We're Shoveling Sunshine in Arizona!

  

We all have our bucket lists... somewhere on mine was ice fishing in northern Wisconsin.  Did that last week! 

Also went up to Lake Superior and took a ferry out to Madeline Island.  As the ferry crunched through the ice, I put my business card on the bulletin board... added the following message: 
We're shoveling sunshine in Arizona!

Scottsdale has over 330 days of sunshine a year! 
Weather should be perfect for the Open!


Courtesy of The Weather Channel

 Have a great week!

10 Cities Where List Prices Soared in the Last Year

Courtesy of REALTOR®Mag/National Association of REALTORS®
Daily Real Estate News | Thursday, January 26, 2012

By Melissa Dittmann Tracey, REALTOR® Magazine Daily News

List prices are heating up in Florida, as recovery takes hold in the Sunshine State. Florida boasts the highest number of cities in the top 10 for largest increases in median list prices in the last year. In Miami alone, median list prices have jumped 32 percent in the last year. 

Nationwide, median list prices have inched up 5.03 percent from December 2010 to December 2011, according to Realtor.com data.

The following cities are where median list prices have increased the most in the last year, based on December 2011 data of 146 metro areas from Realtor.com:

1. Miami, Fla.
Year-over-year increase: 32.50%
Median list price: $265,000

2. Naples, Fla.
Year-over-year increase: 21.67%
Median list price: $365,000

3. Fort Myers-Cape Coral, Fla.
Year-over-year increase: 21.47%
Median list price: $229,375

4. Punta Gorda, Fla.
Year-over-year increase: 19.42%
Median list price: $179,000

5. Boise City, Idaho
Year-over-year increase: 19.25%
Median list price: $154,900

6. West Palm Beach-Boca Raton, Fla.
Year-over-year increase: 18.38%
Median list price: $219,000

7. Sarasota-Bradenton, Fla.
Year-over-year increase: 17.62%
Median list price: $241,000

8. Daytona Beach, Fla.
Year-over-year increase: 16.06%
Median list price: $179,900

9. Phoenix-Mesa, Ariz.
Year-over-year increase: 13.79%
Median list price: $165,000

10. Grand Rapids-Muskegon-Holland, Mich.
Year-over-year increase: 13.32%
Median list price: $137,000

Fed Vows to Keep Rates Low Until 2014

Courtesy of REALTOR®Mag/National Association of REALTORS®
Daily Real Estate News | Thursday, January 26, 2012

The Federal Reserve announced that short-term interest rates will likely stay near zero for nearly three more years, a move that is expected to spillover to long-term mortgage rates for home buyers and home owners.

In August, the Fed had made a rare move to say it would keep rates near zero until at least mid-2013. The Fed said Wednesday that the economy still needs more help and it will now extend that period to 2014. 

Fed Chairman Ben Bernanke said in a news conference that the Fed isn’t happy with the modest economic recovery and that the Fed may need to take additional steps to spur recovery. He did not comment further on what those steps might be, though. 

While the economy has improved somewhat in recent weeks, Fed officials say it’s worried about “strains in global financial markets” and the still high unemployment rate. 

Some critics say that the Fed’s vow to keep mortgage rates longer won’t do enough to help the economy and the housing market. They argue that too many Americans are already unable to take advantage of the record low mortgage rates because of the tightening of lending standards.
 
Bernanke shared that concern, saying that millions of home owners were unable to refinance because of damaged credit or being from underwater in their homes. 

Source: “Fed Sees Low Rates to 2014,” The Wall Street Journal (Jan. 26, 2012) and “Fed Signals That a Full Recovery Is Years Away,” The New York Times (Jan. 25, 2012)

2011-2012 Cost vs. Value: Which Remodeling Projects Pay Off the Most?

Courtesy of REALTOR®Mag/National Association of REALTORS®
By Melissa Dittmann Tracey, REALTOR® Magazine

When tackling home remodeling projects, you’ll find some projects pay off more than others at times of resale. Remodeling Magazine, in conjunction with REALTOR® Magazine, recently released findings of its annual Cost vs. Value report for 2011-2012, revealing which remodeling projects offer the biggest bang for your buck.

Overall, the trend right now is replacement over remodeling–swapping out the old for the new rather than doing a total gut job, which can be much more costly.

This year’s Cost vs. Value report found that exterior replacement projects–such as new garage doors and a new entry door–offer some of the best returns at resale, allowing home owners to recoup close to 70 percent or more of the costs of the project at times of resale.

The following are the top, mid-range projects from this year’s report, based on what home owners stand to recoup at time of resale:

1. Replacing the entry door to steel
Estimated cost: $1,238
Cost recouped at resale: 73%

2. Attic bedroom (converting unfinished attic space into a bedroom with bathroom and shower)
Estimated cost: $50,148
Cost recouped at resale: 72.5%

3. Minor kitchen remodel (including new cabinets and drawers, countertops, hardware, and appliances)
Estimated cost: $19,588
Cost recouped at resale: 72.1%

4. Garage door replacement
Estimated cost: $1,512
Cost recouped at resale: 71.9%

5. Deck addition (wood)
Estimated cost: $10,350
Cost recouped at resale: 70.1%

6. Siding replacement (vinyl)
Estimated cost: $11,729
Cost recouped at resale: 69.5%

5 Low-Cost Kitchen Updates to Attract Buyers

Courtesy of REALTOR®Mag/National Association of REALTORS®
Daily Real Estate News | Thursday, January 26, 2012

Considered the heart of a home, the kitchen can be instrumental in selling a property.  Many buyers prefer dwellings with modern kitchens, especially since it's a room they'll use every day and a place where they will entertain guests. 

Attend open houses in the neighborhood to see how kitchens compare. If all the other homes have new appliances, your sellers will want to do the same or accept a lower price.

But a kitchen retrofit does not have to be extensive. A recent Realty Times article offers tips on attracting buyers with lower-cost kitchen upgrades.

• Repaint in a neutral color
• Eliminating clutter
• Clean, clean, clean
• Change light fixtures and hardware
• Opt for less expensive granite

Source: "Kitchens Sell a House," Realty Times (01/24/12)
(c) Copyright 2012 Information, Inc.

Phoenix-Area Housing May Be on the Mend - All Signs Indicate Recovery is Under Way, Experts Say

Source:  The Republic | azcentral.com
Article by Catherine Reagor - Jan. 6, 2012 11:12 PM 

Data from the end of 2011 suggest that a housing-market recovery has begun in metro Phoenix.
The upswing in the market will surprise many because it comes less than five months after the region's existing-home prices fell to their lowest level since 1999. But even at last year's low point in August, when the median home price fell to $112,000, many market indicators pointed to an increase in the area's home prices by year-end. Now, it appears they were right.

Search home values | 31 Days of Foreclousres
 
The median price of a metro Phoenix home rose to $120,000 in December, its highest level since November 2010, according to the Information Market, a real-estate data firm. That was the first December since 2005 that the region's median price didn't drop.

The number of home sales in 2011 climbed to their highest level since the housing market's peak in 2006. Foreclosures fell to their lowest level since 2008. And the number of Phoenix-area homes listed for sale has dropped to a figure not seen since 2005, indicating demand is finally exceeding supply. This is a complete turnaround from 2007, when the housing crash started and cheap foreclosure homes flooded the market while buyers were few.

Now, investors are snatching up both foreclosure and short-sale houses at a record pace. Regular buyers, who need a mortgage to purchase a home, are having a hard time competing with cash-paying investors.

"The housing market definitely saw the bottom in August or September of last year," said Mike Orr, new director of the Center for Real Estate Theory and Practice at the W.P. Carey School of Business at Arizona State University.

He continues as publisher of the "Cromford Report," an online daily real-estate market analysis. "I talked to 200 Realtors the other day, and almost all were much more positive about Phoenix's housing market then they were just two months ago."

Experts agree on roughly what a healthy market looks like: The number of home listings holds steady, and sales keep pace. Foreclosures are few, and median sales prices inch up steadily, but not so quickly that they become volatile.

The end of 2011 began to look more like that ideal than it has in recent years.

Home sales climbed to almost 95,000 in 2011, a near-record for annual resales in metro Phoenix.

During the boom, annual sales climbed above 150,000, although more than 60,000 of those deals were for new homes. Now, new-home sales are averaging about 600 a month.

Arizona homebuilding analyst R.L. Brown said the construction of new houses won't pick up until the supply of inexpensive foreclosure homes dries up. New homebuilding could increase this year if foreclosures continue to slow.

The number of homes listed for sale in metro Phoenix is down to 25,000, compared with 43,000 a year ago, according to Cromford. Only 9 percent of the homes on the market are lender-owned foreclosures. A year ago, 20 percent of the homes were foreclosures that lenders were trying to sell inexpensively.

Foreclosures started to climb in late 2007 and peaked in 2010 at almost 50,000. Last year, the number of homes taken back by lenders fell by 16 percent from the year before. Pre-foreclosures steadily fell in 2011, so foreclosures could fall again this year.

It has been a year of ups and downs for the region's housing market, making it more difficult to predict or time a recovery.

One month, home sales were down and prices were up, while the next month foreclosures might tick up as home sales climbed.

Metro Phoenix's housing market became fragmented during the crash. Inexpensive homes sold more quickly than luxury houses during the past few years, keeping the area's median home prices lower.

The market has also reverted to being driven largely by location. A house in north Phoenix might go for the asking price, while a house farther out in Queen Creek or Buckeye might sell in a short sale for half of what the owner owed.

Some market watchers still don't believe a real recovery has started.

Phoenix real-estate agent Brett Barry with HomeSmart thinks "lenders are just kicking the can down the road," drawing out the foreclosure process so the market looks better than it is actually doing.

"Any stabilization in 2011 is a temporary bottom," he said. "Banks are now letting many owners miss 24 to 36 payments before finally foreclosing. This is a sea change as these homes don't appear on any radar screens until they do foreclose."  He thinks those potential foreclosures will drive down prices more.
 
Early in 2011, the Arizona Regional Multiple Listing Service's pending- sales index showed metro Phoenix's median home price would fall to $100,000. It didn't drop that much, although it did fall to $112,000 after hovering around $115,000 for the first six months of last year.

But now that the region's median is climbing up, foreclosures and listings are down and sales are at a nearly record pace, a growing number of real-estate analysts say the market recovery has started.

"Six months ago, we saw a drop in prices coming. But based on other indicators, it was obviously going to be temporary," said Tom Ruff, analyst with the Information Market. "Now, we are finally seeing year-over-year gains in pricing and sales. The housing market's recovery is on track."

Home Affordability Offering Up 40-Year Deals

Courtesy of REALTOR®Mag/National Association of REALTORS®
Daily Real Estate News | Wednesday, January 11, 2012

Home affordability is at 1971 levels, due to falling home prices and record low mortgage rates, pushing home ownership in reach to more families, according to the U.S. Department of Housing and Urban Development (HUD).

Home owners are bringing in nearly double the median income they need to cover the cost of an average home, HousingPredictor reports. 

"With interest rates at historically low levels and markets across the country beginning to improve, home ownership is within reach of more households,” Bob Nielsen, chairman of the National Association of Home Builders, said in a statement.

Home sales have been ticking up, according to recent reports by the National Association of REALTORS®, the National Association of Home Builders, as well as the Obama administration’s December Housing Scorecard. 

However, some consumers are finding more stringent lending standards for getting a mortgage a roadblock to home ownership, and some housing experts have blamed tighter underwriting standards in recent years for continuing to hold back the housing market. 

Source: “Home Affordability Reaches 1971 Level,” HousingPredictor (Jan. 11, 2012)

In Real Estate, Keeping Current Matters!

Courtesy of: Keeping Current Matters/The KCM Blog
Posted: 10 Jan 2012 04:00 AM PST

There is too much misinformation being spread about today’s real estate market. Studies are being misinterpreted. Prominent names are being used to foster a point even if their quote is from years ago.

As an example, we want to look at a story published last week by The Fiscal Times titled The New American Dream: Rent, Don’t Buy. In the article, they claim:

“Call it the Big Selloff—America is headed toward a future in which fewer people own the spaces they call home… Those trends are just the beginning.”

We are not arguing that the homeownership rate is under downward pressure in this country. We are disputing some of the ‘evidence’ used in the article. Here are three points we want to refute:

The Homeownership Rate IS NOT in a Freefall

The article quotes a Morgan Stanley study from July 2011 which did make the argument that the homeownership rate was trending downward. Many others made the same point at that time.  What the article failed to mention is that the homeownership rate unexpectedly increased in the third quarter of 2011! As DSNews reported in early November:

“After falling to a 13-year low during the second quarter, the homeownership rate posted a highly unexpected rise in the third quarter, according to a Census Bureau report.”

The jury is still out as to whether the homeownership rate will continue to fall or whether it has already bottomed out.

The Founders of Case-Shiller ARE NOT Saying Renting is Better

In the article mentioned above, they claim that the team that founded the prestigious Case-Shiller Pricing Index believes that buying makes little sense. The article explains that back in 2006 Robert Shiller presented a study based on data collected prior to 2005 showing that, over time, it made more sense to rent than buy. They use this information to conclude:

 “Another skeptic is Yale economist Robert Shiller, co-creator of the Case-Shiller Home Price Index.”

They claim Shiller is a skeptic today based on what he said six years ago!

The major challenge we have with this is that Karl Case, the other founder of the Case Shiller Index, came out ten days ago saying that now is the time to buy. The New York Times in a story published on 12/30/2011 quotes Professor Case as saying:

“If you’re buying a house or apartment to live in and pay for over time, and can afford the payments, then it’s a terrific time to buy.”

Beracha and Johnson DID NOT Conclude That You Shouldn’t Buy

The Fiscal Times article went on to say:

“And in a paper this June in the journal Real Estate Economics, two researchers calculated that over the past 30 years, most often it would have been better to rent than buy.”

They were referring to the great study done by Beracha and Johnson titled Lessons from Over 30 Years of Buy versus Rent Decisions: Is the American Dream Always Wise? We are very familiar with this study as we posted on it back in May of last year. The paper does explain that over the last thirty years the financial benefits of buying vs. renting could be debated.

However, the conclusion of the paper left no room for argument. According to professors Beracha and Johnson, NOW IS THE TIME TO BUY!

“(F)undamental drivers now appear to be in place that favor homeownership over renting in the near term future…
“[This] might seem unwise to many given the recent crash in the real estate markets around the country. However, rent-to-price ratios now seem to be in place along with other fundamental drivers that favor ownership over renting.”

They conclude their research paper with this sentence:

“Conditions (historically low mortgage rates and relatively low rent-to-price ratios) now seem in place to favor future purchases.”

Dr. Johnson, Ph.D. — Florida International University (FIU) and Editor of the Journal of Housing Research, is now a guest blogger on this site and in November shared with us his current presentation on this issue. To download the presentation, go to http://realestate.fiu.edu/buyer-or-renter-nation.html.

Mortgage Predictions for 2012

Courtesy of Keeping Current Matters/The KCM Blog

Posted 1/5/12

It’s the time of year that we look ahead and attempt to give our best guesses about the market, the industry, and the effects they may have. So, here are my thoughts about the mortgage world.

Interest Rates Should Be Stable

With a faltering economy nationally and worldwide, including pessimistic estimates for employment, there is little chance that the Fed will risk increasing rates which would jeopardize any recovery. Couple that with a Presidential Election in November and conventional wisdom says we’ll see rates hovering in the same neighborhood for most of 2012.

Mortgage Costs Will Increase

Quietly tucked away in those bills passed in Congress to extend the payroll tax cuts before the holidays was an increase of 10 basis points in the guarantee fees on loans sold to Fannie Mae and Freddie Mac. That will translate into .10% higher interest rates (which would be $4000 extra on a $200,000 loan over 30 years). Interestingly enough, the additional revenue is not going to Fannie or Freddie to help with defaulted loans, but rather going to the US Treasury to make up for the payroll tax cut….go figure.

The Mortgage Interest Deduction Will Be Challenged

Look for people of a certain income level to lose their write off as a measure to increase revenue. Taking away from the wealthy as a way to raise governmental revenue is politically strategic. It is unlikely everyone will lose the deduction (political suicide), but that top 1%…watch out.

Loan Products Will Expand

Common sense lending will start creeping back. Large down payments will liberalize credit and income standards. This will likely begin with local banks who are comfortable with appraised values. I’m not calling for a return to the madness, but some loans that are low risk are not being done today. Anticipate some lenders expanding their guidelines.

Don’t be shocked by a lowering of FHA loan limits and/or an increase in the FHA Up Front Mortgage Insurance Premium either. Overall, mortgages should give people more reasons to buy homes in 2012 as the economic recovery is strongly tied to housing. Given that most people vote their own personal economy rather than policy beliefs, I expect support by those who are looking to be re-elected.

Predictions for Distressed Properties in 2012

Courtesy of REALTOR®Mag/National Association of REALTORS®
Daily Real Estate News | Thursday, January 05, 2012

It’s hard to know exactly what will happen with foreclosures, REOs, and short sales in the coming year. Factors such as employment, home values, and consumer confidence will determine whether they go up or down. The one thing that’s certain is that they’ll still be around and affecting the housing market.

“Foreclosures aren’t going away right now,” says Andy Firoved, CEO of CounselorDirect, a technology company that specializes in automating processes for various government foreclosure-prevention programs. “We’re going to have a certain level. The question is, how many?”

Apart from quantity, there are certain things regarding distressed properties that can be predicted with some level of assurance, says Firoved, whose clients include housing departments in states with the highest unemployment and biggest declines in home values — the so-called “Hardest Hit.” Here are three of his prognostications for 2012:

Prediction #1: Government home owner assistance programs will get more effective.

Most of the government’s initial efforts at helping home owners who were threatened with foreclosure due to problems like job loss or medical expenses came up short. This was primarily due to a combination of poor promotion of the programs and arcane, overly bureaucratic processes.

Fivored says the underlying issue here was that federal and state governments were in too much of a rush to roll out these programs. “People came in with the best intentions, but had problems with the execution,” he adds.

However, newer initiatives, such as the “Hardest Hit” mortgage assistance programs and the revamped Home Affordable Refinance Program (HARP), will likely get more traction because they’re better publicized and administered.

“The word is getting out, and people are starting to get assistance,” Fivored says. “These programs are starting to find higher-level efficiencies as well.”

Prediction #2: The amount of evictions will stay the same or even go down.

While the number of evictions that have taken place over the past couple of years seems high compared with healthier economic times, they actually aren’t as high as they could be. “The majority of [delinquent and foreclosed-on borrowers] have not been evicted,” Fivored says.

Why? For one thing, banks are hesitant to pursue foreclosures because of the robo-signing issue, which still hasn’t been settled. Also, evictions are labor-intensive and involve some thorny legal procedures, Fivored explains. Many banks simply don’t have the will or the resources right now to evict all of those borrowers. “The problem is that there are a lot of people out there who haven’t paid their mortgage in a while, and they have gotten used to it,” he says.  Although “the party’s got to stop at some point,” Fivored is guessing it’ll keep going, for the most part, through 2012.

Prediction #3: Banks will get creative in dealing with REOs and delinquent home owners.

That’s not to say that lending institutions will remain passive this year. “In 2012, the theme is going to be managing the shadow inventory,” Fivored says. “That’s going to be two different things: REOs and delinquent home owners who they haven’t done anything with yet.”  According to him, banks will accomplish this by working out special deals, such as leasing foreclosed and bank-owned homes to their former owners. They may even allow foreclosed-on and delinquent borrowers to continue living in homes without making any payments — at least in the short term —because they want properties maintained for eventual resale, Fivored says.

By Brian Summerfield, REALTOR® Magazine

119 Stores with Senior Discounts

For all my senior readers, I wanted to share this information that came in an email that I received from a friend.  I'm usually the first one to do a Snopes search to check out email information, but I decided to share this one without checking the validity of each of the businesses that are listed.  I know for sure that some are real because I've used them myself, so I'm going to take a chance and assume all (or at least most) of the others are true.  (Ok, so I couldn't let it go without doing the Snopes search... I did a search for "Senior Discounts" and didn't find this one listed.  That's encouraging!)  FYI, I made a couple of changes to the original email I received based on personal experience.  Know of any Senior Discounts that I've missed?  Email me and I'll include the information in another newsletter.

1. Applebees: 15% off with Golden Apple Card (60+) 2. Arbys: 10% off (55+) 3. Ben & Jerrys: 10% off (60+) 4. Bennigans: discount varies by location 5. Bobs Big Boy: discount varies by location (60+) 6. BostonMarket: 10% off (65+) 7. Burger King: 10% off (60+) 8. Captain Ds Seafood: discount varies on location (62+) 9. Chick-Fil-A: 10% off or free small drink or coffee (55+) 10. Chili: 10% off (55+) 11. CiCi Pizza: 10% off (60+) 12. Culvers: 10% off (60+) 13. Dennys: 10% off, 20% off for AARP members (55+) 14. Dunkin Donuts: 10% off or free coffee (55+) 15. Einsteins Bagels: 10% off (60+) 16. Fuddruckers: 10% off any senior platter (55+) 17. Gattis Pizza: 10% off (60+) 18. Golden Corral: 10% off (60+) 19. Hardees: $0.33 beverages everyday (65+) 20. IHOP: 10% off (55+) 21. Jack in the Box: up to 20% off (55+) 22. KFC: free small drink with any meal (55+) 23. Krispy Kreme: 10% off (50+) 24. Long John Silvers: various discounts at participating locations (55+) 25. McDonalds: discounts on coffee everyday (55+) 26. Mrs. Fields: 10% off at participating locations (60+) 27. Shoneys: 10% off 28. Sonic: 10% off or free beverage (60+) 29. Steak~n Shake: 10% off every Monday & Tuesday (50+) 30. Subway: 10% off (60+) 31. Sweet Tomatoes 10% off (62+) 32. Taco Bell : 5% off; free beverages for seniors (65+) 33. TCBY: 10% off (55+) 34. Tea Room Cafe: 10% off (50+) 35. Village Inn: 10% off (60+) 36. Waffle House: 10% off every Monday (60+) 37. Wendys: 10% off (55+) 38. WhiteCastle: 10% off (62+) Retail and Apparel 1. Banana Republic: 10% off (50+) 2. Bealls: 20% off first Tuesday of each month (50+) 3. Belks: 15% off first Tuesday of every month (55+) 4. Big Lots: 10% off 5. Bon-Ton Department Stores: 15% off on senior discount days (55+) 6. C.J. Banks: 10% off every Wednesday (60+) 7. Clarks: 10% off (62+) 8. Dress Barn: 10% off (55+) 9. Goodwill: 10% off one day a week (date varies by location) 10. Hallmark: 10% off one day a week (date varies by location) 11. Kmart: 20% off (50+) 12. Kohls: 15% off (60+) 13. Modells Sporting Goods: 10% off 14. Rite Aid: 10% off on Tuesdays & 10% off prescriptions 15. Ross Stores: 10% off every Tuesday (55+) 16. The Salvation Army Thrift Stores: up to 50% off (55+) 17. Stein Mart: 20% off red dot/clearance items first Monday of every month (55+) Grocery 1. Albertsons: 10% off first Wednesday of each month (55+) 2. American Discount Stores: 10% off every Monday (50+) 3. Compare Foods Supermarket: 10% off every Wednesday (60+) 4. DeCicco Family Markets: 5% off every Wednesday (60+) 5. Food Lion: 6% off every Monday (60+) 6. Frys Supermarket: 10% off on the first Wednesday of each month (55+) 7. Great Valu Food Store: 5% off every Tuesday (60+) 8. Gristedes Supermarket: 10% off every Tuesday (60+) 9. Harris Teeter: 5% off every Tuesday (60+) 10. Harkins Theaters (Phoenix area) - $6.50 (60+) 11. Hy-Vee: 5% off one day a week (date varies by location) 12. Kroger: 10% off (date varies by location) 13. Morton Williams Supermarket: 5% off every Tuesday (60+) 14. The Plant Shed: 10% off every Tuesday (50+) 15. Publix: 5% off every Wednesday (55+) 16. RogersMarketplace: 5% off every Thursday (60+) 17. Uncle Guiseppes Marketplace: 5% off (62+) Travel 1. AlaskaAirlines: 10% off (65+) 2. Alamo:up to 25% off for AARP members 3. American Airlines: various discounts for 65 and up (call before booking for discount) 4. Amtrak: 15% off (62+) 5. Avis: up to 25% off for AARP members 6. Best Western: 10% off (55+) 7. Budget Rental Cars: 10% off; up to 20% off for AARP members (50+) 8. CambriaSuites: 20%-30% off (60+) 9. Clarion: 20%-30% off (60+) 10. Comfort Inn: 20%-30% off (60+) 11. Comfort Suites: 20%-30% off (60+) 12. Continental Airlines: no initiation fee for Continental Presidents Club & special fares for select destinations 13. Dollar Rent-A-Car: 10% off (50+) 14. Econo Lodge: 20%-30% off (60+) 15. EnterpriseRent-A-Car: 5% off for AARP members 16. Greyhound: 5% off (62+) 17. Hampton Inns & Suites: 10% off when booked 72 hours in advance 18. Hertz: up t0 25% off for AARP members 19. Holiday Inn: 10%-30% off depending on location (62+) 20. Hyatt Hotels: 25%-50% off (62+) 21. InterContinental Hotels Group: various discounts at all hotels (65+) 22. Mainstay Suites: 10% off with Mature Travelers Discount (50+); 20%-30% off (60+) 23. Marriott Hotels: 15% off (62+) 24. Motel 6: 10% off (60+) 25. Myrtle BeachResort: 10% off (55+) 26. National Rent-A-Car: up to 30% off for AARP members 27. Quality Inn: 20%-30% off (60+) 28. Rodeway Inn: 20%-30% off (60+) 29. Sleep Inn: 20%-30% off (60+) 30. Southwest Airlines: various discounts for ages 65 and up (Web fares are usually better than Senior fares.) 31. Trailways Transportation System: various discounts for ages 50 and up 32. United Airlines: various discounts for ages 65 and up (call before booking for discount) 33. U.S.Airways: various discounts for ages 65 and up (call before booking for discount) Activities & Entertainment 1. AMC Theaters: up to 30% off (55+) 2. Bally Total Fitness: up to $100 off memberships (62+) 3. BuschGardens Tampa : $3 off one-day tickets (50+) 4. Carmike Cinemas: 35% off (65+) 5. Cinemark/Century Theaters: up to 35% off 6. U.S.National Parks: $10 lifetime pass; 50% off additional services including camping (62+) 7. Regal Cinemas: 30% off 8. Ripley’s Believe it or Not: @ off one-day ticket (55+) 9. SeaWorld Orlando: $3 off one-day tickets (50+) Cell Phone Discounts 1. AT&T: Special Senior Nation 200 Plan $29.99/month (65+) 2. Jitterbug: $10/month cell phone service (50+) 3. Verizon Wireless: Verizon Nationwide 65 Plus Plan $29.99/month (65+) Miscellaneous 1. Great Clips: $3 off hair cuts (65+) 2. Super Cuts: $2 off haircuts (60+)

It's Another Beautiful Day in Paradise!

For those who are suffering in the NYC/NJ area, I just saw that Southwest has a round trip fare EWR/PHX for $206! Travel must end by February 15th. Wow! Check out my website for all the great things to see and do in the next few months... including the Barrett Jackson Car Auction, the Phoenix Open, Scottsdale's Parada del Sol Parade, Celebration of Fine Art, and the Arizona Centennial. 

Of course if you extend beyond the 15th you can catch Arizona Beer Week and Cactus League Baseball!

What's in Store for Housing in 2012?

Courtesy of REALTOR®Mag/National Association of REALTORS®
Daily Real Estate News | Wednesday, December 28, 2011 
 
The worst for the housing market may finally be over, according to housing experts in a recent article in Kiplinger. After median home price have dropped nearly 40 percent nationwide, a rebound is taking shape -- although, housing experts say, the market may stay flat for awhile before gradually ticking up. 

According to housing experts in a recent Kiplinger article, here are some predictions for the real estate market in the coming year:

Home prices stabilize: Mark Zandi, chief economist at Moody's Analytics, predicts that home prices nationwide may still drop another 3 to 5 percent in 2012, but the new year will most likely finally bring a leveling off of home prices before gains start to take shape in 2013. When markets do begin to stabilize in the new year, “price appreciation tends to spread unevenly, creating a lot of confusion about where the recovery is occurring and when,” David Stiff, chief economist at Fiserv Case-Shiller, told Kiplinger. “Even within a single city, more desirable neighborhoods will stabilize first, while prices in other neighborhoods may fall at a rapid pace.”

Housing affordability high: Housing affordability -- the ratio of median home prices to median family income -- will likely remain at record levels in 2012. Homes in many cities are “substantially undervalued,” the Kiplinger article notes. That may even lead to a mini bubble with double-digit spikes in prices, such as an increase of 10 to 15 percent in a given year in some markets, housing experts say. 

Low mortgage rates: Helping to keep affordability high, low mortgage rates are expected to continue on in 2012 -- at least the first part of the year, economists predict. The 30-year fixed-rate mortgage, the most popular among home buyers, has been hovering under a 4-percent average the past few weeks, staying in record low territory. Rates are expected to stay between 4 to 5 percent in 2012, predicts Guy Cecala, publisher of Inside Mortgage Finance, an industry publication. 

Sales increases: The National Association of REALTORS^® has already been showing a tick up in sales taking shape with increases in existing-home sales during the summer and early fall of 2011. High inventories of homes continue to flood the market but a drastic slowdown in new-home building the past three years is “gradually easing the surplus,” the Kiplinger article notes. 

Foreclosures: Foreclosures remain the problem and still plague many markets. After a slowdown with lenders processing the paperwork, foreclosures have began to pick up once again. About 1.84 million home loans are 90 days or more delinquent and 2.17 million have finished the foreclosure process but aren’t up for sale yet, according to RealtyTrac data. Alex Villacorta, director of research and analytics at Clear Capital, told Kiplinger that he predicts regardless of the downward price pressure caused from foreclosures, overall home prices won’t fall as long as lenders bring additional foreclosures to the housing market at a steady pace. 

Source: “What’s Ahead for Home Prices in 2012,” Kiplinger (January 2012)

5 Top Real Estate Stories in 2011

Courtesy of Keeping Current Matters/The KCM Blog

Posted 1/2/12

In 2011, we experienced one of the most volatile housing markets in American real estate history. Things we never anticipated happened. Events we were sure would take place didn’t. Today, we want to review the five headlines we think had the biggest impact in 2011.

1.) Interest Rates remained at historic lows

In order to help stabilize the economy in 2010, the Fed took certain actions which kept mortgage rates at or near historic lows (approximately 4%). Most felt this would be a short term tactic and once abandoned would result in rates returning to long term averages (6-7%).

However, the government has continued to support lower rates with the hope of fostering a recovery in the housing sector. The 30 year fixed rate mortgage (as measured by Freddie Mac) stood at 4.77% to begin 2011. A month later, it was over 5% and many, including us, believed this was the beginning of rates returning to normal levels. Instead, rates continued to fall ending 2011 at 3.91%.

The lower rates along with great prices have had a favorable impact on home affordability leading more buyers to enter the market.

2.) Sales up over 2010

At the beginning of 2011, we all realized that a year-over-year (Y-O-Y) comparison of home sales would not be a true “apples to apples” comparison as home sales at the beginning of 2010 were bolstered by the Home Buyers Tax Credit. Likewise, comparing home sales over the summer would not be a fair comparison as many sales in 2010 were dragged forward so that buyers could take advantage of the credit. However, many thought Y-O-Y comparisons would again be useful later in 2011 as the impact of the 2010 tax credit waned. Yet, the National Association of Realtors (NAR) Existing Homes Sales Report shows that over the last three months sales have increased quite nicely. The October and November reports each showed a Y-O-Y gain of in double digits and the December report gain was 12.2%. These numbers showed closed sales were increasing even though more contracts were falling through.

3.) Contract cancellation rate surges

Probably the most troubling trend to emerge in 2011 is that the number of sales contracts that are cancelled before closing has skyrocketed in the last year. The cancellation rate has jumped from 9% in August 2010 to 33% each of the last two months.

Some of the increase can be attributed to the higher level of difficulty in distressed property transactions. However, NAR also says cancellations are caused largely by “declined mortgage applications or failures in loan underwriting from appraised values coming in below the negotiated price.”

4.) Foreclosures were delayed

The robo-signing debacle of late 2010 caused a delay in many foreclosures entering the market. It DID NOT prevent the banks from continuing to put homes into the foreclosure process. The delays jut prevented banks from repossessing the homes and putting then up for sale as REOs (foreclosures owned by the banks).

For most of 2011 the banks and the state governments worked on a set of standards that would be enforced before a bank could repossess the house. They are currently working on a settlement to be paid for those homes that where foreclosed on without the proper paperwork.

As these procedures and settlements are completed, more and more of the backlog of distressed properties will come to market. Distressed properties sell at a discount. They will have a substantial impact on the prices of all houses in the region.

5.) Prices move up then down

Many experts expected prices to continue to slide downward as we entered 2011. However, a large inventory of distressed properties was held back (see #4). That turned out to be good news for prices as supply decreased throughout the year and demand increased in the second half of the year. That actually caused prices to ‘bottom out’ and ten nudge upward in the late summer and early fall.
As the foreclosed properties again began to enter the market in the last quarter, prices again began to slip. Most believe this downward trend will continue through the first half of 2012.

HAPPY NEW YEAR!

My grandpuppies and I wish you a very happy and healthy 2012!

May it be a year spent with those you care about most!