Is now the best time to buy a home?

1. Although the market is rapidly heating up many buyers are still asking the question “should I buy now?”
While price is the major concern for anyone selling a home, cost should be the primary focus of a buyer. That means you must take into account what your monthly payment will be, considering not only price of the home but the interest rate of your loan as well. Waiting for prices to bottom out while rates are increasing can and will wind up costing you more over the life of the loan. Fannie Mae, Freddie Mac, the National Association of Realtor, PMI and the mortgage Bankers Association are all projecting interest rates will increase over the next several quarters. It’s best that you meet with a mortgage professional to help you determine what an interest rate increase will cost you based on the size of your loan in addition to meeting with a real estate professional to discuss market trends. This information will help you to make the best decision for you.

2. As we are all beginning to witness the increase in activity many buyers (and sellers) are asking “when will I begin to see appreciation?”
Appreciation varies from market to market so it is important to sit down with an expert in your market area to look closely at local pricing trends. Nationally, there are indications that values will begin to rise this year. National Association of Realtor (NAR) projects home prices to grow slightly, .5% in 2011. Marco Markets LLC, a financial technology company, recently asked more than 100 housing industry experts to project housing prices through 2015. The results, released in the company’s 2010 Home Price Expectation Survey, show that experts think prices will start increasing in the second half of 2011, reaching a cumulative appreciation of more than 10% by 2015. Tucson area experts are expecting up to 3% appreciation this year and again next year.
3. Some people right now are giving a heavy look to the differences between buying and renting and asking the question “does buying really make better sense than renting?”
Forget about finances for a minute. Why did you ever consider buying a home? The Fannie Mae National Housing Survey shows that four of the biggest reasons people buy a home have nothing at all to do with money. They want a place to raise and educate their children, they want a place where their family will feel safe and secure, they want to have plenty of living space and outdoor space, and they want to have control over their space. What non-financial benefits will your family have from owning a home? Your answer to that question should be the reason you choose to buy or not. The cost of a home will probably remain relatively unchanged when you are in even when home prices go up. Verses the unknown of rising rents and the possibility of having to move before you are ready. There are many financial benefits to being a home owner in addition to the tax benefits, equity growth etc. However don’t allow money to be the only factor in making the decision that’s best for you.

If you are considering buying a home I would love to talk with you more about our local Tucson marekt!
Renee

New Purchase Contract

Did you know that Arizona Association of Realtors (AAR) put out a new purchase contract and supplemental Addendums, including a required Loan Pre-Qualification form, in February of this year? The contract has been used exclusively since March 1st, 2011; although there are still some agents, brokers and companies out there using the old contract! Whether you are a buyer or a seller this puts you at risk or at the very least facing a counter offer demanding proper/current forms. Make sure whomever you work with and is representing you (if in the far off chance it is not me) is an expert and has had training and experience with the new contract and forms. You don’t want someone “practicing” on you and with your house! I have been through training and several successful escrows and closings with the new contract. You also want to make sure your lender is on board with the new Pre-Qual and LSU requirements they are facing as well. It is a team effort. If you have any questions it would be my pleasure to speak with you about all of the details of the contracts and negotiations. Your personal Realtor! Renée

Reasons to Sell Your Home with a Real Estate Professional

By the KCM CrewArizona REALTOR® Magazine » April 2011 Should you spend the money on a real estate commission or save that money by selling your home by yourself? That is a question many home sellers ask themselves. Today, we want to discuss why it is crucial to have a true professional guiding you through the minefield of challenges that exist in the current real estate market. The housing market today is more challenging than it has ever been and seems to be becoming more difficult each day. What impact will foreclosures have on prices? Which loan products that were available just last month are no longer available? How do you convince perspective purchasers to pull the trigger on an offer when everyone is telling them that they should see another 100 houses before they make a decision? These are tough questions even for a trained, experienced professional. The lay person would find it almost impossible to keep abreast of this rapidly evolving industry. Here are six important reasons to use a real estate professional: 1. Pricing Is Difficult Just a few years ago, you didn’t have to worry about overpricing your home. If it was too high, all you needed to do was wait as historic appreciation was taking place. The situation is quite different today. With the possibility of a continuing drop in home values, overpricing your property will cost you time. In this market, time costs you money. A professional real estate agent will discuss how increasing inventory could dramatically impact the value of your property in the months to come. They will help you set the right price in today’s market. 2. Negotiating Ability Is Crucial Buyers today have an almost unlimited supply of homes from which to choose. They realize this puts them in a great negotiating position. Most buyers are now being represented by an agent. Sellers need to also be represented by a professional expert trained to negotiate real estate contracts. 3. Mortgaging Is Key to the Deal The biggest impact on the housing market collapse is that lending standards are much stricter today than they were a few short years ago. Rules are constantly changing. Even FHA has gone through a guidelines overhaul in the last several months. You need a real estate expert who has teamed up with a knowledgeable mortgage professional to make sure that the buyer in the deal is in fact capable of obtaining a mortgage. Losing time with an unqualified buyer costs you money in a market where prices are falling. 4. Your Family’s Safety We have always found it puzzling that the same person who will lock every door and window and set the alarm today will then allow total strangers into their house tomorrow. The real estate industry trains its practitioners to take steps to protect themselves and their clients. Take advantage of putting a person between you and the person calling on an ad or a yard sign. 5. You Probably Have More Important Things to Do Selling a home could turn into a full time job. Learning the necessary disclosures, coordinating the dates of your closings, dealing with a challenge regarding your appraisal and re-negotiating the offer after an engineer’s report are just a few of the concerns you may face. You would probably be better off spending that time with the items important to you and your family and leaving the challenges to your agent. 6. Exposure to Potential Purchasers When sellers think of getting exposure for their home, they immediately think of print advertising. Certain print media might still have a place in marketing a niche property (luxury, equestrian, waterfront, etc.). However, we want our readers to know that although print advertising has traditionally been the way homes had been introduced to the buying public, the medium has been losing its impact over the last several years. Recent studies have shown that less than 3% of buyers find their home through newspaper advertising today. At the same time, over 30% find a home through the Internet. Let’s take a look at how real estate experts market listings today. Multiple Listing Systems (MLS)Once you list your property with a member of the local MLS, every other member of the system is alerted that your house is now available for purchase. In a matter of hours, hundreds or thousands of real estate professionals have the ability to easily share the specifics of your home with each of their buyers. There is nothing an individual seller can do to come close to this immediate exposure to thousands of potential buyers. Internet SitesAlmost every real estate company and many agents have their own websites promoting their homes for sale. Many companies also have standing relationships with national listing aggregators (Trulia, Zillow, Yahoo!, etc.). It would be impossible for a seller to get the width of exposure the real estate agent has at his/her fingertips. Social MediaMore and more industry professionals are learning the power of social media when promoting real estate. They have created a community of followers looking for information about the region or neighborhood where they work. Of course, a percentage of those followers will be interested in what is taking place with the real estate market within that area. A new venture, which has not yet been fully utilized, social media is beginning to play a larger role in the marketing of an area and the homes in that area. Bottom Line To make sure the sale of your home is handled professionally — hire a trained professional. In the long run, you will wind up with more money in your pocket and have fewer challenges with the move. This article was originally published on the Keeping Current Matters Blog.

The U.S. Population Keeps Growing! How about AZ?

According to the US Census Bureau Arizona is the second fastest growing state with Nevada being number one. This equates to a faster and stronger housing recovery for our state than other parts of the US.
The 2010 Census released by the US Census Bureau, the US population was more than 308 million as of April 1, 2010, up 9.7% from 2000 resident population of 281 million.
All four regions of the country posted population increases over the past decade. The South gained more than 14 million people and the West gained more than 8.7 million. The Northeast and Midwest grew by 1.72 million and 2.53 million, respectively.
California was the most populous state with more than 37 million residents, and Wyoming was the least populous with 563,626 people. Texas had the largest population gain numerically (25.14 million, up from 4.29 million) and Nevada had the highest percentage gain, up 35.1% to 2.7 million. Michigan was the only state that declined in population.
(March/April 2011 issue of The Residential Specialist)

Food, clothing and shelter are the big three that humans will always need for survival. With the population growing there will be no lack of demand in the future for these. It only makes sense to invest in the “shelter” part of the equation now.

Give me a call I would love to talk with you more about this and help you!
Renee

What is the ideal size home?

According to the consumer lifestyle survey by Relocation.com in October 2010, people reported on their ideal size home.

48% said 1,000 to 1,999 square feet
29% said 2,000 to 2,999 square feet
12% said less than 1,000
10% said 3,000 to 4,999 square feet
2% said 5,000 or more

Happy to report a little fun information.

Renée

Statistics for February 2011

The TAR MLS monthly Statistics are out for February 2011.

Total sales volume increased significantly from $130,258,440 in the month of January to $160,319,228 in the month of February which is an increase of just over 23%!
The average Sales Price also rose 9.22% from January
The average List Price is up 8.43% from January to $191,957
The total number of listings Under Contract increased 12.8% from January
Total Unit Sales rose 12.69% from 780 in the month of January to 879 for the month of February
Total Unit Sales is up 18.62% compared to January of 2010
The Median Sales Price went up from $134,250 in January to $137,000 in February for an increase of just over 2%

The number of homes going under contract for the month of February is the highest it has been since September of 2010.

The price range with the highest amount of inventory is $1,000,000 and over followed by $750,000-$999,999.
The price range with the lowest inventory is $100,000-$124,999 followed by $125,000-$149,999.

It is easy to see from the data above our market has turned around in every area. Although the climb out is never a straight one, there will be small ups and downs along the way, be ready for a wonderful 2011.
And if you are a buyer I would suggest making your move soon while prices are interest rates are still low.

Give me a call I would love to help you.

Renée 465-0301

Did you know...

In 2009 Tucson MLS agents did:

39% …. 0 Transactions
21% …. 1 Transaction
27% …. 2-5 Transactions
8.5% …. 6-10 Transactions
4.5% …. 11+ Transactions

In 2010 Tucson MLS agents did:

45% …. 0 Transactions
12.5% …. 1 Transaction
20.3% …. 2-5 Transactions
10.3% …. 6-10 Transactions
11% …. 11+ Transactions

When you are looking for an agent to represent you in a real estate transaction (a purchase or a sale) you want someone with experience! Ask them how many sales (transactions) they had last year. Or you can just call me. :)
Not all agents are created equal and you deserve someone who is committed to real estate as their primary, full time career. I have been selling real estate in Tucson for over 11 years and it IS my full time career. I am here to serve you.

Renée