Short Sale My Queen Creek Home: January 2009

With mortgage rates dropping and the phoenix real estate market clearly reaching a bottom in many areas, I am strongly encouraging home buyers to take the plunge and buy.  Of course this will be an individual decision for each home buyer, but here are 5 reasons why it may be the right time to buy now vs. waiting another 6-12 months.

1. Mortgage rates today are 5.274% for a 30 year fixed mortgage.  Mortgage rates have been over 6% for most of the past 2 years.  This will save your monthly and lower the total interest you pay over your loan term.
2. Homes are affordable again.  Affordability is as high as it has been since 2003.  The housing boom priced many people out of the housing market, but now there are clearly homes that are in line with the average family median income in Phoenix.
3. First time home buyers will receive a $7,500 tax credit if they purchase a home before July 1, 2009.  In this program, a first time home buyer is defined as someone who has not owned a home in the last 3 years.  You can view all of the guidelines for the tax credit by clicking here.
4. FHA down payment requirements will increase from 3% to 3.5% on January 1st, 2009 and FHA loan limits will decrease from $346,250 to $271,050 in Maricopa and Pinal counties.  With FHA being one of the lowest down payment options, someone who is interested in a home more than $271,050 may want to secure a hone this month.
5. Housing inventory is shrinking and days on market are falling, both indicators of a recovery.  While we do have a long road ahead due to the economy, these indicators do reflect that in many areas we are at or close to bottom.  Owning a home is very gratifying and trying to time an exact bottom of a market is challenging.  One must consider other factors that make home buying a good decision; tax savings, low mortgage rates, payments going towards equity vs. rent, future appreciation and the comfort of having your own home.

If you would like to sit down and talk about whether or not it is a good time for you to buy now, please give me a call at 480.201.4185.  I would to review the pros and cons for you and show you what is possible.

~Kim

Ready To Sell You Your Slice Of The Arizona Sunshine!

Qualified borrowers "talkin walkin".

According to an article in In Business Las Vegas (by Brian Wargo - see link below), negative equity is causing some to consider walking away from their homes (even if they can afford the mortgage).

Banks better not just worry about people who can't afford their mortgages - negative equity now has many people "talkin walkin".  Meaning, walking away from their homes (even though they CAN afford their mortgages) simply because of the ridiculous negative equity in their property.

I speak to many people who say that the government will have no choice but to forgive the credit of those defaulting today, should the United States' overall real estate economy have a chance of rebound. 

Think about that, how can you expect to sell homes in 2012 if the majority of potential home buyers have destroyed credit?

 

A bigger problem is brewing.

Now, not only do the banks need to worry about the media's constant negative bombardment of doom gloom real estate reporting (which harms local markets where banks own thousands of foreclosed properties), they also have to deal with on-time and FICO-sufficient borrowers just walking (because it could take years and years before value could be even again.)

Combined with a strong belief the government may have to consider creating FICO foregiveness in future, less people are worrying about their credit scores. 

People are asking, "What's more important, my credit score or my financial security?" 

The government and banks better start paying attention to the media.

The harder the media nails the doom and gloom, the harder the banks could fall. 

From personal experience, I don't mind telling banks are being very difficult to work with (losing paperwork, not returning calls, not willing to negotiate with average people) and adding to the problem. 

True story - My bank took six months to call me back and discuss a workout on my loan.  After "losing" my paperwork numerous times and "reassigning" my negotiator - the bank finally called and offered me a workout - to RAISE my principle! 

It's my opinion that, if people don't wake up, government intervention could be needed.

 

Read Brian Wargo's Negative Equity Casualties Here.

Read Aaron Auxier's Media vs. the Banks Here.

 

Aaron Auxier, REALTOR®, ABR can be reached at 702-205-1818

Certified Summerlin Specialist
Certified Fine Homes International Specialist

"Hollywood's Connection to Vegas"®

Recognized on CNBC, FOX News, ABC News, CBS News, NBC News, and more.

 

See Aaron Auxier's "Realtor to the Stars" feature in VEGAS Magazine.

See Aaron Auxier recognized as a Top-10 "Rising Star of Business" by the Las Vegas Business Press.

See photos from Aaron Auxier's "Survivor of the Year" Award.

 

About Aaron Auxier

Aaron Auxier is known and respected for his knowledge and proven experience in selling some of the most exclusive luxury properties and penthouse condominiums in Las Vegas.  As a member of the prestigious Shapiro & Sher Group, Aaron's reputation as "Hollywood's Connection to Vegas" has landed him appearances on CNBC, CBS News, ABC News, FOX News, and NBC News in regards to the Las Vegas luxury real estate market.  In 2007, Aaron set the top-three most expensive price-per-square-foot residential property records in the history of Las Vegas. 

 

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Copyright © 2008 Aaron Auxier. All Rights Reserved.

Disclaimer: All information in this post is subject to change without notice. Subject matter: is an opinion, is not guaranteed, may be time sensitive, and may be based on information collected from several sources which may or may not be reliable at the time of sourcing.