Home prices increase for the fourth straight month

According to S&P spokesman David Blitzer, “Existing home sales were up 20% in August compared with 12 months earlier. Foreclosures have dropped most of the year.” Housing prices have continued to increase for the fourth straight month. While it is still too early to declare a housing market recovery, it is a positive indication that things are moving in the right direction. Anthony Sanders, a professor of real estate at George Mason University also stated, “Four months of price increases is a pretty good sign that the market has stabilized." Keeping this momentum up would allow for lenders to "loosen their purse strings" a little, which would in turn allow more interested home buyers to qualify for loans.

To read more on this article from CNN Money, follow this link:

http://money.cnn.com/2011/09/27/real_estate/home_prices_July/index.htm?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29

Arizona retail sales increased in July by 8.6%

Arizona retail sales increased by 8.6% in July compared to July 2010. According to the article, Arizona consumers showed no signs of any economic distress affecting their spending. “Sales of motor vehicles jumped 18 percent, sales of clothing and accessories rose almost 14 percent and sales of building materials and home, lawn and garden products were up 9.6 percent.” With very little positive news on the economy, it’s refreshing to know our state is remaining somewhat resilient to the adverse news broadcasted daily. “In all, Arizona consumers spent $3.55 billion on goods and services in July 2011 compared with $3.27 billion in July 2010.”

For further information, follow the link to read the complete article from AZCentral.com: http://www.azcentral.com/business/articles/2011/09/26/20110926retail-sales-july-ariz-jumped-86-over-year-earlier.html

Scottsdale, Gilbert, Chandler & Phoenix make the top 50 for "Best U.S. Cities to Live"

Scottsdale has been named, on Businessweek.com, as the 4th best city to live in the United States. One would think that the upscale resorts and celebrity sightings would be one of the reasons, however the decision was made based on other statistics. “Scottsdale was recognized by the site for more fundamental quality-of-life reasons - superior schools, low unemployment and bevy of parks, in the online ranking of America's 50 best cities released this week.” Among the rankings, Gilbert (41st place), Chandler (45th place) and Phoenix (49th place) all made the “top 50.”

For more information on the Businessweek.com article, follow the link: http://www.azcentral.com/community/scottsdale/articles/2011/09/21/20110921businessweekcom-names-scottsdale-fourth-best-city-nation.html

Good Opportunity for Investors as the Cost of Rent is on the Rise

The cost of rent is on the rise according to Stan Humpries, an economist for the real estate website Zillow, also stating that pricing is expected to rise by 4% this year and in 2012. “At some point, lower home prices and higher rents will attract more home buyers,” Humphries says. This is good news for real estate investors looking to take advantage of the market conditions and make a profit. "Already, investors are snapping up homes and converting them into rentals. In August, investors accounted for 22% of existing home sale activity, the NAR says. Cash buyers, who are most often investors, accounted for 29% of sales."

Read more: http://www.azcentral.com/business/realestate/articles/2011/09/22/20110922Rental-housing-becoming-less-affordable.html#ixzz1Yo3FvvOq

What the "Twist" Means for Banks

The Federal Reserves’ new program Operation Twist, is designed to lower long-term interest rates. The Federal Reserve expects to keep long-term rates low by shift their asset profile from short-term assets to long-term assets. This program will positively impact mortgage rates, especially long-term rates such as 30 and 15 year mortgages. The move had an immediate effect on the 10 year note. The 10 year note dropped below a yield of 1.8% in trading this morning For more about Operation Twist can be seen in the link to Bloomberg News below.

http://www.forbes.com/sites/steveschaefer/2011/09/21/what-bernankes-operation-twist-means-for-banks/

National Association of Realtors Show Positive Percentages

According to the National Association of Realtors, percentages are up. Arizona is up 23.5% year over year; the West as a whole was up 18%, and moved higher. Investors accounted for 21% of the home sales countrywide and cash sales accounted for 29%. Foreclosures accounted for 31% of the sales nationwide. This shows a strong push towards investment property purchasing in Arizona and the rest of the country. Low interest rates in August, through mortgages and credit line facilities was also a strong contributor to the numbers.

For additional information on the percentages and numbers mentioned, please refer to this link: http://www.realtor.org/research/research/ehsdata

Phoenix & Atlanta to be Best New Home Markets

Barclay Capitol has reported today that Phoenix and Atlanta are to be the best markets for newly built homes in the U.S. The report did not give a time frame but did forecast it would happen once the cities have cleared out “distressed inventory and excess supply.” Barclay analysts have made the prediction based on the growing population and “speedy absorption of distressed real estate.” The Phoenix area population is predicted to raise 2.6% annually for the next five years. The Barclays analysts also stated,“While improved operating performance may take several quarters to materialize, the recent selloff provides a potential entry point for some of the long risk recommendations that follow from our analysis.”

For the complete article from Bloomberg, follow this link: http://www.bloomberg.com/news/2011-08-12/phoenix-and-atlanta-will-be-best-new-home-markets-in-u-s-barclays-says.html

Home Sales are up, Bringing Some Encouragement

Encouraging news as existing home sales were up 7.7% last month. This shows that more home buyers are being drawn in by the appealing home prices and mortgage rates. Ron Phipps, President of NAR wrote a statement saying "All year, the relationship between home prices, mortgage interest rates and family income has been hovering at historic highs, meaning the best housing affordability conditions in a generation." Ian Shephardson stated, "this is all welcome, but it should not be mistaken for evidence that a real recovery is beginning." Hopefully inspired buyers will continue to come out of the wood work with the current market conditions being so appealing.

To read the complete article from CNN Money, follow this link: http://money.cnn.com/2011/09/21/news/economy/existing_home_sales/index.htm?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29

Jump on the "Gen Rent" Wagon

“Gen rent” is where it’s at. “It” being opportunity in the real estate industry. “In the past, approximately 66 percent of all Americans owned their own home and 33 percent rented. Since the downturn began, approximately 10 million Americans have now moved from living in a home they own to living in a rental.” This generation of renters equals a tremendous opportunity for investors to buy homes and rent them. Phoenix is one of the fastest growing cities in the country; many of those who move here are renting rather than buying. This creates a great opportunity for investor ownership that is unmatched in many other areas of the country.

To read the complete article from Inman, follow this link: http://www.inman.com/buyers-sellers/columnists/berniceross/capitalizing-gen-rent?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+inmannews+%28Inman+News+-+Headlines%29

Opportune Time for Baby Boomers to Buy Retirement Home

With today’s housing market and low mortgage rates, some baby boomers are pouncing on the opportunity to obtain the retirement home of their dreams. For some, retirement is still years into the future. Opting to use the home as a rental, to balance outgoing expenses, is a smart way to have your cake and eat it too. ”It's an opportunity that's hard to resist: Home prices nationwide are down 32% from their mid-2006 peak, according to the S&P/Case-Shiller home price index. Meanwhile, mortgage rates are at historic lows with the 30-year fixed-rate hovering around 4.2%.” Those whom are fortunate enough to take advantage of the opportunity in this market are strongly urged to do so; the combination of low priced homes and low interest rates does seem like a dream come true.

For more on this article from CNN Money, follow this link: http://money.cnn.com/galleries/2011/real_estate/1109/gallery.retirement_home_deals/index.html?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29

Freddie Mac has no intention of offering investors any discounts for bulk sales on foreclosures. Properties sold at such a discount to investors is creating concern that this plan would create adverse pressure on the market. The letter from Freddie Mac stated, “We are extremely mindful of the impact in our approaches to pricing and how it affects the values of neighborhoods should a discounted sale occur.”


To read the complete article from DSNews.com, follow this link: http://www.dsnews.com/articles/freddie-mac-offers-reo-bulk-sales-2011-09-16?utm_source=twitterfeed&utm_medium=twitter

Another Drop in Mortgage Rates to Lowest Level in 60 Years

Freddie Mac has reported, mortgage rates have fallen to the lowest level seen in 60 years with a 30-year, fixed rate dropping to 4.09% and a 15-year, fixed rate at 3.30%. “By refinancing into today's 30-year fixed mortgage, homeowners with a $200,000 loan could shave almost $1,715 a year in interest payments,” according to Freddie Mac's Nothaft.

Follow this link to read the complete article from CNN Money:

http://money.cnn.com/2011/09/15/real_estate/record_mortgage_rates/

Encouraging News from the California Association of Realtors

A little encouragement as California home sales increase and the median price on a home rose to highest level this year. "August median price marked the highest since December 2010, signifying that prices may be stabilizing in some market segments, as investors and first-time buyers continue to see value and opportunity in the market,” stated Beth Peerce, President of the California Association of Realtors.

For more information, read the complete article by HousingWire at this link: http://www.housingwire.com/2011/09/16/california-home-sales-surge-in-august-with-prices-at-highest-point-of-year?utm_source=twitterfeed&utm_medium=twitter&utm_campaign=Feed%3A+housingwire%2FuOVI+%28HousingWire%29

6.3% Increase in Mortgage Applications

Mortgage applications were up 6.3% for both purchase and refinance applications last week, according to the Mortgage Brokers Association. “The MBA said the average interest rate for a 30-year fixed mortgage slid to 4.17% last week from 4.23% a week prior. The average rate for a 15-year fixed mortgage inched down to 3.4% from 3.41%.”

Follow the link to read more on this HousingWire article: http://www.linkedin.com/news?actionBar=&articleID=771752229&ids=0Tdz0Rcz4QdPsId3sNc38TczsTb3AOcz8RdP4TdOMSc3AOczkOdPsIej0PdjoMd3sT&aag=true&freq=weekly&trk=eml-tod-b-ttle-44&ut=2CekCcF-HyIQU1

The Fed Considers the Return of a 50 Year Old Stimulation Plan

Could reintroducing a 50 year old economic revitalization plan, “Operation Twist” used in 1961, bring the kind of stimulation our economy is looking for? Kathy Jones, a fixed-income strategist at Charles Schwab stated, “With financial markets weighed down by myriad problems across the globe, Fed policy makers can be counted on to be inventive.” Jones then also stating, “they are making it clear that they will do whatever they need to do, or whatever they can dream up, to help the economy.”

For more on the New York Times article mentioned above, follow this link: http://www.nytimes.com/2011/09/11/your-money/federal-reserve-considers-a-revival-of-operation-twist.html?_r=3&ref=interestrates

Mortgage Rates Remain Low

Improved mortgage rates have continued to attract buyers. Mortgage News Daily states “We're back within an eighth or two of the best rates of all time, increasing our bias toward locking. Time and again lately, we've seen BestExecution rates hit this 4.125% level, with some offerings slightly lower.”

For more information, follow this link: http://www.mortgagenewsdaily.com/consumer_rates/228107.aspx

Phoenix: One of the Best Investment Markets

Phoenix is seen as one of the best rental markets in the country because of its rapid increase in population and its increase in job growth, according to CNN Money article. As leasing agents and property managers we seen a healthy demand for rental units this year. All of our properties are rented, or re-rent within 30 days. Many of our properties rent to people moving to Phoenix from other states. http://money.cnn.com/galleries/2011/real_estate/1107/gallery.best_investment_markets/8.html

Benefits of Living in the Greater Phoenix Area

For those that aren't familiar with the Phoenix area, we would like to tell you a little bit about what you are missing out on. This desert urban metropolis offers luxury and relaxation, as well as a fast paced hustle and bustle variety in the city. Rugged mountains are the backdrop to Phoenix's urban sophistication; offering numerous resorts, spas and services that help soothe one's soul from the everyday grind. Nine months of the year provide prime weather for outdoor activities. The Greater Phoenix area is one of the top cities for golfing, hiking, biking, swimming and other water sports in nearby lakes and rivers. Phoenix is just a short trip to the Grand Canyon and Sedona, both areas offering majestic and breath taking views. The sunsets that paint the sky will stop you in your tracks. It's no wonder that Phoenix attracts so many new residence from other areas of the country.