The Phoenix Real Estate Market has no doubt been through some tumultuous times during the past few years. After some bumpy roads (to put it mildly) since our market collapse, many homebuyers are left scratching their heads, trying to make sense of this market. Data is now finally confirming that there may be a light at the end of our tunnel as several key indicators are showing some very positive news. Based on the following, there’s no doubt that it is a great time to be a homebuyer in the Phoenix Metro area. While Phoenix has many different submarkets, it’s always best to consult with a trusted real estate advisor to show you the true picture of what’s happening in your area of interest.
Pending Home Sales on the Rise
The Pending Home Sales Index (PHSI), which is a forward-looking indicator based on contract signings, rose 2.4 percent to 90.9 in June from 88.8 in May and is 19.8 percent above the 75.9 reading in June 2010, which was the low point that immediately followed the expiration of the home buyer tax credit.
In June, Phoenix had the strongest resale activity in six years, helping to lift total sales from the year-ago month when federal tax credits were boosting the market. There were about 10,500 sales of new and existing houses and condos during June in the metro area covering Maricopa and Pinal counties, which was up 8.3% from May and 1.5% from June of last year.
The PHSI saw the biggest gains in the Western region of the United States. The index rose 6.4 percent to 107.0 in June and is 16.4 percent above a year ago.
Foreclosure Notices Decrease
Also based on June’s numbers ASU reports that the rate of foreclosures continued to drop for the fourth consecutive month. Foreclosures represented 31% of the existing-home transactions in the Phoenix-area market in June, according to ASU, down from 35% in May, 36% in April, 38% in March, and 43% in January and February.
Traditional Sales are now accounting for over half of the resales, showing a new trend in the marketplace.
Mortgage Rates Drop to Record Lows
Mortgage rates fell to their lowest average in 2011 this week, dramatically improving the purchasing power of many home buyers. The 30-year fixed-rate mortgage, the most popular choice among homebuyers, averaged 4.39 percent this week. The 15-year fixed-rate mortgage and the 5-year adjustable rate-mortgage also both reached new record lows.
Rates mostly dropped across the board amid signs of a weakening economy, Freddie Mac says.
Freddie Mac says, ”There were indications that the housing market is firming.”
Freddie Mac and Fannie Mae have also released their first look initiatives, giving primary owner occupants the first shot at buying a property over investors and second homebuyers. This finally has given owner occupants using low down payment mortgages (such as FHA financing) some power in an investor-saturated marketplace.
Here’s a closer look at what happened with rates this week:
30-year fixed-rate mortgages: averaged 4.39 percent, down from last week’s 4.55 percent average. A year ago at this time, 30-year rates averaged 4.49 percent.
15-year fixed-rate mortgages: averaged 3.54 percent, dropping from last week’s 3.66 percent average.Last year at this time, 15-year rates averaged 3.95 percent.
5-year adjustable-rate mortgages: averaged 3.18 percent this week, falling from last week’s 3.25 percent average. Last year at this time, 5-year ARMs averaged 3.63 percent.
Compliments of Dan Mullarkey
http://themullarkeygroup.com/2011/08/06/3-reasons-why-this-may-be-the-perfect-time-to-be-a-homebuyer/
Did you know we can still offer zero down financing to buy a home? NOT all lenders have access to this program any longer, but the Tobias Team at NOVA Home Loans still does! VA financing is the only other type of mortgage loan that will not require a down payment and is limited to veterans, USDA is open to anyone. 
RSS
Twitter
Facebook
LinkedIn
