BANKS ACCEPTING MORE SHORT SALES IN MARICOPA COUNTY, ARIZONA

BANKS ACCEPTING MORE DISTRESSED SALES IN MARICOPA COUNTY

March 2nd, 2012

When the housing bubble first burst in Arizona, most banks were taking back delinquent properties versus working with home owner’s to sell their property at a loss. 

Recent statistics show that banks are more and more likely to accept a short sale or sell the home at an investor auction versus taking back a delinquent home.  This is encouraging for homeowners exploring a short sale, as data suggests that there is a higher likelihood of a short sale going through.   

There are many benefits to a short sale – the most important one being that most short sales include a clause where the homeowner is no longer responsible to repay the bank.  When a home is foreclosed upon and taken back, the bank can come after you for a numbers years if they should choose to do so.

STATISTICS FOR DISTRESSED SALES AND TAKE BACKS IN MARICOPA COUNTY:

In 2011, There were 62,156 distressed title transfers

34,634 were short sales or investor sales   /   27,522 were properties taken back.

In 2010, There were 67,208 distressed title transfers

28,490 were short sales or investor sales   /   38,718 were properties taken back by the bank.

In 2009, There were 60,682 distressed title transfers

20,065 were short sales or investor sales   /   40,797 were properties taken back by the bank.

As more and more banks are willing to accept short sales, delinquent homeowners should attempt to work on a short sale versus giving the property back.  In most cases, a homeowner will get a check for closing a short sale and they do not have to worry about the bank coming after them in the future for losses incurred.

*data obtained from Fletcher Wilcox at Grand Canyon Title Agency.

BANKS ACCEPTING MORE SHORT SALES IN MARICOPA COUNTY, ARIZONA

ARIZONA HOUSING STATISTICS – BREAKING RECORDS!!

ARIZONA HOUSING  STATISTICS  :  BREAKING RECORDS!!

June was a record month for Arizona housing.  10,868 home sales occurred in June of 2011, surpassing the previous record of 10,252 units sold in June of 2005.

June was also a record month for home leases of Single Family Residences.  2,280 new leases were executed last month, beating the previous record of 2,002 leases in July of 2008.

Typically home sales and leases go in the opposite direction, but with all the short sales and foreclosures occurring – there are a lot of people changing residences. 

Arizona short sales also set a record, contributing to 2,734 sold units – up 33% from May.

We are still very much in a market fueled by investors.  41% of Single Family Residences sales were purchased in cash.  29% with conforming loans, 24% with FHA loans, 4% with VA loans, and 2% with others.

Lastly, the median home price in Arizona increased in June to 111,000 from 109,000 in May. 

(Arizona Housing statistics – breaking records – from Reggie Green @ Crossline Capital)

Licensed in Arizona, California and Colorado.

MORTGAGE RATES DROP BACK TO LOWEST LEVELS OF 2011 / CONSUMER SENTIMENT TOWARDS THE HOUSING MARKET – 7/11/11

MORTGAGE RATES DROP – BACK TO LOWEST LEVELS OF 2011:  The bond market finished last week 69 bps up, pushing rates back down to the lowest levels of 2011. 

We are in a very volatile market right now.  Pricing / rates can change a lot in a small amount of time.  In the week before last, rates rose as high as 4.625% and looked like they were primed to go even higher.  Then the June national employment report came out and ended up being much gloomier than expected.  This pushed investors out of stocks and into bonds, and caused rates to drop back down.

I don’t foresee rates going lower than 4.375% on a 30 year fixed. 

My suggestion is the same as always – if you like a loan’s pricing – lock it. 

Right now 30 year fixed par rates are back to 4.375%.  15 year fixed rates start at 3.75%.  5/1 ARMS start at 2.75%.

CONSUMER SENTIMENT TOWARDS THE HOUSING MARKET: Fannie Mae’s monthly national survey reveals some interesting things regarding the current consumer sentiment towards the housing market.

For the 2nd time in 13 months, consumers projected a decline in the values of homes. 

Consumers expect higher rents

and consumers expect mortgage interest rates to remain very low.

A large majority feel that this is a buyer’s market.  66-69% of the consumers surveyed thought it was a good time to buy.  While only 11% surveyed thought it was a good time to sell.

With home prices low and mortgage rates low, I definitely agree that this is a buyer’s market.