John and Megan Billings

Real Estate Prices Expected to Fall in 2011

noreply@blogger.com (.) — Wed, 15 Sep 2010 21:55:00 +0000

Here it is folks. In plain English. Not what the public wants to see, that is unless of course you are an investor, don't plan on selling your home for a few years, or unless you don't care what happens in the real estate market. But, if you are like the rest of us... you do care. So, it looks like we can expect to have another year of falling home prices.

Investors, new home owners or anyone wanting to buy right now, this is clearly a killer time to be purchasing real estate. Rates are low, home prices are low and expected to continue to fall, and if you can't get a conventional loan, many home owners are very willing to offer owner carry backs on their property. So, call a Realtor and if your next home and investment could be around the corner.

Tucson Housing Statistics For: July 2010

noreply@blogger.com (.) — Tue, 10 Aug 2010 19:27:00 +0000

Tucson Real Estate in A Minute
The overall market isn't really that bad. Yes, we did see a decline in the number of homes sold for the month of July.  However, pending contracts are up 47.57% over last month's sales statistics. And, the Tucson median home price has continued to hover around $150,000. So, are things bad? Well, they aren't good, but we are seeing some signs of stabilization... which is good.

Although sales were slow in July, the overall US economic statistis show that our recovery is improving. Locally, this indicates a lack of overall consumer confidence in real estate. It would be lovely to see Tucson real estate buyers catch up with the overall US economic recovery. Maybe Fall? Guess we will have to wait and see how what the local sales statistics show.

How Are We Doing?
We don't share many other agents ho-hum attitude about the Tucson real estate market.  In fact, despite other agents clumsy sales during the summer, we continue to be a strong force in the market. In fact, our business has seen a 70% increase over last year at this time, and we SOLD 4 of our listings in 2 days! So, no. July was not a bad month for us.  Without your continued business and referrals, we would not have seen this increase in our personal real estate business. We thank you so, so much for your continues support and appreciate you passing our name along to your friends, family, and co-workers.

A Note To Sellers...
Remember what your mother taught you... "Patience is a virtue." Nothing could ring more true than right now. But, if your home is correctly price from the starting line, then your home will most likely not go stale on the market and you won't have to be overly patient. Taking a professional Realtors advice is going to be the absolute key to selling your home in a timely fashion.  And remember, "Your home is only worth what a buyer is willing to pay for it."

KEY CURRENT MONTHLY STATISTICS
Key Prior Month Statistics: AUGUST 2010 Statistics

Total Tucson Home Sales Units: 792
Decreased 33.11% from July 2009
Decreased 32.31% from last month.

Total Tucson Pending Sales: 1,703
Increased 38.79% from July 2009
Increased 47.57% from last month.

Tucson Average Sale Price: $192,072
Down 8.87% from $210,767 in June 2009

Total Tucson Active Listings: 6,668
Up 9.76% from 6,075 in June of 2009

Total Tucson New Listings: 1,861
Up 19 units from 1,842 in June of 2009
*************************************************************

Northwest Tucson Average Sale Price: $238,101
Down from $ 265,124 last month

Northwest Tucson Active Listings: 1,674
Down 71 units from last month

Northwest Tucson New Listings: 419
Up 41 units from last month

*************************************************************

Catalina Foothills Average Sale Price: $472,803
Up from $424,172 last month

Catalina Foothills Active Listings: 672
Down 44 units from last month

Catalina Foothills New Listings: 151
Up 19 units from last month

CONCLUSIONS

Positive Market Indicators this month Pending contacts are up 47.57% over last month. So, there are plenty of sales in the pipeline. We should see an increase in unit sales then for next month. Active listings are also down 2.69% over last month.

Negative Market Indicators this month Unit sales are down about 32.31% from last month. New listings are also way up... in fact, 23.65% to be exact. Although we would love to see less inventory, the overall feeling is that we still have a ways to go.

QUESTIONS ABOUT TUCSON HOUSING MARKET CONDITIONS?
Email John or call him today at (520) 247-4459

Thanks for Your Real Estate Business

noreply@blogger.com (.) — Tue, 10 Aug 2010 18:11:00 +0000

THANK YOU, THANK YOU… for your business and referrals over the past 8 months. Our real estate business has increased 70% over last year at this time. In fact, we SOLD 4 of our listings just this past weekend! We appreciate you telling your friends, family, and co-workers about our trust worthy business practices in real estate. Tucson real estate was hit fairly hard with foreclosures and many people assumed this would deter people from buying and moving to the Tucson area. Boy, were they wrong! So, thanks again for keeping us in mind and sharing our name so that our business continues growing.

Mortgage Rates Drop Yet Again!

noreply@blogger.com (.) — Thu, 05 Aug 2010 22:33:00 +0000

Mortgages tracked by Freddie Mac have dropped yet again, causing excitement with investors. This is a new low in records dating to 1971. Rates on 30-year fixed-rate mortgage averaged 4.49 percent with an average 0.7 point for the week (ending August 5^th). This week's rate was down from 4.54 percent last week and 5.22 percent a year ago. You can read what Freddie Mac had to say in the results of its weekly Primary Mortgage Market Survey.

Rates on 15-year fixed-rate mortgages averaged 3.95 percent with an average 0.6 point, down from 4 percent last week and 4.63 percent a year ago. That's a new low in records dating back to 1991, Freddie Mac said.

As far as ARMs are concerned (Treasury-indexed hybrid adjustable-rate mortgage) a 5 year averaged 3.63 percent with an average 0.6 point, down from 3.76 percent last week and 4.73 percent a year ago. That's a new low in records dating back to 2005.

One loan NOT setting records are 1 year ARMs (Treasury-indexed ARMs). These loans averaged 3.55 percent with an average 0.7 point, down from 3.64 percent last week and 4.78 percent a year ago.

These rates are for prime borrowers who are taking out loans with 20 percent down payments. Borrowers putting less than that down or borrowers who are taking out large or risky loans can expect to pay more.

INFORMATION WAS OBTAINED FROM INMAN NEWS. www.inman.com

Foreign Investors Flock to U.S. Housing Market

noreply@blogger.com (.) — Tue, 13 Jul 2010 22:17:00 +0000

As the news is reporting, foreign real estate investors are heading to the U. S. to snap up cheap, inexpensive homes… in the hopes of selling them for a profit. Tucson, Arizona is seeing many of those foreign real estate investors making their mark, right here in our own city. In fact, NAR (National Association of Realtors) reports that roughly 28% of realtors have completed a real estate transaction with a foreign investor in the past year. Want to read more?

You can find the article in its entirety at HERE

Tucson Home Sales Statistics

noreply@blogger.com (.) — Mon, 12 Jul 2010 21:54:00 +0000

Key Prior Month Statistics: JUNE 2010 Statistics
Total Tucson Home Sales Units:
1,170
Increased 2.72% from June 2009
Decreased 7.87% from last month.

Total Tucson Pending Sales: 1,145
Decreased 20.04% from June 2009
Increased 18.90% from last month.

Tucson Average Sale Price: $189,231
Down 9.44% from $208,952 in June 2009

Total Tucson Active Listings: 6,852
Up 9.44% from 6,261 in June of 2009

Total Tucson New Listings: 1,505
Down 387 units from 1,892 in June of 2009

*************************************

Northwest Tucson Average Sale Price: $265,124
Up from $237,880 last month
Northwest Tucson Active Listings: 1,745
Up 9 units from last month

Northwest Tucson New Listings:  378
Up 35 units from last month

**************************************

Catalina Foothills Average Sale Price:  $424,172
Up from $404,201 last month

Catalina Foothills Active Listings: 716
Down 12 units from last month

Catalina Foothills New Listings: 132
Down 73 units from last month

CONCLUSIONS

Positive Market Indicators this month More buyers are out than last year. In fact, year to date, 98.08% more homes have been sold than in 2009. That is 3,114 more homes that have already been SOLD! Pending contracts are up almost 19% over last month. Compared with June of 2009, new listings have declined by 20.45% And, 33% of homes sold in June sold in 30 days or less. Great news!

Negative Market Indicators this month Unit sales are down about 8% from last month. Active listings are up 1.63% over May. New listings are up slightly over last month by 2.87%.

QUESTIONS ABOUT
TUCSON HOUSING MARKET CONDITIONS?
Email John or call him today at (520) 247-4459

* All statistics were obtained from the Tucson Association of Realtors June 2010 report *

Do You Qualify for a VA Mortgage?

noreply@blogger.com (.) — Sat, 10 Jul 2010 20:54:00 +0000

The Veterans Administration created its own loan program in 1944, which became part of what is known as the GI Bill of Rights. This loan program was created to assist veterans of war become home owners. The program has become a success and has helped many of our clients purchase homes.

If you are a veteran, there are many benefits to using a VA loan.

BENEFITS

No down payment required
Closing costs must be paid by the seller
VA loans are insured by the government against default
No private mortgage insurance required
No prepayment penalties
Can apply for an "interest rate reduction loan" (which allows veterans to refinance to a lower rate with little or no out-of-pocket expenses)

WHO QUALIFIES FOR A VA MORTGAGE?

Active military personnel
Veterans
Reservists
Members of the National Guard
Unmarried spouses of a qualifying member of the armed forces who died as a result of serving in the military, who meet the following qualifications:

Veterans must have served a minimum of 90 days during wartime in World War II, the Korean Conflict, or the Vietnam War. Peacetime service requires at least 181 continuous days of military service.
Enlisted veterans who began their service after September 7, 1980, or officers who began their service after October 16, 1981, must have served at least two years.
National Guard or Reservists need to have served a minimum of six years.
No one who has been dishonorably discharged is eligible.

There are additional criteria for military personnel who have served in Afghanistan and Iraq. Speak with a lender about the specifics of a VA mortgage and any other mortgage you might be considering. If you have questions about a VA mortgage you can call us at (520) 247-4459 or E-Mail Us and we can provide you with a list of lenders who can assist with VA mortgages.

How To Sell Your Home in a Buyer’s Market

noreply@blogger.com (.) — Thu, 08 Jul 2010 21:40:00 +0000

Let's face it. Everyone is complaining about "how bad the economy is", "how bad the stock market is", and how "bad the real estate market is." About the only people making any money around here just might be those investors who snatched up gold a few years ago when it was next to nothing. Or, maybe you are one of the lucky few who can still sell your home today and make a profit. To those of you, we say... Congratulations.

But, for many Tucson home sellers, there won't be any profit coming from the sale of their home. In fact, many Tucson home sellers are having to cough up money to pay off the bank just to close the transaction. In essence, they are paying for someone else to buy their home. In a buyer's market, a home seller MUST do the suggested tips below. Otherwise, they may find that their home is the one that sits on the market for months or even years. With that being said, here are a few tips on how to sell your home in a buyer's market.

1. Price. Price. Price. Did we mention price? This is the most important factor when selling your home in a buyer's market. Remember this, if you price your home at market value, approximately 60% of potential buyers will consider your home. On the other hand, if you price your home even 10% above market value, only 30% will consider your home. And if you price it 15% above market value, only 10% will consider your home. So, pricing your home according to the local and neighborhood markets is absolutely key.

2. Make your home available. Think this sounds crazy? Believe it or not, some Tucson home seller's restrict the hours and days that their home can be viewed. What happens if a Tucson home buyer is only in Town for a few days and can only view the home when that home seller says that they don't want showings? That Tucson home seller just lost a potential buyer. Don't restrict showing times... it is a turn off to Tucson home buyers. If you are a serious home seller, you will make your home available to view on the buyer's schedule. After all, it is a buyer's market.

3. Clean and de-clutter. Sounds easy enough, right? But, when you are living in your home on a day to day basis, you may not even realize that your home is cluttered. Invite a neighbor, friend, or your Realtor over and have them pretend that they are viewing your home for the first time. What would they be turned off by? And, if you are asking a friend... make sure they are honest and won't be shy about suggesting what needs cleaned up. Polite friends are always good, but sometimes you need that honesty. And don't forget to clean! No one likes to walk into a bathroom with hair around the sink or in the bathtub. So, clean it up!

4. Open Houses. Yes, these are considered "old fashioned" in the world of real estate, but we have sold many of our client's homes via open houses. So, if your agent suggests an open house, don't turn the opportunity down. OPEN HOUSES WORK.

5. Offer incentives. If your neighbor down the street is selling his house and it is the same exact model, same price, and similar features, you need to be creative about attracting buyers to your property over his. It is common in a buyer's market for the home seller to pay for closing costs, or throw in a car... SERIOUSLY! With your Realtor's help and creativity you should be able to come up with something.

Those are the 5 major tips on how to sell your home in a buyer's market. We could go on forever, but in a gist, those are the major points. If you have questions or suggestions, let us know. We love feedback. Email us or give us a call.

Welcome 2009!

noreply@blogger.com (.) — Tue, 06 Jan 2009 00:25:00 +0000

My goodness... it has been quite a long time since we have updated our blog, and do apologize. Quite a lot has transpired in the months since we last "blogged".

Hopefully everyone had a wonderful holiday and a peaceful New Years... we did. Christmas was very nice this year. We spent the day at Megan's parents home with her brother, who flew in from Boston, and her sister. New Years was sort of a non-event for us. We enjoyed the evening at home with Megan's parents... enjoying tappas and champagne. Quiet and safe... just the way we like it!

We would love to hear from you... give us a call and let us know how you are doing and how you spent the New Year!

Feds Cut Rates!!!

noreply@blogger.com (.) — Thu, 30 Oct 2008 18:05:00 +0000

Another Fed Day arrived and in a unanimous decision, the Federal Open Market Committee (FOMC) cut the Fed funds rate today by 50bps to 1.0% and also slashed their discount window rate by 50bps, taking it down to 1.25%. While this will help reduce rates on credit cards and car loans, long-term mortgage rates pushed higher.

The FOMC cited a clear slowdown in economic activity, business equipment spending, and industrial production as a primary reason for their decision. They also stated slowing foreign economic activity will dampen prospects for U.S. exports. As a result, the Fed expects 'inflation to moderate in coming quarters' but 'downside risks to growth remain.' This language leaves the door open for further rate cuts in the future if the Fed decides they are needed to keep the economy from falling into a severe, protracted recession.

As expected, the Fed's actions weakened the U.S. dollar and this in turn triggered a spike in oil (+$6/barrel) and gold (+$13/oz) prices. The stock market also experienced some severe volatility as nice gains in the Dow and S&P 500 suddenly became losses during the last 15 minutes of trading when short-term traders sold to take profits following yesterday's sharp rally.

Its 2008, but What's Up with Tucson Sellers Stuck in 2005?

noreply@blogger.com (.) — Wed, 29 Oct 2008 18:30:00 +0000

What's up with Tucson sellers thinking its 2005? Don't they realize that the speculators left a long time ago? The answer is... NO. Many Tucson sellers truely believe that they KNOW they will get THEIR asking price. Unfortunately for them, they missed the boat by a few years.

We are in a BUYERS MARKET. This means that sellers do not have the upper hand. Buyer do. Buyers have the power in this type of market. Buyers dictate what homes are worth, not sellers. Sellers need to realize that they are not serious about selling their home simply by listing their homes with an agent. Serious sellers, the ones who really do have the desire and motivation to move, are the ones who price their homes according to the market, area, and condition... the ones who do not put stipulations on showing times and make it difficult to show the home... the ones who have their homes in primo condition and have furniture removed or added to stage the home properly... the ones who put in new rock in the front & backyards or add additional landscaping, are the ones who are selling in 30 days or less. Those are the REAL SELLERS. It isn't by chance or luck that someone happened to find those homes... its because agents and their clients know real sellers vs. unrealistic sellers.

Then, you have people whose homes are on the market who are, in their words, "testing the waters". What does this do to their home values? Simply stated, it lowers their values. Why you may be asking? Well, because when the market numbers are skewed and showing a high inventory (due to unrealistic and "testing the water" sellers), buyers see this and know that they can use this as a bargaining tool. So, as inventory goes up... average sales price falls. Its simple really.

For those sellers who are "testing the waters" or are unrealistic... get over it. You won't be selling your home that is worth $375,000 for $450,000. Seriously... you won't. And remember...

"VALUE IS DETERMINED BY WHAT A BUYER IS WILLING TO PAY"

A Personal Announcement...

noreply@blogger.com (.) — Tue, 28 Oct 2008 23:10:00 +0000

John and I would like to share our happy news with you all. We are expecting a little girl due March 1, 2009. We are very excited and working very hard to begin saving for her college tuition!

15 Year Fixed Mortgages: Average 5.74% for the SW United States

noreply@blogger.com (.) — Fri, 26 Sep 2008 20:31:00 +0000

The mortgage industry surprises us everyday it seems! Nothing is a constant anymore... everything seems to be shifting from high to low, and low to high. Mortgage rates have dropped significantly though, from last year at this time. Below is an article high lighting the latest news in the mortgage industry... take a look a the average charts at the bottom of the article. It is showing the Southwest United States average mortgage rate at 5.74% for a 15 year fixed. That is the lowest mortgage rate out of the other parts of the United States! If you can afford to purchase a home right now, it really is a great time to do so. As always, let us know what your thoughts are.

http://www.riskcenter.com/story.php?id=17104

Who says Multi-Million Homes Are Exempt?

noreply@blogger.com (.) — Mon, 22 Sep 2008 18:21:00 +0000

So, with all of the buzz surrounding foreclosures throughout California, Nevada, and Arizona... we think that some people have forgotten that million dollar homes were also purchased on false hopes and over-inflated incomes (in some cases), along with their lesser counterparts. We do realize that our tumultuous economy has also been a factor in many families being unable to pay their mortgages, but for the most part, lending institutions are to blame for the country's "mortgage meltdown".

Seeing that Arizona has been consistently ranked #3 in the national for foreclosures, we should not assume that these foreclosures aren't occurring in million dollar neighborhoods. Foreclosure is happening to everyone... it is not bias to one nationality, one race, one income bracket, etc. It rears its ugly head anywhere and to anyone.

In relation to our local market, we are seeing more $600,000+ homes on the market reading "Short-Sale" or "Foreclosure". Sometimes, purchasing these homes can be a "good deal" for the buyer... if you have a few weeks or months to wait for a response from the lender. To learn about homes such as these within Tucson, Oro Valley, and Marana... just give us a call.

There was a great article in The Wall Street Journal today regarding these types of foreclosures. Attached is the link to the article... Please feel free to comment.

http://online.wsj.com/article/SB122177752165254337.html

U.S Seizes Fannie and Freddie

noreply@blogger.com (.) — Mon, 08 Sep 2008 18:59:00 +0000

The U.S. government on Sunday seized control of mortgage finance companies Fannie Mae and Freddie Mac , launching what could be its biggest bailout ever in a bid to support the U.S. housing market and ward off more global financial market turbulence.

The action, prompted by worries over the companies' shrinking capital, was the latest in a series of emergency steps taken by U.S. officials to prop up the wobbly housing sector and quell what is now a year-long crisis in credit markets that has helped push many economies toward recession.

"Our economy and our markets will not recover until the bulk of this housing correction is behind us," U.S. Treasury Secretary Henry Paulson said in a statement read to reporters.

Fannie Mae and Freddie Mac, which own or guarantee almost half of the country's $12 trillion (6.7 trillion pounds) in outstanding home mortgage debt, were so large that "a failure of either of them would cause great turmoil in our financial markets here at home and around the globe," Paulson said.

READ FULL ARTICLE AT: http://www.iht.com/articles/reuters/2008/09/07/business/OUKBS-UK-FANNIE-FREDDIE.php