Pook's E-News / Arizona

Thursday, August 29, 2013

The COST of a Home: Last Year, This Year & Next Year

Courtesy of Keeping Current Matters/The KCM Blog
Posted: 26 Aug 2013

The cost of a home is determined mainly by two components: price and mortgage rate. Today, we want to show how the monthly cost of purchasing a median priced home has changed over the last twelve months and how it might change over the next twelve months. For the first two examples, we will be using the National Association of Realtors’ (NAR) Existing Home Sales Report to establish median price and Freddie Mac’s Primary Mortgage Market Survey to establish mortgage rate. We also assumed a 20% down payment in all examples.

LAST YEAR

The median priced home in the country was selling for $187,800. The 30-year fixed mortgage rate was at 3.5%. Here is what it would cost to buy a home last year:

TODAY

The median priced home in the country is selling for $213,500. The 30-year fixed mortgage rate is at 4.5%. Here is what it would cost a purchaser to buy a home today:
This Year

The monthly cost increased by: $190.78!

NEXT YEAR

Projecting into the future in real estate can be rather tricky. To establish future pricing, we depended on the over 100 housing experts surveyed for the Home Price Expectation Survey who called for an approximate appreciation rate of 5% over the next twelve months. For the interest rate, we took the average of the projections from the Mortgage Bankers’ Association, Freddie Mac and Fannie Mae. Here is what these experts project will be the approximate cost of a home a year from now:
Next Year

The monthly cost will increase by about: $97.32!

Bottom Line

From a financial perspective, why wait if you are thinking about buying?

Case-Shiller Report

Case-Shiller Report

August 27, 2013
The S&P/Case-Shiller Home Price Indices are calculated monthly using a three-month moving average. Index levels are published with a two-month lag and are released at 9 am EST on the last Tuesday of every month. The S&P/Case-Shiller U.S. National Home Price Index is calculated quarterly and levels are published in February, May, August, and November, also with a two-month lag. Index performance is based on non-seasonally adjusted data.

S&P/Case-Shiller Phoenix Home Price Index

The S&P/Case-Shiller Phoenix Home Price Index measures the average change in value of residential real estate in Phoenix given a constant level of quality. It is included in the S&P/Case-Shiller Home Price Index Series which seeks to measure changes in the total value of all existing single-family housing stock.

The Cromford Report™

Courtesy of Fidelity National Title Agency

          Luxury Market Report
          Click HERE for Luxury Market Report

          Northeast Valley Market Report
          Click HERE for NE Valley Market Report

Where are home prices headed this fall?

CBS News/MoneyWatch
August 22, 2013

Article by Ilyce Glink about prices nationwide, with some specific information related to Phoenix metro area (see quote below).

To get an idea of what might happen in the fall, we can look to Phoenix as a microcosm of the national market. Phoenix has unique housing market seasons: While most markets see a natural uptick in sales and prices in the spring and summer and a corresponding slowdown in the fall and winter, Phoenix doesn't.

Its "fall" season happens during the summer -- when it's just too hot outside to buy houses -- and the market naturally slows down, said Michael Orr, director of the Center for Real Estate Theory and Practice at the W.P. Carey School of Business at Arizona State University.

During the summer, prices have been stable.

"Prices remained almost completely flat, while last year they lost a few percentage points," Orr said.

For Orr, the discussion of the housing market "going soft" is all theoretical. It's a discussion of what might happen, and not what is happening.

Wednesday, July 3, 2013

We Mourn the Passing of 19 Brave Young Firefighters

Photo courtesy of Channel 12 News

Words cannot express the profound sadness we Arizonans are feeling as we mourn the loss and honor the memory of the Granite Mountain Hotshots, a group of 19 brave firefighters who perished while fighting the Yarnell Hill fire on Sunday, June 30th. While we are no strangers to the dangers of summer wild fires and the havoc they cause each year, we take for granted that those fires will be stopped and those who are fighting them will come back safely. This loss has stunned us all. Our thoughts and prayers go out to the families of these brave young men, the Prescott Fire Department, and all those who have been affected by this fire.

For those who want to make a contribution to help the families of the 19 fallen heroes during this difficult time, there are several ways you can help. Donations can be sent to the One Hundred Club of Arizona. This wonderful organization's mission is "to provide immediate financial assistance to families of public safety officers and firefighters who are seriously injured or killed in the line of duty, and to provide resources to enhance their safety and welfare."

Three ways to Donate to the 100 Club Survivors Fund:

•Online: To make a donation to the 100 Club's Survivors Fund in memory of the Granite Mountain Hotshots, click here.

•During the month of July, cash donations can be made at any Credit Union West branch location - account #121734-12 Granite Mountain Hotshots Charity Fund

•Or by mail, make checks payable to the 100 Club of Arizona and mail to:
100 Club of Arizona
5033 North 19th Avenue, Suite 123
Phoenix, AZ. 85015

To donate directly to the families:
Please use the 'Phoenix Firefighters Union Relief Fund'
•Online: www.l493.org
•Or by mail, make checks payable to the Phoenix Firefighters Union Relief Fund and mail to:
UPFFA
61 E. Columbus
Phoenix, AZ 85012

Additionally, for those who want to contribute,

X-treme Apparel of Phoenix has made t-shirts honoring the 19 firefighters who perished while fighting the Yarnell Hill Fire. The t-shirts cost $10 (plus tax and shipping) and $7 goes directly to the Family Fund for families of the Granite Mountain Hotshots.

As the Yarnell fire continues to burn, there are many families who have lost homes and some who still don't know if their homes are still standing or not. The American Red Cross Grand Canyon Chapter has set up two shelters in the area. For information on how you can help the victims, here is information from KPHO - CBS 5.