to certify that I wasn't lying to the IRS.
Here are some of the biggest roadblocks:
--Even in bruised cities where price appreciation is evident, unemployment is still too high. Six out of 10 of the "top turnaround towns" listed by Realtor.com for the third quarter had jobless rates above 10 percent. People can't buy homes if they're not working or soon to lose their jobs. Those cities, which include four of the largest cities in Florida, still have a long way to go to recover from the housing bust.
--Although at a record low, the home mortgage rate may still be high relative to home prices. This may sound counterintuitive, but research from the Leuthold Group in their November newsletter shows that a "real" mortgage rate -- which factors in the falling market value of the home prices -- is 8 percent. Leuthold says that real cost of buying must include the 4 percent interest rate and the 3.9 percent average home prices decline over the past 12 months. That cost is still scaring away buyers.
--The combination of unemployment, high housing inventory and foreclosures is hurting places where there wasn't an excessive price run-up. Realtor.com found that the largest year-over year median listing price decreases through October were in cities like Chicago, Detroit and Atlanta. This three-punch combination will continue to ravage markets where there's a sluggish economy
Possible solutions to the housing blockage range from the radical to the necessary. A group called Remortgage America is calling for the government to loan Americans mortgages at 1 percent to finance a new or existing residence.
Others would like to see Fannie Mae and Freddie Mac take the foreclosed homes they own and either auction them off or offer them in a huge fire sale.
The seized mortgage agencies account for up to one-third of foreclosed homes -- about 250,000. American taxpayers are pouring tens of billions into propping up these two wards of the state, which were taken over by the U.S. Treasury in late 2008. The Obama Administration has yet to announce what it wants to do with the companies. Will they be restructured, liquidated or privatized?
A third option, which may have the least impact on a battered market, is to offer foreclosed homes in rent-to-own deals. Prospective homeowners get a place to live under reasonable leases and can build equity toward a purchase.
It's estimated that some 3.4 million foreclosed homes will be on the books of banks and mortgage companies by the end of this year. As regulators, banks, mortgage companies and state attorneys general move sheepishly to unblock mortgage modifications, refinancings and resales, only one certainty prevails: The open market will not be able to properly price every property until all government restrictions are lifted on their sales and re-financing.
Arizona Property Management and Investments
Toll Free: (888)777.6664
If you are interested in receiving a free quote for our property management services,
please CONTACT US.
By John Wasik | Reuters – Fri, Nov 18, 2011 1:10 PM EST
Watching the U.S. home market struggle to rebound is like listening to children in the back of a car. No, we're not there yet.
The National Association of Realtors reported that ten real estate markets are "leading the nation toward a general recovery and stability of the housing sector," but myriad problems are going to weigh down the housing market for months to come.
The lingering malaise in the economy has triggered a new wave of defaults and foreclosures. After five straight quarterly drops, foreclosures nationwide shot up 14 percent from the second to third quarter this year, according to data released by Realtytrac, the foreclosure information service, in October.
While RealtyTrac doesn't foresee that the latest foreclosure wave will equal the severity of the 2007-2010 pattern -- in which three million borrowers lost their homes -- it's going to slam on the brakes where areas are getting hit the hardest.
In theory, it should be a good time to buy a home. In the worst-hit areas, properties have lost more than half their value.
Yet as the average 30-year mortgage rate has slipped below 4 percent, the combination of employment insecurity and unusually tight standards for lending are discouraging buyers en masse. Lenders are asking for extensive income verification and tax returns. One lender I contacted for refinancing even wanted me to get an accountant to certify that I wasn't lying to the IRS.
Here are some of the biggest roadblocks:
--Even in bruised cities where price appreciation is evident, unemployment is still too high. Six out of 10 of the "top turnaround towns" listed by Realtor.com for the third quarter had jobless rates above 10 percent. People can't buy homes if they're not working or soon to lose their jobs. Those cities, which include four of the largest cities in Florida, still have a long way to go to recover from the housing bust.
--Although at a record low, the home mortgage rate may still be high relative to home prices. This may sound counterintuitive, but research from the Leuthold Group in their November newsletter shows that a "real" mortgage rate -- which factors in the falling market value of the home prices -- is 8 percent. Leuthold says that real cost of buying must include the 4 percent interest rate and the 3.9 percent average home prices decline over the past 12 months. That cost is still scaring away buyers.
--The combination of unemployment, high housing inventory and foreclosures is hurting places where there wasn't an excessive price run-up. Realtor.com found that the largest year-over year median listing price decreases through October were in cities like Chicago, Detroit and Atlanta. This three-punch combination will continue to ravage markets where there's a sluggish economy
Possible solutions to the housing blockage range from the radical to the necessary. A group called Remortgage America is calling for the government to loan Americans mortgages at 1 percent to finance a new or existing residence.
Others would like to see Fannie Mae and Freddie Mac take the foreclosed homes they own and either auction them off or offer them in a huge fire sale.
The seized mortgage agencies account for up to one-third of foreclosed homes -- about 250,000. American taxpayers are pouring tens of billions into propping up these two wards of the state, which were taken over by the U.S. Treasury in late 2008. The Obama Administration has yet to announce what it wants to do with the companies. Will they be restructured, liquidated or privatized?
A third option, which may have the least impact on a battered market, is to offer foreclosed homes in rent-to-own deals. Prospective homeowners get a place to live under reasonable leases and can build equity toward a purchase.
It's estimated that some 3.4 million foreclosed homes will be on the books of banks and mortgage companies by the end of this year. As regulators, banks, mortgage companies and state attorneys general move sheepishly to unblock mortgage modifications, refinancings and resales, only one certainty prevails: The open market will not be able to properly price every property until all government restrictions are lifted on their sales and re-financing.
Arizona Property Management and Investments
Toll Free: (888)777.6664
If you are interested in receiving a free quote for our property management services,
please CONTACT US.
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