PHOENIX – For the first time in three years, Phoenix-area housing prices have increased from year-to-year.

Preliminary April date shows the first year-over-year price increase in the local housing market, according to a new report from the WP Carey School of Business at ASU.

From April 2009 to April 2010, the valley saw a 1-percent increase in home prices.

That’s coming on the heels of a 13-percent decline from December 2008 to December 2009, a 9 percent drop from January 2009 to January 2010, a 7 percent decline February 2009 to February 2010, and a 3 percent drop in home prices from March 2009 to March 2010.

The 1-percent increase is the first increase in 3 years. The average price for single-family homes was $127,000 in February — it’s projected to reach $135,000 in April.

“Prices may continue to increase slowly for the next few months, but price stability, rather than increases, is likely for the rest of the year,” says Professor Karl Guntermann explains.

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

On January 15, 2010 David Stevens, the Assistant Secretary for Housing, waived the existing guidelines regarding the seasoning issues until February 1, 2011.

To read the amended guidelines, here is the link:
http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

Unfortunately, some lenders are not following these new guidelines and are still holding to the old with regards to FHA loan approvals.

I recommend the following if you are in a situation where you are trying to sell a home you have owned for less than 90 days and find yourself with an offer from an FHA buyer:  inform the lender of the date you purchased the property and offer a list of improvements you have made.  Then, send a copy of the new guidelines and request a statement from the lender’s underwriting department that they will honor the amended guidelines issued by HUD.

Original Post by Tina Merrit

FOR RELEASE
Friday
January 15, 2010

HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS
Measure to help bring stability to home values and accelerate sale of vacant properties

WASHINGTON – In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes.

“As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers,” said Donovan. “FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization.”

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.

“This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed,” Donovan said.

In today’s market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

“FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties,” said FHA Commissioner David H. Stevens. “This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity.”

The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

• All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
• In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
• The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

Harrisburg-Carlisle, PA is First and Cape Coral-Fort Myers, FL is Last at -25.24.

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As a real estate investor it’s really important to know the facts.  It’s one thing to hear from someone who says “I hear this is where you can get the best deals” but it’s another to see where you can get the best deals. Investing is about the numbers and how markets are performing.  The Heat Map above shows you exactly the appreciation in each state in Qtr3 of 2009 vs. the same Qtr. in 2008.  It’s interesting to see that Nebraska has appreciated the best of all the states.  I would have never realized this unless I noticed this map.  In the Midwest you will notice more of  a “flatline” effect, less peaks and valleys which means you won’t see appreciation fluctuation as much as states in the West for example.  Above you can see that the states in the light blue have actually had positive appreciation compared to others.  So when you hear of someone saying “This is the state that has had a ton of appreciation” you can look here and see for yourself.

http://www.screencast.com/t/WyA7Zj7zf1En

Here are a few items Sarah covered:

*What market Rocks in Arizona.

*Why you want to invest in this specific market she lives and invests in.

*What ROI you should expect short term and long term for your investment in this market.

*Using multiple exit strategies

These are a few items she covered but you’ll want to watch the webinar to find our more!
http://www.screencast.com/t/WyA7Zj7zf1En

Contact me for Additional Details at 253-219-6440