Rental prices on the rise!

Wednesday, October 29, 2014

Rents on the rise for metro Phoenix houses, apartments
Renters are paying more for apartments and houses in metro Phoenix than they did a year ago. The average rent on an apartment climbed 4.9% during the past year to reach $815 a month at the end of September. Monthly rents on houses are up 5.8 percent from last year. In September, there were 4,342 houses, not including vacation homes, for rent that were listed on the ARMLS.
Read article - azcentral.com

purchase vs rent

Buying in metro Phoenix is as much as 34 percent cheaper than renting a house, based on current home prices, rents, types of mortgages and interest rates. The comparison comes from home-buying website Trulia, but the data appears to be unbiased.

Falling interest rates over the past few weeks have made buying more affordable for most people. The average rate for a 30-year mortgage is 4.12 percent, according to Freddie Mac. That's compares with 4.23 a month ago.

Nationally, Trulia says buying is now 38 percent cheaper than renting if you stay in a house seven years, get a 30-year mortgage, put 20 percent down, itemize deductions at the 25 percent tax bracket and get a 4.3 percent mortgage rate. The formula also takes into account closing costs, insurance, maintenance and taxes.

What is really surprising about the survey is that buying is cheaper in all of the U.S.'s 100 largest metro areas.

The benefit is the smallest in Honolulu, where purchasing a house is 17 percent less expensive than renting. Detroit home buyers get the best deal because Trulia found it's 63 percent cheaper to own than rent.

Beautiful Avondale Super Bowl Rental

Mortgage rates sink

Mortgage Rates Sink to New Low for 2014

DAILY REAL ESTATE NEWS | FRIDAY, AUGUST 22, 2014

Despite predictions that mortgage rates were to inch up in the second half of this year, fixed-rate mortgages continue to tumble.

Borrowing costs moved lower this week, as the 30-year fixed-rate mortgage dipped to a 4.10 percent average, Freddie Mac reports in its weekly mortgage market survey. The 30-year fixed-rate mortgages previous low average for the year was 4.12 percent.

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Freddie Mac reports the following mortgage rate national averages for the week ending Aug. 21:

• 30-year fixed-rate mortgages: averaged 4.10 percent, with an average 0.5 point, dropping from last week’s 4.12 percent. Last year at this time, 30-year rates averaged 4.58 percent.
• 15-year fixed-rate mortgages: averaged 3.23 percent, with an average 0.6 point, dropping from last week’s 3.24 percent average. A year ago, 15-year rates averaged 3.60 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 2.95 percent, with an average 0.5 point, dropping from last week’s 2.97 percent average. Last year at this time, 5-year ARMs averaged 3.21 percent.
• 1-year ARMs: averaged 2.38 percent, with an average 0.5 point, rising from last week’s 2.36 percent average. A year ago, 1-year ARMs averaged 2.67 percent.

Source: Freddie Mac

August event calendar

BEWARE OR FAKE REFRIGERANTS!!!!!

Hello all  

With summer reaching it's highs here is some info to be aware of:

We've all heard of fake Rolexes and Gucci purses, but counterfeit refrigerant?! Counterfeit and alternative refrigerants may be rare, but you should be aware that they're out there—and they represent a safety hazard that could damage your clients' HVAC systems.

The cost of R-22 Freon is skyrocketing, and this rapid acceleration in price has created a market for counterfeit and alternative refrigerants. The same holds true for R-134a used in kitchen refrigerators, and the fake stuff can be dangerous!

Genuine, alternative, and counterfeit refrigerants… what's the difference?

Genuine Refrigerants have been laboratory tested and approved by the EPA and HVAC manufacturers for use in their equipment. When refrigerant is required to perform covered A/C system repairs, Old Republic Home Protection (ORHP) covers the cost of genuine refrigerant.

Alternative Refrigerants are approved by the EPA but not by manufacturers for use in their equipment. Using alternative refrigerants is legal, but can void the manufacturer's warrantyas an improper repair. Likewise, Old Republic Home Protection's Plan does not cover a system failure if alternative refrigerant is determined to be the cause (please see Limitations of Liability, paragraph 1.E. of our Home Warranty Plan). We follow manufacturer guidelines when adding refrigerant to complete repairs; we do not use alternatives!

Counterfeit Refrigerants are illegal to use or sell, and neither the EPA nor the equipment manufacturers have approved their use. Counterfeit refrigerants are often a concoction of genuine refrigerant and additives. These "cocktails" can be dangerous, as they may be toxic and/or explosive. ORHP's Plan does not cover a system failure if counterfeit refrigerant is determined to be the cause. In addition, it is not likely that any of our Independent Network Service Providers will provide service if they discover a counterfeit, as it may require specialized hazmat methods for cleanup.

Give your home buyers the best advice: suggest that they have the HVAC system checked by a trusted HVAC expert rather than relying on the usual home inspection. HVAC experts can spot alternative and counterfeit refrigerants, in addition to other potential HVAC issues that require correction prior to close-of-sale.

Buying a home? Don't make these mistakes!

5 Mistakes First-Time Home Buyers Make

DAILY REAL ESTATE NEWS | MONDAY, JULY 21, 2014

First-timers can be eager to jump into home ownership. But real estate experts say they see them committing the same mistakes, time and time again. Here are some of the most common ones, as identified by experts in a recent CNBC article:

1. They’re unprepared to compete against all-cash offers. Buyers need to be ready to make a quick decision if they’re housing market is heating up. Buying a home is “really like finding a job – it’s going to take a lot of time to prepare,” says Cara Pierce, a certified housing counselor with ClearPoint Credit Counseling Solutions. “That way, when the deal comes along, you’re ready to pounce on it.” Housing experts say buyers should have already saved as much as possible for a downpayment, repaired any credit report blemishes, and gotten preapproved for a loan as they start their house hunt to put them in a better position to compete.

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2. They place a car ahead of the home. Lenders are going to scrutinize applicants’ debt-to-income ratio when assessing how well they can afford a mortgage payment. Consumers’ debt has gone on average from $40,000 in 2010 to $51,000 today, according to David Norris, president and COO of loanDepot, a non-bank mortgage lender. "It would be much easier to own a home if you can show a history of saving and not have gotten yourself into too much debt," Norris told CNBC.

3. They place too much emphasis on online loan information. Online sites can be good for finding out general information about loan products and estimated costs, but experts recommend visiting with mortgage lenders face-to-face to help demystify some of the process and to take into account your specific situation. Go to different places and talk to loan officers to get a feel for what the differences are between similar types of loans," says Pierce. "Sometimes a company won't charge an origination fee, but then the interest rate is higher … and in some cases you can put many of the upfront costs—closing costs, title insurance—into the loan, which makes your balance larger."

4. They bank too much on online home values. Some real estate websites are giving buyers a false sense of home values, the CNBC article notes. "If a buyer believes that the actual value of the property is $1.1 million [as listed online] when it's really $1.3 million, it's a real disservice to the client,” says John Barrentine, co-founder and CEO of RED Real Estate Group. “You really should [spend time] with someone that understands the market, someone who's there day in and day out." Home buyers can get the best feel of the market by working with a real estate agent and driving around neighborhoods and get a sense of things about homes that may be less valuable or even more valuable than perceived online.

5. They forgo the home inspection. About 10 percent of homes recently purchased weren’t inspected by a home inspector, according to Bill Loden, president of the American Society of Home Inspectors. Some buyers were trying to cut down on the costs of hiring an inspector to investigate a home – which usually averages about $450 — but defects uncovered later could potentially result in the loss of thousands of dollars. "It takes a trained eye to be able to see the problems that can exist in a home," Loden said. "The inspection can also give the first-time buyer a bit of a schooling on the house and how to maintain it." Buyers should also be prepared to ask questions about conditions that are common to specific areas, such as radon in Midwest; sewers in California; and active clay soils in Dallas that can lead to foundation issues, the CNBC article notes. The home may require additional inspection from a specialist to rule out potential problems.

Source: “8 Biggest Mistakes First-Time Homebuyers Make,” CNBC (July 17, 2014)