HomeStyle Team Phoenix Real Estate Blog » housing market

Are We Headed For A Double Dip?

Joe Martin — Wed, 28 Jul 2010 23:35:13 +0000

Let’s first define what Double Dip Recession is – this happens when gross domestic product (GDP) growth slides back to a negative after a quarter or two of positive growth. A double-dip recession refers to a recession followed by a short-lived recovery, followed by another recession. Contributing factors and causes include inflation, monetary easing by Federal government, weak dollar and inflation.

I am not an economist, so my opinion is of minor significance compared to the heavy debates we are seeing on this subject from the top economists in the country. However, I will do my best to provide some useful information to graze over.

As far as my opinion, I’m an optimist and positive thinker, so I’m of the belief that, although the potential of this exists, the powers to be will take the necessary steps to prevent it from happening. It is a complicated subject and there are many variables. I do believe keeping the housing market alive is key to our way out of this troubled economy and preventing this, along with improving unemployment and a host of other factors.

I’m pleased that so far 2010 rates are still low. Frankly, it’s a perfect time to purchase a home, rates AND prices are simultaneously low, something that undeniably will not continue forever.

A recent ABC News article states;

“We’ve been conditioned to divide economic forecasters into the “bulls,” who think the economy will boom, and the “bears,” who think it will crash. But this is a new kind of battle. Call it “Bear vs. Bear.” It’s between two kinds of worriers: One group thinks that we’re headed for an extended period of inflation, and another that believes we’re a lot more likely to have a deflationary double-dip recession.” read more

In the long and short, at the moment, I believe buyers are in the opportunity of a lifetime to take advantage of not only low rates, but also outstanding values on a great inventory of homes. My advice is to buy now.

On that note, Freddie Mac is stepping up to the plate and providing a great venue for first-time buyers and owner occupants to avoid fighting the investors in the marketplace in my area. This is significant, as it provides a way to keep the economy going by stimulating the housing market through providing opportunities for first-time homebuyers and owner occupants to have an edge.

In my area, Freddie Mac, has even setup an auction and excluded investors so first time homebuyers and owner occupants will not have to compete with the cash money and overbidding that is occurring in the marketplace. The have picked 50 homes that qualify for Neighborhood Stabilization Program money for the morning gavel, and over 100 to be available for State and City NSP monies in the afternoon for owner occupants and first-time homebuyers. Homebuyers can get up to 22% of their down payment taken care of, plus Freddie Mac is providing $3000 in buyers assistance, a refrigerator and a two-year home warranty.

Events like this are one of the things that can help keep the housing market going and are what can help us avoid double dip recessions.

ATTN: FHA Phoenix Home Buyers–House Passes FHA Reform Bill

Joe Martin — Fri, 09 Jul 2010 02:38:06 +0000

Phoenix Arizona Area Homes

The Federal Housing Administration (FHA) reform legislation that was just passed allows FHA to raise monthly premiums on mortgage insurance so less up-front premiums will be due at the closing table.

This legislation helps qualified buyers that have less cash on hand purchase and take advantage of the current low rates with less out of pocket expenses.

This can be viewed as excellent news for Phoenix first time home buyers who can now apply the extra cash for some finishing touches, landscaping or fresh appliances on their new home after closing.

It’s important to note that after the House passed this bill, they went on to defeat an amendment that would raise the required down payment minimum from 3.5% to 5% of the sales price helping again to make ownership that much more affordable for qualified buyers.

[FHA down payment requirements were raised effective January 1, 2009 from 3% to 3.5% of the sales price or appraised value, whichever is less, of the home being purchased.]

Many are considering this as great news to prospective Phoenix home buyers. With rates and prices being low synonymously for the first time in years, coupled with the ability to choose from a plethora of foreclosure properties, it is the perfect time for buyers to find out if they qualify to purchase a home. Especially because of the extra money now available and particularly if they are renting!

Home Buying Tax Credit Extended!

Sarah Reiter — Fri, 02 Jul 2010 03:19:46 +0000

Lots of happy home buyers were kept in suspense the last few weeks as buzz about the home buying tax credit deadline circulated. The deadline was set to expire June 30th.

Homebuyers will now have until September 30th to complete their real estate purchases. The House of Representatives approved the bill on Tuesday and the U.S. Congress approved the bill just yesterday.

The bill is now going to President Obama for his signature.

For single family homes for sale in Mesa, foreclosures dominate Mesa home sales

Joe Martin — Thu, 17 Sep 2009 15:19:00 +0000

Looking for a single family house for sale in Mesa? There are plenty of them, but if you want to know what is actually selling, those are the foreclosures.

There are currently 1,726 active single family homes for sale in Mesa according to the MLS at time of this writing. Of those, only 290, or only 17% are foreclosure properties. So if I told you that there were 602 single family homes in Mesa that sold in the last month, that should mean roughly 102 of them were foreclosures. Not even close.

Of the 602 Mesa homes that sold last month, 294, or nearly 50% were foreclosures. The main reason foreclosures are selling is because of their price. The homes are generally listed below what a private sale is listed and is setting the market value for all homes on the market.

Another interesting statistic from these numbers is the very low supply of foreclosure properties on the market. with only 290 active and 294 sold in the last month, there is only a one month supply of inventory which is leading to a seller’s market.

There has been a lot of talk about a "shadow inventory" or foreclosures being held off the market on purpose by the banks. These numbers show the market could be flooded with this "shadow inventory" if it exist and still not crash. There are more than enough buyers out there right now for the inventory available.

If you want to see all the Mesa foreclosure homes for sale on the market right now check out our Mesa foreclosure properties for sale page.

Phoenix real estate market on fire, homes for sale in Phoenix are selling fast

Joe Martin — Thu, 16 Apr 2009 23:26:01 +0000

If you have been active in the Phoenix real estate market over the last few months you know there are more houses being sold in multiple offer scenarios than not. Houses are selling in Phoenix. Here are some market numbers to prove it.

These numbers are as of 4/13/2009

The current ARMLS inventory is 43,976 which is a drop of about 20% or over 10,000 properties since January of this year.
Of the houses currently on the market 42% of those are lender owned or short sale properties.
Currently there are 15,707 homes in pending which is one of the highest numbers anyone remembers seeing for ARMLS. Of those 15k homes, 78% of those are bank owned or short sales properties.
Closed homes YTD is 20,003 and half of those home sales in Phoenix have come since March 1st.
Of the Phoenix area homes that have closed in 2009 75%, or 15,019, were lender owned or short sales. Of that 75%, 88%, or 13,234, were lender owned.

Many people ask us on a daily basis when the bottom of the Phoenix housing market will hit. While it is impossible to say for sure, based on these numbers the case can be made that the bottom may be here, if not just passed.

Phoenix still growing, growth may help Phoenix real estate market

Joe Martin — Tue, 07 Apr 2009 09:06:44 +0000

One reason the Phoenix valley real estate market may recover faster than most is because we live in the Phoenix area and people still want to move here. According to a recent Forbes story the Phoenix, Scottsdale, Tempe, Chandler, Mesa area trails only Charlotte NC, Austin TX and Raleigh NC in percentage increases over the last year.

It is estimated that 350 new families a day are moving to the area. These new families are going to need somewhere to live, and with the housing prices and interest rates the way they are today there is plenty of great opportunities for them.

Last year we saw an increase of 2.78% in population. There are plenty of reasons to move to the area, the weather of course being one of the main ones. Another is our economy. We hear about the high unemployment numbers, but the Phoenix area unemployment numbers in January of 2009 was roughly 6.7%, much lower than the 8% national average.

Will the Phoenix housing market recover overnight? Of course not, but that does not mean it will not recover sooner than most parts of the country. The Phoenix area is a desirable relocation destination and as long as we continue to remain so houses will continue to sell.

Phoenix $15,000 down payment assistance program aimed to help Phoenix foreclosure houses

Joe Martin — Tue, 17 Mar 2009 22:23:40 +0000

The city of Phoenix has launched a new program using federal money that is aimed at trying to reduce the number of Phoenix foreclosure houses on the market. The new program will allow buyers to qualify for up to $15,000 in down payment assistance.

To qualify for the assistance the following criteria must be met:

House must be located in the city of Phoenix
Phoenix home must be a foreclosure property
The owner must live in the home as a primary residence
The family cannot earn more than 120% of the area median income
Buyers must be able creditworthy as determined by FHA
Property must have a sales price below 15% of appraised value
Property must be clear of the city’s top eight neighborhood code violations
Home must be able to pass HUD home inspection

The home buyers must also attend a homeownership counseling through one of the four HUD approved counseling agencies. The cost for this program is $50.

For more information you can

call the City of Phoenix Housing Department hotline- (602) 262-6602,
visit the City of Phoenix Neighborhood Housing Services web site www.phoenix.gov/NSD/nspa