News for the ‘Foreclosures’ Category
Homes Sales to Increase in 2009
We all know the first half of 2009 will be challenging, to say the least. But how are we going to look by the end of 2009? Well, the National Association of REALTORS announced their projected sales numbers for 2009 and for the first time in years the projections aren’t all bad, in fact by the end of 2009 most housing numbers are expected to increase.
The good news, after 2 years of falling home sales, the NAR estimates a 6% increase in existing home sales in 2009. They also project a slight increase in the median home price from $198,600 in 2008 to $200,800 in 2009. It may be a small increase (1.1%) but it’s a major improvement from the previous years -9.3% drop.
The NAR also has a number they refer to as the affordability index, which relates the median price of a home to the median income of buyers. Right now it’s at 131, which means that a buyer making the median income has 131% of the income necessary to buy a home priced at the median price.
That’s a mouthful, but what it means is that homes are more affordable now than in a long time, and home sales are expected to be up 6 or more percent in 2009!
If you would like more information about investing in Arizona real estate or Phoenix foreclosures and REOs contact Jim and Kathy at jimandkathy@allynassociates.com.
Source: January 2009 issue of REALTOR magazine
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Edited: February 4th, 2009
What is a Short Sale?
Short Sales and foreclosures made up over 40% of sales in the third quarter of 2008 making short sales commonplace in the Phoenix area. Without experience and persistence a short sale can be very challenging to close. But before we get into the details of short sale challenges let’s answer a very basic question, What is a Short Sale?
A short sale is when a mortgage holder accepts less for the property than what is owed. It’s that simple, but seeing the sale through to the finish can be a long and arduous process. Each financial institution is different, I’ve seen Short Sales take anywhere from 6 weeks to 6 months to close, the average usually falling somewhere in the middle.
The first step is to call your lender, discuss your situation and the possibility of a short sale. Request information on their short sale process and a ”Short Sale Packet.” Next, talk to your REALTOR about listing your property. You may need an offer on the table to get the lender to look at your packet, so be sure to discuss the offer and approval processes with your lender. And as with all major financial decisions you should consult your Accountant and/or Attorney to discuss the financial implications.
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Edited: February 2nd, 2009