by JONATHAN BODEEN | Oct 31, 2014 | Mike's "Real State" of the Market, Real Estate News
Overall, the valley has taken a downturn in price over the last month. We have had a general imbalance in supply vs demand over the last year, but only now are we seeing the first downward price trends. That being said, not all areas are doing poorly. Sometimes we can get caught up in looking at the month to month. Phoenix is still doing better than this time last year. That cannot be said however, of every city here in the valley. Chandler and Tempe for example, are now less per sq. ft. then they were this time last year.
Time will tell if this is a little temporary dip, as is normal in a healthy and balanced market, or evidence of a longer lasting decline. We can get into a lot of trouble when we broadcast our opinions of the future, because of course we can’t guarantee anything. So take what I’m about to say with more than a few grains of salt. We expect prices to continue to dip over the next months, but not some sort of cataclysmic downturn like we had 5 years ago, just a gradual softening.
Hopefully demand will pick up in the spring in response to the improving job market and we will see an upward trend begin again. We know that people want to buy houses as much as they ever have, what they lack is ability and confidence. Only a little time can re-introduce some optimism into these potential buyers.
by JONATHAN BODEEN | Oct 22, 2014 | Bodeen Team Blog, Buying a Home, Real Estate News
Well Mike, the real Real Estate guru, is out of town for the weekend and early part of this week, so it falls to his son (me) and squire of the trade to formulate the weekly Real Estate Update. I hope dear readers, you will be forgiving in the absence of the master.
The world seems to be suffering one crisis after another. From civil wars in Iraq and Ukraine, to widespread epidemic in Africa, there is no lack of material for the News Networks. Anyone following the financial industry knows that the last couple weeks have not been good to investors at large, which generally speaking means bad things for economy at large.
Some blame all of the messes we are seeing around the world for a lack of confidence in the market more than others, but all believe it to be a factor. Some are saying it is a temporary lull, a natural correction within a bear market. Others are saying it is the beginning of longer downturn.
Well neither I nor my father are financial experts, though we follow those pundits with an interest equal to the amount that it effects the housing market, which is quite a lot. What is the connection between the financial industry and the housing market? Well there are many connections but the one in particular that I wanted to touch on today is the advantage to the buyer.
Baron Rothschild, a long dead British mega millionaire, once said“The time to buy is when there is blood in the streets.” As macabre as that sounds, it seems there is truth there.
Why? One reason is mortgage rates. Interestingly, when the economy is doing poorly, interest rates tend to go down. We have seen that in the last week or two especially and today mortgage rates are the lowest they have been since June of 2013 at around 3.75%, something nobody was predicting early this year. Analysts were saying that by this time, interest rates would be as high as 5 or 6%.
Prices have begun to take a slight downturn in most areas of the Valley, mortgage rates are very low, inventory is high, and sellers are getting desperate. These are the times when buying is the most profitable. A buyer right now can expect a great selection, the upper hand in negotiations, a great mortgage rate, and ultimately a nice little discount off where prices peaked in November of last year.
For how long will this be? Well as Realtors we hope not too long, ideally you never want to see the balance swerve too far towards buyers or sellers. (Ok to be honest most homeowners love super seller markets, but the problem is those never last)
So if you are hoping to buy a home soon, like my wife and are, everyone else’s bad news is good news for you today!
Now I know it was just about a month ago that we reported things were looking up for sellers, and indeed they were. Inventory was shrinking and the fine balance between seller and buyer advantage was inching back towards sellers. Well the trend has stopped and has again been sliding back towards buyers.
Ultimately though today we are really still in a balanced state. The advantage, definitely to buyers in my opinion, but not wildly.
by JONATHAN BODEEN | Sep 23, 2014 | Bodeen Team Blog, Buying a Home, Real Estate News, Relocation
The choice to buy or rent has always been a difficult one, and the answer is not always the same for everybody.
In the beginning, buying a home IS more expensive than
renting. You need money for a down payment, closing costs, and
maybe even some new furniture!
But in the end, buying your home and holding onto it for the
long haul is almost ALWAYS the smarter financial move. Why
you ask?
1. The cost of your mortgage will remain fairly consistent even as
prices around you move up and up due to inflation and other
reasons. So even if your monthly payment is more in the first few
years, eventually you will actually be paying less than those
who are renting around you!
2. After paying a mortgage for 30 years, what you have is an asset
worth hundreds of thousands of dollars and no more mortgage
to pay! After 30 years of renting what do you have? Uhh… more
rent to pay.
Buying a home can be a scary thing, and don’t be deceived; it is
not something that should be done casually. It does require
planning and a personal assessment of your budget vs. the costs.
I do personally believe however, that it is something that every
reasonable individual or family should work and plan towards.
The first step is always to figure out where you stand financially
and what you can afford. The best way to do that is to speak with
an experienced loan professional. You may be surprised what is
out there in your budget! For example, if you’re paying $1000 a
month in rent, that translates to the monthly cost of a
$150-160,000 home, given today’s interest rate.
Give me a call and I can put you in touch with an experienced
loan professional that can analyze your options at no cost or
obligation. Even if you find you’re not quite ready to buy, at least
you will have a place to start and can begin planning for the
future.
The longer you wait in life to buy your first home, the longer it will
be before you can stop paying rent or a mortgage forever!
![The First Time Home Buyer’s Chronicles]()
by JONATHAN BODEEN | Sep 17, 2014 | Bodeen Team Blog, Real Estate News
A surly mercenary character on a TV series once said that a doctor should be shot in the leg before he learns to take a bullet out of other people… I suppose so he can empathize with his patient. Well, that may be extreme but there is definitely a hint of wisdom there.
I’ve been practicing Real Estate for three years now, one with my dad here in Arizona, and two years in Idaho before my wife Sarah and I had gone back to school. Soon we will actually be making our first home purchase, and let me tell you, I am definitely feeling the above mentioned shot to the leg!
We are going through a unique first time home buyer’s program called NACA. If you have been following my good father’s Realtory musings for any length of time you probably have seen it espoused on more than one occasion. Here is a quick refresher:
- No PMI (saves a couple hundred bucks a month on your mortgage)
- No down payment
- No (typical) loan closing costs
- Lower than market interest rate (as of the time of this writing it sits at 3.875% Wowsers!)
- Good credit not required
Some may think as I thought when the program was first proselytized to me, “Well this is just way too good to be true.” I do regret to inform you, dear reader, that there is still no free lunch, not now, not ever. There is a cost to the wonderful benefits you see listed above, but not what you might think. What is the cost then?
Time and energy.
You see most loan programs require about a 30-45 day turn-around time plus a few obscure documents such as pay stubs and W2s etc. NACA takes this to a whole new level, taking anywhere from 3-12 months and demanding a wide array of documents you didn’t know you were supposed to have. These include bank statements, letters of explanation for any and all anomalies on your credit report, a detailed list of prior residences and much more.
In short, NACA makes molasses look fast and the lines at the MVD look fun!
I note all of the negatives not to dissuade any from trying the program, but to set up an honest expectation. It truly is a great opportunity for people who currently do not own a home (one of the requirements) and may have other factors inhibiting them from obtaining a traditional loan.
We are in the thick of it now, and it looks like they will officially qualify us in October or November. As a self-employed person, the process actually becomes more sluggish. The simpler your finances, the more simple the process should be, the key word being should.
If you know anyone who might benefit from this program, give us a call or shoot us an email, we can help them get started and counsel them as to what to be prepared for.
www.NACA.com
The Bodeen Team
by JONATHAN BODEEN | Aug 22, 2014 | Bodeen Team Blog, Luxury Communities, North Scottsdale News
Scottsdale has been around for a relatively long time now, and while it still a prestigious place to live, it can be next to impossible to find a new home in the core of the downtown area. That’s why I was excited to read Edward Gately’s article in the Arizona Republic about some fabulous new construction going in downtown. A Canadian company (what’s with Canadians and Scottsdale eh?) is actually going to be building a new 1st class condominium project right in the heart of downtown. Apparently the new condos will come complete with an outdoor organic herb garden and a lap pool, a veritable hipster’s paradise!
The company is called Landmark and the community they are building will be called Aerium. It’s hard to imagine these condos not being a hit, especially with the out of town crowd. Pre-sales will apparently be happening as soon as this fall.
There’s no question this is good for Scottsdale and by association Phoenix as a whole. When foreign companies spend 12 million to invest in our local hotspots, it shows a favorable view from an economic standpoint. Keep em coming Canada!
Read Edward Gately’s article here on AZCentral.com
