• The supply of existing homes on the market is at the second lowest level in 11 years.  New listings have dropped by 30,000 units from 2010
• The median price is lower than 2010.
• The number of units sold is the second highest in 11 years and second lowest in price.  Supply and demand are becoming more in balance.
• The average days on the market for homes dropped 13% in 2011.
• Foreclosures have slowed dramatically because the lenders are looking at short sales to resolve underwater properties.
• The most underwater owners have largely been through sale or foreclosure already.

All this, coupled with higher numbers of jobs creation, is signaling the bottom may have been reached. Arizona was 3^rd nationally in jobs creation for 2011. Many were hi-tech jobs.

Homes have become more affordable and the cost of homeownership is lower for every household after the market adjustment of the past 5 years. Costs have come more in line with income.

The Phoenix MLS reflects mainly Maricopa County. However, as Maricopa County goes, so goes the State of Arizona. Sales in the Valley will allow those sellers to relocate to the secondary markets in the state. Jobs will follow in those areas.

Another factor that is beginning to take effect is that homeowners who had to short sell, goes through foreclosure, or file bankruptcy during the Great Recession are beginning to have their credit healed by the passage of time. They will become a wave of buyers.

As we see a turn strengthen it is likely that interest rates will start to climb. Those who have been on the sidelines may decide to buy now rather than risk the market and interest rates rising out of their reach.  Now is the time to buy and lock in a low rate of interest.

http://www.federalhousingtaxcredit.com/

It WILL work. It’s so simple!

eMail me for a copy of the plan in writing at Jerrygermansen@hotmail.com

Now is certainly the time to buy a home!

There will be a presentation of the 22% down payment assistance program for first time home buyers by Kathlene Gillis, CNN Mortgage.

Who do you know that can benefit from this program and get in an a home now with as low as 1% down and a 22% down payment gift?

See how your values are being effected by the stimulus program.

See you there!

Jerry

4.875% 30 Year fixed

5.125% FHA Guaranteed Loan

5.625% Non-Owner Occupied Investor

5.25% Interest Only

All these programs require 20% down except FHA which is 3-5% down

A congressional proposal by Sen. Johnny Isakson, R-Ga., raises the credit amount to a maximum of $15,000 for any buyer of any home for a year. There are no income caps like in the current credit.

This will move the credits into the move-up buyer segment and could start a surge of buying. Interest rates, loads of inventory and this tax credit could get the housing crisis reversed. That is exactly what the economy needs. We do not need to bail out more banks and big corporations on wall street so they can pass out bonuses. We need to directly help the general public.

Lawrence Yun, chief economist at NAR, says extending or raising the tax credit would spur the housing recovery, which in turn would help bolster the economy.