June 24, 2011
June 17, 2011
Interest Rates go up, but very little.
Realty Times reported interest rates did go up in spite of inflation worries. However, they still remain remarkably low. Check out the full story and call me with any questions.
June 6, 2011
US Home sales forecast.
Home sales are expected to stay on an uptrend through 2012, although the performance will be uneven with mortgage constraints weighing on the market, according to experts at a residential real estate forum today at the REALTORS® Midyear Legislative Meetings & Trade Expo in DC.
Downtown Phoenix continues to move forward…
If you thought nothing was happening in Downtown Phoenix because of the economy, think again. The Arizona Cancer Center is coming to the Biomedical Campus and CityScape retail stores will continue to open all summer. Also, we congratulate our first doctors graduating from UofA Medical School in Downtown while they have broken ground on the medical school expansion. And a new music venue is set to liven up the Warehouse District. Get this & more information about Urban Life on RooPho Realty’s Fan page.
June 1, 2011
Urban Property Sales in Phoenix
I was just looking in MLS for homes sold in three of our Urban Centers and the numbers aren’t looking bad. We certainly aren’t heading for another boom but I think there’s proof we are skimming the bottom of the bust and could be starting the slow climb out of it as long as we don’t have any more surprises that can affect the economy. Below I have listed the number of properties sold and the avg price per square foot for three of the Urban centers for the first 4 months of 2010 and 2011. Sales are up albeit not by much and the price per foot is down a little but considering everything, I don’t think it’s too bad. Remember these are average prices per foot and it cost not less than $100 per foot to build new so right now it’s cheaper to buy then to build and with interest rates still low, your payment is probably the same or less than you might be paying for rent. So give me a call and let’s see if you can save on your monthly rent by buying something.
Year City Sales Avg Price per Foot
2010 Phoenix 126 $104
2011 248 $ 89
2010 Scottsdale 203 $143
2011 267 $136
2010 Tempe 88 $115
2011 132 $ 94
According to an ASU study commercial values have gone up 13% in the 4th Quarter of 2010 over the previous year where they had declined almost 40% over the prior year. Even though this news letter is mostly dedicated to Residential Real Estate, this is good news for the overall economy.
Short Sales
There are many people who owe more than their property is worth, it’s a huge boat and many of us are in it. Old Republic Title and RooPho Realty has teamed up to help people who decide a Short Sale is in their best interest. Most of the reasons for doing a short sale are very specific to your situation. I’d be happy to sit down with you and provide you with information that will make the decision a little easier. Nick Heth, of Peoples Mortgage, has delt with many buyers who now have one or the other on their credit score. Here’s what he has to say; “When people ask me about the credit score hit of a short sale vs. a foreclosure, I think they should be more concerned with the effect of when they will be able to buy again? With a short sale it’s as little as two (2) years, with a foreclosure the banks are now requiring seven (7) years. Your credit will go down with both but certainly the short sale is going to affect it less. Your credit will recover quicker than even the two years, if you keep your other bills paid on time.”
Also, in many cases, when you foreclose the bank can send you a 1099 IRS form and you may have to pay some income tax on the loss your bank took. Please check with your tax preparer to see how this will work for you. Arizona is a “Non-Recourse” state. In summary, that means the bank can not send you the 1099 IRS form. However, that ONLY applies if you are on the original loan that you purchased the property with and you have not taken any equity out of the property. As I am not an Accountant , Tax Preparer or Real Estate Attorney, please verify all of this information with appropriate professionals.