News for Prescott AZ - AmericanTowns.com

Monday, February 28, 2011

Inside Lending Newsletter From Theron Wall

 

Inside Lending from Theron Wall

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Theron Wall

Theron Wall
Branch Manager
3615 Crossings Dr, Suite A
Prescott, AZ 86305
Phone: (928) 778-7167
Mobile: (928) 533-7473
Fax: (928) 445-5308

Wallick & Volk Mortgage

For the week of February 28, 2011 – Vol. 9, Issue 9

>> Market Update 

QUOTE OF THE WEEK..."We would like to live as we once lived, but history will not permit it."--John F. Kennedy

INFO THAT HITS US WHERE WE LIVE
...Things do keep changing, but we all hope that by and large those changes mean progress. We certainly saw evidence of that in the housing market last week, as Existing Home Sales headed up in January for the third month in a row. They've now reached a 5.36 million annual rate, close to the long-term trend of 5.5 million and up over 5% from a year ago. This, as Martha Stewart says, is "a good thing," since the supply of existing homes has now dropped to 7.6 months, close to the 6-month ideal, which favors neither buyers nor sellers.

The Case-Shiller home price index for the 20 largest metros was down in December, its sixth straight monthly decline since the tax credit ended. The media seemed thrilled to announce a "double dip" in housing prices, probably because they've been unable to use their "double dip" catch phrase for anything else. The facts, as usual, tell another story. Case-Shiller was down just 2.4% for the year, its smallest drop since the 2006 price peak. And some observers anticipate modest price gains this year. New Home Sales did fall 12.6% in January, which may have been due to the bad weather, though sales were up in the Northeast and Midwest and down in the West and South. Go figure. Inventories are now at their lowest level since 1967.

BUSINESS TIP OF THE WEEK...Targeting is a powerful business strategy. Don't try to be all things to all people. Pick a niche. The secret to broadening your appeal often lies in narrowing your focus.

>> Review of Last Week

BULLS TAKE A BREATHER...Everyone on Wall Street had Presidents Day off Monday but the bulls never really showed up for work the rest of the week either. Well, bulls did stage a bit of a comeback on Friday, but it wasn't enough to bring stock prices up to where they were the week before. So after three weeks of charging higher, the markets fell off, as all three major indexes went south for the week.

The Middle East continues to trouble investors, with Libya the latest focal point for that region's violent uprisings. There was a sympathetic jump in oil prices, never a good development for our economy, and the week ended with the second estimate for Q4 GDP revised DOWN to a 2.8% growth rate from the original 3.2%. Weighing in against these negatives, the latest Consumer Confidence Report showed people's attitudes about the economy are actually growing more upbeat. The Richmond Fed index showed robust manufacturing growth in the important mid-Atlantic region. And initial jobless claims went below 400,000 for the week, while continuing claims remain under 4 million.

For the week, the Dow ended down 2.1%, at 12,130; the S&P 500 was down 1.7%, to 1,320; and the Nasdaq was off 1.9%, ending at 2,781 .


Bond prices benefited from both increased tensions in the Middle East and the drop in GDP. The flight to safety helped the FNMA 4.0% bond we watch end decidedly up for the week, closing at $98.17. Mortgage rates eased a tad lower again. Freddie Mac's weekly survey of conforming mortgages showed national average fixed-rate mortgage rates staying down near historic lows.

DID YOU KNOW
?...Mortgage interest rates are based on Mortgage Backed Securities (MBS), also called mortgage bonds. When bond prices go up, mortgage rates go down, but when bonds drop, rates rise.

>> This Week’s Forecast

STEADY AS SHE GOES...This week there's a wide range of economic news, but it's all expected to be a bit bland. Core PCE Prices, the Fed's favorite inflation measure, should drift up a little, but stay well within the target range. The ISM and Chicago PMI indexes are forecast to show manufacturing growing, though at no faster a rate. Pending Home Sales, a measure of signed contracts for closings a few months out, should be down a bit in December after being up a bit the previous month. Q4 Productivity is expected to hold steady.

The big news of course will be the February Employment Report come Friday. But again, steady progress is predicted, not the dramatic boost in jobs we need. With 180,000 new jobs forecast, the unemployment rate will actually inch up because of workforce expansion.

>> The Week’s Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Economic Calendar for the Week of February 28 – March 4

 Date

Time (ET)

Release

For

Consensus

Prior

Impact

M
Feb 28

08:30

Personal Income

Jan

0.3%

0.4%

Moderate

M
Feb 28

08:30

Personal Spending

Jan

0.4%

0.7%

HIGH

M
Feb 28

08:30

Core PCE Prices

Jan

0.1%

0.0%

HIGH

M
Feb 28

09:45

Chicago PMI Index

Feb

67.5

68.8

HIGH

M
Feb 28

10:00

Pending Home Sales

Dec

–3.2%

2.0%

Moderate

Tu
Mar 1

10:00

ISM Index

Feb

60.5

60.8

HIGH

W
Mar 2

10:30

Crude Inventories

2/26

NA

0.822M

Moderate

Th
Mar 3

08:30

Initial Unemployment Claims

2/26

400K

391K

Moderate

Th
Mar 3

08:30

Continuing Unemployment Claims

2/19

3.800M

3.790M

Moderate

Th
Mar 3

08:30

Productivity–Rev.

Q4

2.7%

2.6%

Moderate

Th
Mar 3

10:00

ISM Services

Feb

59.0

59.4

Moderate

F
Mar 4

08:30

Average Workweek

Feb

34.3

34.2

HIGH

F
Mar 4

08:30

Hourly Earnings

Feb

0.2%

0.4%

HIGH

F
Mar 4

08:30

Nonfarm Payrolls

Feb

180K

36K

HIGH

F
Mar 4

08:30

Unemployment Rate

Feb

9.1%

9.0%

HIGH

 

>> Federal Reserve Watch   

Forecasting Federal Reserve policy changes in coming months...There are more rumblings about inflation, which could send the Fed Funds Rate heading north, but not while the jobs recovery is proceeding at such a snail's pace. For the first half of the year, economists think there is virtually zero likelihood of a rate hike from the Fed. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.

Current Fed Funds Rate: 0%–0.25%

After FOMC meeting on:

Consensus

Mar 15

0%–0.25%

Apr 27

0%–0.25%

Jun 22

0%–0.25%


Probability of change from current policy:

After FOMC meeting on:

Consensus

Mar 15

     <1%

Apr 27

     <1%

Jun 22

     <1%

Dce 

This e-mail is an advertisement for Theron Wall. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice, or a commitment to lend. Although the material is deemed to be accurate and reliable, there is no guarantee of its accuracy. The material contained in the newsletter is the property of Wallick & Volk Mortgage and cannot be reproduced for any use without prior written consent. It is designed for real estate and other financial professionals only. It is not intended for consumer distribution. The material does not represent the opinion of Wallick & Volk Mortgage. BK 0018295 NMLS #256412



Equal Housing Lender  

 

Monday, February 21, 2011

Long-Term Benefits of Home Ownership

 

The Gift that Keeps on Giving?

"The market is great!  Interest rates are still low!  It's a buyer's market!"  We've all seen plenty of hype about how NOW is the best time to buy a home.  A lot of that hype is actually valid advice if you're wondering when to buy, but it won't do you a bit of good if you're still wondering whether you should buy a home at all.

To help you make the choice that really works for you in the long run, here are some good resons to buy a home—in any economy.

Equity

The days of flipping houses for magic money are gone.  If you buy a home today, don't expect to get your money back any time soon unless you're putting in a lot of sweat equity improving it.  The days of magic money and bidding wars are gone.

Still, if you're living in it, a home is still one of the most reliable long-term investments you can make.  You're going to be paying to live anywhere, even as a renter.  If even some of that money comes back to you in equity when you sell, you're ahead of the game.  And if you stay in your home for long enough, at some point, you're done, and left with only taxes and repairs!

Long-term affordability

There are very few cases in which inflation is your friend, but home ownership is one.  Your mortgage paint may seem hefty now, but in 20 years, it might be a drop in the bucket.  According to U.S. Census data, the median California home price in 1970 was $66,400.  With 20% down at 10% interest for 30 years, that's a monthly mortgage payment of $466.17.  While that was a substantial amount of money in 1970, by the time the mortgage expired in 2000, many car payments cost more, and renting a similiar home would cost several times as much.

Stability

Theres a reason the federal government has encouraged home ownership for decades.  Buying a home creates stability for families, neighborhoods, and cities.  It also creates memories by allowing you to call your own shots and make your own rules about pets, paint, and the traditions you want to create.  And in the end, that might be the most important benefit of all.


View article...

 

This is not the opinion of Brad Bergamini, Realty Executives Northern Arizona or any of its affiliates.  This post is for informational purpose only and is not guaranteed and does not render as legal advice.  Buying and selling Real Estate in Arizona or Prescott Arizona is a serious task and should be consulted with personally with Realtor or Real Estate Attorney.  Please visit my website for contact information

http://bradbergamini.com or http://everythingprescott.com

 

 

Three Ways to Increase the Value of Your Home

 

Buyers only get one first look at a property, and they don't want to use their imagination. They assume the house they see is as good as it's going to get. If you want your home to sell, step out of your comfort zone and think like a buyer. Here are three ways to help you turn your house into the home of someone else's dreams. We've broken down each category into low-cost, "Basic" tips and tricks, and an "All-Out" blow-the-budget transformation. How far you take it is up to you.

Clean

No one likes a ditty house, and your what "lived in" is to you might be someone else's "messy." When in doubt, clean. It's the least expensive way to improve your home's initial appeal, and it's a good way to get a jump-start on your move.

Basic: The first thing you need to do is de-clutter. If your moving company offers storage, this is the time to use it. Extra furniture, oddball art, pots and pans that don't fit in the kitchen—it all needs to go. Don't go overboard—your house should still look like a home. It just needs to be airy enough for a buyer to put his or her mental imprint on it. Your hackey sack collection from college won't help. Next up is a good, solid scrubbing. Spend a weekend washing the floors, baseboards, and bathrooms. Be sure to get the tops of cabinets and corners behind furniture. Clean every piece of glass in the building. Too many people ruin a pristine home with spotty mirrors and doors. Don't forget the outside of the house. Hose down your exterior walls and driveway, trim the lawn and hedges, and remove any trash cans and clutter from sight. If your neighbors are less-than-tidy, you might want to offer them some free help, as well. And while you're cleaning the garage, wash your cars, too. They make an impression.

All-Out: If you have money to spend, install space-saving storage solutions in the garage, kitchen, and bathroom to reduce clutter. Consider paying a service to do the deep cleaning you're bound to miss. Rent a pressure washer for the driveway or (if it's a real mess and you're feeling generous), repave.

Fix

Part of the joy of buying a new home is starting with a clean slate. No one wants to buy an existing to-do list of nagging little fix-its. Making small fixes now can put the buyer's mind at ease.

Basic: Focus on inexpensive, highly-visible problems. Doorbells, window glass, cabinet handles, and holes in walls are all easy to spot and cheap to fix.

All-Out: Take aim at long-term maintenance projects, such as pool pumps, water heaters, and air conditioning servicing. Buyers probably won't notice these on their own, but your agent can call attention to these facts to help reduce worries about long-term costs.

Brighten

Buyers like to see what they're viewing. Good lighting, vivid color, and a few visual cues can go a long way toward making your home a memorable one.

Basic: Repaint interior walls, particularly those in the bathroom, kitchen, and extremely bright areas. White walls are particularly important, as they get dingy quickly. Replace traditional incandescent light bulbs with compact fluorescents, which put brighter lights in your existing sockets while saving money. Tie back curtains to let in the maximum amount of sun, which makes a house look more inviting than artificial light. Spruce up empty or colorless zones with potted plants. They add character to a room, but are obviously disposable if a buyer dislikes them. Repaint your front door, mailbox, and any street numbers.

All-Out: Repainting the entire interior if it's been more than a few years since the last paint job. Install additional lighting in cabinets and closets. Add new cabinet doors and countertops.

What Not to Do

While you can certainly overspend on any of the above suggestions, their value is well-established. Making a home cleaner, better-functioning, and more attractive is a no-brainer. However, some improvements can go too far, and actually hurt your investment. As a general rule, don't build for the sake of building. Bigger isn't always better, and if you take a project too far, you risk going in a direction the buyer will have to undo. For example, adding an extra bedroom might seem like a great investment, but a retired couple may prefer to use that space to install a pool in the back yard. Upgrade the home you have, but don't try to make it something else.

By Cormac Foster


View article...

 

This is not the opinion of Brad Bergamini, Realty Executives Northern Arizona or any of its affiliates.  This post is for informational purpose only and is not guaranteed and does not render as legal advice.  Buying and selling Real Estate in Arizona or Prescott Arizona is a serious task and should be consulted with personally with Realtor or Real Estate Attorney.  Please visit my website for contact information

http://bradbergamini.com or http://everythingprescott.com

 

 

Thursday, February 17, 2011

Inside Lending Bulletin From Theron Wall- FHA MIP Changes

 

Inside Lending from Theron Wall

visit my website     email me now

Theron Wall

Theron Wall
Branch Manager
3615 Crossings Dr, Suite A
Prescott, AZ 86305
Phone: (928) 778-7167
Mobile: (928) 533-7473
Fax: (928) 445-5308

Wallick & Volk Mortgage

February 17, 2011 Inside Lending Bulletin

FHA MIP Changes

On April 18, 2011 HUD will increase the Annual Mortgage Insurance Premium by 25 basis points.

This will increase the monthly payment of FHA borrowers whose case numbers are assigned on or after April 18, 2011.

Please email us for information on how this increase will affect specific transactions.

Thank you!


This e-mail is an advertisement that was sent to you because of your relationship with Theron Wall. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice or a commitment to lend. Although the material is deemed to be accurate and reliable, there is no guarantee of its accuracy. The material contained in the newsletter is the property of Wallick & Volk Mortgage and cannot be reproduced for any use without prior written consent. Wallick & Volk Mortgage is an Equal Housing Lender. BK 0018295 NMLS #256412


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Equal Housing Lender  

 

Wednesday, February 16, 2011

Realty Executives Virginia Explodes with Growth in 2011

 

 

Wes Coons

Realty Executives Virginia and Wes Coons are pleased to announce the merger of The Real Estate XChange and Matt Gavano with Realty Executives Virginia. The following Realtors are now members of the Realty Executives team: Kathy Hersh, Gina Miller, Sandy Byrum, Alex De La Zerda, Linda De La Zerda, Matt Gavano, Sue Gavano, Dee Gavin, Francine Goddard, Dan Lawson, Mia Lloyd, Brenda Morse, Sean Schroeder, and Kim Stanley. These new Executives closed 114 transactions in 2010.

In total, Realty Executives Virginia has added 17 Executives to their team since January 1, 2011 with projected record-breaking growth for the first quarter of this year.


View article...

Realty Executives and Dave Brewer Realty Join Forces

 

 

Jen Dollar

Eastshore Investment, LLC (owned by Jen Dollar and Jeff Ostlie) would like to announce the merger of sales forces between its subsidiary, Realty Executives Seminole and Dave Brewer Realty, Inc. The announcement of the merger received an overwhelmingly positive response from both the sales associates of Dave Brewer Realty, Inc. and the Executives of Realty Executives Seminole.

The merger is truly a win-win for both organizations.  Their core values, culture, and vision complement the other providing benefits to their professional staff, Executives and clients.

Dave Brewer Realty, Inc. has long been the publisher of the popular real estate publication The Perfect Home Guide, which features high end properties in Seminole county.

Subsequent to the merger, the distribution of the magazine will be expanded to encompass the additional Eastshore Investment companies to include:

Realty Executives Central Florida, located in the Dr. Phillips area in south Orlando;

Realty Executives Orlando, located in Longwood, Florida.

With the expansion of The Perfect Home Guide into these markets, it is expected to become the premier real estate magazine in Central Florida.

On a local level, Realty Executives has embarked on a powerful technology initiative to assist its Executives in marketing their properties locally and throughout the world, expanding their business substantially. The recent release of www.realtyexecutivesfl.com provides a powerful lead generation program that benefits the Executive, home sellers, and homebuyers.

Each Executive of Realty Executives Seminole and the associates of the former Dave Brewer Realty, Inc., now have their very own fully functional lead capture system that:

  • Helps Executives generate new listings and new buyers.
  • Exposes an Executive's existing listings to a worldwide audience.
  • Provides a fully functional IDX platform for buyers to search area real estate.

Along with the merger, Dave Brewer's associates will now enjoy the full benefits of association with an internationally recognized real estate franchise — Realty Executives International — with over 11,000 total Executives in 700 offices, in 24 countries, Realty Executives is a true international company. Now more than ever, Dave Brewer's Executives will be able to leverage the power of an international referral network to market their listings and generate additional business.

With the merger between Realty Executives Seminole and Dave Brewer's company, the combined efforts of the Eastshore companies now represents nearly $100 million worth of sales volume over the past 12 months, which ranks the organization:

  • #2 in Lake Mary
  • #6 in Seminole county
  • #11 in the 4 county area (consisting of Osceola, Orange, Seminole, and Volusia counties)

(Figures compiled using total sales production for the 12 month period prior to February 1, 2011 to include Realty Executives Seminole, Realty Executives Central Florida, Realty Executives Orlando, and Dave Brewer Realty, Inc.)


View article...

Home Inspections 101

 

 

According to a study conducted by the National Association of Realtors (NAR) and the American Society of Home Inspectors (ASHI) in 2001, 97 percent of home buyers who received home inspections believe they received a good value for their money. A home's history gives it character and charm, but also takes a toll.

Over time, roofs sag, mortar cracks, and furnaces lose efficiency. Beyond this normal wear and tear, older homes can harbor mold, water damage, termites, or other structural threats that can cost tens of thousands of dollars to fix.

New homes need inspections, too

New or old, a house isn't a car—you can't just trade in a lemon. Regardless of its similarities to neighboring structures, every home is different. Each home is build by different hands, at different times, on different land, and each responds differently as it settles. A home inspection before purchase your new home can alert you to long-term risks, identify immediate problems your builder must fix, and help you get the most from your new home warranty before it expires.

There's no such thing as a perfect home. Even if there were, it wouldn't last long. Climate, material flaws, poor workmanship, and even gravity conspire to tear every home apart. Home maintenance is a necessary cost of home ownership, but homebuyers need to make smart decisions about acceptable costs. A home inspection is the most cost-effective way to go into a purchase with your eyes open.

What they won't cover

When you schedule an inspection, have the inspector outline special conditions he or she does not cover. Lead, radon, asbestos, and other toxic substances are generally not covered, and may require an inspector with a special certification.

Inspecting the Inspector

Finding a good home inspector can take some work, but it's worth it. When you're comparing inspectors, remember TEN—Transparency, Experience, and Neutrality.

Transparency

There's nothing magic about home inspection, and good inspectors will be completely forthcoming about what they look for, how, and why. If you don't understand something, ask. Professional inspectors will always answer your question to your satisfaction. Ask to see the home inspection, or better yet—go along on the inspection. It's your house, after all. If the inspector hedges, walk away. Don't be shy. Your home is worth more than their pride.

Experience

Every home inspector should have references. Call them.

Neutrality

Inspectors work for you, not the realtor, the owner, or a contractor. A well-established inspector will have worked with all sorts of real estate and construction professionals, but recommending those professionals is a conflict of interest.

Certifications

Not all states require certifications, and a certification doesn't guarantee There are dozens of certification associations, but some of the older and larger include ASHI, the National Academy of Building Inspection Engineers, and the National Association of Home Inspectors.

by Cormac Foster


View article...

News Flash: Decline In Real Estate Sales Greater Than Stated?

 

NEWS FLASH

Decline in real estate sales greater than stated?

CoreLogic: NAR methodology appears to inflate home sales by 15 to 20%

Statistics published by the National Association of Realtors appear to overstate sales of existing home by 15 to 20 percent, mortgage and property data aggregator CoreLogic says in a new report that concludes home sales fell more sharply last year than previously thought.

A NAR spokesman said the Corelogic claim "is premature at best," and NAR will be making some benchmark revisions to its historic sales data later this year.

Read full story here.

 


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Tuesday, February 15, 2011

Interesting figures

This was sent to me by a friend. I thought I would post it here. ..


 

Two years ago today, Barack Obama was inaugurated as president of the United States .  Are you better off today than you were two years ago? Numbers don't lie, and here are the data on the impact he has had on the lives of Americans:

 

January 2009

TODAY

% chg

Source

Avg. retail price/gallon gas in U.S.

$1.83

$3.104

69.6%

1

Crude oil, European Brent (barrel)

$43.48

$99.02

127.7%

2

Crude oil, West TX Inter. (barrel)

$38.74

$91.38

135.9%

2

Gold: London (per troy oz.)

$853.25

$1,369.50

60.5%

2

Corn, No.2 yellow, Central IL

$3.56

$6.33

78.1%

2

Soybeans, No. 1 yellow, IL

$9.66

$13.75

42.3%

2

Sugar, cane, raw, world, lb. fob

$13.37

$35.39

164.7%

2

Unemployment rate, non-farm, overall

7.6%

9.4%

23.7%

3

Unemployment rate, blacks

12.6%

15.8%

25.4%

3

Number of unemployed

11,616,000

14,485,000

24.7%

3

Number of fed. employees, ex. military (curr = 12/10 prelim)

2,779,000

2,840,000

2.2%

3

Real median household income (2008 v 2009)

$50,112

$49,777

-0.7%

4

Number of food stamp recipients (curr = 10/10)

31,983,716

43,200,878

35.1%

5

Number of unemployment benefit recipients (curr = 12/10)

7,526,598

9,193,838

22.2%

6

Number of long-term unemployed

2,600,000

6,400,000

146.2%

3

Poverty rate, individuals (2008 v 2009)

13.2%

14.3%

8.3%

4

People in poverty in U.S. (2008 v 2009)

39,800,000

43,600,000

9.5%

4

U.S. rank in Economic Freedom World Rankings

5

9

n/a

10

Present Situation Index (curr = 12/10)

29.9

23.5

-21.4%

11

Failed banks (curr = 2010 + 2011 to date)

140

164

17.1%

12

U.S. dollar versus Japanese yen exchange rate

89.76

82.03

-8.6%

2

U.S. money supply, M1, in billions (curr = 12/10 prelim)

1,575.1

1,865.7

18.4%

13

U.S. money supply, M2, in billions (curr = 12/10 prelim)

8,310.9

8,852.3

6.5%

13

National debt, in trillions

$10.627

$14.052

32.2%

14

Just take this last item:  In the last two years we have accumulated national debt at a rate more than 27 times as fast as during the rest of our entire nation's history.  Over 27 times as fast!  Metaphorically, speaking, if you are driving in the right lane doing 65 MPH and a car rockets past you in the left lane 27 times faster . . . it would be doing 1,755 MPH!  This is a disaster!

Sources:

(1) U.S. Energy Information Administration; (2) Wall Street Journal; (3) Bureau of Labor Statistics; (4) Census Bureau; (5) USDA; (6) U.S. Dept. of Labor; (7) FHFA; (8) Standard & Poor's/Case-Shiller; (9) RealtyTrac; (10) Heritage Foundation and WSJ; (11) The Conference Board; (12) FDIC; (13) Federal Reserve; (14) U.S. Treasury

 

 

 

Brad Bergamini, real estate agent on Zillow

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