The latest Long Housing Reports are now online. These are literally just now available and up here on Team Woodall immediately. Click here to see the latest local housing market statistics. The latest MLS statistics for the month of May are also online. Notable statistics in the MLS statistics are:
Total Unit Sales increased to 1,437 in May 2013 which is up from April’s 1,323. This is the highest unit sales since June 2006.
Sales Volume increased in May from April by 7.48% to $273,255,331. This is also 19.16% up from May 2012. This is fueled by continued sales and now higher prices contributing as well.
Median Sales Price remained steady only decreasing 0.32% to $156,500.
Average Sales Price also remained relatively steady (although it is a more volatile number), declining just 1.04% from April to sit at $190,156.
Average Days on Market stayed even at 57 days in May.
Total Active Listings decreased to 3,953 in May from April’s 4,027. This is up from May 2012 when inventory was even lower at 3,544.
Conventional loan sales exceeding cash sales for the second month in a row!
Interest rates continue their upward climb from the last couple weeks. According to Freddie Mac’s official press release last week 30-year fixed-rate mortgages (FRM) averaged 3.91 percent with an average 0.7 point for the week ending June 6, 2013. This is up from last week when it averaged 3.81 percent. Last year at this time, the 30-year FRM averaged 3.67 percent. These rates are still absolutely phenomenal but as rates rise the purchasing power of buyers does decrease.
Also, the 15-year FRM this week averaged 3.03 percent with an average 0.7 point, up from last week when it averaged 2.98 percent. A year ago at this time, the 15-year FRM averaged 2.94 percent. For those looking at other products the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.74 percent this week with an average 0.5 point, up from last week when it averaged 2.66 percent. A year ago, the 5-year ARM averaged 2.84 percent.
Look for this trend of rising interest rates to continue, albeit likely at a little slower pace. However, in the next year and a half when we hit early 2015 the forecast is for rates to return to the 6% mark.
Business Insider recently published a list of housing markets they expect to be the 14 best for the next five years. Tucson made this list coming in at a tie for 9th place. The forecasted home price gain for Tucson between the fourth-quarter 2012 to the fourth-quarter of 2017 is anticipated to be 7.3%. Part of this resurgence is due to the dramatic dips we saw in value over the last few years, the attractive climate of course, and a reasonably strong unemployment rate sitting at 6.8%. As always it’s nice to see Tucson the recipient of good news, even if it’s just forecasted in this instance.
It’s been a little while since we’ve discussed mortgage rates and that’s largely because they had remained relatively unchanged for some time. Well, that appears not to be the case anymore as rates have edged up more than we’ve seen in about a year. Now, keeping perspective rates are still VERY, VERY good and even as they climb should be historically quite good for some time to come by most predictions. However, as rates climb (and housing prices too) the purchasing power of buyers does gradually diminish. Anyone still on the fence of purchasing and in a position to comfortably do so is probably best served to act sooner than later to capitalize on today’s rates. Best guess by many is that rates should remain very attractive through this year but long term you can be assured rates will rise.
Speaking of those rates, last week’s official press release from Freddie Mac put the 30-year fixed-rate mortgage at an average of 3.81% with an average of 0.8 points. The week priors rates were at 3.59% and a year ago were at 3.75%. The 15-year fixed-rate product averaged 2.98% with an average of 0.7 poins, up from last week’s average of 2.77% and nearly identical to a year ago when it was at 2.97%.
Team Woodall continues to work with a range of lenders to meet all of our buyer needs and feels confident with the network of lenders we’ve established. To get more specific information contact us today and we’ll put you in touch with the right individuals to examine your needs.
Helping to support your local businesses is important not only for the health of the community, but also to keep sales tax dollars local. To this end the Town of Oro Valley launched its Oro Valley Cash Mob program which picks a different business each month to “mob”. Based on the idea of a dance flash mob, the Oro Valley Cash Mob is a spur of the moment gathering of individuals who then spend at least $15.00 at the business chosen for that month. Started on March 21st of 2013 the Cash Mob has since visited three local businesses, including Artisan Chocolates on its initial event and Cost Plus World Market in April. After shopping, the individuals comprising the mob congregate at a local restaurant to chat about the event, meet other local residents who’ve participated, and in turn help patronize even another local business.
Shopping local is a tremendous benefit to the community by helping make local businesses succeed. Also, local sales taxes are a major source of revenue for the town which doesn’t have an income tax. Sales tax collections in fiscal year 2011/2012 were about $11.5 million, 100% of which stayed in Oro Valley to fund public safety, new parks & trails, and other public services. Even if you can’t attend a particular event some of the selected retailers do have online shopping capabilities so you can shop from home. Each participant showing up also receives a free Shop OV bag.
The next Cash Mob event is scheduled for June 20th at 4:00pm. The location of the “mob” is kept a secret until noon on the day of the event. To participate you can follow the news on Twitter @OVCashMob, follow the Oro Valley Facebook page, get Twitter feed text updates by texting “Follow OVCashMob to 40404, or finally subscribe through email.
Since its release just a few short weeks ago the Long Realty mobile app has been a frequent new app download and received rave reviews from consumers. Now it’s the subject of a feature article in Inman News by staff writer Paul Hagey. Click here to read the entire article. Much of the focus of the article describes how Long taps into the VOW (Virtual Office Website) agreements with local MLS companies to provide pending and sold data to its registered users. While some mobile apps like Zillow and Trulia provide sold data it’s gathered from public records like the county assessor which lags the market significantly. Long’s app on the other hand is updated with that information every 15 minutes, making it THE SOURCE of info for consumers. Also mentioned is the Home Scan technology which allows users to hold up their phone and using its camera locate nearby properties.
Buyers looking to finance the purchase of a home who don’t have at least 20% down will almost assuredly be paying mortgage insurance of some sort. However, not too many buyers unless they’re savvy investigate their options surrounding mortgage insurance. If a buyer plans to spend many years in a property it can often be beneficial to pay mortgage insurance up front rather than monthly. Now, many buyers may want to save their cash or are limited on cash anyway, particularly with the many other expenses that arise when buying a house and moving. However, devising a strategy prior to a purchase can allow the buyer to have the mortgage insurance paid for them.
One of the ways this can happen is through the purchase itself with the seller contributing towards the buyers closing costs. It’s not uncommon for sellers to contribute money towards closing costs in a transaction but many buyers to think to put this towards paying a one-time mortgage insurance payment. Even paying a slightly higher purchase price to achieve this goal can be more beneficial. Paying a one-time mortgage insurance fee can often have a bigger impact than even paying a discount point for a lower rate. Again, it’s crucial to speak with a lender to look at multiple scenarios to see which makes sense overall at the end of the day given the entire scope of a buyer’s finances. Another option along those lines is to have the lender pay it for you. Most lenders will pay this cost but the interest rate you’ll receive will be higher. However, it often can work out that your monthly payment is actually lower with the higher interest rate, so work the scenarios to see what fits best.
These are several reasons why using a knowledgeable lender and real estate agent can pay off. Having these professionals work collaboratively together can pay big dividends or more accurately, can have you paying less for your home each month.
As a homebuyer unless you’re paying for a new property with cash your credit score will ultimately be a factor in the purchase process. Of course there are minimum qualifications to get a loan period, but there are also good reasons to take a close look at your credit even if you qualify. Depending on the loan product and lender a single credit point difference can make a substantial impact on the rate offered. While there are a multitude of factors that can impact credit, speaking with a reputable lender of choice early on in the process is highly recommended. Most lenders have computer simulations which can show the impact a change in a credit factor would have on a credit score. For instance, perhaps paying down a credit card balance by $200 will give you another 5 points to your credit score which drops your rate from 4.125% to 3.875%. That would absolutely be worth knowing and taking advantage of before a home purchase. Even the order which changes are made to credit can impact the score so be sure to follow any sound advice to the letter.
For buyers who are thinking about a purchase in the near future, particularly those who know they have marginal credit, it’s wise to begin the conversation with a lender immediately. Having a few months to make changes is best and won’t run the risk of not qualifying or delaying a closing. One other note is to be very cautious of “credit counselors” who advertise that they can make huge impacts in your credit score with easy fixes. More often than not these are scams that may not change your credit at all or in some cases only impart temporary modifications which will once again reappear on your credit soon after you pay the company. As always feel free to ask us for recommendations on lenders who we’ve been successful with in the past. We have multiple lenders across many companies that we’ve used and sometimes they can each offer a different spin or product.
Long Realty’s mobile home search app was just launched on Thursday and it’s already receiving tremendous buzz for its innovation. Helping to revolutionize the mobile home search app is the “Home Scan” feature, which is an augmented reality product that utilizes a device’s GPS location, compass and camera. Essentially this feature allows you to hold your phone up, pointing any direction, and the listings within that compass range will overlay on your screen showing their distance from you. Click on any of the listings to bring up the property details.
What’s perhaps most important though is the app ties directly into the MLS systems and is updated every 15 minutes, making sure all the latest information is at your fingertips. Other national search apps just don’t provide current information and Long’s app is also exceptionally easy to use. The large, high resolution photos and property details are the icing on this fantastic cake.
Among the app’s highlights are:
Search Active Listings, Pending Sales, and recently Sold properties across Arizona
Current & Accurate Information – Updated Every 15 Minutes
Find nearby properties based on your current location
Draw your own search area
Track favorite listings (integrates with Long’s Virtual HomeFinder web technology)
Large, high resolution property photos
HomeScan – Scan the neighborhood for homes using a live camera view
Available for iPad, iPhone, and Android technologies (Apple & Google Play stores)
Watch the video below for a demonstration of this new app’s capabilities:
The lastest Housing Reports from Long Realty are now online at TeamWoodall.com. To view the reports simply navigate to the Real Estate Info tab and click on the Local Housing Statistics. Long does publish a few more reports broken down by geographic area, so contact us if you’d like to view these but typically the regional/community reports have been much more popular. You’ll see the market continues to churn along and has been hampered if anything by a lack of good inventory. Interest rates remain exceptionally attractive so the outlook continues to be quite positive.
"Angela was always available and incredibly pleasant to work with. We were comfortable asking her any question, however basic or complex it was, and she either already had a helpful answer, or worked hard to quickly provide an answer." - Jordan & Megan
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