Archive for the 'Real Estate News' Category
3 Myths vs Realities in the Home Valuation Code of Conduct
July 2nd, 2009
Categories:Real Estate News
The Home Valuation Code of Conduct (HVCC) took affect on May 1st, 2009. Since its implementation lenders, Realtors and appraisers have been making a lot of noise over the new rules and are starting to petition its reversal.
The Appraisal Institute recently published an article attempting to clear up the misunderstandings surrounding the HVCC. They do this by listing the myth they are attempting to bust and then the “Reality” as they see it.
Lets look at some of their explanations in closer detail. Here is the link to download the Myths and Realities pdf.
Here are 3 of the myths they chose to “bust”:
- HVCC Requires Lenders to Use Appraisal Management Companies
- Loan Officers are Prohibited from Communicating with Appraisers
- Licensing of an Appraiser Ensures His or Her Competency
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One Step Back, Three Steps Forward for Homebuyers
June 10th, 2009
Categories:Home Buyer Education, Real Estate News
According to the Census Bureau, one in eight adults between 25 and 34 years old are currently living with their parents. Money Magazine states “unemployment for people in their early twenties now touches 14%, vs the national average of 8.5%.” The rest of the article gives parents tips on how to handle the situation when children move back in, here’s the quick and simple of it:
- Don’t baby your babies
- Do help with the job hunt
- Do assist in exit planning
What about today’s homebuyers out there looking for a way to save money for a down payment? Wouldn’t this be an excellent opportunity to save money, pay off credit cards and possibly get a good idea of what home ownership would look and feel like?
If your a future homebuyer thinking about taking a step back by moving in with the folks, plan on taking three steps forward while you are living with the family again.
The Three Steps Forward
- Step 1: Pay off the credit card debt
- Step 2: Start saving for the costs involved with buying a home
- Step 3: Live in the shoes of a homeowner, you might be surprised at what you realize
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Queen Creek Home Values, Too Low?
May 11th, 2009
Categories:Real Estate News
According to the Cromford report, their data shows Queen Creek homes are selling way below 2004 (as well as 2003 and 2002) prices, in terms of price per square foot. The image below shows the data as it is represented by Cromford.
Side Note: Queen Creek saw a good deal of growth and expansion during the housing boom. As a result, data gathered on the housing market pre-real estate boom might be somewhat unreliable because the homes being sold are probably very different from what was being sold in 2002 and earlier. Queen Creek home builders also Read the rest of this entry »
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Chandler Home Values, Finally a Reset?
May 11th, 2009
Categories:Real Estate News
According to the Cromford report, their data shows Chandler homes are selling at early (and slightly below) 2004 prices, (in terms of price per square foot). The image below shows the data as it is represented by Cromford.
A Break Down Line by Line:
- Blue (2004) – Notice the uptick in prices from February to December
- Green (2005) – From January to November the prices skyrocketed
- Red (2006) – The market was surprisingly stable for the first 3 months, before becoming erratic through July and then dropping
- Purple (2007) – Again the market was stable at first, then it became erratic and prices began falling
- Olive (2008) – This year showed a very steady and consistent drop in prices
- Orange (2009) – Chandler home prices have been dropping at a steady rate up until mid April when the price per sqft values dipped just below 2004 prices, which would give you the impression the Chandler housing market has done its “reset”
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Gilbert Homes Undervalued?
May 11th, 2009
Categories:Real Estate News
According to the Cromford report, their data shows Gilbert homes are selling at early 2004 prices, (in terms of price per square foot). The image below shows the data as it is represented by Cromford.
A Break Down Line by Line:
- Blue (2004) – Notice the uptick in prices from July to December
- Green (2005) – From January to November the prices skyrocketed
- Red (2006) – The market was surprisingly stable for the first 6 months, before dropping in prices from June to September
- Purple (2007) – The first 5 months proved a little erratic before prices began dropping in May
- Olive (2008) – The most dramatic drop occurred here
- Orange (2009) – We’ve had a pretty stable market and the prices are sitting just below/around early 2004 prices, which would give you the impression the market has done its “reset”
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Mortgage Apps at 5 Year High
May 1st, 2009
Categories:Real Estate News
Mortgage applications hit a 5 year high, reports MSNBC.com. After the Federal Reserve announced they would buy $500 Billion in mortgage backed securities, the rates continue to drop as lenders anxiously take advantage of the situation.
Freddie Mac reports the average 30 year rate on December 31st as 5.10%. 80% of the applications are for refinances as those with equity in their homes take advantage of the historically low rates. Unfortunately home owners who can not refinance because they are under-water or upside-down continue to see their situation get worse as others in their position continue to walk away from their homes.
Sadly, those who continue to walk away from their homes only make the problem worse as their homes become bank-owned properties which inevitable drive down the home values for their neighbors.
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Seller's Market in 2009, What's Going On?
April 21st, 2009
Categories:Real Estate News
How do you know the market has shifted? Where is the bottom of the real estate market? If we really are at the bottom of the market, would anyone be crazy enough to say it and risk the potential backlash? Probably not.
But here I go anyways…
What are the signs of a shifting/changing market?
The average Joe Schmo out there would tell you to look for increasing sales, decreasing inventory and increasing sales prices. Unfortunately this is such a simplistic way of looking at shifting trends, anyone taking this approach would only be able to look backwards and tell you “oops its already happened”… Read the rest of this entry »
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