Arizona Foreclosures fall again in May

The number of U.S. households on the verge of losing their homes dipped in May from April, and the annual increase was the smallest in three years.

But as layoffs, rather than risky mortgages, become the main reason that borrowers default on their home loans, foreclosures likely will remain elevated this year and into 2010. Many economists expect unemployment, now at 9.4 percent nationwide, to rise as high as 10 percent, and some project it will exceed the post-World War II record of 10.8 percent.

Foreclosure filings fell 6 percent in May from April, according to RealtyTrac Inc. More than 321,000 households received at least one foreclosure-related notice last month - 18 percent more than a year earlier - but the smallest annual gain since June 2006. OAS_AD('ArticleFlex_1')

Despite the drop from April, it was the third-highest monthly rate since Irvine, Calif.-based RealtyTrac began its report in January 2005, and the third straight month with more than 300,000 households receiving a foreclosure filing.

One in every 398 U.S. homes received a foreclosure filing last month, according to the foreclosure listing firm's report.

The mortgage industry has resumed cracking down on delinquent borrowers after foreclosures were temporarily halted by mortgage finance companies Fannie Mae and Freddie Mac and other lenders.

"It would not be a huge surprise to see the numbers level off a little bit at this point," said Rick Sharga, RealtyTrac's senior vice president for marketing.

Banks repossessed about 65,000 homes in May, up from 64,000 in April, due to big increases in several states including Michigan, Arizona and Nevada.

The Obama administration announced a plan in March to provide $50 billion from the financial industry rescue fund as an incentive for the mortgage industry to modify loans at lower monthly payments.

But the effectiveness of the relief plan remains unclear, with questions lingering about how much the lending industry will cooperate. Many housing counselors say it hasn't made much of a difference so far.

After banks take over foreclosed homes, they usually put them up for sale at deep discounts, pulling down prices for other sellers. Nationwide, sales of foreclosures and other distressed properties made up about 45 percent of the market in April, according to the National Association of Realtors.

The supply of new foreclosures had diminished in recent months as banks held off on taking back properties, but it's starting to surge again, said Gary Kent, a San Diego real estate broker who focuses on the foreclosure market.

"Everything I've got that's priced right is just flying off the shelves," he said.

On a state-by-state basis, Nevada had the nation's highest foreclosure rate in May with one every 64 households receiving a filing. California took the No. 2 slot previously occupied by Florida. California's rate was one in every 144 households.

In Florida, one in every 148 households received a foreclosure filing. Rounding out the top 10 were Arizona, Utah, Michigan, Georgia, Colorado, Idaho and Ohio.

Among large cities, Las Vegas led the way with one in every 54 households receiving a filing. Four California metropolitan areas - Stockton, Modesto, Riverside-San Bernardino and Merced - were next, followed by Cape Coral-Fort Myers, Fla.; Bakersfield, Calif.; Orlando, Fla.; Vallejo-Fairfield, Calif.; and Miami.

http://www.azcentral.com/business/articles/2009/06/11/20090611biz-Foreclosures0611.html

April foreclosures expected to be up 32%, report says

 I just read this Article from from USA Today and thought I would share it with you.

Has the market leveled out or will we re-test the lows?

What is your thoughts?

 — The number of U.S. households faced with losing their homes to foreclosure jumped 32% in April compared with the same month last year, with Nevada, Florida and California showing the highest rates, according to data released Wednesday.

More than 342,000 households received at least one foreclosure-related notice in April, RealtyTrac said. That means one in every 374 U.S. housing units received a foreclosure filing last month, the highest monthly rate since the Irvine, California-based foreclosure listing firm began its report in January 2005.

April was the second straight month with more than 300,000 households receiving a foreclosure filing, as the number of borrowers with mortgage troubles failed to abate.

The April number, however, was less than 1% above that posted in March, when more than 340,000 properties were affected. The March data was up 17% from February and 46% from a year earlier.

"We've never seen two consecutive months like this," said Rick Sharga, RealtyTrac's senior vice president for marketing. "It's the volume that's surprising."

While total foreclosure activity was up, the number of repossessions by banks was down on a monthly and annual basis to their lowest level since March of last year, RealtyTrac said.

But that's far from positive news. Because much of the foreclosure activity in April was in the default and auction stages — the first parts of the foreclosure process — it's likely that repossessions will increase in coming months, RealtyTrac said.

About 63,900 homes were repossessed in April, down 11% from about 71,700 in March, RealtyTrac said. But the mortgage industry has resumed cracking down on delinquent borrowers after foreclosures were temporarily halted by mortgage finance companies Fannie Mae and Freddie Mac, together with many other lenders.

"All of these loans are now being processed pretty rapidly by the servers," Sharga said.

Help might be on the way. President Obama's administration announced a plan in March to provide $75 billion in incentive payments for the mortgage industry to modify loans to help up to 9 million borrowers avoid foreclosure.

But the extent of the relief remains unclear, with questions lingering about how much the lending industry will cooperate in modifying loans.

After banks take over foreclosed homes, they usually put them up for sale at deep discounts. Nationwide, sales of foreclosures and other distressed properties made up about half of the market in the first quarter, the National Association of Realtors reported.

First-quarter home sales fell in all but six states — Nevada, California, Arizona, Florida, Virginia and Minnesota— where buyers have been able to grab foreclosed homes at discounts, the real estate group said Tuesday.

On a state-by-state basis, Nevada had one in every 68 households receive a foreclosure filing, down 18% from March but still the nation's highest rate. In Florida, one in every 135 households received a filing in April. For California, the rate was one in every 138 households.

Rounding out the top 10 were Arizona, Idaho, Utah, Georgia, Illinois, Colorado and Ohio.

Among large cities, Las Vegas led the way with one in every 56 households receiving a filing. That was a slightly higher rate than the southwest Florida metro area of Cape Coral-Fort Myers, which saw one in 57 housing units receive a filing.

Cities in California took the next six spots: Merced, Modesto, Riverside-San Bernardino, Bakersfield, Vallejo-Fairfield and Stockton. The Florida cities of Miami and Orlando were ninth and 10th, respectively.

By Adrian Sainz, AP Real Estate Writer

http://www.usatoday.com/money/economy/housing/2009-05-13-foreclosures-increase-32-percent_N.htm

What is your home Arizona Worth? - Do you know? Check by Zip codes!

Do you know what your home is worth in Arizona?

SEARCH FOR YOUR ZIP CODE BELOW A house near 44th Street and Southern Avenue in Phoenix sold last month for $33,000. It's in zip code 85042, in Southeast Phoenix, where the price per square foot dropped 40 percent in the first four months of 2009. Jaime Martinez has lived in the area for 20 years and has watched values plummmet. "I just hope these houses start selling and prices go up," Martinez said. It's a similar story in Maryvale zip code 85031 where in April the average home sold for just $25 per square foot. "Houses are basically dropped in half in this neighborhood," said John Vetter, who sees it as a buying opportunity. Vetter picked up a house for $43,000 that two years ago was valued more than three times that price. "Sooner or later the market will be back up," Vetter said. "Right now, we're not in a normal situation, still," said real estate expert Mike Orr with the Cromford Report. Orr said these zip codes and many others have been plagued by foreclosures, properties owned by banks. "They have a very different attitude from the normal seller," Orr said. "They're very happy to get it off their hands." Not all areas are suffering though. In 85255 in North Scottsdale, average sale prices there have actually gone up 11 percent since the start of the year. It's an area with few foreclosures, so prices haven't been dragged down as much. "I think we have a little piece of heaven here," said Joseph McCune, who's looking to sell his house for $685,000. "You're not going to find any worries or concerns from me." Joe Andrea isn't concerned either. He lives in 85018, which covers East Phoenix and Arcadia. There's been relatively little turnover there, leading to prices going up six percent since January 1. "We're centrally located. That's why it's stayed so prevalent and good through this tough economy," Andrea said. "I think people are looking for a good investment right now and this is it." Valleywide, Orr said prices have now hit bottom and they'll stay pretty flat for several months before they slowly tick upwards. "Low mortgage rates, a tax rebate from the government, and cheap prices, you know, there's not many reasons not to buy a house," Orr said. Enter your zip code in the box below for single family home sale prices, comparing December 2008 to April 2009. Zip codes with fewer than 10 homes sales are excluded. Data provided by The Cromfort Report. function cbRowHover(obj,color) { obj.style.backgroundColor=color; } function cbButtonHover(obj,CSSclass) {try { obj.className=CSSclass; } catch (e) {}}http://www.abc15.com/content/news/investigators/consumeralerts/story/Do-you-know-what-your-home-is-worth-in-Arizona/aO0bAtn9iky4fHszk_Zh6w.cspx   Need help or can't find the house you're looking for?  Call me...I'll be happy to help :) Candice Boggs Arizona Homes Realty, LLC. www.FindAzProperties.com  - Search Arizona MLS - FREE www.FindTheValueNow.com 602-677-9867  or Toll Free 1-888-926-7827 www.CandiceCares.com     Search Arizona MLS Looking for a home in Arizona?  SEARCH the same inventory that licensed Arizona Real Estate Agents search...it's easy and it's FREE!! http://www.findazproperties.com/Arizona_MLS/page_782828.html We want to represent you when you find a great deal on your new home, right now there are some great deals on lender owned homes, some are fix ups, others are available for very low down payments. We also have rental homes and lease to own homes we can help you find the best option for your family. Experience you can trust to help you with your new home. Please call or email and get your complete North Phoenix list of Arizona Bank Owned homes in Anthem,Cave Creek, Carefree,  Desert Hills,  Glendale, Arrowhead Ranch,  Peoria, Scottsdale, and North Phoenix, and other North Scottsdale and Metro Phoenix areas and cities.

Is the Arizona housing meltdown ending?

"Compared to a year ago, the typical family can pay much less in mortgage costs for the same home, or buy a better home without necessarily increasing their monthly payment," said NAR President Charles McMillan, in a prepared statement. "For buyers who've been on the sidelines and have good jobs, the market has never looked more favorable. First

NEW YORK (CNNMoney.com) --

Scottsdale - Cave Creek - North Phoenix Real Estate Outlook: Indicators of Recovery

Promising signs from Araiona housing data - Scottsdale Arizona

In March, foreclosures fell, sales in some areas hit record highs

For the first time in years, there's good news coming out of metropolitan Phoenix's housing market.

In March, home sales soared to levels not seen since 2005, foreclosures fell for the first time in a year and prices showed signs of leveling off in some areas.

The Valley's most affordable communities, including many edge neighborhoods, are leading the housing rebound. "The affordable end of the Valley's housing market could finally be at the bottom looking up," said Mike Orr, a real-estate agent and analyst who publishes the Cromford Report. "Homes priced for $150,000 or lower are selling fast and even getting multiple offers. My money is on home prices in many of those neighborhoods being slightly higher by June."

High-priced areas such as Paradise Valley and north Scottsdale aren't seeing the same increases in home sales, though, and are likely to experience more price declines, Orr said.

Valley pending home sales hit 7,550 in March, a 70 percent jump from a year earlier, according to the Cromford Report, which has partnered with the Information Market to track housing indicators by analyzing data from the Arizona Regional Multiple Listing Service and real-estate records. The data track mostly resales but include some new-home sales.

Pending home sales, more than 90 percent of which become final, are a leading indicator for the housing market and include only deals that have a signed contract and set price.

Several Valley cities, including Phoenix, Avondale, Glendale, Peoria, Surprise and Goodyear, posted record sales in March, even beating monthly sales figures from the housing boom of 2005-06.

All of the West Valley cities seeing record sales were battered by foreclosures last year. Those foreclosures pushed down home values.

Now investors, first-time home buyers and retirees are buying those foreclosed homes from lenders. About two-thirds of all Valley home sales are foreclosure properties being resold. All those sales are putting a serious dent in the foreclosure inventory.

"There aren't that many foreclosure homes on the market now," said Orr, who is in the process of buying a foreclosure home in Queen Creek for $94,000. "Many of those deals will soon be gone."

In Queen Creek, the number of foreclosure homes for sale has dropped to 79 at the end of March from 169 in February.

Foreclosure homes are selling nearly twice as fast as they did last fall, when lender-owned homes began to dominate the Valley's housing market. On average, it is taking 117 days for a foreclosure home to sell now, compared with 227 days in November.

The number of foreclosure homes on the market could continue to fall. There were 3,377 foreclosures in Metro Phoenix during March, almost 2,000 less than in February. At the same time, foreclosure cancellations nearly doubled to 3,168 last month.

Preforeclosures hit a new high of 10,689 in March. However, Tom Ruff of the Information Market doesn't believe all those will turn into foreclosures. He cites as reasons the growing number of successful short sales in the Valley and the loan-modification programs available under the federal government's housing plan.

Short sales can drag down prices but not as much as foreclosures.

The average sales price per square foot of a Valley foreclosure home has held steady at $66 for the past three weeks. The Valley's overall average price per square foot fell in March to $83 from $89 in February. But Orr doesn't see that number going below $80 because of the recent increase in demand for houses and the shrinking inventory of foreclosure homes.

The Valley's median home price fell in March to $129,000 from $136,000 in February. Prices are a lagging indicator of deals made months ago, before President Barack Obama's housing-rescue plan was announced and before sales began to pick up.

Orr says home prices will continue to fall in Paradise Valley, where there are about 550 houses for sale and only about six are selling a month.

At the current sales rate, that's at least a seven-year inventory of houses on the market in Paradise Valley. In most other parts of the Valley, the inventory of homes for sale is less than a year.

If sales continue to climb in other metro Phoenix communities this month and in May, there's a good chance home prices in the Valley's most affordable communities could tick up in June.

"April will be the turning point for the housing market," Orr said. "People are beginning to perceive we are at the bottom, and there's no reason to wait to buy anymore."

DIRECT LINK - http://www.azcentral.com/realestate/articles/2009/04/04/20090404housing0404.html

Drop in mortgage rates trigger race to buy homes in Scottsdale Arizona

 

Loan terms for 30-year fixed-rate mortgages fell to 4.63% from 4.89% for the week ending March 20, the Mortgage Bankers Association (MBA) reported Wednesday. That's the lowest in the history of the survey, which began in 1990.

Refinancing accounted for 78.5% of all mortgage applications last week.

Applications are up in part because of a federal refinancing program through Freddie Mac and Fannie Mae that is part of the Obama administration's housing rescue plan.

Rates have been driven down by the Federal Reserve's decision last week to buy up to $300 billion of long-term government bonds and $750 billion in mortgage-backed securities held by Fannie and Freddie.

•Homeowners who had been waiting to refinance say they're now getting great deals. Nancy Hemenway, 58, of Arlington, Va., is closing on a refinance in a couple of weeks.

"We were watching the rates and didn't see how they could go much lower," says Hemenway, executive director of a non-profit. "We thought there might be a problem because banks weren't lending, but that didn't happen at all. We just filled out some paperwork and faxed it."

•Low prices on foreclosed homes are luring buyers into the market. Up to 45% of existing home sales in February were distressed properties, according to a report this week by National Association of Realtors.

Michael McCullough, a public relations specialist in Atlanta, is closing today on a 3,000-square-foot home with a large yard and four bedrooms.

"My wife and I have no business buying this large a home, but we can afford it because it was a foreclosure, and we secured a 4.6%, 30-year fixed" loan, says McCullough. "There are tons of deals out there."

•Realtors such as Leslie McDonnell at Re/Max Suburban in Libertyville, Ill., are seeing sudden pickups in business. Enticed by low prices and rates, McDonnell has bought several properties herself this year. "We've definitely seen an impact. Things have gotten busier for sure," McDonnell says. Low rates "are compelling people into action. I do feel like we've hit bottom."

Overall mortgage applications last week were 20% above their year-ago level, according to the MBA.

 http://www.usatoday.com/money/economy/housing/2009-03-25-mortgage-applications_N.htm

A boost for Arizona Real Estate - Morgague rates drop to 50 year low!

Mortgage Rates to Fall Further: 7 Things to Know

And you thought 5 percent was a good rate? After already bringing mortgage rates down near 50-year lows, Fed Chief Ben Bernanke unleashed a surprise attack on the housing slump Wednesday by announcing aggressive steps that should make home loans even more attractive. Lower rates, of course, can help push timid buyers off the sidelines so they can mop up the excess inventory that's been driving down home prices. "This is a huge step forward," Ian Shepherdson of High Frequency Economics, wrote in a report shortly after the announcement.

Here's what you need to know about the development:

1. What is the Fed doing? With the federal funds target rate--which is the Fed's conventional monetary policy weapon--already down to as low as zero percent, Bernanke has been forced to get more creative in his efforts to resolve the economic mess. To that end, the Fed announced two key steps Wednesday that should drive mortgage rates lower.

2. Fannie Mae and Freddie Mac assets: The Fed unveiled plans to buy up to an additional $750 billion of mortgage-backed securities backed by government-controlled entities such as Fannie Mae and Freddie Mac, on top of the $500 billion it already committed to purchasing. At the same time, the agency said it would as much as double--to up to $200 billion--its purchase of Fannie and Freddie debt. The moves will help to reduce Fannie and Freddie's financing costs, which should enable them to pass savings on to consumers in the form of lower interest rates. Today's announcement represents a significant expansion of the initial initiative announced last fall, which drove mortgage rates from 6.2 percent in mid-November to 5.2 percent in the week ending March 13, according to HSH.com.

3. Long term Treasury bonds: Meanwhile, the Fed said it would buy up to $300 billion in long-term Treasury bonds over the next six months. The announcement has already helped push yields on 10-year Treasury notes--which play a key role in mortgage rates--down sharply. This could also help lower mortgage rates.

4. How low will mortgage rates go? Nigel Gault, chief U.S. economist for IHS Global Insight, says 30-year fixed mortgage rates could drop to as low as 4.5 percent. But Keith Gumbinger of HSH.com, expects a more modest decline of between a quarter and a half of a percentage point from current levels. "I don't think we are going to have a plummet, but I do think it helps to support some downward pressure on rates," Gumbinger says.

5. So what does this mean for the housing market as a whole? Before today's developments, lower mortgage rates have benefited those looking to refinance more so than home buyers, said Guy Cecala, the publisher of Inside Mortgage Finance, in an interview that took place before the announcement. Cecala said that in the fourth quarter of 2008, 51 percent of mortgage originations were for loan refinancing, while 49 percent went toward home purchases. And although it hasn't closed yet, "there is no question [the refinancing share of mortgage originations] is going to be up near 60 percent for the first quarter," Cecala said.

Today's Fed move should further boost refinancing activity. "It's a huge positive for refinancing, because it means that everyone who hasn't done it is going to come in and do it," Gault says. But its impact on the housing market will be less profound, says Richard Moody of Mission Residential. It will help "very little," he says. That's because "the overriding factor [in the housing slump] is the labor market, and consumer confidence," he says. Even with lower mortgage rates, housing won't rebound without improvement on these fronts--and Moody doesn't expect that to occur anytime soon. "You can't make the argument that mortgage rates have been the impediment to home sales over the past several months," he says.

6. How can I qualify for these low rates? As banks jack up their lending standards in the face of higher delinquencies, not all borrowers will be able to get their hands on today's lowest cost of financing. To do so, most home buyers will need to have a FICO score of roughly 720 or higher, a down payment of at least 3.5 percent--although it could be significantly higher in certain markets--and documented income verification. To refinance, borrowers will need to meet similar credit score and income documentation requirements and have minimum of 10 percent equity in their homes, Moody says.

7. What does that mean for me? Should I refinance now or hold off for a better rate? With rates poised to drop to even more attractive levels, fixed rate borrowers that meet the credit requirements should certainly consider refinancing now. (Refinancing, however, only make sense for borrowers who can obtain a large enough break in their interest rate to compensate for the fees associated with the process.) But since rates are expected to remain attractive for some time, there's no pressure to refinance immediately. Still, Moody points out that with home prices on the decline, borrowers who wait too long to refinance could find that they no longer have enough equity in their home to qualify. So you may be better off getting the process started sooner rather than later.

Likewise, homeowners with adjustable rate loans--who have likely seen their interest rate fall recently--should not feel compelled to act this very second. "There is not a gun to your head," Gumbinger says. However, borrowers with these products should keep close tabs on the market and look for an opportunity--perhaps now, perhaps in the coming months--to get into a more conservative, fixed-rate mortgage while rates remain low. "Do yourself a favor and prevent future disaster," Gumbinger says.

 http://realestate.yahoo.com/promo/mortgage-rates-to-fall-further-7-things-to-know.html;_ylc=X3oDMTFycDl0ODgyBF9TAzI3MTYxNDkEX3MDOTc2MjA0NjUEc2VjA2ZwLXRvZGF5BHNsawNtb3J0Z2FnZS1yYXRlcy1mYWxs

Scottsdale/Phoenix Arizona home Resales jump in February

Phoenix/Scottsdale-area home resales jump in February, mostly because of foreclosures

The Phoenix area recorded 8,510 home resales in February, a surge from 6,960 in January and 4,675 in February 2008.

Foreclosure sales represented 4,295 of the February transactions (51 percent), compared with 1,985 sales (42 percent) a year earlier.

Foreclosure percentages for February differed across the Valley, with 48 percent in Surprise, 51 percent in Glendale and 40 percent in Scottsdale.

“Due to the time it takes to record transactions, some slowing might still be evident in the next few months,” said Jay Butler, director of Realty Studies at Arizona State University.

Declining prices have piqued the interest of potential investors and owner-occupants, especially those in lower income ranges. In the traditional resale market, the median home price in February was $133,000, while foreclosed properties had a median price of $164,470. Those figures were $230,000 and $193,440, respectively, in February 2008.

More high-end homes went through foreclosure sales in February 2009, including nearly 20 for more than $1 million (eight in January). Also, 7 percent of the foreclosure sales in February were in the $300,000 range (4 percent in January).

 http://www.bizjournals.com/phoenix/stories/2009/03/09/daily74.html

Second homes: in Scottsdale, Arizona

The natural beauty of the mountainous Sonoran desert offers a wealth of outdoor activities. Biking, hiking and especially golf are very popular here. Less strenuous activities include a vast array of spas, abundant shopping and dining, and a high concentration of cultural activities, art galleries and an extensive charity event circuit.

Along with Tempe to the south, Scottsdale is part of Phoenix's sprawling East Valley, famed for its ample golf offerings (there are more than 50 courses in Scottsdale proper). While Phoenix has many older golf courses planted with wall-to-wall grass, Scottsdale is known as the birthplace of dramatic "desert golf," incorporating cactuses, ravines, rock and elevation changes of more than 2,000 feet.

More urban South Scottsdale attracts the non-golfers. This includes the pedestrian-friendly Old Town, filled with art galleries and shops emphasizing Southwestern culture. In recent years, there has been a proliferation of condos here for buyers more concerned with nightlife, arts and dining than living on a course. North of Scottsdale, much of the land is protected wilderness.

A look at three Scottsdale neighborhoods: 

• North Scottsdale: The last part of the city to be developed, it is home to the most upscale golf communities. Troon North, an 1,800-acre development, has a Four Seasons resort hotel with two public courses, including the highest-ranked one in Arizona. Because there is no golf membership for owners, condos range from $395,000 and homes from the high $400,000s (www.troonnorth.net). Whisper Rock and Mirabel are two private, members-only golf communities, both featuring single-family homes on large lots. Whisper Rock has two courses and a mix of custom homes ($2 million to $5 million) and pre-designed villas in the low $2 millions (whisperrock.us). Mirabel has a highly regarded Tom Fazio course, villas starting around $1 million and custom homes from $1.8 million to $6 million (mirabel.com).

• Downtown/South Scottsdale: "Second homes downtown are a new phenomenon," says broker Terry Ray. "There are 10-plus-story high-rises with luxury services and concierges, while a greatly increased number of stores and restaurants (around Old Town) has made it much more livable." Newly finished condo projects include Third Avenue Lofts (thirdavenuelofts.com) and The Mark (livethemark.com).

• East of Scottsdale: The lowest second-home prices are found in golf communities just east of Scottsdale, including Gilbert, Ocotillo, Queen Creek, Mesa and Fountain Hills. Here you can find three- and four-bedroom homes well under $100,000. Even the higher-end gated communities are less pricey, such as Encanterra, where homes around the Tom Lehman course begin at $250,000 (encanterra.com).

By Larry Olmsted, Special for USA TODAY

http://www.usatoday.com/money/economy/housing/2009-03-12-scottsdale-arizona_N.htm

Today.... Right Now, is the time to Act! - Real Estate in Scottsdale, Cave Creek & North Phoenix

WHAT ARE YOU WAITING FOR..........  ??????? 

I've been saying it for months, and I'll say it again

NOW is the time to get off the fence and buy!

And if you are another Real Estate Agent / Realtor in Scottsdale, Cave Creek or North Phoenix you're doing a huge disservice to your clients if you don't make sure they hear this message loud and clear!

Why am I so convinced that the time is now?

Well, it's a combination of things. Regardless of whether you're building a new deck, or whipping up a batch of cupcakes, you need the right ingredients in order to ensure success. For the buyer considering a purchase, the right ingredients are at hand.

Today, right now, is the time to act. Here's why:

Mortgage rates are low, lower than they have been for many years. In fact, they're approaching historic lows! Yes, you actually have to qualify for a loan now. But I guarantee you there are lenders out there who are ready, willing, and able to lend you mortgage money at very attractive rates.

Inventory levels are high. Unfortunately for sellers, buyers have an enormous number of homes from which to pick. In many markets, inventory is at an all-time high. As a result, buyers no longer have to "settle" on a home that's not what they want.

Sellers are motivated. Whether they are in trouble with their financing, worried about their employment, or having to make lifestyle changes as a result of losses in the stock market, many sellers need to sell and are willing to negotiate accordingly.

First-time buyers can also get a $8,000 non-repayable tax credit from the government. And you can apply it to either your 2008 or 2009 taxes.

We may already have reached the bottom of the market. Some buyers are still waiting, trying to buy at the very bottom of the market. Funny thing about that – you never know you've hit the bottom until prices are on their way back up. And many buyers don't realize that an increase in their mortgage rate will completely eliminate any advantage they may have gained by waiting for prices to decrease by a few thousand dollars more.

So, yes, I feel strongly that buyers who don't make a move right now are missing a huge opportunity. Be the agent that encourages them to make what could be a very wise move!

http://realtytimes.com/rtpages/20090226_fence.htm

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Candice Boggs & Arizona Homes Realty is a the owner of FindAzProperties.com a real estate search engine that helps you find homes for sale and make smarter real estate decisions in the process. How? By analyzing real estate information on thousands of homes in "The North Valley" in the Phoenix Arizona and helping you understand the Cave Creek real estate trends.  Refine your real estate search in Cave Creek, AZ by price, number of bedrooms, bathrooms, property type (including townhouses, condominiums and single-family homes), and more. Use our interactive Cave Creek home price map to view real estate activity across Cave Creek ZIP codes and in other cities nearby Cave Creek. See local real estate trends, and compare your home to recently sold homes in Cave Creek and to similar homes for sale in Cave Creek, Arizona. View our Cave Creek real estate guide to see average listing prices, sale prices and information for local school districts. Join Cave Creek, Arizona community to get in touch with Cave Creek real estate agents, real estate brokers and other real estate sellers and buyers.

Obama unveils $75 billion mortgage relief plan

MESA, Ariz. – Seeking to tackle "a crisis unlike any we've ever known," President Barack Obama unveiled an ambitious $75 billion plan Wednesday to keep as many as 9 million Americans from losing their homes to foreclosure. Announcing the plan in Arizona — a state especially hard hit by the housing crunch — Obama said that turning around the battered economy requires stemming the continuing tide of foreclosures. The housing crisis that began last year set many other factors in motion and helped lead to the current, widening recession.

"In the end, all of us are paying a price for this home mortgage crisis," Obama said at a high school outside Phoenix. "And all of us will pay an even steeper price if we allow this crisis to deepen."

But while talking in broad strokes about the importance of the issue to the economy as a whole, the president took care not to miss the pain that the housing problems are causing in individual families

"The American Dream is being tested by a home mortgage crisis that not only threatens the stability of our economy but also the stability of families and neighborhoods," he said. "While this crisis is vast, it begins just one house and one family at a time."

More expensive than expected, Obama's plan aims to keep between 7 million and 9 million people from foreclosure. Of the nearly 52 million U.S. homeowners with a mortgage, about 13.8 million, or nearly 27 percent, owe more on their mortgage than their house is now worth, according to Moody's Economy.com.

Headlining Obama's plan is a $75 billion Homeowner Stability Initiative, which would provide a set of incentives to mortgage lenders in an effort to convince them to help up to 4 million borrowers on the verge of foreclosure. The goal: cut monthly mortgage payments to sustainable levels, defined as no more than 31 percent of a homeowners income. Funding would come from the $700 billion financial industry bailout passed by Congress last fall.

Another key component would specifically help those said to be "under water" — with dwellings whose market value have sunk below the principal still owed on the mortgages. Such mortgages have traditionally been almost impossible to refinance. But the White House said its program will help 4 million to 5 million families do just that — if their mortgages are owned or guaranteed by Fannie Mae or Freddie Mac.

Housing Secretary Shaun Donovan stressed that homeowners don't need to be delinquent in order to get help.

"This is necessary policy. It's smart economics. And it's just and fair," Treasury Secretary Timothy Geithner told reporters.

Asked why the cost had jumped to $75 billion from initial talk of a $50 billion effort, Geithner said, "We think that's necessary to make a program like this work."

And he said relief would be almost instantaneous, basically as soon as rules are published March 4. "You'll start to see the effects quite quickly", Geithner said.

Sheila Bair, chairman of the Federal Deposit Insurance Corporation, said previous efforts had largely flopped. "We've not attacked the problem at the core," she told reporters. "We are woefully behind the curve."

The biggest players in the mortgage industry already had halted foreclosures pending Obama's announcement.

"The plan I'm announcing focuses on rescuing families who have played by the rules and acted responsibly," Obama said. "It will not rescue the unscrupulous or irresponsible by throwing good taxpayer money after bad loans."

He issued a warning as well: "All of us must learn to live within our means again."

He said the plan will not help those who took risky bets by buying homes to sell them, not live in them, or dishonest lenders who distorted facts for naive buyers, or buyers who signed on for loans they knew they could not afford.

"This plan will not save every home," Obama said.

In tandem with the foreclosure plan, the Treasury Department announced it would double the size of its lifeline to Fannie Mae and Freddie Mac, seeking to bolster confidence in the mortgage giants effectively taken over by the government last fall. The government said it would absorb up to $200 billion in losses at each company, by using money Congress set aside last year, and will continue purchasing mortgage-backed securities from them.

The Treasury said the increased support for Fannie Mae and Freddie Mac didn't reflect projected losses at the two companies. The two companies are currently projected to need a combined government subsidy of about $66 billion, well short of the new promise of up to $400 billion.

Asked about the doubling of the guarantees for Fannie and Freddie, Geithner said: "This is not a judgment about the expected losses ahead. It underscores commitment, and that is very important to help keep mortgage rates low." Geithner said most not all of the money would come the financial bailout fund.

The president's announcement came a day after he signed into law a $787 billion economic stimulus plan he hopes will spark an economic turnaround and create or save 3.5 million jobs.

At the same time, the administration was grappling with the darkening prospects for the U.S. auto industry.

Even as Detroit carmakers submitted restructuring plans to qualify for continued government loans, General Motors Corp. and Chrysler LLC asked for another $14 billion in bailout cash.

http://news.yahoo.com/s/ap/20090218/ap_on_go_pr_wh/obama_home_foreclosures

Scottsdale/Cave Creek Real Estate Outlook - Encouraging Signs

Could the tide be turning for real estate?

It's probably premature to make that call, but you can't ignore the encouraging signs -- especially when they come in multiples.

First we saw a surprising 6.5 percent jump in home sales for December. Now we've just gotten the latest Pending Home Sales Index, and it's up 6.3 percent, thanks to double digit gains of 13 percent in the Midwest and the South.

The index is based on signed contracts for home sales that haven't gone to closing, but that are scheduled to settle in the coming two or three months.

The National Association of Realtors collects the data from Multiple Listing Services around the country, and most economists accept the index as a reliable gauge of where we're headed in housing activity.

Dr. Lawrence Yun, chief economist for the National Association of Realtors, attributed the upward movement to "buyers responding to lower home prices and interest rates" that have improved the affordability equation to its most favorable level in 39 years.

Sales in the coming months might also be powered by something no index can measure: Congress is likely to improve last year's $7,500 home buyer tax credit by turning it into a nonrepayable incentive for new sales this year -- all as part of the stimulus package on Capitol Hill.

Though it's impossible to predict how many more home sales a true credit might stimulate -- one that doesn't have to be paid back to the government like the 2008 version -- industry estimates range anywhere from several hundred thousand upward, provided the expiration date runs through this coming December.

On other economic fronts last week, reports of tens of thousands of industry layoffs definitely won't help housing, but new numbers on inventories of unsold homes just might be a plus. Total homes for sale on the market nationwide dropped nearly 18 percent last month to the lowest level since May of 2007.

Mortgage rates inched up slightly last week, according to the Mortgage Bankers Association, with thirty year fixed rate loans averaging 5.3 percent compared to 5.2 percent the week before. That's up a notch, but it's still close to 40 year historic lows.

As we've said before on this program: Keep your eyes open for the little statistical improvements in the market that often get ignored by the media: Once they start mounting up, month after month, you'll know we're in turnaround mode.

We're not there yet, but we're headed in a promising direction.

by Kenneth R. Harney -  http://realtytimes.com/rtpages/20090210_realestateoutlook.htm

Senate OKs $15,000 tax break for homebuyers

 

The tax break was approved without dissent and came on a day in which Obama pushed back pointedly against Republican critics of the legislation even as he reached across party lines to consider a reduction in the spending it contains.

"Let's not make the perfect the enemy of the essential," Obama said as Senate Republicans stepped up their criticism of the bill's spending and pressed for additional tax cuts and relief for homeowners. He warned that failure to act quickly "will turn crisis into a catastrophe and guarantee a longer recession."

Democratic leaders have pledged to have legislation ready for Obama's signature by the end of next week.

While they concede privately they will have to accept some spending reductions along the way, conservative Republicans failed in their initial attempts to force deep cuts in the bill.

But with Obama voicing concern about the provision, the requirement was changed to specify that U.S. international trade agreements not to be violated.

Democrats also preserved a key priority for Obama, a break of up to $1,000 for couples who pay payroll taxes but whose earnings are so low they do not pay income tax.

Sen. Johnny Isakson, R-Ga., who advanced the homebuyers tax break, said it was intended to help revive the housing industry, which has virtually collapsed in the wake of a credit crisis that began last fall.

The proposal would allow a tax credit of 10% of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break but only for first-time homebuyers.

Isakson's office said the proposal would cost the government an estimated $19 billion.

Democrats readily agreed to the proposal, although it may be changed or even deleted as the stimulus measure makes its way through Congress over the next 10 days or so.

Other GOP attempts to change the measure went down to defeat. The most sweeping of them, by Sen. Jim DeMint failed on a mostly party-line vote of 36-61. It would have replaced the White House-backed legislation with a series of tax cuts on personal and business income and capital gains at the same time it made cuts passed during the Bush administration permanent.

"This bill needs to be cut down," Republican Mitch McConnell of Kentucky said on the Senate floor. He cited $524 million for a State Department program that he said envisions creating 388 jobs. "That comes to $1.35 million per job," he added.

After days of absorbing rhetorical attacks, Obama and Senate Democrats mounted a counteroffensive against Republicans who say tax cuts alone can cure the economy.

Obama said the criticisms he has heard "echo the very same failed economic theories that led us into this crisis in the first place, the notion that tax cuts alone will solve all our problems."

"I reject those theories and so did the American people when they went to the polls in November and voted resoundingly for change," said the president, who was elected with an Electoral College landslide last fall and enjoys high public approval ratings at the outset of his term.

Obama did not mention any Republicans by name, and most have signaled their support for varying amounts of new spending.

Even so, the president repeated his retort word for word in late afternoon, yet softened the partisan impact of his comments by meeting at the White House with senators often willing to cross party lines.

His first visitor was Sen. Olympia Snowe a moderate Republican lawmaker. Later he met with Sens. Susan Collins and Ben Nelson.

"I gave him a list of provisions" for possible deletion from the bill, Collins told reporters outside the White House. Among them were $8 billion to upgrade facilities and information technology at the State Department and funds for combatting a possible outbreak of pandemic flu and promoting cyber-security. The latter two items, she said, are "near and dear to her," but belong in routine legislation and not an economic stimulus measure.

Collins and Nelson have been working on a list of possible spending cuts totaling roughly $50 billion, although they have yet to make details public.

http://www.usatoday.com/money/economy/housing/2009-02-04-taxbreak-homebuyers_N.htm

Tax Credits could Spur Home Buying

Stimulus: Senate's housing hopes

 Lower mortgage rates, a foreclosure moratorium and more attractive tax credits to spur home buying are among possible amendments to recovery bill.

NEW YORK (CNNMoney.com) -- As the economic stimulus package moves to the Senate, the drumbeat is growing louder for new provisions that directly address the housing crisis.

Key senators from both parties said they will push for measures intended to spur sales and help homeowners at risk of foreclosure.

"We need to go right at the housing problem. That's what started all of this," Senate minority leader Mitch McConnell, R-Ky., told CNN.

The Senate floor debate is set to begin on Monday. Here are three ideas likely to show up in amendments:

Create a 4% mortgage: Senate Republicans are likely to introduce a provision that would encourage lenders to offer a 30-year fixed rate mortgage at 4% for a limited period of time. The loans would only be available to credit-worthy home buyers and homeowners seeking to refinance.

The government would guarantee the loan for a number of years, an aide to McConnell told CNNMoney.com.

Senate Republican Conference Chairman Lamar Alexander, R-Tenn., said on the Senate floor Friday that the measure could involve not only a government guarantee but a subsidy as well.

"If today's prevailing rate were 5.2 or 5.3 percent ... the government would make up the difference."

The cost of such a provision hasn't been determined yet, but the aide said Senate Republicans would seek to structure the proposal in a fiscally responsible way, without specifying exactly what that meant.

Offering government-backed low-rate mortgages "could be very popular politically as it tries to fix the banks by fixing consumers," financial services analyst Jaret Seiberg of the Stanford Group wrote in a research note.

But using government funds to force rates lower "could be very expensive," Seiberg said.

And as mortgage rates rise, which they have in recent weeks, such a proposal could grow even more expensive.

Expand home buyer credit: Senate Budget Committee Chairman Kent Conrad, D-N.D., said last week he would propose an expansion of a temporary $7,500 first-time home buyer credit so that it applies to all purchases of primary residences.

Some Republican senators have called for an increase in the credit to $15,000.

On "Face the Nation," Sen. Charles Schumer, D-N.Y., said Sunday that lawmakers "can do more for housing." The proposal to increase the home buyer credit to $15,000 and make it available to all home buyers is "something that we look favorably upon," he said.

The Senate recovery package as it stands now removes the requirement under current law that the credit be repaid by buyers over time, assuming they don't sell their home for three years after claiming the credit.

The credit phases out for individuals making more than $75,000 ($150,000 for joint filers).

Hold off on foreclosures: Senate Banking Committee Chairman Christopher Dodd, D-Conn., told reporters last week that he would like a provision in the stimulus package that would impose a 90-day moratorium on foreclosures. Dodd may consider other housing measures as well.

Postponing a foreclosure for three months might allow some troubled borrowers to keep their homes by buying them time to work out a new loan agreement with their mortgage servicer.

Advocacy in the Senate for more housing measures in the stimulus bill comes while President Obama is expected to release a comprehensive plan to fix the financial system within the next two weeks.

Obama has been promising for the past month that he would soon propose a foreclosure prevention program, and many believe that could be part of a plan he announces in the coming week. Indeed, he said Saturday that his plan will include a proposal to lower mortgage costs.

Last month, Obama's economic team promised lawmakers they would use $50 billion to $100 billion of the remaining money from the Troubled Asset Relief Program to prevent foreclosures.

Whether the housing measures proposed by Republicans on the Senate floor are intended to be in addition to Obama's proposals or as replacements isn't clear yet.

One of the ideas likely to influence Obama's plan is a loan modification program put forth by FDIC Chairman Sheila Bair that has garnered support from lawmakers. That plan would require that lenders reduce housing payments for delinquent borrowers to 31% of gross monthly income.

Lenders could achieve that by lowering mortgage rates to as low as 3% for five years, before increasing at an annual rate of 1 percentage point until they hit the prevailing market rate. Loan terms could be extended as long as 40 years.

In exchange, Bair proposed the government would share up to 50% of the losses if a borrower who gets a modified loan ends up defaulting anyway. And it would help foot some of the servicers' loan modification costs. 

http://money.cnn.com/2009/02/01/news/economy/Senate_stimulus_housing/index.htm?postversion=2009020209