Lenders share tips about mortgages

By By Catherine ReagorThe Arizona RepublicMon Jan 27, 2014 11:31 AM

New federal mortgage rules went into effect on Jan. 10 that are supposed to help protect borrowers and end abusive lending practices, many of which led to foreclosures and ultimately the real-estate crash.

Two of the most important changes:

A lender must determine whether borrowers can actually afford a mortgage by calculating their debt to income ratios.

Lenders must provide “qualified mortgages” that are less risky than interest-only loans, don’t have terms longer than 30 years or up-front fees for more than 3 percent of the mortgage balance.

Click here for complete AZCENTRAL.COM article

Home prices continue march

While other economic indicators are fluctuating with the season or bobbing along with a fitful recovery, prices on Arizona housing are sending an unambiguous message: Home values are rising.

The state’s median sales price was $172,000 in April, according to figures tracked by the Arizona Regional Multiple Listing Service. It was up nearly $5,000 from the month before and up $34,000 from April 2012.

In fact, it was the highest level since August 2008, the month before the Wall Street meltdown that ushered in a nationwide economic freefall.

To be sure, home values remain well below the market peak in June 2006, when the median sales price was a lofty $264,800.

But sales prices have climbed 17 of the past 22 months, suggesting progress toward a more conventional market.

It’s also a more sustained recovery than the false starts in 2009 and 2010, when prices seemed to start improving only to begin trending downward again.

Click Here for an Economic Snapshot from Ronald J. Hansen at ronald.hansen@arizonarepublic.com.

Despite Season November was “Good Month” for Home Prices

The S&P Case-Shiller Composite Indices each posted month-over-month declines in November after nine straight months of growth. The 10-City and 20-City Indices were both down 0.1 percent from October to November but year-over-year the 10-City was up 13.8 percent and the 20-City 13.7 percent…

Blitzer said the steady rise in year-over-year price increases began in June 2012 and continued, albeit at a slower pace, in November. “Looking at the year-over-year returns, the Sun Belt continues to push ahead with Atlanta, Las Vegas, Los Angeles, Miami, Phoenix, San Diego, San Francisco, and Tampa taking eight of the top nine spots. Detroit continues to recover but remains the only city with prices below its 2000 level.”

Click here for entire Mortgage New Daily article.

Verrado Real Estate Market 2013 Review

Amy - WebVerrado Real Estate Market 2013 Review  by Amy Hayslett Realtor, Verrado Realty

It was a dynamic year in real estate. Low mortgage rates and tight inventories touched off multiple bids amid the housing market’s recovery.

The Verrado Real Estate Market consistently improved throughout 2013 ending the year with 278 homes sold, up 20% from 232 closings in 2012. The price per square foot sold ended the year at an average price of $108, an improvement of 16% over 2012.

In the meantime, the median sold price came in at $269,950, up 12% over 2012.

The 4th quarter ended strong with an average price per square foot sold of $117 and median price of $300,000. Overall, Verrado has experienced consistent improvement throughout the year. Here is a look at the entire year, quarter by quarter.

Quarter 1

$102   per sq.ft

average median price of $252,000

Quarter 2

$107   per sq.ft.

average median price of $256,755

Quarter 3

$109   per sq.ft

average median price of $280,000

Quarter 4

$117   per sq.ft

average median price of $300,000

 

Heading into 2014 expect supply to initially tighten as the existing builder inventory sells down and won’t be replaced significantly until 3 south opens sometime later in the year. What this means for buyers is that you may not want to wait as tight supply usually means higher prices. For Sellers, who have been waiting on the sidelines, now could be the right time to put your home on the market.

If you want to learn more about the market or you are considering buying or selling call us at 623-792-5900 or contact your Verrado Realty agent directly.