The Valley's
Leading Agent
Russell Shaw
April 2020
Real
My team and I help more people move than any other agent or team in Arizona. I'm not bragging, I'm applying for a job. I want to be YOUR Realtor!


Don’t Try to Outsmart the Markets
Getting ready to refinance your mortgage but waiting for rates to fall just one more time? Is that extra 1/8th percent ready to drop? Some consumers begin to follow economic news and perform no shortage of due diligence trying to pick the perfect time to lock in an interest rate. Loan officers are asked on a daily basis, “What are rates going to do?” The fact is nobody knows and for those who say they know, well, they don’t. Even the most learned of financial analysts get it wrong. There are just too many ingredients that affect mortgage rates, some expected but many unexpected, for any solid projection to come to fruition. Yes, there are certainly general trends that can be pointed to but trying to outsmart
Mortgage Rates
U.S. averages as of April 2020:


30 yr. fixed: 3.5%
15 yr. fixed: 2.92%
5/1 yr. adj: 3.34%






interest rate markets can go wrong rather quickly.
      Conventional mortgages, both fixed and adjustable, are tied to specific indices. A traditional 30 year
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New York Might Pass an Anti-Flipping Bill. Are Other States Far Behind?
     That dream of buying a house in a state of disrepair and fixing it up to sell for a big profit is one many of us share. And the people you see on TV aren’t the only ones who are doing more than dreaming. According to ATTOM Data Solutions’ most recent stats, more than 200,000 U.S. homes were bought and resold within a 12-month period in the year 2017. 
      “That’s just under 6% of all the single-family homes and condominiums sold that year,” said Investopedia.
      But, if the state of New York has its way, it might soon be harder to pocket that cash. There are actually two bills making their way through the system: Assembly Bill A5375A and Senate Bill S3060E. Each of them “Imposes a tax on the



What Is a Home Renovation Loan and Should You Think About One?
     For many homebuyers, a picture-perfect, move-in ready home is the dream. For others, a project house they can get for a discount and then put their personal stamp on is too good to pass up. The problem with many of these “project houses,” though: coming up with the money to complete the projects. 
      Once you’ve depleted your savings to gather the funds for your down payment and closing costs, there may not be much left over to knock down that wall between the kitchen and living room, redo the counters and cabinets, and put in new hardwood flooring. Add in the costs of new furniture and hiring movers, and it could be years before you’re finally ready to make those improvements. 
      This is where a home renovation loan can help. 
      What is a home renovation loan?
      Although they are growing in popularity, home renovation loans are

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Officially a Frenzy: 11% More Contracts Than Listings For Sale Contracts Over $1M Up 60% Over Last Year

The COVID -19 virus and the housing market are squaring off.  It is early in the fight, so we are loathe to predict too much at this point.  In our 42 years of practicing Phoenix real estate in all its iterations - a pandemic virus is one we haven’t lived through.  But “disasters” whether war or terrorism or a housing bubble - all have one thing in common.  They do not survive long term.  So really, what is the worst case?  Demand drops until the virus abates or is medically solved (vaccines, medication etc.) Demand can only be suppressed for so long.  In the long run, the basic needs of man – food and shelter, always prevail.
 
Given how strikingly low the valley’s housing supply is – our market has the potential to weather a significant drop in demand.  Let’s look to the Tina Tambour of the Cromford Report for some interesting statistics.  Tina points out the number of active homes for sale is running chronically below the number that have contracts on them – i.e. the active supply is being gobbled up by contracts:
 
“For every 100 active listings in the Arizona Regional MLS there are 111 that are already under contract.  Greater Phoenix is officially a frenzy and it’s only March.  We can expect to see this continue at least through May without relief as buyer demand is typically highest in the Spring.

It’s even more dramatic in the Southeast Valley, West Valley and North Phoenix and all areas where prices land between $175K-$300K.  For a stark example, on March 7th in Glendale there were 3 properties for sale between $175K-$200K and 25 under contract.  In Chandler there were 3 properties active between $200K-$250K and 37 under contract.  In the North Phoenix Moon Valley area there were 8 properties for sale between $250K-$300K and 30 under contract. 

There is a reason why people continue to pounce on what’s available for sale.  The average price for a 1,500-2,000sf home is now $331K and continues to rise.  That may seem alarming considering it was $324K at the peak in 2006, but contrary to popular belief it’s more affordable today because of the interest rates.  In April 2006, with an average of 6.51% the monthly principle and interest payment on a 30-year fixed loan with 10% down was $1,854.  Today at an average of 3.45% the same home is $1,331, a savings of $523. More recently, over the last 16 months despite prices having risen 9.4% for median-sized homes the monthly payment dropped by approximately $112/month.”
 
In short, whatever the impact to the market – we will keep you informed.  We would urge you to not be overly concerned at this point.  We have one of the strongest housing markets in the country and any change to that would be a temporary one.  This too shall pass.

 
Have more questions?  As always we are here to inform and advise our clients.
 

- Russell & Wendy Shaw



  Daily News and Advice

Read about the events shaping the Real Estate market today, find current interest rates, or browse the extensive library of advice and how-to articles written by some of the top experts in Real Estate. Updated each weekday.
More Articles
March Real Estate Roundup
I Am Selling! Why Would I Put Money into a House I am Leaving?
What It Means When Your Loan Goes Into ‘Processing’
5 Home Projects to Enjoy Your Outdoor Space all Year Round
How to Buy a House Right Now


Russell Shaw, Realtor®
E-mail: russell@nohasslelisting.com
Website: http://www.NoHassleListing.com
602-957-7777
Toll-Free 866-357-3604
Realty ONE Group
602-957-7777
11211 N. Tatum Blvd., Ste. 100
Phoenix, AZ 85028


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