Patricia Paul Properties

For the past couple of years the real estate market has been dominated by REO's (Real Estate Owned); or in other words, bank-owned properties that were acquired through foreclosures.

Banks were neither equipped nor knowledgeable about suddenly becoming Property Managers.  In many cases, by the time they took back the homes, the properties were in poor condition.  Sometimes appliances, cabinets and fixtures were removed.  Unattended swimming pools were green with mold and yards were covered with weeds.  They had homeowner's association rules they had to abide by.  The carrying costs were huge.  Plus, in order to sell these homes, the banks had to price them well below the market value of privately owned homes.

But the banks have come to the realization that they can cut their losses by about 25% if they agree to accept a short sale, rather than to foreclose on a property.   So in the future expect to see more short sales on the market, and fewer REO's.  This could be good news for both buyers and sellers.  Plus, new government regulations are attempting to standardize the short sale process.  It is a bit easier and quicker to accomplish now than those first few shorts sales when this whole mortgage mess began.

If you find yourself in the position of needing to sell your home to be rid of a  mortgage you can no longer afford, please contact me.  I can explain the short sale process, and help you work with your lender to get your house sold.

If you can afford your mortgage or don't have one, but still want to sell your home either to move up, downsize, or relocate, I can help you, too.  You may even qualify for a federal homebuyer tax credit.  Please call me today for your free no obligation consultation.

Patricia Paul, GRI *** www.PatriciaPaulProperties.com *** (520) 548-2078

Have you been thinking about selling your Tucson home, but have been holding off because of the depressed real estate market?   It's true, the past couple of years have been a buyer's market, and it was fairly brutal to sellers.  Home values dropped significantly, yet sellers still had to do even more to stand out from the crowd of other homes for sale.

But the real estate market has been improving slowly over the past year, at the same time that the inventory has been shrinking.   The federal First-Time Homebuyers tax credit of up to $8,000 was extended for the 1st quarter or so of 2010, along with the program being expanded to offer a tax credit of up to $6,500 to qualifying existing homeowners who purchase a primary residence.  The tax credits have time deadlines; buyers must have their home purchase under contract by April 30, 2010, so they should start looking now.  This will create a larger pool of buyers out there in the first quarter of 2010 to make their qualifying purchase.   Now's the time to get in on the action!

Call me now for a free consultation.  We can discuss the value of your home, how to prepare it to put on the market, and potential marketing plans to get it sold.

Patricia Paul, GRI *** www.PatriciaPaulProperties.com *** (520) 548-2078

The very popular FHA insured home loans will be increasing some of their costs.  The first change will entail an increase to the up-front mortgage insurance premium paid at closing.  It is scheduled to increase to 2.25% of the loan amount in the spring. (It is currently at 1.75%).  So on a home loan of $100,000, the up-front fee would go from $1,750 to $2,250, or a $500 increase.  The FHA also intends to ask Congress to allow an increase in the annual premium (think higher monthly payments). 

The Agency will also be limiting the amount of sellers concessions allowed to apply to buyers closing costs.  Currently it can be up to 6% of the purchase price, but will be decreasing to a maximum of 3%.

Also, buyers with lower FICO credit scores may have to come up with larger down payments.  

These changes are being implemented to try to offset some of the losses the FHA has recently sustained.   The FHA (Federal Housing Authority) does not make the loans, they only insure them.  Currently more than 30% of home loans are FHA backed.  They are especially popular because they require far less down payment than conventional mortgages do.

What does this all mean?   If you are thinking about purchasing a home, the time to do it is now, before the changes.  And if you are thinking of selling a home, you might want to do that before costs increase for the buyers.  Their increased costs mean that much less is available to them for their purchase.

Please contact me if I can clarify any of this for you, or if you would like me to put you in touch with quality lenders.

Patricia Paul, GRI *** www.PatriciaPaulProperties.com *** (520) 548-2078 

The Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac,  expects the interest rate for a 30-year fixed rate conventional mortgage to continue to increase.   This week's rate is averaging 5.05, but it is expected that before the end of 2010, and most likely sooner, the rates could climb to 6%.

 The higher interest rate will mean that if you are buying a home, the monthly payment for the same loan amount will be higher, or possibly you will not qualify for quite as large a loan amount.

There is still time to buy while rates are nice and low!  Let me help you!

Patricia Paul, GRI *** www.PatriciaPaulProperties.com *** (520) 548-2078

Home mortgage interest rates have started to inch up.   Rates for a 30 year fixed rate mortgage averaged 5.05%.  This is the first time since the end of October that they rose above the 5% mark.   But it is still below this year's highest point which was set in the middle of June.

It is predicted that rates will continue to rise.  Historically, periods of low interest rates are followed by swings upward.

If you are thinking about purchasing a home, right now is still a very good time to do so.  In addition to still low interest rates, there is a good amount of inventory (homes) to choose from, sellers are still willing to make buyer concessions, and you may qualify for a large tax credit.

Contact me if I can help you buy or sell a home, or help you locate a good lender.   Upon your request, I will provide information about the tax credits available. 

Patricia Paul, GRI *** www.longrealty.com*** (520) 548-2078

Most homeowners are aware that the number of short sales, foreclosures, and bank-owned properties in their neighborhoods has seriously effected the value of their homes.   These distressed properties are sold by consumers who can't afford their mortgages or the banks who have taken the properties back, and in both cases, tend to be sold way below fair market value.   Other sellers not in financial duress have had to reduce their prices if they hoped to compete.

Well, here's the good news.......  In November, there were 8% less foreclosures on a national level than there were in October.   This was actually the lowest level since February of this year.  The fewer foreclosures out there, the more stabilization and improvement we should see in home prices. 

Also, pending sales (homes under contract, but haven't yet closed) have been up for nine months in a row.   Sales activity is at its highest pace since February of 2007.

With interest rates still very low (but already heading up just a bit), it remains a good time to buy and maybe now even a good time to sell.  Today the average rate for a 30-year fixed rated mortgage was 4.94%.  Last year at this times the average was 5.19%.  Please let me know if I can help you with any of your real estate needs.

Patricia Paul, GRI *** www.PatriciaPaulProperties.com *** (520) 548-2078

New Listing in Midvale Park! 

This is a great 3 bedroom, 2 bathroom home in Midvale Park.  Central A/C, 2-car garage, 1,154 square feet of living space.    Includes refrigerator, oven/stove, microwave, dishwasher, and disposal.   Laundry room with hook-ups.  Huge covered rear patio with enclosed back yard.  Ceiling fans, window coverings included.  This home is scheduled to be painted next week.

Great, convenient location!  Quick access to I-19!  Great shopping and restaurants nearby!  Close to so many major employers! 

All these amenities, and this home rents for only $895! 

Call today for your showing!

Patricia Paul, GRI *** www.PatriciaPaulProperties.com *** (520) 548-2078

Please contact me if you'd like to receive a copy of Tucson's November Housing Report.  It's full of information and statistics.   Some of the statistics include months worth of inventory, number of listings and closings, median and average sale prices, price banded sales information, and months of inventory by zip code.

Did you know there is a big difference by the area of the city?  For example, in zip code 85714, there are only 2.6 months worth of inventory.  But in zip code 85749, there are 12.4 months worth.  Homeowners wanting to sell their homes in those areas will have different experiences because of that.

It's no surprise that the most number of homes that sold were in the $150,000 - $175,000 price range.  There were 567 listings in that range, and in October 135 sold and closed.  Next, in the $125,000 - $150,000 range, there were 594 listings, and in October 132 of them sold.  In the $100,000 - $125,000 range, 111 of the 389 listings sold. 

Now might not be the best time to be selling your $1,000,000+ home;  in October, only 3 out of 292 listings sold.  But, it is a great time if you're looking for a bargain to purchase!

Please let me know if I can help you with any of your real estate needs.  

Patricia Paul, GRI *** www.PatriciaPaulProperties.com *** (520) 548-2078

There has been a huge increase in the number of Tucson properties going under contract in past several weeks (1,317 properties in the last four weeks).   Some of this might be attributed to first time home buyers rushing to get in under the tax credit deadline.

There are also a lot fewer home on the market right now (active inventory):  A 23% decrease in inventory in September 2009 compared to September 2008.

With the market showing signs of improvement for the last several months, now might be a good time to put your property on the market, if you've been thinking about it.

Call me if you'd like to discuss the possibility of selling or buying.   I'd be happy to meet with you and answer any of your questions.

For more details, visit:   http://azhousingstats.longrealtyblogs.com

Patricia Paul, GRI ** www.PatriciaPaulProperties.com ** (520) 548-2078

Calling all first-time home buyers and those who haven't owned a home for at least three years.  Time has almost run out for you to qualify for this great program.   If you buy a home and qualify, you must close on the sale no later than November 30, 2009.  Keep in mind that it takes time to shop and select the home you want to purchase, takes more time to get the loan accomplished, and takes time for the home to close escrow.    Most escrows take a minimum of 30 days to close.  

 If you have any hopes of taking advantage of the $8,000 credit you should start shopping right now! 

 Of course, if you'd like to shop for a home, I'd love to help you!  I enjoy working with first-time home buyers, and have the time and patience to thoroughly explain the process and make it fun and exciting.

 Please call me!

Patricia Paul, GRI ** www.PatriciaPaulProperties.com ** (520) 548-2078