Archive for February, 2008
Is There Light At the End Of The Tunnel?
February 21st, 2008 categories: Home Buyers, Prescott Real Estate Trends, Real Estate News
Things are picking up, you can feel it. The phone is ringing, Real Estate Agents seem a little more optimistic. Buyers that have been sitting in the stands are stepping into the court, realizing that this is a great time to buy a house. It’s not a surprise that last week brought a 12 percent jump in the number of people applying for mortgages to purchase a home. Could it be a hint that the Spring real estate market could be better than a lot of the pundits believe?
Well, it probably would be a mistake to make too much fuss over a single week’s statistical report from the Mortgage Bankers Association of America.
After all, the National Association of Realtors’ latest pending home sale index — which looks out over the horizon to predict sales activity a month or two ahead — registered a decline of one and a half percent.
But you can’t simply ignore all those new mortgage applications. They’re real. Somethings going on — and it could be that the word is finally getting out to consumers that home loan rates at an average 5.6 percent for a 30-year fixed-rate mortgage — are close to 40-year lows.
Money for home purchases right now is cheap, no question. And we all know housing prices are lower this year than they were last year – sometimes by 10 and 15 percent or more, depending on local market conditions.
So a 12 percent jump in purchase applications could be a significant development … or just a fleeting statistical fluke. We’ll keep you up to date on it.
Another potentially important factor looking forward: The federal economic stimulus package signed into law this week opens the door to more affordable home purchases in some of the hardest-hit, high cost markets in California, New England, Florida and the Mid- Atlantic states.
Rather than being stuck with expensive “jumbo” loans — with rates of one to two percent above standard — buyers will now be able to take out mortgages with lower rates, even if the loan amounts go to nearly $730,000.
Those new “budget-priced” jumbos will be available not only through Fannie Mae and Freddie Mac, whose lower capital costs get passed onto borrowers, but also through the FHA, whose capital costs are even lower.
There’s a hitch, though: These special jumbo deals will only be available this calendar year. They disappear December 31st.
Buyers and sellers who want to benefit from this part of the stimulus package need to get into the game fairly soon.
Who knows? Maybe the economic stimulus package — which most people think of in terms of tax rebate checks — just might bring some heat and energy to the housing market, just in time for Spring.
| Discussion: No Comments »
Television Antennas.. Soon to be a part of our past
February 20th, 2008 categories: Prescott Homeowners
Antique Road Show, year 2090
Louise has been patiently standing in line with a contraption her Grandmother and Mother used to hang wet clothes on in the winter. It has been in the basement of her Great-grandfather’s home for as long as anyone can remember, anchored to the floor with guy wires, holding countless hangers of wet clothes. It has a 5’metal pole with other long thin round pieces of metal jutting out from it. Sort of like the branches of a tree. So here she stands, her question and contraption in hand. It’s finally her turn and the conversation goes something like this; “Well, what have we here?” “my family has used this to hang wet clothes on for as long as anyone can remember but my husband insists that it was originally used for something else but he doesn’t know what” “well, what you have here is a television antenna. This would be installed on the roof of a house and then connected to the television with a couple of wires” “what’s an antenna?” Louise asks. “an antenna is something that would catch a signal, radio, television, etc., as it went through the air and then transmit the signal to your “receiver” in this case, a television. “They stopped using these for televisions sometime back in 2009.
If you are one of those TV watchers that are still using the antique antenna, beware: A long awaited change is coming to a TV near you. As of February 17th, 2009, antenna fed televisions without digital tuners will go blank unless they have separate converters. For more information, please read the article on AZ Central.com regarding “digital only” TV reception.
| Discussion: No Comments »
Prescott Real Estate; a year in review
February 19th, 2008 categories: Home Buyers, Home Sellers, Prescott Homeowners, Prescott Real Estate Trends, Real Estate News
2007 Prescott Real Estate. A year in review:
Wow! What a transition… To say that Prescott experienced some major Real Estate adjustments in 2007 is an understatement. We enjoyed double digit appreciation for several years, and came to expect it as normal. Although the trend started to slow toward the end of 05, many home sellers, and Realtors didn’t start to feel the burn until 07. In 2007, average home prices adjusted downward in almost all neighborhoods. Days on market adjusted upward along with interest rates. The interest rate increases kept many first time home buyers out of the market all together, or afraid to take the plunge. Buyers looking to up size could no longer afford the larger home and were forced to stay put.
A large listing inventory, and fewer buyers made 07 an especially challenging year for home sellers. 50% of the listing inventory sold, which was down from 79% in previous years. Only 13% of the vacant land on the market sold. Days on market widened to 158 days which was quite a switch from the ” good old days” when homes sold before they hit the MLS. Not to mention the foreclosure market and sub prime lending disaster which we may not see the bottom of until 2009.
2007 brought many changes to our local Real Estate companies. There was simply not enough business to support the growing number of Licensed Realtors in the area. Currently there are 1,643 Licensed Real Estate agents belonging to PAAR (Prescott Area Association of Realtors) that number is down from well over 1,700 in 2005. I predict that in 2008-2009 more of our local Realtors will be forced to leave the Real Estate business. Mortgage companies and well as Escrow companies have seen their share of cut backs, consolidations and lay offs.
Eventhough lost sleep and my graying hair was a big part of 2007, I am always the optimist and hope that 2008 brings sunnier condition to our Prescott Real Estate market. The sooner we all accept “what is” in the Real Estate market, the brighter the sun will shine for all of us. Here’s to a great 2008!
Here are some sales statistics comparing 2006 to 2007.
| Discussion: No Comments »
Does this Real Estate market make me look fat?
February 19th, 2008 categories: Home Buyers, Prescott Real Estate Trends, Real Estate News
Working in this Real Estate market can make you feel uncomfortable. Like jeans that are too tight, you cannot wait to take them off!
The Real Estate market is in the news a lot these days… Pick up the newspaper, turn on the TV, talk to your neighbor, sadly it’s all pretty negative. There’s no dening it, things are tough out there. I watched a story on the news yesterday about a Real Estate office in Georgia that has converted into a florist, because the phone stopped ringing and houses stopped selling.. I know many Realtors that now work at Home Depot or Lowe’s because there’s simply not enough Real Estate clients to go around..
Many of the people commenting on the state of Real Estate don’t know much about Buyers or Sellers, or what it’s like working in Real Estate;
Here are some observations on the Prescott Real Estate Market….
Homes are selling. Not a lot, but some. What is causing most homes to sell in this market is the price. People are looking for deals. Homes priced at market value may end up sitting in the market for quite a while, simply because there are so many of them. Homes that are selling in under 100 days are usually priced slightly below market value, offering more and costing less than their competition.
Vacant Land. Ouch. About 10 vacant lots are selling in Prescott per month. When there is an abundance of residential properties on the market, vacant land takes a back seat. Right now, the cost of building far exceeds the cost of purchasing re-sale. There are new homes on the market listed at $140.00 to $150.00 per square foot, including the land. The cost of new construction is approxmiately $200.00 +, not including the land. If you are in the market for vacant land, we’ve got some great deals.
Interest Rates are low. They are approacing the 2005 levels again putting more money in buyers pockets. Hopefully buyers will realize that the bottom of the market is now. Anytime this year is a great time to buy a house.
| Discussion: No Comments »
The Telephone Line; Here are some important phone numbers
February 19th, 2008 categories: Home Buyers, Home Sellers
Moving into or out of a home is a stressful process. Turning utilities on or off, cable TV or Satellite, where do I get trash cans, who is a good veterinarian? Here are some important phone numbers you’ll need to get started.
Home Utilities
APS Electric - (928) 776-3636
City of Prescott Water, Sewer, Trash (928) 771-1291
Unisourse Natural Gas (928) 445-2211
Cable One, Cable TV Service (928) 445-4511
Dish Network, Satellite TV Service (928) 443-9797
Qwest Telephone (800) 244-1111
Ferrell Propane Gas (928) 445-3940
Flame Propane Gas (928) 445-3191
Emergency Services
Prescott Police Department (928) 778-1444 or for emergency call 911
Prescott Fire Department (928) 445-5555 or for emergency call 911
Life Line Ambulance Service (928) 445-3811
AAA Advanced Air Ambulance (800) 633-3590
Transportation Services
Shuttle U (928) 442-1000 To and from Sky Harbor Airport
Van Go (928) 717-8264 Door to door shuttle to Sky Harbor Airport
Executive Transport (928) 445-LIMO (5466)
Pet Care
Mile High Animal Hospital (928) 445-4581 (Highly Recommended)
Thumb Butte Animal Hospital (928) 445-2331
Hassayampa Canine Spa and Resort (928) 776-0932 (Highly Recommended)
(As a dog owner, this is the only boarding facility I recommend. It’s a wonderful facility and very affordable)
Yvonne’s Pet Grooming (928) 445-7244 (Highly recommended)
Financial Services
Grand Canyon Financial Services (928) 443-8583
| Discussion: No Comments »
Alan Jackson Live In Concert
February 19th, 2008 categories: Just For Fun, Prescott Nights
Alan Jackson Live In Concert
February 10th, 2008 at 7:30 PM
Tim’s Toyota Event Center
Alan Jackson has sold over 45 million records and is considered on of country musics biggest stars. He has won upwards of 95 Country Music Association Awards.
Tickets are available at Gettix.net
| Discussion: No Comments »
Bill Cosby Live At Yavapai College Performance Hall
February 19th, 2008 categories: Just For Fun, Prescott Nights
April 5, 2008
Yavapai College Performance Hall
1100 East Sheldon Street
Two performances at 4:00 PM and 7:30 PM
After 2 sold-out performances in 2007, Bill Cosby returns to provide two more great performances. Bill Cosby provides comic relif and insite to our everyday experiences.
For ticket information, contact Yavapai College performance Hall
| Discussion: No Comments »
Existing Home Sales To Hold Steady In Early 2008
February 19th, 2008 categories: Home Buyers, Home Sellers, Prescott Real Estate Trends
Here is an atricle that I thought was interesting and was published in the Arizona Realtor magazine, Feb. 2008 issue.
Over the next few months, existing home sales are expected to hold fairly steady as indicated by pending sales activity, and then rise later in the year and continue to improve in 2009, according to the latest forecast by the National Association of Realtors.
Lawrence Yun, NAR Chief econimist, says there is a pull and tug exerting itself on the market. “One one hand, we have pent up demand from the four million jobs added to our economy of the past two years of sales decline”. On the other hand, consumers continue to wait for additional signs of market stabilization. There are more people with financial capacity now than in 2005, but many are trying to market time their purchase. As a result, the exact timing and the strenght of a home sales recovery is a bit uncertain. A meaningful recovery in existing homes could occur as early as this spring, or further delayed toward late 2008.
The pending homes sales index, a forwared looking indicator based on contract signed in November fell 2.6 percent to a reading of 87.6 from a strong upward revision of 89.9 inOctober, but remains above the August and September readings and indicated a broad stabilization. The index was 19.2 % below the November 2006 level of 108.4. “Although there could be some minor slippage in the first quarter, existing home sales should hold up in a narrow range before trending up”, Yun says.
| Discussion: No Comments »
Buyer Tips
February 19th, 2008 categories: Home Buyers, Prescott Real Estate Trends
Prescott, Arizona is definitely a buyers market. There’s a lot of great properties on the market to look at, and simply put, we just need more buyers. I know some are waiting for the bell to ring that indicated the housing market has hit bottom, others may be waiting to see what’s going to happen with the economy. Be that as it may, if you’re looking for a home right now, here’s some tips to make the process easier.
1. Pre-quality with a mortgage lender. Find out exactly how much you quality for. There’s no need to look at homes you cannot afford, or on the other hand, under estimate what you do quality for. In Arizona, a LSR (loan status report) is required from a lender in order to submit an offer on a property. This is the first critical step to buying a home. It’s painless and only takes a half hour or so.
2. Choose a qualified Agent to represent you. There are a lot of buyers driving around looking at homes calling the phone number on the sign, not really working with a Buyers Agent.
An experienced Realtor is wealth of knowledge. They know market values, trends, past sales and so on. Find an Agent you work well with and make it a team effort.
Commit to one Agent, and they will commit to you.
3. Get A Home Inspection. It’s the best $300.00 to $400.00 you’ll ever spend. Uncovering major defects or potential repairs is the purpose of a home inspection. Make sure your inspector checks the roof, furnace, electrical, air conditioning and plumbing. These are items than can be very expensive to repair or replace. Interview your home inspector, ask for a sample copy of their report. A home inspector is an important member of your Real Estate purchasing team.
| Discussion: No Comments »
Don’t let your dream home become a nightmare… Get a home inspection before purchasing a new home
February 19th, 2008 categories: Home Buyers, Prescott Homeowners
Don’t let your dream home become a nightmare…… Get a home inspection..
According to the National Association of Realtors, 84% of home buyers requested that a home inspection be performed as part of their purchase contract.
99% of Licensed Realtor recommended to their buyers “inspect the home you are buying”.Home inspections are a now a standard step to purchasing a home. You wouldn’t buy a used car without first having it inspected? Home buyers want to know what they are purchasing, and they should. No one want to move into their dream home and have it become a nightmare. Roofs, furnaces, air conditioners or electrical repairs can cost thousands. And then you have to find the right contractor, have your house torn apart, and then write the check. This can be a hassle as well as an emotional rollercoaster. Protect yourself from the start and have the home your’e purchasing inspected. Here are some questions to ask a home inspector.
- First, ask for recommendations and names of qualified home inspectors. Speak with all of them to determine which will be most qualified to inspect your home.
- Ask for qualifications. Is he or she a member of the American Society of Home Inspectors or National Association of Home Inspectors?
- Does the inspector have a license? Inspectors are not required to be licensed in all states.
- How many inspections do they do each year?
- Can you contact their past clients?
- Do they carry Errors and Omissions insurance?
- Is there a guarantee of the work?
- What specifically does the inspection cover, what part of the home is not inspected?
- What type of report is provided?
- How long does it take to receive the report, and how much does it cost?
Protect your investment. Get a home inspection!
| Discussion: No Comments »
