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The Housing Market in Tucson Has Turned!
The market in Tucson has turned! We have been waiting over 6 years to say this, but the data and trends point to a recent shift in the market.
Inventory is down, sales are up – resulting in only 4.1 months of inventory.
Even pricing is showing some early positive signs, with median price increasing to $133,500 in March.
We are watching closely for any emerging trends across other local markets in southern Arizona, including the Green Valley and Sierra Vista areas. Just as Tucson tends to follow Phoenix, some of these other markets may follow Tucson’s uptick.
As of March 2012 active inventory was 5,486, an 18% decrease from March 2011.
There were 1,347 closings in March 2012, 15% above March 2011.
Months of Inventory was 4.1, down from 5.7 in March 2011. Months of Inventory (MOI) is a good indicator of market health, taking into account both current inventory and sales rates. As a rule of thumb, a market is considered “balanced” when Months of Inventory is around 6.
Median price of sold homes was $133,500 for the month of March 2012, up 7% from March 2011.
The Tucson Market had 1,928 new properties under contract in March 2012, up 24% from March 2011.
Good News at last for Sellers.
Find Out What Your Home is Worth in Today’s Market, Call Us Today: (520) 219-1024.
RE/MAX Reports March home prices up 5.8% from last year
Home prices in the 53 largest cities increased 5.8% in March from the same month last year, according to a report from real estate association RE/MAX.
The homes sold in March had a median sales price of $184,525. It was the second-straight month prices rose higher than the year-ago period. Before February, home prices landed below year-ago levels for 18 consecutive months. But home sales steadily picked up over the last nine months.
In March, home sales climbed 1.5% from last year and jumped more than 25% from February, according to the report.
“With buyers starting to jump into this market, this year’s selling season is shaping up to be the strongest we’ve seen in years,” said Margaret Kelly, CEO of RE/MAX. “Although we don’t expect home prices to rise in every market at the same rate, the worst is definitely behind us, and a slow, steady recovery is taking hold.”
Detroit showed the largest increase in prices from last year, increasing 22.8%, followed by Miami (21.8%), St. Louis (18.5%) and Phoenix (18.2%).
The homes sold in March spent an average 101 days on the market, down from 104 last year.
Inventory also dropped to a 5.3-month supply, a roughly 2% dip from February and the 21st consecutive monthly decline. The shadow inventory of foreclosed homes or those on the verge of repossession spans into the millions, and is anticipated to begin growing again as the robo-signing freeze thaws.
But RE/MAX anticipates housing to rebound through the selling season.
“Following these trends, the spring and summer months should experience increased activity. With falling inventory and many markets witnessing multiple offers with bidding competitions, prices are likely to continue to rise in many areas,” according to the report.
Source: john Prior, Housingwire
Regular Home Maintenance Pays Off When Selling Your Home
Regular Home Maintenance is Key to Preserving the Value of Your House
If you think home maintenance is an unavoidable series of weekend-eating chores, remember the age-old advice of Benjamin Franklin: “An ounce of prevention is worth a pound of cure.” The fact is, proactive maintenance is essential to preserving the value of your home—without it, your home could lose 10% of its value. Regular home maintenance enhances curb appeal, ensures safety, and prevents neglected upkeep from turning into costly major repairs.
“It’s the little things that tend to trip up people,” says Frank Lesh, former president of the American Society of Home Inspectors and owner of Home Sweet Home Inspection Co. in Chicago. “Some cracked caulk around the windows, or maybe a furnace filter that hasn’t been changed in awhile. It may not seem like much, but behind that caulk, water could get into your sheathing, causing mold and rot. Before you know it, you’re looking at a $5,000 repair that could have been prevented by a $4 tube of caulk and a half hour of your time.
Maintenance affects property value
Outright damage to your house is just one of the consequences of neglected maintenance. Without regular upkeep, overall property values are affected.
“If a house is in worn condition and shows a lack of preventative maintenance, the property could easily lose 10% of its appraised value,” says Mack Strickland, a professional appraiser and real estate agent in Chester, Va. “That could translate into a $15,000 or $20,000 adjustment.”
In addition, a house with chipped, fading paint, sagging gutters, and worn carpeting faces an uphill battle when it comes time to sell. Not only is it at a disadvantage in comparison with other similar homes that might be for sale in the neighborhood, but a shaggy appearance is bound to turn off prospective buyers and depress the selling price.
“It’s simple marketing principles,” says Strickland. “First impressions mean a lot to price support.”
Prolonging economic age
To a professional appraiser, diligent maintenance doesn’t translate into higher property valuations the way that improvements, upgrades, and appreciation all increase a home’s worth. But good regular home maintenance does affect an appraiser’s estimate of a property’s economic age—the number of years that a house is expected to survive.
Economic age is a key factor in helping appraisers determine depreciation—the rate at which a house is losing value. A well-maintained house with a long, healthy economic age depreciates at a much slower rate than a poorly maintained house, helping to preserve value.
Estimating the value of maintenance
Although professional appraisers don’t assign a positive value to regular home maintenance, there are indications that maintenance is not just about preventing little problems from becoming larger. A study by researchers at the University of Connecticut and Syracuse University suggests that maintenance actually increases the value of a house by about 1% each year, meaning that getting off the couch and heading outside with a caulking gun is more than simply a chore—it actually makes money.
“It’s like going to the gym,” says Dr. John P. Harding, Professor of Finance & Real Estate at UConn’s School of Business and an author of the study. “You have to put in the effort to see the results. In that respect, people and houses are somewhat similar—the older (they are), the more work is needed.”
Harding notes that the 1% gain in valuation usually is offset by the ongoing cost of maintenance. “Simply put,” he says, “maintenance costs money, so it’s probably best to say that the net effect of regular home maintenance is to slow the rate of depreciation.”
How much does maintenance cost?
How much money is required for annual maintenance varies. Some years, routine tasks, such as cleaning gutters and changing furnace filters, are all that’s needed, and your total expenditures may be a few hundred dollars. Other years may include major replacements, such as a new roof, at a cost of $10,000 or more.
Over time, annual maintenance costs average more than $3,300, according to data from the U.S. Census. Various lending institutions, such as Directors Credit Union and LendingTree.com, agree, placing maintenance costs at 1% to 3% of initial house price. That means owners of a $200,000 house should plan to budget $2,000 to $6,000 per year for ongoing upkeep and replacements.
Proactive maintenance strategies
Knowing these average costs can help homeowners be prepared, says Melanie McLane, a professional appraiser and real estate agent in Williamsport, Pa. “It’s called reserve for replacements,” says McLane. “Commercial real estate investors use it to make sure they have enough cash on hand for replacing systems and materials.”
McLane suggests a similar strategy for homeowners, setting aside a cash reserve that’s used strictly for home repair and maintenance. That way, routine upkeep is a snap and any significant replacements won’t blindside the family budget. McLane’s other strategies include:
Play offense, not defense.
Proactive regular home maintenance is key to preventing small problems from becoming big issues. Take the initiative with regular inspections. Create and faithfully follow a maintenance schedule. If you’re unsure of what needs to be done, a $200 to $300 visit from a professional inspector can be invaluable in pointing out quick fixes and potential problems.
Plan a room-per-year redo.
“Pick a different room every year and go through it, fixing and improving as you go,” says McLane. “That helps keep maintenance fun and interesting.”
Keep track.
“Having a notebook of all your maintenance and upgrades, along with receipts, is a powerful tool when it comes to sell your home,” advises McLane. “It gets rid of any doubts for the buyer, and it says you are a meticulous, caring homeowner.” A maintenance record also proves repairs and replacements for systems, such as wiring and plumbing, which might not be readily apparent.
Source: Houselogic
How Will You Spend Your Tax Refund?
You may be one of the typical U.S. taxpayer who will receive roughly $3,000 in federal income tax refunds this year. This averages out to $250/month. So, what how do you plan to spend an extra $250 monthly? Or maybe you won’t be spending your refund.
Watch this video from NBC for some solid advice on what to do with you refund.
Whether you’ve already filed your annual taxes for 2011, filed an extension, or will squeak by on the deadline, you could probably be doing more with your taxes. The above video shares some tips. It’s four minutes of solid insight on tax refunds, tax withholdings, and reducing your household’s overall “bad debt”. There’s something for everyone.
Among the points covered in the tax refund piece:
- Consider changing your personal payroll exemptions so your 2012 refund is $0
- Remember that refunds are not “free money” — it’s your money. Spend wisely.
- Use your tax refund to fund retirement accounts
Advice is also shared about how to use your tax refund to fund a reserve account, or emergency fund. As a homeowner or home buyer, applying tax refunds to a savings accounts in this manner can go a long way. When you’re a homeowner, maintenance costs can be sudden and unexpected. A furnace can explode, for example; or, a roof could spring a leak. Having money set aside for crisis is essential.
Having a savings account will also improve your household’s long-term financial stability.
As a reminder, in most years, federal income tax is due April 15. However, with Tax Day falling on a Sunday and with the federal government closed for a holiday the following Monday, U.S. taxpayers in Arizona and nationwide get a reprieve until Tuesday, April 17, 2012.
Bank Of America Shortens Decision Times on Short Sale Offers
Beginning Saturday, April 14 Bank of America will be ready to approve short sales in 20 days.
Bank of America announced it’s making changes to its short-sale procedures that will shorten decision times on short sale offers to 20 days, down from 45 days or longer.
The move could spare delinquent homeowners from months of limbo while the bank considers offers from buyers. No longer will the buyer have to wait up to 6 months for the Bank to approve the deal.
The new task flow in Bank of America’s short-sale management platform, Equator, will enable short-sale specialists to conduct tasks like document collection, valuations and underwriting simultaneously.
Bank of America has been working with Equator, a real estate software company, to develop a program that allows short-sale negotiators to approve the process faster.
When the changes to Equator take effect Saturday, five documents will be required to process short-sales initiated with an offer:
• A purchase contract including buyer’s acknowledgment and disclosure.
• HUD-1.
• IRS Form 4506-T.
• Bank of America short-sale addendum.
• Bank of America third-party authorization form.
Offer documents and supporting documents for all short-sales submitted with an offer must be uploaded before Friday, April 13, or files may be declined.
Major lenders are looking to save millions on court costs, lawyer fees and property taxes by avoiding foreclosure. Short-Sales also speed the process of getting bad loans off bank books and gets the properties back on the market faster.
To further sweeten the deals, many lenders are waiving the deficiency on the mortgages, which would allow homeowners to sell the house for less than they owe without having to make up the difference to the bank.
Need Advice? Call the Short Sales Experts at the Vallee Gold Team: (520) 219-1024
