Home Sales Up for 3rd Month in a Row

Home sales are up for the 3rd Month in a row. This has not happened since the buying frenzy of 2005. Read the complete story ...http://finance.yahoo.com/real-estate/article/107398/home-sales-all-over-the-map.html?mod=realestate-sell

My commentary:

Home sales and pendings set an AZ historic record in May only to be exceeded in June with over 18,000 transactions. Homes priced under $350,000 are now a Seller's market. The further down you go to $100,000 or under the more of a Seller's market it is.

Home sellers, don't start beating your chest just yet!!! Bank foreclosures and Short Sales make up 30% of the total market but are getting over 75% of the sales. Regular home sellers are being ignored. Buyers are driving right past you to get that Foreclosure or Short Sale deal. Many more Foreclosures will be released to the market soon, after they find enough Realtors to handle them.

What do you do if you must sell?? Go into Foreclosure yourself?? There is an answer. My exclusive "Sold in a Week" marketing program. You can have your home sold in one weekend whether you hire a Realtor or do it yourself. It is a complete marketing package with all the forms, signs, web site, advertising copy, and coaching that you will ever need to sell your home over a weekend. Did I mention that you do not need a Realtor??

Get more information now at www.AzSoldinaWeek.com or call (602) 214-1166 for your information package today.

Potential Buyers' Fears Addressed

by Ellen James Martin -

Oct. 12, 2008 12:00 AMUniversal Press Syndicate

They are a couple in their early 30s. They have stable jobs, a down payment in the bank, and an intense desire to escape their cramped apartment for a home of their own.

In fact, the couple have already picked out their ideal property - a sprawling ranch-style house on a full acre. Plus they are convinced this is an opportune time to buy.

Still, the couple are racked with doubts and have yet to make a serious bid on the property. Are they crazy to consider buying in so tumultuous a real-estate market?
Read more...



Richard's opinion


The stars are aligned for Buyers with plenty of homes for sale in good condition, at low prices, and with low interest financing. You may be saying..." Great, but the market is bad. Home prices are still falling and they may fall a lot more in the next few months, so why rush? I'll wait until the prices are at rock bottom. If I buy now I may loose my money." That is a seemingly logical thought on first view. You will only know when the bottom is hit when the market starts going back up, so timing is going to be pure luck.

To evaluate whether that is true for you, you must check your numbers.

RENT- How much am I paying? Will it go up? By how much? How many years have I been renting? How much total money did I spend on renting in my lifetime so far (this shocks most people)?

TAXES- How much did I pay last year? How much will it be this year (estimate)? Do I have any tax breaks (ie: IRA, 401K etc). If I have an IRA, 401K etc, how is it doing in the stock market right now? Did I loose any money? If so, how much? Do I want to put all of your eggs in one type of investment basket?

Now that you have checked your numbers, you are now ready to figure out why owning your own home now may really be the smart move right now. Here are some advantages of home ownership:

LEVERAGED ASSET

This means that owning a nice 3 bedroom, 2 bathroom, home with a 2 car garage, fenced yard in a good area worth $250,000, may require a down payment of 3% of the purchase price ($7,500.00) and maybe closing costs of 2% ($5000.00- but I have had success on getting sellers to pay this for buyers). To have $250,000 of assets in your IRA, 401K mutual fund, you need $250,000. You also can't live in your mutual fund or stocks.

TAX SAVINGS

For a 30 yr fixed interest rate loan of $250,000 @6% with 3% down payment ($7500.00) your monthly payment would be $931.42 plus property tax (deductible) and homeowner insurance. For someone in a 25% federal tax bracket savings would be about $232.82 per month/ $2,794.26 per year. Your net monthly payment to own your home would be about $698.60 plus property tax (deductible) and homeowner insurance. You will also save more money on your AZ State income taxes too.

LOAN REDUCTION

Each payment reduces your mortgage balance on what you owe.

APPRECIATION

As the real estate market goes up in your area, so does your home values, and without having to do anything to your home.



That is the one-two-three-four knock-out punch of the advantages to your personal wealth building by owning your own home. At any given time, some or all of these four parts are working in your favor.


There is a # five punch.... Investor Benefits

That is what your landlord investor is doing by charging you rent every month. After you own your first home to live in, if you bought one or more other homes for investments, you would be receiving the rent and getting even larger tax breaks from the Government and even more money in your pocket. That is for another blog post.



To get your personal RENT vs OWN comparison, contact me today.



***Consult your financial advisor for financial, legal, and tax advice.

Happy House hunting!



Richard

How We Got Here: It's Housing, Stupid

by Chris Isidore
Thursday, September 18, 2008
CNN/Money.com

The Wall Street crisis has been caused by plunging housing prices. So despite the billions of dollars being thrown at the problem, experts say more trouble lies ahead. The nation's financial system is in the midst of a massive shakeup and many on Wall Street and in Washington are pointing fingers and looking for someone to blame. But in the end, it all comes back to one issue - housing. Read the rest of the story...

Richard's commentary...

This story does not mention the huge greed factor nor the lack of government regulation of the financial institutions making these risky "bets" on the housing market. Many mortgages only required a "breathing person". "Yes I work a minimum wage job but I am telling you that my income is $200,000 a year", and that is almost what many of the lenders wrote down. Because the home was collateral for the loan...no worries...we will just take it back on foreclosure and sell it to someone else for a profit....because home prices will ALWAYS GO UP.

What nonsense!!! Real Estate is and always will be cyclical with ups and downs with the overall trend upward. Now there is a large downturn in home values and the financial institutions that bet wrong are going down the tubes.

A little common sense here from common people. Would you just give a property as valuable as your home to someone who told you he made a lot of money but did not show you with proof and with none of his/her cash in the deal? Would you sell your car to someone you did not know who just told you he would pay you but offered no proof that he/she could and drove off into the sunset with you holding a worthless piece of paper? Of course not. Then why did the financial institutions do that? And who is accountable for it?

When Franklin Roosevelt was President during the Great Depression of 1929-1941, Financial Institutions were divided up into commercial banks, savings and loans, insurance, stocks & bonds, real estate....distinctly separate and not allowed to compete in each other's business. Banks could not sell life insurance, Stock Brokers could not have checking accounts and other bank functions...you get the idea.

Then in the 1980's and continuing to now, deregulation was the mantra. Get the government out of business and let the market take care of itself. Now all Financial Institutions seem to be intertwined and offering the same services chasing the same consumer/investor dollar. Now greed and the need to have ever increasing unrealistic profits to push up their share prices on Wall St.

Well, the market has spoken. Many of the very wealthy and influential that were involved in causing this fiasco escaped without loss before the big melt down and may actually be receiving Gov't handouts as well. We the average taxpayer are going to pay for many years for this in many ways.

What to do now??

Get out there and buy your home or investment property now before the coming credit crunch knocks you out of the market with higher interest rates and much tougher qualifying standards. Rates are low, prices are affordable, there is a great selection of terrific deals, and it is still easier to get a good fixed rate FHA loan.

Get moving before you miss out...It's a Buyer's Market now!! The sellers are the ones crying that the market is bad. Think about it....act on it!!

Here are a couple of free resources for you to get started in finding a great deal on a home.

Go here to get access to the Real "Rock Bottom" Priced Home Deals
Many of these homes are great condition and are move in ready.

Are you good with a hammer?, get priority access to low priced "Fixer Uppers"
on the "Fixer Upper Hot-List"

Free Report: "How to Stop Renting and Own Your Own Home"

Got a comment, thought or opinion? Post it on this blog. That is what its for.

Home Buying Experts Warn - Builder Loan Fine Print Could Cost You Thousands

RISMEDIA, May 22, 2008-The home loan packages offered by builders are often touted as being very convenient. But when it comes to evaluating the true benefits the picture is often quite different, according to the home buying specialists at the National Association of Exclusive Buyer Agents, (NAEBA). Recent difficulties in the mortgage marketplace bear this out.”Mortgage shopping can take a significant level of sophistication. In addition, negotiations with a builder’s mortgage company can sometimes be stressful and costly,” stated Barry Nystedt President of NAEBA. “Home buyers still need to compare the builder’s loan offerings to what is available on the open market. Complications arise when the buyer becomes obligated to the builder’s lender without being able to compare the rates and fees other lenders may offer months later when the home is complete. Read more...

Richard says...
This article highlights the very real problem posed when home buyers think that walking into a new builder development to buy a home is the same as going to the grocery store to buy a can of peas. The builders agent works for the Builder...not you the home buyer. His/her job is to get the most money out of your pocket as ethically possible and make the most profit for the Builder.

Builders make additional profits from you, the new home buyer, by using their recommended lenders and their recommended Title Companies. Is that a surprise to you? Do you think maybe having a savy Realtor that understands the New Home Market and knows how to negotiate with Builders would be a smart thing to do? In most transactions, the Builder will pay your Realtor his/her fee, not you. You may ask....if that is the case, won't I get a better deal if I don't have my own Realtor represent me? It will save the Builder 3 to 6 % on my home price. It sounds logical. But...you don't know the Real Estate business. Please re-read this article. I also recommend reading all of the other articles posted to this Blog as well.

Read this new FREE report, Ten Secrets Every New Home Buyer Should Know for more information.

Got an opinion? I'd love to hear about it. Post your comments now.

Happy Househunting :-)

Housing affordability best in four years

Tuesday May 20, 1:23 pm ET By Les Christie, CNNMoney.com staff writer

With prices crashing around the nation, home price affordability has improved dramatically in many U.S. cities.
As a result, 53.8% of all new and existing homes sold nationwide during the first three months of 2008 were affordable to families earning the median household income of $61,500, according to the latest Housing Opportunity Index released Tuesday by Wells Fargo and the National Association of Home Builders (NAHB). Read more...

My Commentary:
If you have been sitting on the fence waiting for prices to fall even lower, NOW is the time to beat the crowd. When the crowd gets out there, the best deals will already have been snapped up. The remaining sellers will be much tougher on helping you with your downpayment and closing costs. Remember just a few years ago, everyone was frantic to buy a home, like it was the last train out of town, even a crappy fixer upper at crazy prices. Don't let that happen to you this time.

Find homes for sale from ALL Real Estate Companies that match you are looking for here.

Get your Free Report on How to Stop Paying Rent and Own a Home the smart way.

Got a comment? Post it. I'd love to hearwhat you think about this or any other articles.

Have a great day,

Richard

Bargain Hunters are Boosting Home Sales Now

An Article on the front page of USA Today on April 17, 2008 suggests now is the time to get out there and buy a home, especially if you are a first time buyer. I could not agree more. It is a great Buyer's Market. A word of caution... When more and more of these "Get out and Buy Now" articles appear in the media, other potential Buyers will start getting the message. Then your advantage of being there first WILL BE LOST and may cost you BIG MONEY.


Home sellers are reading and watching the media too. They will get stubborn on price and terms. That will cost you BIG MONEY. The time to move is now, before the rest of your potential Buying competition finds their own Realtor and gets Pre-Approved for a home loan. The Summer is the busy season and 2008 promises to be better than the last two years.


I suggest two things to make the most profit on your home purchase:


#1 Read this article and

#2 Contact me or any other competent Realtor and Lender to find out how you can get in now and get a great deal on a home.

Read the complete story in USA Today

Find the GREAT Home Deals here!

Best regards and Happy House-hunting,

Richard Pomisel, Realtor
Dan Schwartz Realty Inc


Toll Free (24hr Hotline) 1(800)474-2841

Direct (602)214-1166

eMail: Richard@Pomisel.com

Bernanke: Fed ready to act aggressively

Bernanke: Fed ready to act aggressively

January 10, 2008 1:21 PM ET

WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke said on Thursday the U.S. economy's prospects were worsening because of a weak housing sector and credit market turmoil and said the central bank was ready to act aggressively to bolster it.

"In light of recent changes in the outlook for and the risks to growth, additional policy easing may be necessary," Bernanke said in remarks to a housing and finance group.

"We stand ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks," he said.

Analysts welcomed Bernanke's forthright acknowledgment of the dangers faced by the economy, which many fear could fall into recession.

"I think he's come to terms with the fact that while inflation may be a concern down the road, he has to take care of the train that's coming at him right now, which is the fear of a recession," said Angel Mata, managing director of listed equity trading at Stifel Nicolaus Capital Markets in Baltimore.

Bernanke cited several factors including higher oil prices as well as lower stock prices and falling home values that he said was bound to hurt consumer spending this year.

"Incoming information has suggested that the baseline outlook for real activity in 2008 has worsened and the downside risks to growth have become more pronounced," Bernanke said.

U.S. stock markets surged after Bernanke's comments, while the dollar remained weaker against a basket of currencies as investors concluded that the Fed would aggressively lower interest rates at its end-of-month policy-setting meeting.

The Fed's policy-setting Federal Open Market Committee holds a two-day meeting January 29-30. Bernanke's comments reinforced market expectations that it will cut interest rates a half percentage point.

He said last Friday's employment report, which showed only 18,000 jobs were created in December, was a clear sign of mounting economic risks. "Should the labor market deteriorate, the risks to consumer spending would rise," Bernanke said.

(Additional reporting by Emily Kaiser in Washington and Caroline Valetkevitch in New York, Editing by Andrea Ricci)

Copyright 2008 Reuters

My Commentary:

For those people who are thinking of purchasing their first home or those desperate to refinance out of an adjustable rate mortgage, interest rates are likely to improve. Recent development since the release of this article (see above) strongly suggests that the Fed’s will lower interest rates by 50 basis points later this month. Currently, the prime rate (Wall Street Journal) is at 7.25%, which would decrease to 6.75% if implemented this month.
It is important for me to point out that with lower interest rates on the rise, borrowers may still find it difficult for loan approvals. Fannie Mae/Freddie Mac has tightened up the guidelines over the last several months due to an increase of foreclosures/short sales.
A person looking for loan options can expect a bank/lender to determine interest rates and approval mostly on credit scores and monthly debt income. If your average credit score is 620 to 680, you are likely to have a higher interest rate on a conforming conventional loan. However, the expected rate reduction would still look attractive for anyone who is in that situation.
The good news is that government sponsored loans (non-conventional) such as FHA are starting to be more recognizable to the public. The FHA loan offers excellent interest rates and terms to those who may not have the best or lack of credit profile. The FHA loans limits are expected to increase to the maximum conforming loan amount, which is $417,000.00.
The bottom line is that Mr. Bernanke must continue to act aggressively with the real estate industry to prevent a potential danger of a recession. We must continue to be positive in 2008 and be smart with our decisions whether it is in real estate, retirement, or monthly spending.

Aaron S Brown Loan Advisor - Flagstar Bank Aaron.S.Brown@flagstar.com
888-760-8383 Ext: 130

Is Hiring a Buyer's Agent Important?

Watching Out for You, the Buyer

By Mary Ellen SlayterWashington Post Staff Writer Sunday, November 11, 2007; Page F07

If you're thinking of buying a home, one of your first decisions is whether to work with a buyer's agent.
As the name suggests, a buyer's agent is a real estate agent who represents the buyer in a home sale, as opposed to the listing agent who represents the seller. It's important to understand that just because an agent shows you a house doesn't mean she works on your behalf....read more.

My commentary

If you've read the article you probably reached the conclusion that it is a good move, provided the Realtor(r) has your best interest at heart. It is important that you are in control of the process and have the most complete information possible.

Many agents check the MLS and pick a few homes they think you want. They drive you over to each one and try to sell you one of them. The wrong person is in control.

Many buyers become frustrated by the difficulty in getting the information needed to make an informed decision about buying a home. They drive for hours on weekends through neighborhoods, scan the newspapers and go through the hassle of listening to endless sales pitches from agents over the phone. Some just quit in disgust due to the time and hassle of it all.

My VIP Buyer Profile System takes the hassle factor out of home buying. You receive complete listing information with addresses, maps, pictures, and background data via e-mail that is easy to use. You can pick through the homes that meet your needs, drive by the ones that interest you, and call me when you want to see one on the inside. You are in charge of the homes you want to see. And you are never obligated to buy a home.

Do you think it would help you to have inside information on the house you want to buy?

• Would it be helpful to know what the present owner paid for the home?
• When they bought it? What other homes in the area sold for?
• What about other home-owners in the area not on the MLS that may need to sell?
• What about good deals in Foreclosures or other distress sales?

I'm looking forward to helping you get a good deal on your next home.

For more information call 1(800) 474-2841 toll-free/ 24 hrs. or email me at Richard@Pomisel.com

Living Near Light Rail Can Be Shrewd Investment

Living near ( within 3 blocks) on either side of the Light Rail System may be a shrewd investment even in the current market downturn. The negative sales statistics in the media have disheartened many home sellers and buyers alike. The stats are a very broad survey of a very large area, this "Valley of the Sun".

There are neighborhoods that are holding and even increasing in value. This is one area that is attracting hugh investment. Why not buy a home or condo within 2 to 3 blocks of the Light Rail System in an upwardly moving neighborhood? That's the way people make money in Real Estate.

It is important to research your market position if you are planning to sell. It must be a specific study of your neighborhood. You may be in one of the good areas. If not, then you definately know where you stand and what effective strategies may get you the most money for your area.

For buyer's, they too must do their homework. A home may be very low priced. Why is that? What are the prices in the neighborhood? Is it a desirable place to live? Are the schools good? Even if you do not have children, the school's quality is very important. A good school system will improve your future sale position if you sell later on down the road. Where do you want to live?

Read more about the impact of the Light Rail System on business and Real Estate in a recent article in the AZ Republic.

Post your comment in this issue?

Best regards,
Richard Pomisel, e-Pro, GRI
Richard@Pomisel.com
1(800)474-2841 Toll-Free

Smaller Home Price Spread Suggests Rebound

The shrinking spread between buyers' and sellers' expectations is a sign the housing market is correcting, and a rebound almost always follows a correction, particularly in the Valley. AZ Republic, Catherine Reagor. Read more...

As I have said in the past, Phoenix is a different market than anywhere else in the USA. We still have a large influx of people into this State. For every 2.5 people, one home is needed. The surplus will burn off faster than anywhere else. If you are buying, now is the time to make your move ahead of the pack. You will get a GREAT DEAL especially if you are planning to live in your new home for 4 or more years.

Financing is still relatively easily obtainable for good rates on fixed interest loans. Now is the time to have your credit checked by a lender. You will then know absolutely where you stand with no surprizes. This goes for everyone, even those that think they have no credit issues. There have been many instances of negative entries on the wrong person. When this occurs, it takes time to correct. The time to get your ducks in a row is now.
Get your FREE report " The Three Point Plan to Getting the Best Financing"

Best regards,

Richard

Best News in a Decade for Home Buyers

AP- Steeper Decline in Home Sales Predicted

Wednesday October 10, 11:38 am ET By Alan Zibel, AP Business Writer

Realtors Group Slashes Forecast for Existing Home Sales, Predicts New Home Sales Will Be Weak
WASHINGTON (AP) -- This year's decline in existing home sales will be steeper than previously anticipated, a trade group for real estate agents predicted Wednesday.
The eighth straight downwardly revised forecast from the National Association of Realtors calls for U.S. existing home sales to be 10.8 percent below last year as housing market woes persist. Sales of new homes, meanwhile, are expected to finish 2007 at the lowest level in a decade....read complete story

Wow...what a surprise!!?? If you had been thinking about buying a home and have been hesitant because of these home sales reports of doom and gloom, I submit that you are reading the stories from the WRONG point of view. If you were thinking about a quick fix and flip for a quick easy profit, you will have to wait a while. The housing market is not currently suited to that approach in most instances. It is buy smart and hold for the most part.

If you were planning to buy to live in the home for around 4 years or longer, now is the time to make your move. Your negotiating position has never been stronger. There are lots of homes and hence a great selection, WITH LITTLE COMPETITION FROM OTHER BUYERS. I put that in bold letters for a reason. This is why you will get a legendary deal today. When the masses finally figure this out in the next year or so...the market will get tougher again for home buyers. It is the law of "supply and demand".

The secret to getting the best deals is to act before the other folks jump on the bandwagon.

Why buy now Richard, why not wait for prices to drop more?

1. Great selection. That is now. There will be a massive fall off in listings soon as frustrated sellers quit or decide that they don't want to give away their homes. There already are many frustrated Real Estate agents leaving the business from not selling their listings. Find your dream home easily without the hassle.


2. Large number of motivated sellers that NEED to sell. They aren't getting large numbers of buyers bidding anymore. They are lucky if they get 3 or 4 showings in many cases.


3. Low interest financing. These are the GOOD loans, not the stated income or adjustable interest rate ones that have made the news. You will lock in on a good interest rate now before a recession happens that will drive up the interest very high almost overnight.


4. Tax savings now from home ownership. Each year that goes by, you loose tax deductions that could be in your pocket helping you get wealthy. Money has a snowball effect when it is saved due to compound interest. (*Consult your financial advisor for your specific situation)


5. Increase in equity by reduction in mortgage through paying it down.
6. Increase in home value over time. Home prices have steadily increased historically through wars, recessions and depressions.
7. Live in and watch over your investment. Can't do that with stocks and mutual funds.

What do you think about this? I am interested in your opinion :-)

What You Can Do to IMPROVE Your Home Affordability in AZ

According to a recent article in the Arizona Republic, homes and rents are becoming less affordable for the average wage earner even in the rural areas. Arizona's median home price climbed 85% since the year 2000 to $260,000 in 2006. The median household income of Arizona residents increased only 15% to $54,900, according to a new study presented at the Governor's Housing Forum.

There are many affordable homes out there with motivated sellers that are willing to make deals to sell their homes. In any given market at any given time there are people that must sell their homes and move. It could be a job transfer, divorce, illness, financial problems or other reasons.

If you are a potential buyer thinking about getting a home, now is the time to find out if you can. It does not cost anything to see a good reputable lender and have them do the numbers and get pre-approved for home financing. You will know where you stand. If you are short due to finances and/ or credit problems, don't let that stop you.

A good lender will show you the steps you need to take to improve your finances and/ or credit score. Right there, that puts you way ahead of the pack. Make sure that you get an action plan that shows you specifically what needs to be done to get your credit and/or finances improved. They are usually motivated because they want your future business. ***A word of caution here. Just as in any other occupation, there are good and bad. The key is finding a "good reputable lender".

The next thing to do is find a good reputable and patient Realtor that is willing to help you through the process of getting you ready to buy a home. That Realtor may also be able to help you find the "good reputable lender" to see in the first place. It is not in the Realtor's interest to hook you up with someone who is not qualified to help you in perhaps the biggest purchase of your life.

What do you think? Send me a post.

To read the complete news article "Home-affordablilty problem spreading" AZ Republic, click this link http://www.azcentral.com/news/articles/0912affordable0912.html

If this post has prompted any questions or concerns, feel free to contact me for personalized and confidential assistance by email me or call me toll-free at 1(800)474-2841.

Or visit my website www.Pomisel.com to prepare your own customized home buying plan. Click on the VIP All Access Icon to get started.

Have a Great Day!

Richard

Foreclosures on the Rise in Outlying Areas

A recent article in the AZ Republic addressed the rise in Residential Foreclosures in the new communities in the outlying areas of Metro Phoenix. What caused this problem? There are several factors that are responsible, many of which are occurring simultaneously.

Home buyers have long flocked to metropolitan Phoenix's farthest flung suburbs to get the most house for their buck.In the housing market, it's known as "drive until you qualify" - the farther out you go, the less expensive the homes.But where affordability and steady appreciation once enticed many to the Valley's edges, foreclosures are now forcing them out. Read the complete story.

Here is my advice to avoid this happening to you. Stick to the fundamentals. If you can't afford a home now without using a "tricky-dicky loan", you'll just have to wait, save more money, reduce your spending and increase your income until you can. In all fairness, many people lose their jobs, get hit with huge medical bills, get divorced or have some other unfortunate life event hit them that caused them to lose their home. Life happens.

If you are a potential home BUYER , there are plenty of good deals out there with or without Foreclosures. Now you have a much better shot at finding the home you really want because the selection to choose from has never been so large. To find those deals and BUY a home of your own or a good investment property, Click Here.

"Insider Real Estate Secrets Revealed"
...a must-read for Home-Owners and Renters!
It's a FREE 12-lesson course covering more than 20 topics
exposing the realities behind buying and selling a home. Click Here

What do your think about the article? Give me your two cents :)

Richard Pomisel
Realtor
1715 W.Northern Ave., Suite 100
Phoenix, AZ 85021
Toll Free:1(800) 474-2841
Mobile: (602)214-1166
e-Mail: Richard@Pomisel.com