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December 19th, 2009

Read on … December 2009

Politics and real estate

Good news

Few days ago the President held a conference with key bank leaders. He expressed his disappointment with banks handling credit – at least the president is trying hard.
Legislation that would tighten federal regulation of financial institutions and create a new agency tasked with protecting consumers has passed the House of Representatives in a 223-202 vote. But is still debated in Senate.

Bad news

Per Chairman Bernanke: “The flow of credit remains constrained, economic activity weak, and unemployment much too high. Future setbacks are possible.”
Approximately 1.9 million houses went into foreclosure during the first half of this year. Government programs like Hope Now and Making Home Affordable, so far, helped very few home owners. Center for Responsible Lending blames Congress for making lenders participation in these programs voluntary instead of mandatory (you may want to address this with your Representative during next election).
Good? – May be Bad? Government and Legislation are considering tightening rules for FHA-backed loans. Bill HR 3706 would increase down payment minimum, raise minimum Credit Score requirements and reduce maximum on seller’s concession. Objective: to have borrowers have more “skin in the game”. Some experts think that this is good idea; National Association of Realtors thinks that idea “stinks”. Of course one of them is right?

Tucson real estate Overview

This month feature: properties priced from $750,000 and located in communities adjacent to Tucson (Oro Valley, Marana, Vail and few others).
For similar write-ups of other type of properties go to Archives.

Now on the market: 129 houses – price range $750,000 to $5,900,000; 11 are bank owned, 8 are in short sale. Median price: $1,295,000; median sq.ft. $348.37; Average days on the market 190 (and counting);
To compare: only 2 houses in this price range/location sold in last six months – both for cash, one was new-built; One was bank owned, the other was short sale; They sold at approximately 11% below listed price (price was probably reduced few times before); One was on the market for 938 days, the other for 624 days;
Conclusion: opportunity for a buyer to negotiate great deal at substantially reduced price, provided, that buyer has cash or can qualify for a loan (solid income, high credit score and large down payment). If you are IT – go! This situation will not last forever - call your agent – no agent? Call this writer!

For more information on available homes in Tucson area scroll down to icons on the bottom and click on “Homes - ready to move in”.

Tucson at its’ best…

Business Week Magazine has named Tucson as Arizona’s best place to raise a family. The ranking was based on the city’s assets such as the University of Arizona and University Medical Center, the area’s more than 100 parks, its public transportation system, its many public and private golf courses, and Tucson’s general affordability. Read the whole article – click here
Electric Nissan is coming to Tucson Jan 4 To read more, click here
Tucson company, Composite Mirror Applications Inc., developed carbon-fiber composite mirrors which are now tested in the International Space Station. Possible application: downward-looking spy satellites and other applications for the Department of Defense.
Jousting and Belly Dancing any one? Arizona Renaissance Festival is coming up in January. Want to know more – click here

Did you know ?

The bankers blame the high foreclosure levels on unemployment. Over the last year, the number unemployed increased by about 5.5 million people, increasing the number of seriously delinquent loans by almost 2 million and significantly increasing the rate of new foreclosures. (Per Jay Brinkmann, MBA’s chief economist). Also, Brinkmann points out that prime fixed-rate loans represent the largest share of foreclosures and are the biggest driver of the increase in foreclosures.
Last week, the 30-year fixed-rate hit a record low of 4.71 percent in records dating back to 1971. Now back to around 4.81%.
On a brighter site – number of foreclosures dropped down by 3% since its peak in July.
Per UCLA “Anderson Forecast Report” the economy will grow slowly next year and unemployment will remain high, despite promising signs that housing is “finally on the road to recovery”. If interested, click here.

If you are in trouble with your mortgage payments or you think that you may have difficulties in the future, scroll way down and click on icon “YOU?” - You will get some useful suggestions.

Thinking on refinancing? Some useful information below in icon YOU?

For Dreamers, poets and lovers…

Did you say that you needed larger house? OK – I have one for you – click here

Saying of the month

“You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity. The government cannot give to anybody anything that the government does not first take from somebody else. You cannot multiply wealth by dividing it.”
~Adrian Rogers, 1931