Yost Realty Group's Blog by Debbie Yost, Broker/Owner

Local Real Estate Market is in Transition

National economists and experts are predicting strong home sales in the summer and second half of 2008. The Casa Grande area is already experiencing a strong increase in home sales. The market is heating up due to a combination of factors including lower interest rates, lower home prices, pent up demand and revamped financing programs. The nation’s housing crisis resulted in a long overdue modernization of FHA and VA financing. These government backed financing programs were originally created to provide home loans for the average American. Due to outdated regulations and low loan limits, conventional and subprime loan programs became popular few years ago to provide financing for those who were no longer served by FHA and VA. The maximum loan limits for FHA have been raised to$346,250 which will allow a maximum sales price of $356,950 in Pinal and Maricopa Counties. FHA loans may be combined with down payment assistance programs to reduce the ..(read more)

Pinal County resale home market on upswing

The resale home market in Pinal County is turning around. The area southeast of Phoenix recorded 1,680 sales in the first quarter of this year, according to Arizona State University Realty Studies. That's up from 1,145 sales in the fourth quarter of 2007 and only 625 in the third quarter. Measured month-to-month, the numbers are equally positive. The area had 465 recorded sales in January, 600 in February and 620 in March. This activity is close to the record 1,785 sales in second-quarter 2005. The Queen Creek area accounted for 39 percent of the resale activity, followed by 18 percent in the Maricopa area and 15 percent in the Apache Junction area. Even with an increase in home sales, the median price of Pinal County homes is dropping. The median price of a resale home has eroded from $220,000 in fourth quarter 2005 to $193,000 in third-quarter 2007 and $156,160 for the current quarter. It was $204,600 a a year ago. To see this article in its entirety, click here: ..(read more)

Nehemiah WINS Lawsuit against HUD!

Judge Lawrence K. Karlton of the United States District Court for the Eastern District of California upheld Nehemiah’s motion for summary judgment and invalidated the U.S. Department of Housing and Urban Development (HUD) rule to ban private downpayment assistance as proposed in the “Standards for Mortgagor’s Investment in Mortgaged Property” regulation published October 1, 2007. To be clear, this rule cannot be enforced by HUD and is no longer a threat to private downpayment assistance programs. We are thrilled with the Court’s decision to support low-to-moderate income families across the country by ruling against HUD’s attempt to ban private downpayment assistance,” said Scott Syphax, President and CEO of Nehemiah Corporation of America. This is a major and conclusive judgment, leaving no uncertainty that downpayment assistance is a life line to the families that Nehemiah serves. It is heartening to see that the Court’s arguments ..(read more)

NAR: Existing Home Sales to Level Off

Little change is expected in existing-home sales over the next few months, before improving notably during the second half of the year, according to the latest forecast by the NATIONAL ASSOCIATION OF REALTORS®.

Lawrence Yun, NAR chief economist, says the market will come into clearer focus this summer.

“Existing home sales could start to show a sustained increase within a few months, unless there are some additional economic problems or excessive inflationary pressure,” he says. “We’re looking for essentially stable sales in the near term, before higher mortgage loan limits translate into more sales in high-cost markets. The wider access to affordable credit should increase sales activity notably this summer as pent-up demand begins to be met.”

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in February, slipped 1.9 percent to 84.6, from an upwardly revised reading of ..(read more)

Real Estate Reality – Have We Hit Bottom YET?

No one can predict the peaks and valleys of market cycles precisely. I read volumes of articles and news releases written by experts about financing, supply and demand, job growth, local and national statistics and demographic trends. Following is my interpretation of the meat below the headlines from many sources and how it all applies to our local Casa Grande market: Peter Lynch, the famous money manager wrote for Time Magazine’s February 25th, 2008 issue. He states there is “a potent case for buying now…. When prices are falling, few people have the discipline to buy stocks, a house, gold, art or any other asset. But those who do pull the trigger excel in the long run.” Lynch referenced John D. Rockefeller’s famous quote, “the way to make money is to buy when blood is running in the streets.” Lynch suggests that “if you have good credit, plan to stay put for five years and have been waiting for the ..(read more)

5 Tips for Selling a Vacant Home

RISMEDIA, April 8, 2008-This spring, as it becomes a popular time for homeowners to begin preparing their homes for sale, Showhomes encourages them to do some essential steps to make sure the most important first step takes place: buyers make the decision to view the home. “Many people think all they have to do is make sure the inside of their home is clean, but it really goes far beyond that when it comes to making sure your home looks its best so that buyers will take a look,” said Thomas Scott, vice president of Operations for Showhomes Franchise Corporation. “That is why we have released five essential tips that can help local residents stay on the right track when preparing their homes for a sale.” Scott reveals five tips for selling a vacant home: 1. Curb Appeal - the better the curb appeal of your home is, the more attractive it is to prospective buyers. - Trim overgrown bushes, weed beds and add a fresh layer of mulch
- Clean your front door ..(read more)

Is the Market Turning Around? Existing Home Sales Rise in February

RISMEDIA, March 25, 2008-Sales of existing homes increased in February and remain within a fairly stable range, according to the National Association of Realtors®. Existing-home sales - including single-family, townhomes, condominiums and co-ops - rose 2.9 percent to a seasonally adjusted annual rate of 5.03 million units in February from a pace of 4.89 million in January, but remain 23.8 percent below the 6.60 million-unit level in February 2007. The sales pace has been in a fairly narrow range since last September. Lawrence Yun, NAR chief economist, said the gain is encouraging. “We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” he said. “Buyers taking advantage of higher loan limits for both FHA and conventional mortgages will unleash some pent-up demand. As inventories are drawn down, prices in many markets should go positive later this ..(read more)

The 5 biggest mistakes homebuyers make

Looking to purchase a house? Make sure you’re not buying its problems, too

By Barbara Corcoran TODAYShow.com contributor updated 8:57 a.m. MT, Fri., March. 21, 2008 function UpdateTimeStamp(pdt) { var n = document.getElementById("udtD"); if(pdt != '' && n && window.DateTime) { var dt = new DateTime(); pdt = dt.T2D(pdt); if(dt.GetTZ(pdt)) {n.innerHTML = dt.D2S(pdt,((''.toLowerCase()=='false')?false:true));} } } UpdateTimeStamp('633417118708570000');

Buying a house can sometimes mean buying its problems. From noisy neighbors to black mold to leaky gas tanks, there’s a lot that can go wrong. Here are the five biggest mistakes buyers make. Every homebuyer should take note to avoid an expensive mistake.

Waiting for prices to come down
As smart as you think you are, you cannot sharpshoot the real estate market. You never know when the best time is. Prices ebb and flow, ..(read more)

Real Estate Reality: FAQs and Myths

Will mortgage interest rates drop lower? I want to wait to buy or refinance because I know rates will drop again. The Federal Reserve has lowered rates five times since September. Many people expected the 2.25% reduction in the Discount Rate and Fed Funds Rate to result in lower mortgage rates. In reality, mortgage rates and the interest rates reduced by the Fed are different animals. Mortgage rates can be in effect for 30 years while the rates set by the Fed can change from day to day. If past history is any indicator, we could anticipate mortgage rates actually rising as a result of anticipated inflation. In 2001, the Fed cut the Fed Fund rates from 6% to 1.75% over 11 months and because inflation grew, long term mortgage rates increased. The recent volatility and losses in the stock market indicate investors concern. The lowest rates we’ve seen to date occurred for about 3 hours immediately following the Jan 23rd rate cut. Rates have ..(read more)

New foreclosure rescue plan offers 'Help Now'

Supporters say the proposal will help rescue more home owners faster than Hope Now, a rescue coalition that some critics say hasn't done enough. By Les Christie, CNNMoney.com staff writer Last Updated: March 13, 2008: 10:33 AM EDT WASHINGTON, D.C. (CNNMoney.com) -- A bold new proposal to combat foreclosures was unveiled in Washington on Thursday. The plan, dubbed "Help Now," was floated by the National Community Reinvestment Coalition (NCRC), a nonprofit community advocacy group. It calls for the government to buy up at-risk loans, restructure the terms to make them affordable and sell the reworked loans back into the secondary market. "I think the plan is commendable. It doesn't let the home owner off the hook," said economist Mark Zandi of Moody's Economy.com. "They still have to pay at least part of the debt." Help Now aims to improve upon the efforts of Hope Now, the alliance of lenders, mortgage servicers, non-profit community advocacy groups ..(read more)

Subprime alternative: FHA reform deal close

Lawmakers say they're optimistic that they'll be able to send a bill to President Bush for his signature by April. By Jeanne Sahadi, CNNMoney.com senior writer Last Updated: March 10, 2008: 2:22 PM EDT NEW YORK (CNNMoney.com) -- By early April, both chambers of Congress are likely to tie the bow on a bill that would expand the reach of the Federal Housing Administration (FHA), which aims to provide safe loan alternatives to subprime mortgages and make homeownership more accessible. Different versions of the FHA modernization bill passed in the House and the Senate last year, and both Senate Banking Committee Chairman Christopher Dodd (D-Conn.) and House Financial Services Chairman Barney Frank (D-Mass.) said last week that the differences between the chambers could be resolved in short order. "I think we are fairly close to having an FHA reform bill that we will be able to adopt very quickly," said Dodd on the Senate floor last week. The FHA program is intended for ..(read more)

Housing: Best time to buy in four years

Home values have declined across the country, giving homebuyers the best buys they've had since 2004. By Les Christie, CNNMoney.com staff writer Last Updated: March 5, 2008: 10:40 PM EST NEW YORK (CNNMoney.com) -- It may be the best time to buy a house in more than four years. Home prices have dropped so quickly and so far that valuations - the difference between what a home should cost and its actual price - are the lowest they've been since 2004, according to a report. The Cleveland-based bank National City Corp. (NCC, Fortune 500), together with financial analysis firm Global Insight, revealed Tuesday that more than 88% of the 330 housing markets surveyed showed price declines and improved affordability during the last three months of 2007. "Housing valuations are almost back to long-term norms," said National City's chief economist, Richard DeKaser. He called current affordability "the best in the past four years." But DeKaser cautioned that home ..(read more)

FHA LOAN LIMITS INCREASED FROM $263,150 to $346,250!!

FHA financing is easier to qualify for because it’s not based on credit scores. FHA and VA interest rates are lower than conventional rates at the moment AND by combining certain BOND funds a first time homebuyer (someone who hasn't owned a home in at least 3 years) can get 100% financing. With the lowest sales prices in years, great interest rates, and increased FHA loan limits more people will be able to purchase homes again. Lawrence Yun, NAR’s Chief Economist predicts that within five years Arizona will “be the hotbed of the housing market in terms of both home price and high apartment rents, because demographics of baby boomer retirement nearly assures very high demand for warm climate regions.” Can YOU predict the bottom of the market? We can’t either, but increasing demand and multiple offers on many homes again may be an indicator. If you are looking to buy and hold a property, rather than buying ..(read more)

Garden Guide for March

DO'S
Turf: Water lawns once per week to a depth of 1/2 inch. For a complete lawn-watering guide, go to cals.arizona.edu /azmet. Overwatered winter lawns may turn yellow.

Landscape plants: Water deeply at least once a month. Prune frost-sensitive plants, such as bougainvillea and lantana, after they begin to leaf out with new spring growth. Spread mulch around the base of plants to conserve moisture and prevent weeds. Remove weeds while they are young and tender and their roots are manageable. If grubs have killed agaves in your yard in the past, apply at the base of the plants a pesticide labeled for use to kill agave weevil grubs. Follow directions on the package. Repeat application in June. As the weather warms, expect leaf drop on carob, African sumac, pine and other evergreen trees.

Fruits and vegetables: Prepare garden soil for spring planting. Eleven types of seeds to plant this month: beans, beets, carrots, corn, cucumbers, green onions, ..(read more)

Washington Report: HUD Unveils Proposed Changes to Mortgage Process

by Kenneth R. Harney Within days, the federal department of Housing and Urban Development plans to unveil sweeping proposed changes to the American mortgage application process and real estate settlement system. The rule changes are the end-product of HUD's five-year effort to streamline mortgage disclosures, promote comparison shopping by loan applicants, and to stamp out eleventh-hour surprises at closings -- where fees come in hundreds or thousands of dollars higher than initial estimates. Realty Times obtained a point by point summary of the proposals in advance of their official release by HUD. The changes are designed to radically overhaul the current, much-criticized "Good Faith Estimates" (or GFE) disclosures and the "HUD-1" closing procedures. Among the key changes in the 250-page HUD proposal: 1. Transformation of the GFE into a consumer education and shopping tool. The GFE will now explain in detail to an applicant how a particular loan works, ..(read more)