2008 Tucson, Arizona Weekly Real Estate Newsletter

5-9-08 The Tucson Multiple Listing Service has changed the days on the market " DOM ", to now read " CDOM " or cumulative days on the market. What this means is when a listing expires and within 30 days the property is listed again, the days on the market will keep counting from the previous listing. This will be more accurate.

Also, the Tucson Multiple Listing Service will be changing the MLS map boundaries, N NW NE etc.

5-2-08 The National Association of Realtors is working with Congress to make permanent the new FHA and conforming loan limits, mandated by the economic stimulus package, so that Americans can access affordable financing in all areas of the country.

Tucson, Arizona, recently I had a client who confused a comparative market analysis, or CMA, with an appraisal. Real estate agents use CMAs to help home sellers determine a realistic asking price. Experienced agents often come very close to an appraisal price with their CMAS, but an appraiser's report is much more detailed--and is the only valuation report a bank will consider when deciding whether or not to lend the money. Also, banks are using the computer to do an appraisal when processing a home equity loan, to save time and money.

4-25-08 Real Estate 101: Appraisals are opinions of value, and residential real estate appraisals compare your home with similar homes that have sold usually. Remember, an appraisal is not the same as a home inspection. Inspections look for physical imperfections in the home, making sure it is structurally sound and so forth.

Jumbo loans are for more money than the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation will fund under its mandate. The Tucson area, loans above $417,000 are considered jumbo loans. What does this mean? You will pay a slightly higher interest rate, usually 1/2% higher.

4-18-08 The following article is from ASHI, the most organized and respected association for home inspectors. I hope you enjoy the article.
 
Most of the time it takes the trained eye of a professional home inspector to identify defects or potential hazards within a home.  On some occasions, however, certain maintenance issues are easy to spot.  Each year, the American Society of Home Inspectors (ASHI) releases unusual home inspection discoveries from the field.  This year, to remind consumers that April is National Home Inspection Month, the Society is sharing some of its most unusual, yet obvious, finds.

The photos below were submitted by ASHI Certified Inspectors and published in ASHI's publication, the ASHI Reporter.  Photos appear monthly in ASHI's "Postcards from the Field" section.

"Some of the most unusual discoveries I've made as a home inspector have happened while I was inspecting dark crawl spaces, attics and roofs," said Brion Grant, 2008 ASHI president. "From time to time, though, I spot some pretty unusual and potentially dangerous issues simply by walking into a room."

Shocking Discoveries

Electrical outlets come in all shapes and sizes, but even John Fryer, an ASHI Certified Inspector from Oakland, Calif., was stumped by this unique contraption. While Silicon Valley (the site of this finding) is lauded as a premier location for creative minds and innovation, this improvised design is more dangerous than ingenious.

Speaking of dangerous electrical situations, take a look at this photo below.  ASHI Certified Inspector Matt Fisher of Bloomington, Ind., discovered an electrical outlet inside the shower of this newly remodeled bathroom.

He also pointed out that the toilet paper dispenser is inside the tub, too.
 
"When I look at this picture, I can't help but wonder what was going through the contractor's head when he installed that outlet," said a puzzled Grant. "The outlet doesn't even have a ground fault circuit interrupter. Sometimes a shower is all you need to jump start your morning ... but this seems extreme."

It All Falls Down

ASHI's founder, Ron Passaro of Bethel, Conn., advised the owner of this home to take caution when walking out this door.

Watch out, that first step can be a little tricky.

Each year, ASHI emphasizes the importance of winterizing outdoor faucets as part of an ongoing winter maintenance regimen.  While inspecting this home in Hopedale, Mass., however, ASHI Certified Inspector Ron Cook concluded that this homeowner did not heed the Society's advice.

When Enough is Too Much

The owner of this home in Bartlett, Tenn., does not appear to believe in the expression "all things in moderation."  There are six hoses connected to the faucet shown here.  ASHI Certified Inspector Brandon Dyles said the homeowner was hoping it would pass as a "sprinkler system."

The images above are a few examples of the real life discoveries ASHI Certified Inspectors have uncovered over the last year.  By working with a home inspector, homeowners can identify potentially dangerous fixes that might compromise the structure and integrity of their home and pose immediate and long term safety risks to its inhabitants.  While most homeowners only consider home inspections when buying or selling a home, home safety inspections are the perfect way for a concerned relative to keep a loved one, such as an aging parent, safe.

About the American Society of Home Inspectors

In its 31st year and with nearly 6,000 members, ASHI is the oldest and most widely recognized non-profit, professional organization of home inspectors in North America. Its Standards of Practice and Code of Ethics are the industry standard. ASHI’s mission is to meet the needs of its membership and promote excellence and exemplary practice within the profession.  For more information, visit www.ASHI.org or call 800-743-2744.

4-11-08 A Jumbo Mortgage is a mortgage with a loan amount above conventional loan limits. Jumbo Mortgages apply when Fannie Mae (FNMA) and Freddie Mac (FHLMC) limits don't cover the full loan amount.

Fannie Mae and Freddie Mac are large agencies that purchase the bulk of residential mortgages in the U.S. They set a limit on the maximum dollar value of any mortgage which they will purchase from an individual lender.

Currently, this limit is $417,000. This leaves a portion of the market to look elsewhere for placement. Other large investors, such as insurance companies and banks, step in to fill the need with maximum mortgage amounts going to the $1 million or $2 million range.

The average interest rates are typically greater than normal for conforming mortgages, and vary depending on property types and mortgage amount.
  
The March MLS stats for Tucson Arizona Association of Realtors came out this week. The home units sold decreased 32% from a year ago, however the pending contracts rose 18% from a year ago. Also, the listing inventory shrunk by 10%.

3-28-08 The number one idea that borrowers have about mortgages is that fixed mortgage rates are directly related to moves by the Fed. In reality, fixed rates are tied to long-term interest rates and play in their own park. With conforming rates still under 6 percent, that is hardly a hurdle to a well-qualified buyer.

Many banks indeed have tightened requirements, and the days of 100 percent loan-to-value loans for buyers who can't document their income, so-called no-doc, no no loans, liar loans etc. are  considered a thing of the past. The real problem is the multiple banks use when lending. This use of a higher multiple has worked against them, causing their capital requirements to increase and hindering their ability to lend. Banks aren't scared, they don't have as much to lend. This is why the Fed is injecting so much money into the system.

3-21-08 The real estate market should be heading in the right direction. The fed has cleared the way for Freddie and Fannie to free up $200 billion for mortgages. They are basically lowering  Fannie and Freddie's capital requirements. This caused mortgage rates to drop this week to the mid 5's.

Forty Niners had a couple of new listings surface. One for $209 a square foot and the other at $158 a square foot.

Sabino Springs had a home close at $258 a square foot. Also, a new listing for sale at $332 a square foot.

Canada Hills is around it's old inventory average of about 60 listings. However, the last six months show approximately two homes selling per month. The is weak for Canada Hills. I hope the Fed actions will help, only time will tell.

3-15-08 30yr Fixed 5.875%, 15yr Fixed 5.125% This is a quote from Scott Rich at Nova Home Loans, however, the rates fluctuate daily.

All eyes will be focused on the Fed meeting next Tuesday. Most analysts predict a 75 basis point rate cut following the consumer price index data showing tame inflation. Others are less certain that inflation is in check and view the 0.5%
decrease in the energy price component of the consumer price index with some skepticism. Oil prices remain high and the dollar weaker, which do little to help inflation expectations and "limits flexibility" as Fed Chairman Bernanke indicated earlier this year.

Keep in mind that a Fed rate cut does not automatically mean mortgage interest rates will improve, as has been evident from recent history. The Federal Reserve has direct control over the level of short-term interest rates. The Fed's influence over longer-term interest rates is less certain. Market volatility is likely.

3-14-08 Will the Fed's injections of billions of dollars, or rate cuts next week help the economy? Wasn't it low low rates that helped cause the credit & housing problem. Maybe letting the markets take care of themselves, no , that would be to simple. On a positive note the S & P said this week that they see light at the end of the tunnel for the subprime write downs.

The Gallery Golf Club has been a private Club since the 1st of the year.

The local inventory of MLS listing shrunk in February over 6% and homes sold decreased over 28% compared to last February. The average sales price for all homes is around $260,000. In my opinion buyers have been coming out and starting to look, which is a good sign.

Forty Niners this last week showed no activity.
 
Sabino Springs had one property go into escrow. When homes close I'll report the final closing price and square footage price. 

3-7-08 Mortgage interest rates on a 30 year fixed are hovering in the 6% range nationally. The 15 year fixed is around 5.5%.
  
The golf courses in Tucson Arizona are looking good with the winter rye holding up. Not to many frost delays this year, which is nice. Nothing like a frost delay to mess up the whole day.
  
The Gallery Golf Club in Dove Mountain will be raising it's initiation fee April 1st to $80,000.00 from $75,000.00. Simple supply and demand. Oro Valley Country Club initiation fee has dropped over the last year, even with an excellent new Clubhouse etc., and a well manicured golf course. Hard to figure.

2-29-08 Sabino Springs in Tucson, Arizona had one new listing come on the market at 9770 e. Sabino Springs for $949,975.00. Then the home at 5216 N. Sabino Drive closed for $585,000 or $162.77 a square foot, someone got a good deal.

Forty Niner Country Club in Tucson, Arizona had zero activity.

2-25-08 The housing market has a big week ahead. Today, existing home sales will be reported, followed by new home sales on Wednesday along with luxury home builder Toll Brothers.

2-23-08 Tucson, Arizona has a new housing development "The Residences at The Ritz-Carlton," located in Dove Mountain. Approximately 324 homes are on line to be built around two golf courses linked to Ritz-Carlton Golf Club. Homes will be in the millions and land for custom homes starting at $750,000. Property owners will be required to join the Ritz-Carlton Golf Club at a cost of $100,000, plus monthly dues etc... The Match Play Championship currently being played, this weekend at The Gallery, will move next year to the Ritz-Carlton Golf Club. Questions? Call me at 1-800-997-4701.

2-22-08 Tucson, Arizona and nationally when they talk about housing starts the numbers can include multifamily housing, which is a volatile sector and can skew the results. Almost, all the housing numbers can be spun.

Forty Niner Country Club showed zero sales this last week.

Sabino Springs this past week saw three homes go into escrow. When they close I will report the numbers.

The MLS statistics just came out for last month and the number of homes sold dropped 36% from a year ago. However, the average sales price only dropped 2.23% to $272500 for all residential types. Listing inventories decreased, but are still high.

2-15-08 I hope you enjoyed Valentines Day yesterday. Also, Arizona, which became the 48th state in 1912, celebrated it's birthday yesterday on V-Day.

Mortgage interest rates are still in the 5.5% range. Yesterday, Ben Bernanke indicated the Fed will lower key rates in order to keep the economy stable.

2-8-08 Note:Appraisals are opinions of value, and residential real estate appraisals compare your home with similar homes that have sold. Remember, an appraisal is not the same as a home inspection. Inspections look for physical imperfections in the home, making sure it is structurally sound and so forth.

Forty Niner Country Club was quiet this last week. However, my family and I went to the all you can eat prime rib night Friday at the clubhouse, it was ok. For the price it was excellent.

Sabino Springs had a price increase and decrease this last week with 5216 N. Sabino Hills Drive falling into escrow.

All the talk about credit tightening is somewhat true, however mortgage money is still available and at excellent rates. I'm waiting for the government to start throwing money out of helicopters.

2-1-08 Mortgage interest rates on the 30 year fixed inched slightly higher this week to around the 5.6% range. Remember, this is an average. I'm seeing the Tucson real estate market bouncing all around with a high number of homes coming on the market and an equal number of homes expiring, with many of the homes that expire coming back on the market as a new listing, which skews the market.

Forty Niner Country Club had a couple of homes expire and come back on the market this week.

Sabino Springs put the home at 5216 N. Sabino Hills drive in escrow.

Coming Soon to my website, with the professional computer help and knowledge of Bob Zucker and Jeremy Logsdon, I plan on having listings for specific Country Clubs and Luxury Communities for quick and easy searches for areas of interest. I'll keep you updated.

1-25-08 Forty Niner Country Club had one of the few townhomes in Forty Niner's come on the market for sale with a price of $375,000. Also, a SFR fsbo came on the market, call me for details at 520-751-8686.

Sabino Springs, home of the Arizona National Golf Club, had a listing withdrawn from the market after 167 day's on the market " DOM ". The property is located at 5253 N. Sabino Springs Drive.

The Federal government wants to throw taxpayer's a kernel in the form of a tax rebate. What's interesting is the package includes an increase in the FHA loan amount and the jumbo loan limit. This would have a significant impact on the real estate market.

1-18-08 Golf property and country clubs in Tucson have fees to join or play golf. I just updated my spreadsheet online with the new costs. Also, I can send you a copy.

When you purchase a home in Tucson, only you can call to have the utilities put in your name. I know from trying to help clients.

Forty Niner Country Club had two new listings surface this week. 12340 E. Cape Horn at $620,000 or $237 a square foot, and 1931 N. Wentworth at $649,000 or $197 a square foot.

Sabino Springs had a listing expire. There are several properties on the golf course with excellent views.

The listing inventory and new listings for the Tucson MLS are both shrinking. Home sales and unit sales are both down. The average home price is hovering in the $260,000 range. Credit is still available and interest rates remain low, below 6%.

I have seen a few bank listings on the market, and I'm sure that trend will continue. Each bank has different problems to solve and from my experience if you can give them what they want, an easy sale, you can get a screaming deal.

1-12-08 Scott Rich at Nova home Loans told me today that a 30 year fixed is at 5.50% and a 15 year is at 5.00%. These are really good rates, especially with early signs of the market bottoming. Remember, no one comes out and announces a market bottom.

I have been working on my annual update for the golf fee spreadsheet and plan on having it online soon. The biggest surprise last year was Oro Valley Country Club initiation fee bottoming at $6,000.

Forty Niner Country Club this past week only showed one expired listing, and this is the third time for the property at 12342 E. Goldpan Place after 92 days on the market.

Sabino Springs had a new listing at 5286 E. Canyon Rise for $439,000 or $433 a square foot. Also, two listings expired.

1-4-08 Forty Niner Country Club had the listing at 12518 E. Barbary Coast Expire, after 111 day's on the market. Then the house at 12410 E. Barbary Coast expired after 151 day's on the market, then it came back on the market at the same price $629,900, and a new clock ticking for days on the market.

Sabino Springs had two new listings, one 5168 N. Pinnacle Point for $255,000 and 5347 N. Ridge Spring Place for $519,500.. 5168 N. Pinnacle Point was on the market for 181 days prior to relisting.

The weather has been a little cold in the morning, however this is perfect for golfing this time of the year.

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